Document:

ex_135558.htm

Exhibit 10.12(a)

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

 

SERIES 2018-ONE INDENTURE SUPPLEMENT

 

Dated as of November 9, 2018

 

to

 

MASTER INDENTURE

 

Dated as of November 9, 2018

 

Series 2018-One Asset Backed Notes

 

$139,900,000 Class A Asset Backed Notes

 

$15,650,000 Class B Asset Backed Notes

 

$11,730,000 Class C Asset Backed Notes

 

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

SERIES 2018-One

 

 

among

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

Issuer

 

ACCESS FINANCING, LLC

 

Servicer

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

Indenture Trustee

 

on behalf of the Series 2018-One Noteholders

 

1

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

EXHIBITS

 

Exhibit A-1     Form of Class A Rule 144A Global Note

 

Exhibit A-2     Form of Class A Temporary Regulation S Global Note

 

Exhibit A-3     Form of Class A Permanent Regulation S Global Note

 

Exhibit B-1     Form of Class B Rule 144A Global Note

 

Exhibit B-2     Form of Class B Temporary Regulation S Global Note

 

Exhibit B-3     Form of Class B Permanent Regulation S Global Note

 

Exhibit C-1     Form of Class C Rule 144A Global Note

 

Exhibit D     Transferee Letter

 

Exhibit E*     Form of Monthly Servicer Statement

 

Exhibit F     Form of Non-U.S. Certificate

 

Exhibit G     Form of Regulation S Certificate

 

 

*Portions of this exhibit have been omitted pursuant to a request for confidential treatment

2

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

SERIES 2018-ONE INDENTURE SUPPLEMENT, dated as of November 9, 2018 (this “Supplement”), among FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST, a business trust organized and existing under the laws of the State of Nevada (the “Issuer”), ACCESS FINANCING, LLC, a Georgia limited liability company, as servicer (together with its successors and permitted assigns, the “Servicer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, but solely as Indenture Trustee (together with its successors in the trusts thereunder as provided in the Indenture, the “Indenture Trustee”) under the Master Indenture dated as of November 9, 2018 (the “Indenture”) among the Issuer, the Servicer and the Indenture Trustee.

 

Section 2.10 of the Indenture provides that the Issuer may pursuant to one or more Indenture Supplements direct the Indenture Trustee, on behalf of the Issuer, to issue one or more Series of Notes and to set forth the Principal Terms of such Series. 

 

Pursuant to this Supplement, the Issuer and the Indenture Trustee shall create a new Series of Notes and specify the Principal Terms thereof.

 

ARTICLE I     

Creation of the Series 2018-One Notes.

 

Section 1.01.     Designation.

 

(a)     There is hereby created and designated a Series of Notes to be issued pursuant to the Indenture and this Supplement to be known as the “Fortiva Retail Credit Master Note Business Trust, Series 2018-One Notes” or the “Series 2018-One Notes.” The Series 2018-One Notes shall be issued in three Classes, the first of which shall be known as the “Class A Series 2018-One Asset Backed Notes,” the second of which shall be known as the “Class B Series 2018-One Asset Backed Notes” and the third of which shall be known as the “Class C Series 2018-One Asset Backed Notes.” The Series 2018-One Notes shall be due and payable on the Stated Maturity Date.

 

(b)     In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture, the terms and provisions of this Supplement shall be controlling.

 

 

ARTICLE II

Definitions

 

Section 2.01.     Definitions.

 

(a)     All capitalized terms used but not otherwise defined herein are defined in the Indenture, the Transfer and Servicing Agreement or the Trust Agreement (including by way of reference to other documents). Each capitalized term defined herein shall relate only to the Series 2018-One Notes and no other Series of Notes issued by the Issuer. Whenever used in this Supplement, the following words and phrases shall have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and the masculine as well as the feminine and neuter genders of such terms.

 

“Adjusted Transferor Amount” shall mean on any date of determination, an amount equal to the difference between (a) the Transferor Amount minus (b) the Excess Concentration Amount as of such day.

 

“Administrative Redemption” shall mean a redemption of the Series 2018-One Notes as specified in subsection 7.01(a).

 

3

 

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“Allocation Amount” shall mean, as of any date, an amount equal to (a) the Initial Note Principal Balance, minus (b) the total amount of principal payments made on the Series 2018-One Notes prior to such date minus (c) the excess, if any, of (i) the total amount of Reduction Amounts for all Distribution Dates prior to such date and Reallocated Principal Collections that under subsections 4.06(b) and (c) were used prior to such date to fund the Class A Required Amount or the Class B Required Amount over (ii) such Reduction Amounts and Reallocated Principal Collections reimbursed pursuant to subsection 4.04(a)(vi)(A) prior to such date, provided that the Allocation Amount shall not be less than zero.

 

“Amended Partnership Audit Rules” mean Sections 6221-6241 of the Code, as amended by the Bipartisan Budget Act of 2015, P.L. 114-74.

 

“Available Finance Charge Collections” shall mean an amount equal to, with respect to any Monthly Period, the product of (i) the Floating Allocation Percentage for such Monthly Period and (ii) the Series 2018-One Allocable Finance Charge Collections for such Monthly Period.

 

Available Funds” shall mean, with respect to any Monthly Period, the sum of (a) Available Finance Charge Collections for such Monthly Period plus (b) the Spread Account Draw Amount for such Monthly Period.

 

“Available Principal Collections” shall mean an amount equal to, with respect to any Monthly Period, (i) the product of (a) the Fixed/Floating Allocation Percentage for such Monthly Period and (b) Series 2018-One Allocable Principal Collections minus (ii) the amounts with respect to such Monthly Period that pursuant to Section 4.06 are required to fund the Class A Required Amount, the Class B Required Amount or the Class C Required Amount for such Monthly Period plus (iii) any other amounts which pursuant to subsection 4.04(a) are to be treated as Available Principal Collections for such Monthly Period.

 

“Available Spread Account Amount” shall mean, with respect to any Distribution Date, the lesser of (a) the principal amount on deposit in the Spread Account on such date (before giving effect to any deposit to be made to the Spread Account on such date) and (b) the Required Spread Account Amount.

 

“Average Principal Receivables” shall mean, for any period, the sum of the Principal Receivables for each day in such period divided by the number of days in such period.

 

“Backup Servicer” shall mean the entity designated by the Servicer to be a backup servicer under the Transfer and Servicing Agreement pursuant to a notice provided to the Indenture Trustee.

 

“Backup Servicing Fee” shall mean the fee payable pursuant to a backup servicing agreement to be entered into by the Servicer, the Issuer, the Backup Servicer and the Indenture Trustee.

 

“Base Rate” shall mean, with respect to any Monthly Period, the annualized percentage equivalent of a fraction the numerator of which is the sum of (a) the Class A Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest for the related Distribution Date and (b) the Monthly Servicing Fee and the Monthly Backup Servicing Fee for the related Distribution Date, and the denominator of which is the product of the Series 2018-One Allocation Percentage and the aggregate amount of Principal Receivables as of the last day of the prior Monthly Period.

 

4

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Capped Program Expenses” shall mean, for any Distribution Date, the sum of an amount not to exceed $100,000 per year beginning on the Closing Date and ending on each anniversary thereof, equal to the Program Expenses owed to the Owner Trustee plus an amount not to exceed $100,000 per year beginning on the Closing Date and ending on each anniversary thereof, equal to the Program Expenses owed to the Indenture Trustee.

 

“Charge-Off Rate” shall mean, with respect to any Monthly Period, the annualized percentage equivalent of a fraction (a) the numerator of which is the aggregate outstanding principal balance of all Receivables that became Defaulted Receivables during such Monthly Period net of Recoveries and (b)  the denominator of which is the aggregate amount of Principal Receivables as of the last day of the prior Monthly Period.

 

“Charge-Off Ratio” shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction (a) the numerator of which is the aggregate outstanding principal balance of all Receivables that became Defaulted Receivables during such Monthly Period net of Recoveries and (b)  the denominator of which is the aggregate amount of Principal Receivables as of the last day of the prior Monthly Period.

 

“Class A Additional Interest” shall have the meaning specified in subsection 4.02(a).

 

“Class A Global Note” shall mean, individually and collectively, a Class A Note in the form of a Temporary Regulation S Global Note, a Permanent Regulation S Global Note or a Rule 144A Global Note.

 

“Class A Initial Note Principal Balance” shall mean $139,900,000.00.

 

“Class A Interest Shortfall” shall have the meaning specified in subsection 4.02(a).

 

“Class A Monthly Interest” shall have the meaning specified in subsection 4.02(a).

 

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

 

“Class A Note Interest Rate” shall mean, for any Interest Period for the Class A Notes, a per annum rate of [*****]%.

 

“Class A Note Principal Balance” shall mean, on any date, the Class A Initial Note Principal Balance, minus the total amount of principal payments made on the Class A Notes on or prior to such date.

 

“Class A Notes” shall mean any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1, A-2 or A-3.

 

“Class A Required Amount” shall have the meaning specified in subsection 4.03(a).

 

“Class B Additional Interest” shall have the meaning specified in subsection 4.02(b).

 

“Class B Global Note” shall mean, individually and collectively, a Class B Note in the form of a Temporary Regulation S Global Note, a Permanent Regulation S Global Note or a Rule 144A Global Note.

 

5

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Class B Initial Note Principal Balance” shall mean $ 15,650,000.00.

 

“Class B Interest Shortfall” shall have the meaning specified in subsection 4.02(b).

 

“Class B Monthly Interest” shall have the meaning specified in subsection 4.02(b).

 

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

 

“Class B Note Interest Rate” shall mean, for any Interest Period for the Class B Notes, a per annum rate of [*****]%.

 

“Class B Note Principal Balance” shall mean, on any date, the Class B Initial Note Principal Balance, minus the total amount of principal payments made on the Class B Notes on or prior to such date.

 

“Class B Notes” shall mean any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit B-1, B-2, or B-3.

 

“Class B Required Amount” shall have the meaning specified in subsection 4.03(b).

 

“Class C Additional Interest” shall have the meaning specified in subsection 4.02(c).

 

“Class C Global Note” shall mean a Rule 144A Global Note.

 

“Class C Initial Note Principal Balance” shall mean $11,730,000.00.

 

“Class C Interest Shortfall” shall have the meaning specified in subsection 4.02(c).

 

“Class C Monthly Interest” shall have the meaning specified in subsection 4.02(c).

 

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

 

“Class C Note Interest Rate” shall mean, for any Interest Period for the Class C Notes, a per annum rate of [*****]%.

 

“Class C Note Principal Balance” shall mean, on any date, the Class C Initial Note Principal Balance, minus the total amount of principal payments made on the Class C Notes on or prior to such date.

 

“Class C Notes” shall mean any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit C-1, C-2 or C-3.

 

6

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Class C Required Amount” shall have the meaning specified in subsection 4.03(c).

 

“Closing Date” shall mean November 9, 2018.

 

“Controlled Redemption Payment Amount” shall mean, for any Distribution Date during the Controlled Redemption Period, an amount equal to the Controlled Redemption Target Amount for such Distribution Date plus any Controlled Redemption Target Amount previously owed but not distributed on a prior Distribution Date.

 

“Controlled Redemption Period” shall mean the period commencing on the close of business on October 1, 2020.

 

“Controlled Redemption Target Amount” shall mean, for any Distribution Date during the Controlled Redemption Period, an amount equal to one-eighteenth of the sum of the Class A Initial Note Principal Balance, the Class B Initial Note Principal Balance and the Class C Initial Note Principal Balance.

 

“Determination Date” shall mean the third Business Day preceding each Distribution Date.

 

“Distribution Compliance Period” shall mean, for each of the Class A Notes, the Class B Notes and the Class C Notes, the period from the Closing Date through and including the 40th day after the later of (a) the commencement of the offering of the Class A Notes and the Class B Notes, respectively, to Persons other than distributors in reliance upon Regulation S and (b) the Closing Date.

 

“Distribution Date” shall mean the fifteenth day of each calendar month, or if such fifteenth day is not a Business Day, the next succeeding Business Day; provided, that the first Distribution Date for 2018-One shall be December 17, 2018.

 

“DWAC” shall mean the DTC Deposit and Withdrawal at Custodian system.

 

“Early Redemption Event” shall mean any Early Redemption Event specified in Section 5.01 of the Indenture and any Early Redemption Event specified in Section 6.01 hereof.

 

“Early Redemption Period” shall mean the period commencing at the close of business on the Business Day immediately preceding the day on which an Early Redemption Event with respect to Series 2018-One is deemed to have occurred, and ending on the first to occur of (a) the payment in full of the Note Principal Balance or (b) the Stated Maturity Date.

 

“Excess Concentration Amount” shall have the meaning specified in subsection 10.06(a).

 

“Excess Spread Percentage” shall mean, with respect to any Monthly Period, the Gross Yield minus the Base Rate minus the Charge-Off Rate, in each case for such Monthly Period.

 

“FATCA” shall mean Sections 1471 through 1474 of the Code, as in effect on the date hereof (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations thereunder or official governmental interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

7

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

“Fixed/Floating Allocation Percentage” shall mean, with respect to any day during a Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is (a) during the Revolving Period, the Series Adjusted Allocation Amount for Series 2018-One (or, in the case of the first Monthly Period, the Initial Note Principal Balance) plus the Series Adjusted Subordinated Transferor Amount, in each case as of the last day of the immediately preceding Monthly Period and (b) during the Redemption Period, the Series Adjusted Allocation Amount for Series 2018-One plus the Series Adjusted Subordinated Transferor Amount in each case as of the close of business on the date on which the Revolving Period shall have been terminated or been suspended, as the case may be, and the denominator of which is the product of (x) the greater of (A) the sum of (i) the total amount of Principal Receivables as of the last day of the immediately preceding Monthly Period (or with respect to the first Monthly Period, the total amount of Principal Receivables as of the Closing Date), (ii) the Special Funding Amount as of such last day (or with respect to the first Monthly Period, the Closing Date), and (iii) the amount of Collections of Principal Receivables on deposit in the Collection Account as of such last day (or with respect to the first Monthly Period, as of the Closing Date) and (B) the sum of the numerators used to determine the series allocation percentages with respect to Collections of Principal Receivables for all Series of Notes Outstanding on the date of determination, and (y) the Series 2018-One Allocation Percentage as of the last day of the immediately preceding Monthly Period; provided, however, that with respect to any Monthly Period in which one or more Reset Dates occurs, the Fixed/Floating Allocation Percentage shall be recalculated as provided above but as of such Reset Date for the period from and including such Reset Date to but excluding the earlier of the next such Reset Date, if any, and the last day of such Monthly Period; provided further, that the numerator in clause (b) above shall continue to be the Series Adjusted Allocation Amount for Series 2018-One plus the Series Adjusted Subordinated Transferor Amount in each case as of the close of business on the date on which the Revolving Period shall have terminated unless the Series 2018-One Notes are paid in full on such date.

 

“Floating Allocation Percentage” shall mean, with respect to any day during a Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Allocation Amount (or in the case of the first Monthly Period, the Initial Note Principal Balance) plus, with respect to the allocation of Collections of Finance Charge Receivables only, the Series Adjusted Subordinated Transferor Amount, in each case as of the last day of the immediately preceding Monthly Period and the denominator of which is the product of (x) the Series 2018-One Allocation Percentage with respect to such Monthly Period and (y) the greater of (A) the sum of (i) the total amount of Principal Receivables as of such day (or with respect to the first Monthly Period, the total amount of Principal Receivables on the Closing Date), (ii) the Special Funding Amount as of such last day (or with respect to the first Monthly Period, the Closing Date) and (iii) the amount of Collections of Principal Receivables on deposit in the Collection Account as of such last day (or with respect to the first Monthly Period, as of the Closing Date) and (B) the sum of the numerators used to determine the series allocation percentages with respect to Collections of Finance Charge Receivables for all Series of Notes Outstanding on the date of determination; provided, however, that with respect to any Monthly Period in which one or more Reset Dates occurs, the Floating Allocation Percentage shall be recalculated as provided above but as of such Reset Date, for the period from and after the date on which any such Reset Date occurs to but excluding the date, if any, that another such Reset Date occurs or, if no other Reset Date occurs during such Monthly Period, to and including the last day of such Monthly Period, as applicable.

 

“Gross Yield” shall mean, with respect to any Monthly Period, the annualized percentage equivalent of a fraction the numerator of which is the Collections of Finance Charge Collections for such Monthly Period and the denominator of which is the aggregate amount of Principal Receivables as of the last day of the prior Monthly Period.

 

“Indenture Trustee Fee” shall mean an annual fee payable to the Indenture Trustee in the amount of $15,000.

 

“Initial Note Principal Balance” shall mean $167,280,000.00.

 

“Interest Period” shall mean, with respect to any Distribution Date, the period from and including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) to but excluding such Distribution Date.

 

“Measurement Date” shall mean, for each Monthly Period, the Determination Date for such Monthly Period.

 

“Monthly Backup Servicing Fee” shall have the meaning specified in subsection 3.01(b).

 

“Monthly Interest” shall mean, with respect to any Distribution Date, the sum of the Class A Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest for such Distribution Date.

 

8

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Monthly Servicer Statement” shall have the meaning specified in subsection 5.02(a)(i).

 

“Monthly Servicing Fee” shall have the meaning specified in subsection 3.01(a).

 

“Non-U.S. Certificate” shall have the meaning specified in subsection 9.05(b).

 

“Note Principal Balance” shall mean, for any date of determination, the sum of the Class A Note Principal Balance, the Class B Note Principal Balance and the Class C Note Principal Balance.

 

“Noteholder FATCA Information” shall have the meaning specified in Section 9.03.

 

“Noteholder Tax Identification Information” shall have the meaning specified in Section 9.03.

 

“Optional Redemption” shall have the meaning specified in subsection 4.09(a).

 

“Optional Redemption Date” shall have the meaning specified in subsection 4.09(a).

 

“Optional Redemption Notice” shall have the meaning specified in subsection 4.09(a).

 

“Owner Trustee Fee” shall mean an annual fee payable to the Owner Trustee in the amount of $5,500.

 

“Payment Date” shall mean, with respect to Series 2018-One, a Distribution Date.

 

“Permanent Regulation S Global Note” shall mean a permanent Regulation S Class A global note and a permanent Regulation S Class B global note in the form of Exhibit A-3, Exhibit A-2C and Exhibit B-3, respectively.

 

“Principal Payment Rate” shall mean, with respect to any Monthly Period, the percentage equivalent of a fraction the numerator of which is the Collections of Principal Receivables for such Monthly Period and the denominator of which is the aggregate amount of Principal Receivables as of the last day of the prior Monthly Period.

 

“Program Expenses” shall mean an amount equal to one-twelfth the product of (i) the Floating Allocation Percentage, (ii) the Series 2018-One Allocation Percentage and (iii) indemnification amounts owed to the Indenture Trustee and the Owner Trustee pursuant to the Transaction Documents.

 

“Program Fees” shall mean, with respect to each Distribution Date occurring in December commencing with the December 2018 Distribution Date, an amount equal to the Indenture Trustee Fee and the Owner Trustee Fee.

 

“QIBs” shall mean qualified institutional buyers as defined in Rule 144A.

 

9

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Rating Agency” shall mean KBRA.

 

“Rating Agency Condition” shall mean, with respect to any action, that the Rating Agency shall have confirmed in writing to the Transferor, the Servicer, the Owner Trustee and the Indenture Trustee that such action will not result in a reduction or withdrawal of its then existing rating on any outstanding Class A Notes, Class B Notes or Class C Notes.

 

“Reallocated Principal Collections” shall mean, with respect to any Distribution Date, an amount equal to the lesser of (I) the product of (a) the Series 2018-One Allocable Principal Collections deposited in the Collection Account for the related Monthly Period, (b) the Fixed/Floating Allocation Percentage for the related Monthly Period and (c) 15.5%, and (II) the greater of (x) the sum of the Class B Note Principal Balance and the Class C Note Principal Balance (prior to any distributions on such Distribution Date), minus the excess, if any, of the total amount of Reduction Amounts for all prior Distribution Dates and the Reallocated Principal Collections that under subsections 4.06(b) and (c) were used to fund the Class A Required Amount or the Class B Required Amount on all prior Distribution Dates over such Reduction Amounts and Reallocated Principal Collections reimbursed pursuant to subsection 4.04(a)(vi)(A) prior to such date and (y) zero.

 

Redemption Amount” shall mean, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of (i) the Class A Note Principal Balance plus the Class B Note Principal Balance plus the Class C Note Principal Balance plus (ii) Series 2018-One Monthly Fees for such Distribution Date.

 

“Redemption Period” shall mean, with respect to Series 2018-One, the Controlled Redemption Period or an Early Redemption Period.

 

“Reduction Amount” shall have the meaning specified in Section 4.05.

 

“Regulation S” shall mean Regulation S promulgated under the Securities Act.

 

“Regulation S Certificate” shall have the meaning specified in subsection 9.01(c).

 

“Regulation S Global Notes” shall mean the Temporary Regulation S Global Notes and the Permanent Regulation S Global Notes.

 

“Release Date” shall have the meaning specified in subsection 9.01(c).

 

“Required Spread Account Amount” shall mean, for any Monthly Period, an amount equal to the product of (i) the Required Spread Account Percentage in effect on such date (ii) the Series 2018-One Allocation Percentage and (iii) (a) during the Revolving Period, the aggregate amount of Principal Receivables at the commencement of such Monthly Period and (b) otherwise, the aggregate amount of Principal Receivables on the last day of the Revolving Period.

 

“Required Spread Account Percentage” shall mean, as of any date of determination, if the most recent Three-Month Excess Spread Percentage (calculated as of the Determination Date immediately preceding such date, unless such date is a Determination Date, in which case calculated as of such Determination Date) is greater than or equal to the percentage set forth in the left-hand column of the table below, and less than the percentage set forth in the middle column of the table below, an amount equal to the percentage set forth next to such percentages in the right-hand column of the table below:

 

	
			Three-Month

			Excess Spread Percentage

				 
	
			

			Greater Than

			Or Equal To

				
			

			Less

			Than

				
			Required

			Spread Account

			Percentage

			
	
			[*****]

				 	
			[*****]

			
	
			[*****]

				
			[*****]

				
			[*****]

			
	
			[*****]

				
			[*****]

				
			[*****]

			
	 	
			[*****]

				
			[*****]

			

 

 

 

10

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

“Required Subordinate Transferor Percentage” shall mean, with respect to any day during a Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Series Adjusted Subordinated Transferor Amount as of the last day of the preceding Monthly Period (or in the case of the first Monthly Period, the Series Adjusted Subordinated Transferor Amount as of the Closing Date) and the denominator of which is the product of (x) the Series 2018-One Allocation Percentage with respect to such Monthly Period and (y) the greater of (A) the sum of (i) the total amount of Principal Receivables as of such day (or with respect to the first Monthly Period, the total amount of Principal Receivables on the Closing Date), (ii) the Special Funding Amount as of such last day (or with respect to the first Monthly Period, the Closing Date) and (iii) the amount of Collections of Principal Receivables on deposit in the Collection Account as of such last day (or with respect to the first Monthly Period, as of the Closing Date) and (B) the sum of the numerators used to determine the series allocation percentages with respect to Collections of Principal Receivables for all Series of Notes Outstanding; provided, however, that with respect to any Monthly Period in which one or more Reset Dates occurs, the Required Subordinate Transferor Percentage shall be recalculated as provided above but as of such Reset Date, for the period from and after the date on which any such Reset Date occurs to but excluding the date, if any, that another such Reset Date occurs or, if no other Reset Date occurs during such Monthly Period, to and including the last day of such Monthly Period, as applicable.

 

“Reset Date” shall mean each of (a) an Addition Cut-Off Date, (b) the date of any increase or decrease (other than regularly scheduled redemptions or early redemptions but including any optional redemption or limited redemption in the principal balance of the Notes of any Series) in the note principal balance or allocation amount for another variable funding Series and (c) any date on which a new Series is issued.

 

“Revolving Period” shall mean the period beginning at the close of business on the Closing Date and ending on the earlier of (a) the close of business on the day immediately preceding the day the Controlled Redemption Period commences and (b) the close of business on the day immediately preceding the day the Early Redemption Period commences.

 

“Rule 144A” shall mean Rule 144A promulgated under the Securities Act.

 

“Rule 144A Global Note” shall mean a Rule 144A Class A, Class B or Class C global note in the Form of Exhibit A-1, B-1 or C-1.

 

“Scheduled Final Payment Date” shall mean the April 2022 Distribution Date.

 

“Series 2018-One” shall mean the Series of Notes the terms of which are specified in this Supplement.

 

“Series 2018-One Allocable Defaulted Amount” shall mean the Series Allocable Defaulted Amount with respect to Series 2018-One.

 

“Series 2018-One Allocable Finance Charge Collections” shall mean the Series Allocable Finance Charge Collections with respect to Series 2018-One.

 

“Series 2018-One Allocable Principal Collections” shall mean the Series Allocable Principal Collections with respect to Series 2018-One.

 

“Series 2018-One Allocation Percentage” shall mean the Series Allocation Percentage with respect to Series 2018-One.

 

“Series 2018-One Distribution Account” shall have the meaning set forth in subsection 4.07(a).

 

“Series 2018-One Monthly Fees” shall mean, with respect to any Distribution Date, the amounts determined pursuant to subsection 4.04(a)(i) and subsection 4.04(a)(ix)

 

“Series 2018-One Monthly Interest” shall mean the amounts determined pursuant to subsections 4.02(a) through (c).

 

“Series 2018-One Note” shall mean a Class A Note, a Class B Note or a Class C Note.

 

“Series 2018-One Noteholder” shall mean a Class A Noteholder, a Class B Noteholder or a Class C Noteholder.

 

“Series Adjusted Allocation Amount” shall have the meaning specified in the Transfer and Servicing Agreement.

 

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“Series Adjusted Subordinated Transferor Amount” shall mean, as of any date, an amount equal to the lesser of (I) (x) the Series Required Transferor Amount minus (y) the excess, if any, of the total amount of Transferor Reduction Amounts for all prior Distribution Dates and the amounts that under subsection 4.06(a) were used to fund the Class A Required Amount, the Class B Required Amount or the Class C Required Amount on all prior Distribution Dates over amounts reimbursed pursuant to subsection 4.04(a)(vi)(B) prior to such date and (II) the product of the Adjusted Transferor Amount and the Series 2018-One Allocation Percentage as of the last day of the prior Monthly Period.

 

“Series Allocation Amount” shall mean, for Series 2018-One, the Initial Note Principal Balance minus the total amount of any payments of principal paid on the Series 2018-One Notes at any time other than during an Early Redemption Period.

 

“Series Allocation Percentage” shall have the meaning specified in the Transfer and Servicing Agreement.

 

“Series Default Amount” shall mean, with respect to any Monthly Period, an amount equal to the product of (a) the Series 2018-One Allocable Defaulted Amount for the related Monthly Period and (b) the Floating Allocation Percentage for such Monthly Period.

 

“Series Required Transferor Amount” shall mean, with respect to any date of determination, an amount equal to (a)(i) the sum of the Class A Note Principal Balance plus the Class B Note Principal Balance plus the Class C Note Principal Note Balance divided by (ii) 95.0% minus (b) the sum of the Class A Note Principal Balance plus the Class B Note Principal Balance plus the Class C Note Principal Note Balance

 

“Servicing Fee Rate” shall mean [*****]% per annum

 

“Special Payment Date” shall mean each Distribution Date with respect to any Redemption Period.

 

“Spread Account” shall have the meaning specified in subsection 4.08(a).

 

“Spread Account Draw Amount” shall have the meaning specified in subsection 4.08(c).

 

“Spread Account Surplus” shall mean, as of any date of determination, the amount, if any, by which the amount on deposit in the Spread Account exceeds the Required Spread Account Amount.

 

“Stated Maturity Date” shall mean the November 2023 Distribution Date.

 

“Transferee Letter” shall have the meaning specified in Section 9.04.

 

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“Temporary Regulation S Global Note” shall mean a temporary Regulation S Class A global note and a temporary Regulation S Class B global note in the form of Exhibit A-2 and Exhibit B-2, respectively.

 

“Three-Month Charge-Off Ratio” shall mean, for any Monthly Period on and after the third full Monthly Period after the Closing Date, the average of the Charge-Off Ratios for such Monthly Period and the two immediately preceding Monthly Periods.

 

“Three-Month Excess Spread Percentage” shall mean, for any Monthly Period on and after the third full Monthly Period after the Closing Date, the average of the Excess Spread Percentages for such Monthly Period and the two immediately preceding Monthly Periods.

 

“Three-Month Principal Payment Rate” shall mean, for any Monthly Period on and after the third full Monthly Period after the Closing Date, the average of the Principal Payment Rate for such Monthly Period and the two immediately preceding Monthly Periods.

 

“Transferor Available Principal Collections” shall mean, with respect to any Distribution Date, an amount equal to the lesser of (i) the product of (A) the Series 2018-One Allocable Principal Collections deposited in the Collection Account for the related Monthly Period, (B) Fixed/Floating Allocation Percentage for the related Monthly Period and (C) the Required Subordinate Transferor Percentage, and (ii) the greater of (A) the Series Adjusted Subordinated Transferor Amount and (B) zero.

 

“Transferor Percentage” shall mean 100% minus (a) the Floating Allocation Percentage, when used as of any date with respect to Defaulted Receivables or with respect to Collections of Finance Charge Receivables or (b) the Fixed/Floating Allocation Percentage, when used as of any date with respect to Collections of Principal Receivables.

 

“Transferor Reduction Amounts” shall have the meaning specified in Section 4.05.

 

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

 

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ARTICLE III

Fees 

 

Section 3.01.     Servicing Compensation; Backup Servicing Fee.

 

(a)     Servicing Fee. The share of the Servicing Fee allocable to the Series 2018-One Noteholders with respect to any Distribution Date (the “Monthly Servicing Fee”) shall mean an amount equal to one-twelfth of the product of (1) the Floating Allocation Percentage, (2) the Series 2018-One Allocation Percentage, (3) the Servicing Fee Rate and (4) the Average Principal Receivables for such Monthly Period; provided, however, in the case of the first Distribution Date the Servicing Fee allocable to the Series 2018-One Noteholders shall include an amount pro-rated for the period from the Closing Date. The remainder of the Servicing Fee, if any, shall be paid by the Issuer or the holders of the Transferor Certificate and the Noteholders of other Series (as provided in the Transfer and Servicing Agreement and the related Supplements) and in no event shall the Indenture Trustee or the Series 2018-One Noteholders be liable for the share of the Servicing Fee to be paid by the Issuer or the holders of the Transferor Certificate or the Noteholders of any other Series.

 

(b)     Backup Servicing Fee. The share of the Backup Servicing Fee allocable to the Series 2018-One Noteholders with respect to any Distribution Date (the “Monthly Backup Servicing Fee”) shall equal $[*****]. The remainder of the Backup Servicing Fee, if any, shall be paid by the Issuer or the holders of the Transferor Certificate and the Noteholders of other Series (as provided in the Transfer and Servicing Agreement and the related Supplements) and in no event shall the Indenture Trustee or the Series 2018-One Noteholders be liable for the share of the Backup Servicing Fee to be paid by the Issuer or the holders of the Transferor Certificate or the Noteholders of any other Series.

 

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ARTICLE IV

Rights of Series 2018-One Noteholders and

Allocation and Application of Collections

 

Section 4.01.     Collections and Allocations.

 

(a)     Allocations. Collections of Finance Charge Receivables and Principal Receivables and Defaulted Receivables allocated to Series 2018-One pursuant to Section 4.01 of the Transfer and Servicing Agreement shall be allocated and distributed as set forth in this Article.

 

(b)         Allocations of Collections to the Issuer. The Servicer shall on any Business Day requested by the Issuer, withdraw from the Collection Account and pay to the Issuer for application as provided in the Trust Agreement the following amounts:

 

(i)     an amount equal to the Transferor Percentage for the related Monthly Period of Series 2018-One Allocable Finance Charge Collections deposited in the Collection Account but only if the Adjusted Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) is greater than the Required Transferor Amount and otherwise shall be deposited in the Special Funding Account; and

 

(ii)     an amount equal to the Transferor Percentage for the related Monthly Period of Series 2018-One Allocable Principal Collections deposited in the Collection Account but only if the Adjusted Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) is greater than the Required Transferor Amount and otherwise shall be deposited in the Special Funding Account.

 

The withdrawals to be made from the Collection Account pursuant to this subsection 4.01(b) do not apply to deposits into the Collection Account that do not represent Collections, including payment for the reassignment of the Receivables pursuant to Section 2.04(c) or Section 2.05 of the Transfer and Servicing Agreement, payment of the purchase price for the Series 2018-One Notes pursuant to Section 8.01 of the Transfer and Servicing Agreement, payment of the Redemption Amount for the Series 2018-One Notes pursuant to Section 7.01 or Section 8.01 of this Supplement and proceeds from the sale, disposition or liquidation of Receivables pursuant to Section 5.05 of the Indenture.

 

(c)     Allocations of Collections to the Series 2018-One Noteholders.

 

(i) Allocations of Finance Charge Receivables. The Servicer shall, prior to the close of business on any Deposit Date, allocate to Series 2018-One and retain in the Collection Account for application as provided herein an amount equal to the product of (A) the Floating Allocation Percentage, (B) the Series 2018-One Allocation Percentage, and (C) the aggregate amount of Collections of Finance Charge Receivables received by the Servicer and deposited to the Collection Account with respect to such Deposit Date provided, however, that after the date on which an amount of collections of Finance Charge Receivables equal to the sum of (y) the sum of the amounts specified in subsections 4.04(a)(i) through (iv) plus (z) the product of 1.5 times the Series Default Amount for the prior Monthly Period has been deposited into the Collection Account and allocated to the Series 2018-One Noteholders, the balance of any such allocated amount may be withdrawn from the Collection Account and paid to the Issuer for application pursuant to the Trust Agreement solely in order to purchase new Receivables but only if (i) the Adjusted Transferor Amount is greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) and (ii) the Required Spread Account Amount is zero and otherwise shall be deposited in the Special Funding Account.

 

(ii) Allocations of Principal Receivables. The Servicer shall allocate to Series 2018-One the following amounts as set forth below:

 

(x)     Allocations During the Revolving Period. With respect to any Deposit Date during the Revolving Period, an amount equal to the product of (I) the Fixed/Floating Allocation Percentage, (II) the Series 2018-One Allocation Percentage and (III) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account with respect to such Deposit Date shall be allocated to the Series 2018-One Noteholders and retained in the Collection Account until applied as provided herein; provided, however, that any such amount may be withdrawn from the Collection Account and paid to the Issuer for application pursuant to the Trust Agreement, but only if the Adjusted Transferor Amount on such Deposit Date is greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) and otherwise shall be deposited in the Special Funding Account.

 

(y)     Allocations During the Controlled Redemption Period. During the Controlled Redemption Period, an amount equal to the product of (I) the Fixed/Floating Allocation Percentage and (II) the Series 2018-One Allocation Percentage and (III) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date (such product for any such date, a “Percentage Allocation”) shall be allocated to the Series 2018-One Noteholders and retained in the Collection Account until applied as provided herein; provided, however, that if (i) the sum of such Percentage Allocation and all preceding Percentage Allocations for the same Monthly Period exceeds the Controlled Redemption Payment Amount for the related Distribution Date and (ii) the Required Spread Account Amount is zero, then such excess shall not be treated as a Percentage Allocation and shall be paid to the Issuer for application pursuant to the Trust Agreement, but only if the Adjusted Transferor Amount on such Deposit Date is greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) and otherwise shall be deposited in the Special Funding Account.

 

(z)     Allocations During the Early Redemption Period. With respect to any Deposit Date during a Redemption Period, an amount equal to the product of (I) the Fixed/Floating Allocation Percentage and (II) the Series 2018-One Allocation Percentage and (III) the aggregate amount of Collections of Principal Receivables deposited to the Collection Account with respect to such Deposit Date shall be allocated to the Series 2018-One Noteholders and retained in the Collection Account until applied as provided herein; provided, however, that after the date on which an amount of such Collections equal to the Note Principal Balance has been deposited into the Collection Account and allocated to the Series 2018-One Noteholders, any amounts in excess of such amounts shall be paid to the Issuer for application pursuant to the Trust Agreement, but only if the Adjusted Transferor Amount on such date is greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Issuer on such day) and otherwise shall be deposited in the Special Funding Account.

 

Section 4.02.     Determination of Monthly Interest.

 

(a)     The amount of monthly interest (“Class A Monthly Interest”) distributable from the Collection Account with respect to the Class A Notes on any Distribution Date shall be an amount

equal to the product of (i) (A) 30/360, times (B) the Class A Note Interest Rate with respect to the immediately preceding Interest Period and (ii) the Class A Note Principal Balance as of the close of business on the last day of the immediately preceding Monthly Period; provided, however, with respect to the December 2018 Distribution Date, the Class A Monthly Interest shall be $775,046.00.

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On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the “Class A Interest Shortfall”), of (x) the Class A Monthly Interest for such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class A Interest Shortfall is fully paid, an additional amount (“Class A Additional Interest”) equal to the product of (i) (A) 30/360, times (B) the Class A Note Interest Rate and (ii) such Class A Interest Shortfall (or the portion thereof which has not been paid on the Class A Notes) shall be payable as provided herein with respect to the Class A Notes. Notwithstanding anything to the contrary herein, Class A Additional Interest shall be payable or distributed on the Class A Notes only to the extent permitted by applicable law.

 

(b)     The amount of monthly interest (“Class B Monthly Interest”) distributable from the Collection Account with respect to the Class B Notes on any Distribution Date shall be an amount

equal to the product of (i) (A) 30/360, times (B) the Class B Note Interest Rate with respect to the immediately preceding Interest Period and (ii) the Class B Note Principal Balance as of the close of business on the last day of the immediately preceding Monthly Period; provided, however, with respect to the December 2018 Distribution Date, the Class B Monthly Interest shall be $98,125.50.

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class B Interest Shortfall is fully paid, an additional amount (“Class B Additional Interest”) equal to the product of (i) (A) 30/360, times (B) the Class B Note Interest Rate and (ii) such Class B Interest Shortfall (or the portion thereof which has not been paid on the Class B Notes) shall be payable as provided herein with respect to the Class B Notes. Notwithstanding anything to the contrary herein, Class B Additional Interest shall be payable or distributed on the Class B Notes only to the extent permitted by applicable law.

 

(c)     The amount of monthly interest (“Class C Monthly Interest”) distributable from the Collection Account with respect to the Class C Notes on any Distribution Date shall be an amount

equal to the product of (i) (A) 30/360, times (B) the Class C Note Interest Rate with respect to the immediately preceding Interest Period and (ii) the Class C Note Principal Balance as of the close of business on the last day of the immediately preceding Monthly Period; provided, however, with respect to the December 2018 Distribution Date, the Class C Monthly Interest shall be $90,672.90.

 

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the “Class C Interest Shortfall”), of (x) the Class C Monthly Interest for such Distribution Date over (y) the aggregate amount of funds allocated and available to pay such Class C Monthly Interest on such Distribution Date. If the Class C Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class C Interest Shortfall is fully paid, an additional amount (“Class C Additional Interest”) equal to the product of (i) (A) 30/360, times (B) the Class C Note Interest Rate and (ii) such Class C Interest Shortfall (or the portion thereof which has not been paid on the Class C Notes) shall be payable as provided herein with respect to the Class C Notes. Notwithstanding anything to the contrary herein, Class C Additional Interest shall be payable or distributed on the Class C Notes only to the extent permitted by applicable law.

 

Section 4.03.     Required Amounts.

 

(a)     With respect to each Distribution Date, on the related Determination Date, the Servicer shall determine the amount (the “Class A Required Amount”), if any, by which (x) the amount required pursuant to subsections 4.04(a)(i) and 4.04(a)(ii) for such Distribution Date exceeds (y) the Available Funds for such Distribution Date available to fund such amount. In the event that the Class A Required Amount for such Distribution Date is greater than zero, the Servicer shall give written notice to the Indenture Trustee of such Class A Required Amount on the date of computation.

 

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(b)     With respect to each Distribution Date, on the related Determination Date, the Servicer shall determine the amount (the “Class B Required Amount”), if any, by which (x) the amount required pursuant to subsection 4.04(a)(iii) for such Distribution Date exceeds (y) the balance of Available Funds in each case for such Distribution Date available to fund such amount after application of the amounts required pursuant to subsections 4.04(a)(i) and 4.04(a)(ii). In the event that the Class B Required Amount for such Distribution Date is greater than zero, the Servicer shall give written notice to the Indenture Trustee of such Class B Required Amount on the date of computation.

 

(c)     With respect to each Distribution Date, on the related Determination Date, the Servicer shall determine the amount (the “Class C Required Amount”), if any, by which (x) the amount required pursuant to subsection 4.04(a)(iv) for such Distribution Date exceeds (y) the balance of Available Funds in each case for such Distribution Date available to fund such amount after application of the amounts required pursuant to subsections 4.04(a)(i) through 4.04(a)(iii). In the event that the Class C Required Amount for such Distribution Date is greater than zero, the Servicer shall give written notice to the Indenture Trustee of such Class C Required Amount on the date of computation.

 

Section 4.04.     Application of Available Funds and Available Principal Collections. The Servicer shall cause the Indenture Trustee to apply by written instruction to the Indenture Trustee pursuant to the Monthly Servicer Statement, on each Distribution Date, Available Funds and Available Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the following distributions:

 

(a)     On each Distribution Date, an amount equal to the Available Funds with respect to such Distribution Date will be distributed in the following priority:

 

(i)     an amount equal to the sum of the Monthly Servicing Fee, the Program Fees, the Capped Program Expenses and the Monthly Backup Servicing Fee, if any, for the related Distribution Date plus the sum of the amount of any Monthly Servicing Fee, the Program Fees, the Capped Program Expenses and any Monthly Backup Servicing Fee previously due but not distributed to the Servicer, the Owner Trustee, the Indenture Trustee or the Backup Servicer, if any respectively, on a prior Distribution Date, shall be distributed pro rata to the Servicer, the Owner Trustee, the Indenture Trustee and the Backup Servicer, if any;

 

(ii)     an amount equal to Class A Monthly Interest for the related Distribution Date plus an amount equal to any Class A Interest Shortfall not distributed on a prior Distribution Date plus the amount of any Class A Additional Interest for such Distribution Date plus any Class A Additional Interest previously due but not distributed to Class A Noteholders on a prior Distribution Date, shall be distributed to the Class A Noteholders;

 

(iii)     an amount equal to Class B Monthly Interest for the related Distribution Date plus an amount equal to any Class B Interest Shortfall not distributed on a prior Distribution Date plus the amount of any Class B Additional Interest for such Distribution Date plus any Class B Additional Interest previously due but not distributed to Class B Noteholders on a prior Distribution Date, shall be distributed to the Class B Noteholders;

 

(iv)     an amount equal to Class C Monthly Interest for the related Distribution Date plus an amount equal to any Class C Interest Shortfall not distributed on a prior Distribution Date plus the amount of any Class C Additional Interest for such Distribution Date plus any Class C Additional Interest previously due but not distributed to Class C Noteholders on a prior Distribution Date, shall be distributed to the Class C Noteholders;

 

(v)     an amount equal to the Series Default Amount for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date;

 

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(vi)     (A) an amount equal to the aggregate amount of Reduction Amounts plus amounts that under subsections 4.06(b) and (c) were used to fund the Class A Required Amount or the Class B Required Amount which have not been previously reimbursed shall be treated as a portion of Available Principal Collections for such Distribution Date;

 

(B) an amount equal to the aggregate amount of Transferor Reduction Amounts plus amounts that under subsection 4.06(a) were used to fund the Class A Required Amount, the Class B Required Amount or the Class C Required Amount which have not been previously reimbursed shall be treated as a portion of Available Principal Collections for such Distribution Date;

 

(vii)     on each Distribution Date prior to the date on which the Spread Account terminates pursuant to subsection 4.08(f), an amount up to the excess, if any, of the Required Spread Account Amount for such Distribution Date over the Available Spread Account Amount for such Distribution Date shall be deposited into the Spread Account;

 

(viii)     if an Early Redemption Event has occurred on or prior to such Distribution Date, an amount up to the Class A Note Principal Balance plus the Class B Note Principal Balance plus the Class C Note Principal Balance on such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date;

 

(ix)     an amount equal to the Program Expenses for such Distribution Date not paid in clause (i) above, plus the amount of any Program Expenses previously due but not distributed to the Owner Trustee or Indenture Trustee on a prior Distribution Date, shall be distributed pro rata to the Owner Trustee and the Indenture Trustee;

 

(x)     the balance of such Available Funds shall be distributed to the Issuer and applied in accordance with the Trust Agreement.

 

(b)     On each Distribution Date with respect to the Revolving Period, an amount equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed to the Issuer and applied in accordance with the Trust Agreement.

 

(c)     On each Distribution Date with respect to a Controlled Redemption Period commencing on the November 2020 Distribution Date, an amount equal to the Controlled Redemption Payment Amount deposited in the Collection Account for the related Monthly Period shall be distributed in the following order of priority:

 

(i)     an amount, to the extent available, equal to the Class A Note Principal Balance shall be distributed to the Class A Noteholders;

 

(ii)     for each Distribution Date beginning on the Distribution Date on which the Class A Notes have been paid in full, an amount, to the extent available, equal to the Class B Note Principal Balance shall be distributed to the Class B Noteholders;

 

(iii)     for each Distribution Date beginning on the Distribution Date on which the Class B Notes have been paid in full, an amount, to the extent available, equal to the Class C Note Principal Balance shall be distributed to the Class C Noteholders; and

 

(iv)     for each Distribution Date beginning on the Distribution Date on which the Class C Notes are paid in full, an amount equal to the balance, if any, of such Available Principal Collections shall be distributed to the Issuer and applied in accordance with the Trust Agreement.

 

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(d)     On each Distribution Date with respect to an Early Redemption Period, an amount equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed in the following order of priority:

 

(i)     an amount, to the extent available, equal to the Class A Note Principal Balance shall be distributed to the Class A Noteholders;

 

(ii)     for each Distribution Date beginning on the Distribution Date on which the Class A Notes have been paid in full, an amount, to the extent available, equal to the Class B Note Principal Balance shall be distributed to the Class B Noteholders;

 

(iii)     for each Distribution Date beginning on the Distribution Date on which the Class B Notes have been paid in full, an amount, to the extent available, equal to the Class C Note Principal Balance shall be distributed to the Class C Noteholders;

 

(iv)     for each Distribution Date beginning on the Distribution Date on which the Class C Notes are paid in full, an amount equal to the balance, if any, of such Available Principal Collections shall be distributed to the Issuer and applied in accordance with the Trust Agreement.

 

Section 4.05.     Defaulted Amounts; Reduction Amounts.

 

On each Determination Date, the Servicer shall calculate the Series Default Amount for the related Distribution Date. If, on any Distribution Date, the Series Default Amount for the related Monthly Period exceeds the Available Funds allocated and available for that purpose pursuant to subsection 4.04(a)(v) for such Distribution Date,

 

(a) first, the Series Adjusted Subordinated Transferor Amount (after giving effect to any reductions for Transferor Available Principal Collections that under subsection 4.06(a) were used to fund the Class A Required Amount, the Class B Required Amount or the Class C Required Amount, on such Distribution Date), will be reduced, subject to the succeeding sentence, by the amount of such excess, but not by more than the Series Default Amount for such Distribution Date (a “Transferor Reduction Amount”). In the event that such reduction would cause the Series Adjusted Subordinated Transferor Amount to be a negative number, the Series Adjusted Subordinated Transferor Amount shall be reduced to zero. Transferor Reduction Amounts shall thereafter be reimbursed and the Series Adjusted Subordinated Transferor Amount increased (but not by an amount in excess of the aggregate unreimbursed Transferor Reduction Amounts) on any Distribution Date by the amount of Available Finance Charge Collections allocated and available for that purpose pursuant to subsection 4.04(a)(vi)(B),

 

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(b) second, in the event, the Series Adjusted Subordinated Transferor Amount has been reduced to zero in accordance with clause (a) above, the Allocation Amount (after giving effect to any reductions for Reallocated Principal Collections that under subsections 4.06(b) and (c) were used to fund the Class A Required Amount or the Class B Required Amount on such Distribution Date), will be reduced, subject to the succeeding sentence, by the amount of such excess, but not by more than the Series Default Amount for such Distribution Date (a “Reduction Amount”). In the event that such reduction would cause the Allocation Amount to be a negative number, the Allocation Amount shall be reduced to zero. Reduction Amounts shall thereafter be reimbursed and the Allocation Amount increased (but not by an amount in excess of the aggregate unreimbursed Reduction Amounts) on any Distribution Date by the amount of Available Finance Charge Collections allocated and available for that purpose pursuant to subsection 4.04(a)(vi)(A).

 

Section 4.06.     Reallocated Principal Collections.

 

(a)     On each Distribution Date, prior to the application of Reallocated Principal Collections in accordance with subsections (b) and (c) below, the Servicer shall direct the Indenture Trustee to apply by written instruction to the Indenture Trustee pursuant to the related Monthly Servicer Statement, Transferor Available Principal Collections with respect to such Distribution Date, to fund, in the following order of priority, the Class A Required Amount, the Class B Required Amount or the Class C Required Amount. On each Distribution Date, the Series Adjusted Subordinated Transferor Amount shall be reduced by the amount of Transferor Available Principal Collections used to fund the Class A Required Amount, the Class B Required Amount or the Class C Required Amount for such Distribution Date, but in any event the Series Adjusted Subordinated Transferor Amount shall not be reduced by operation of this subsection 4.06(a) to an amount less than zero.

 

(b)     On each Distribution Date, the Servicer shall direct the Indenture Trustee to apply by written instruction to the Indenture Trustee pursuant to the related Monthly Servicer Statement, Reallocated Principal Collections with respect to such Distribution Date to fund the excess, if any, of the Class A Required Amount over the amount funded in accordance with subsection 4.06(a). On each Distribution Date, the Allocation Amount shall be reduced by the amount of Reallocated Principal Collections used to fund the Class A Required Amount for such Distribution Date, but in any event the Allocation Amount shall not be reduced by operation of this subsection 4.06(b) to an amount less than the Class A Note Principal Balance.

 

(c)     On each Distribution Date, the Servicer shall direct the Indenture Trustee to apply by written instruction to the Indenture Trustee pursuant to the Monthly Servicer Statement, Reallocated Principal Collections with respect to such Distribution Date remaining after application in accordance with subsection 4.06(b), to fund the excess, if any, of the Class B Required Amount over the amount funded in accordance with subsection 4.06(a). On each Distribution Date, the Allocation Amount shall be reduced by the amount of Reallocated Principal Collections used to fund the Class B Required Amount for such Distribution Date, but in any event the Allocation Amount shall not be reduced by operation of this subsection 4.06(c) to an amount less than the sum of the Class A Note Principal Balance and the Class B Note Principal Balance.

 

Section 4.07.     Series 2018-One Distribution Account.

 

(a)     The Servicer shall establish and maintain, in the name of the Indenture Trustee, for the benefit of the Series 2018-One Noteholders, a Series Account (the “Series 2018-One Distribution Account”) bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2018-One Noteholders. The Series 2018-One Distribution Account shall be established and maintained with the Paying Agent on behalf of and in the name of the Indenture Trustee. The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Series 2018-One Distribution Account and in all proceeds thereof. The Series 2018-One Distribution Account shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Series 2018-One Noteholders. Funds on deposit in the Series 2018-One Distribution Account shall not be subject to investment. If at any time the Series 2018-One Distribution Account ceases to be an Eligible Deposit Account, the Indenture Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which the Series 2018-One Noteholders shall consent) establish a new Series 2018-One Distribution Account meeting the conditions specified above as an Eligible Deposit Account, and shall transfer any cash or any investments to such new Series 2018-One Distribution Account.

 

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(b)     On each Distribution Date, the Indenture Trustee, solely in accordance with the Monthly Servicer Statement, shall withdraw from the Collection Account and deposit into the Series 2018-One Distribution Account Collections of Finance Charge Receivables and Principal Receivables allocated to Series 2018-One on such Distribution Date for application pursuant to Section 4.04.

 

Section 4.08.     Spread Account.

 

(a)     The Servicer shall establish and maintain with the Paying Agent, in the name of the Indenture Trustee, for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders, an Eligible Deposit Account (the “Spread Account”) bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Class A Noteholders, the Class B Noteholders and the Class C Noteholders. The Spread Account shall initially be established with the Indenture Trustee. The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Spread Account and in all proceeds thereof. The Spread Account shall be under the sole dominion and control of the Indenture Trustee. If at any time the Spread Account ceases to be an Eligible Deposit Account, the Indenture Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which the Rating Agency shall consent) establish a new Spread Account meeting the conditions specified above as an Eligible Deposit Account, and shall transfer any cash or any investments to such new Spread Account. The Indenture Trustee, at the written direction of the Servicer, shall (i) make withdrawals from the Spread Account from time to time in an amount up to the Available Spread Account Amount at such time, for the purposes set forth in this Supplement, and (ii) on each Distribution Date prior to the termination of the Spread Account make a deposit into the Spread Account in the amount specified in, and otherwise in accordance with, subsection 4.04(a)(vii).

 

(b)     Funds on deposit in the Spread Account shall be invested at the written direction of the Servicer by the Indenture Trustee in Eligible Investments. In no event shall the Indenture Trustee be liable for the selection of Eligible Investments or for investment losses incurred thereon. The Indenture Trustee shall have no liability in respect of losses incurred as a result of the liquidation of any Eligible Investment prior to its stated maturity or the failure of the Servicer to provide timely written investment direction. The Indenture Trustee shall have no obligation to invest or reinvest any amounts held hereunder in the absence of written investment direction. Funds on deposit in the Spread Account on any Transfer Date, after giving effect to any withdrawals from the Spread Account on such Transfer Date, shall be invested in such investments that will mature so that such funds will be available for withdrawal on or prior to the following Transfer Date. The Indenture Trustee shall hold such Eligible Investments as provided in Section 6.15 of the Indenture. No such Eligible Investment shall be disposed of prior to its maturity; provided, however, that the Indenture Trustee may sell, liquidate or dispose of any such Eligible Investment before its maturity, at the written direction of the Servicer, if such sale, liquidation or disposal would not result in a loss of all or part of the principal portion of such Eligible Investment or if, prior to the maturity of such Eligible Investment, a default occurs in the payment of principal, interest or any other amount with respect to such Eligible Investment. On each Distribution Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Distribution Date on funds on deposit in the Spread Account shall be retained in the Spread Account (to the extent that the Available Spread Account Amount is less than the Required Spread Account Amount) and the balance, if any, shall be deposited in the Collection Account and treated as Collections of Finance Charge Receivables allocable to Series 2018-One. Except as provided in the immediately preceding sentence with respect to investment earnings retained in the Spread Account, for purposes of determining the availability of funds or the balance in the Spread Account for any reason under this Supplement, investment earnings on such funds shall be deemed not to be available or on deposit.

 

(c)     On each Transfer Date, the excess, if any, of the amounts payable pursuant to subsections 4.04(a)(i)–(vi) over the Available Finance Charge Collections available to pay such amounts (any such positive amount, the “Spread Account Draw Amount”), shall be withdrawn from the Spread Account by the Paying Agent (acting in accordance with the servicing report prepared pursuant to subsection 5.02(a)(i)), and deposited in the Collection Account to be applied as Available Funds. Notwithstanding anything else to the contrary in this Section 4.08, if an Event of Default shall have occurred with respect to Series 2018-One and the maturity of the Series 2018-One Notes shall have been accelerated under Section 5.03 of the Indenture, any amounts remaining on deposit in the Spread Account shall be applied first to pay interest and principal on the Class A Notes, second to pay interest and principal on the Class B Notes, and third to pay interest and principal on the Class C Notes, in each case remaining unpaid after application of the proceeds of the sale of the collateral pursuant to Section 5.05 of the Indenture as provided in Section 5.05 of the Indenture.

 

(d)     Prior to the occurrence of an Event of Default with respect to the Series 2018-One Notes and acceleration of the maturity of the Series 2018-One Notes under Section 5.03 of the Indenture, in the event that the Spread Account Surplus on any Distribution Date, after giving effect to all deposits to and withdrawals from the Spread Account with respect to such Distribution Date, is greater than zero, the Indenture Trustee, acting in accordance with the written instructions of the Servicer, shall withdraw from the Spread Account and pay to the Issuer for distribution pursuant to the Trust Agreement, an amount equal to such Spread Account Surplus.

 

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(e)     On the first to occur of (1) the Distribution Date on which the Allocation Amount is equal to zero and (2) the Stated Maturity Date, an amount equal to the lesser of the amounts payable pursuant to clauses (i) through (iii) below and the amount on deposit in the Spread Account (after deducting the Spread Account Draw Amount on such Distribution Date) shall be withdrawn from the Spread Account by the Indenture Trustee (acting in accordance with the Monthly Servicer Statement) and applied in the following order of priority:

 

(i)     an amount equal to the excess of the Class A Note Principal Balance over the amount of Available Principal Collections shall be distributed to the Paying Agent for payment to the Class A Noteholders as principal on the Class A Notes;

 

(ii)     an amount equal to the excess of the of the Class B Note Principal Balance over the remaining amount of Available Principal Collections available to pay principal on the Class B Notes shall be distributed to the Paying Agent for payment to the Class B Noteholders as principal on the Class B Notes; and

 

(iii)     an amount equal to the excess of the of the Class C Note Principal Balance over the remaining amount of Available Principal Collections available to pay principal on the Class C Notes shall be distributed to the Paying Agent for payment to the Class C Noteholders as principal on the Class C Notes.

 

(f)     Upon the earlier to occur of (i) the day on which the Class A Note Principal Balance, the Class B Note Principal Balance, the Class C Note Principal Balance and all other accrued and unpaid amounts owing to the Class A Noteholders, the Class B Noteholders and the Class C Noteholders are paid in full to the Class A Noteholders, the Class B Noteholders, the Class C Noteholders, and (ii) the termination of the Issuer pursuant to the Trust Agreement, the Indenture Trustee, acting in accordance with the instructions of the Servicer shall withdraw from the Spread Account and pay to the Issuer for application pursuant to the Trust Agreement (or if the Issuer has terminated, pay to the Transferor) all amounts, if any, on deposit in the Spread Account and the Spread Account shall be deemed to have terminated for purposes of this Supplement.

 

Section 4.09.     Optional Redemption.

 

(a)     On any Business Day after the termination of the Revolving Period, the Issuer may cause the Servicer to provide written notice to the Indenture Trustee and the Series 2018-One Noteholders (an “Optional Redemption Notice”) at least ten (10) Business Days prior to any Business Day (the “Optional Redemption Date”) stating its intention to cause a full redemption of the Series 2018-One Notes (an “Optional Redemption”). The Redemption Amount shall be paid from any Available Principal Collections or from the proceeds of the issuance of one or more new Series of Notes issued substantially contemporaneously with such full redemption (or any combination of the above).

 

(b)     The Issuer shall deposit the Redemption Amount into the Collection Account in same day funds on the Business Day prior to the Optional Redemption Date. Following the deposit of the Redemption Amount into the Collection Amount in accordance with the foregoing, the Allocation Amount for Series 2018-One shall be reduced to zero and following the payment in full of such Redemption Amount to the Series 2018-One Noteholders and other parties entitled to any of such amount, the Series 2018-One Noteholders shall have no further interest in the Trust Estate. The Redemption Amount shall be distributed as set forth in subsection 8.01(b).

 

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ARTICLE V     

Distributions and Reports to

Series 2018-One Noteholders

 

Section 5.01.     Distributions.

 

(a)     On each Distribution Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class A Noteholder (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class A Notes.

 

(b)     On each Special Payment Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class A Noteholder of record on the related Record Date (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such date to pay principal of the Class A Notes pursuant to this Supplement up to a maximum amount on any such date equal to the Class A Note Principal Balance on such date.

 

(c)     On each Distribution Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class B Noteholder (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class B Notes.

 

(d)     On each Special Payment Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class B Noteholder of record on the related Record Date (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such date to pay principal of the Class B Notes pursuant to this Supplement up to a maximum amount on any such date equal to the Class B Note Principal Balance on such date.

 

(e)     On each Distribution Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class C Noteholder (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class C Notes.

 

(f)     On each Special Payment Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each Class C Noteholder of record on the related Record Date (other than as provided in Section 10.02 of the Indenture) such amounts held by the Paying Agent that are allocated and available on such date to pay principal of the Class C Notes pursuant to this Supplement up to a maximum amount on any such date equal to the Class C Note Principal Balance on such date.

 

(g)     On each Distribution Date, the Paying Agent, solely in accordance with the Monthly Servicer Statement, shall distribute to each of the Servicer, Backup Servicer, Owner Trustee and the Indenture Trustee such amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay the Servicing Fee, the Backup Servicing Fee, the Program Fees and the Program Expenses, respectively.

 

(h)     The distributions to be made pursuant to this Section 5.01 are subject to the provisions of Section 8.01 of the Transfer and Servicing Agreement, Section 5.05 of the Indenture and Section 8.01 of this Supplement.

 

(i)     Except as provided in Section 10.02 of the Indenture with respect to a final distribution, distributions to Series 2018-One Noteholders hereunder shall be made by wire transfer of same day funds to the account that has been designated by the applicable Noteholders not less than ten Business Days prior to such Distribution Date.

 

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Section 5.02.     Reports and Statements to Series 2018-One Noteholders.

 

(a)     Not later than each Determination Date, the Servicer shall deliver to the Indenture Trustee and the Paying Agent (i) a statement substantially in the form of Exhibit E prepared by the Servicer (the “Monthly Servicer Statement”) and (ii) a certificate of a Servicing Officer substantially in the form attached thereto.

 

(b)     A copy of each statement or certificate provided pursuant to subsection 5.02(a) may be obtained by any Series 2018-One Noteholder or any beneficial owner thereof by a request in writing to the Servicer.

 

(c)     On or before January 31 of each calendar year, the Paying Agent, on behalf of the Indenture Trustee, shall furnish or cause to be furnished by posting to its website to each Person who at any time during the preceding calendar year was a Series 2018-One Noteholder, a statement prepared by the Servicer containing the information which is required to be contained in the statement to Series 2018-One Noteholders, as set forth in paragraph (a) above aggregated for such calendar year or the applicable portion thereof during which such Person was a Series 2018-One Noteholder, together with other information as is required to be provided by an issuer of indebtedness under the Code. Such obligation of the Servicer shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Paying Agent pursuant to any requirements of the Code as from time to time in effect.

 

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ARTICLE VI     

Early Redemption Events; Events of Default

 

Section 6.01.     Early Redemption Events. If any one of the following events shall occur with respect to the Series 2018-One Notes:

 

(a)     (i) failure on the part of the Seller, the Transferor or the Issuer to make any payment or deposit required by the terms of any Transaction Document on or before the date occurring five (5) Business Days after the date such payment or deposit is required to be made therein or herein or (ii) failure on the part of the Seller, the Transferor or the Issuer duly to observe or perform any other covenants or agreements in any Transaction Document which continues unremedied for a period of thirty (30) days after the date on which the Seller, the Issuer or the Transferor, as applicable, obtains actual knowledge of such failure or on which written notice of such failure requiring the same to be remedied, shall have been given to the Seller, the Transferor or the Issuer by the Indenture Trustee, or to, the Seller, the Transferor, or to the Issuer and the Indenture Trustee by the Holders of not less than 50% of the aggregate outstanding principal balance of the Series 2018-One Notes;

 

(b)     any representation or warranty made by the Seller, the Transferor or the Issuer under any Transaction Document which continues to be incorrect for a period of thirty (30) days after the date on which the Seller, the Issuer or the Transferor, as applicable, obtains actual knowledge of such failure or on which written notice of such failure requiring the same to be remedied, shall have been given to the Seller, the Transferor or the Issuer by the Indenture Trustee, or to the Seller, the Transferor or the Issuer and the Indenture Trustee by the Holders of not less than 50% of the aggregate outstanding principal balance of the Series 2018-One Notes; provided, however, that an Early Redemption Event pursuant to this subsection 6.01(b) shall not be deemed to have occurred hereunder if the Transferor has replaced or accepted reassignment of the related Receivable, or all of such Receivables, if applicable, during such period in accordance with the provisions of the Transfer and Servicing Agreement;

 

(c)     the occurrence of a Servicer Default;

 

(d)     the Adjusted Transferor Amount is less than the Required Transferor Amount on any Measurement Date and such deficiency is not remedied on or before the Distribution Date occurring in the next Monthly Period;

 

(e)     any of the following occurs for any Monthly Period:

 

(i) the Three-Month Charge-Off Ratio exceeds [*****]%;

 

(ii) the Three-Month Monthly Principal Payment Rate is less than [*****]%;

 

(iii) the Three-Month Excess Spread Percentage is less than [*****]%; or

 

(f)     the occurrence and continuation of any Event of Default (as such term is defined in the Indenture);

 

(h)      the Class A Note Principal Balance, the Class B Note Principal Balance and the Class C Note Principal Balance shall not be paid in full on the Scheduled Final Payment Date;

 

(i) an Insolvency Event with respect to Atlanticus Holdings Corporation occurs; or

 

(j) no Account Owner is originating Receivables for the Issuer;

 

then, in the case of any event described above other than in subparagraph (f) after the applicable grace period, if any, set forth in such subparagraphs, either the Indenture Trustee at the direction of the Holders of not less than 50% of the aggregate outstanding principal balance of the Series 2018-One Notes or such Holders, by notice then given in writing to the Issuer, the Servicer and the Indenture Trustee may declare that an Early Redemption Event has occurred with respect to Series 2018-One as of the date of such notice, and, in the case of any event described in subparagraph (f), an Early Redemption Event shall occur with respect to Series 2018-One without any notice or other action on the part of the Indenture Trustee or the Series 2018-One Noteholders immediately upon the occurrence of such event, unless such Early Redemption Event is waived by the Holders of not less than 50% of the aggregate outstanding principal balance of the Series 2018-One Notes, by notice given in writing to the Indenture Trustee, the Issuer and the Servicer. The Indenture Trustee shall provide prompt written notice to each Rating Agency upon the occurrence and continuation of an Early Redemption Event of which a Responsible Officer of the Indenture Trustee has actual knowledge.

 

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ARTICLE VII     

Administrative Redemption; Series Termination

 

Section 7.01.     Administrative Redemption.

 

(a)     On any day occurring on or after the date on which the Note Principal Balance is reduced to 10% or less of the Initial Note Principal Balance at any time on or after the Closing Date, the Issuer, at the direction of the Transferor, shall have the option to redeem the Series 2018-One Notes, at a redemption price equal to (i) if such day is a Distribution Date, the Redemption Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Redemption Amount for the Distribution Date first following such day.

 

(b)     The Issuer shall give the Servicer and the Indenture Trustee at least 30 days prior written notice of the date on which the Issuer intends to exercise such redemption option. The Issuer shall deposit the Redemption Amount into the Collection Account in same day funds on the Business Day prior to such scheduled redemption. Such redemption option is subject to payment in full of the Redemption Amount. Following the deposit of the Redemption Amount into the Collection Amount in accordance with the foregoing, the Allocation Amount for Series 2018-One shall be reduced to zero and following the payment in full of such Redemption Amount to the Series 2018-One Noteholders and other parties entitled to any of such amount, the Series 2018-One Noteholders shall have no further interest in the Trust Estate. The Redemption Amount shall be distributed as set forth in subsection 8.01(b).

 

Section 7.02.     Repayment.

 

The Series 2018-One Notes shall be due and payable in full on the Stated Maturity Date.

 

ARTICLE VIII     

Redemption of Series 2018-One Notes; Final Distributions

 

Section 8.01.     Sale of Receivables or Redemption of the Notes pursuant to Section 2.04(c) or 8.01 of the Transfer and Servicing Agreement and Sections 5.05 and 5.17 of the Indenture and Section 7.01 of this Supplement.

 

(a)     The amount to be paid by the Transferor with respect to Series 2018-One in connection with a reassignment of Receivables to the Transferor pursuant to Section 2.04(c) of the Transfer and Servicing Agreement shall equal the Redemption Amount for the first Distribution Date following the Monthly Period in which the reassignment obligation arises under the Transfer and Servicing Agreement.

 

(ii)     The amount to be paid by the Transferor with respect to Series 2018-One in connection with any purchase of the Notes, pursuant to the exercise of a right of first refusal contained in Section 8.01 of the Transfer and Servicing Agreement shall be an amount equal to the Redemption Amount for the Distribution Date of any such purchase.

 

(b)     With respect to the Redemption Amount deposited into the Collection Account pursuant to Section 7.01 or subsection 8.01(a) or any amounts allocable to the Series 2018-One Notes deposited into the Collection Account pursuant to Sections 5.05 and 5.17 of the Indenture, the Indenture Trustee shall, in accordance with the written direction of the Servicer, not later than 2:30 p.m., New York City time, on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any deposits and distributions otherwise to be made on such date) in same day funds solely in accordance with the Monthly Servicer Statement:

 

	 	
			i.

				
			the Class A Note Principal Balance on such Distribution Date plus an amount equal to the sum of (A) the Class A Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest previously due but not distributed to the Class A Noteholders on a prior Distribution Date, (C) any Class A Additional Interest for such Distribution Date and any Class A Additional Interest previously due but not distributed to the Class A Noteholders on a prior Distribution Date shall be distributed to the Paying Agent for payment to the Class A Noteholders;

			

 

	 	
			ii.

				
			the Class B Note Principal Balance on such Distribution Date plus an amount equal to the sum of (A) the Class B Monthly Interest for such Distribution Date, (B) any Class B Monthly Interest previously due but not distributed to the Class B Noteholders on a prior Distribution Date, (C) any Class B Additional Interest for such Distribution Date and any Class B Additional Interest previously due but not distributed to the Class B Noteholders on a prior Distribution Date shall be distributed to the Paying Agent for payment to the Class B Noteholders;

			

 

	 	
			iii.

				
			the Class C Note Principal Balance on such Distribution Date plus an amount equal to the sum of (A) the Class C Monthly Interest for such Distribution Date, (B) any Class C Monthly Interest previously due but not distributed to the Class C Noteholders on a prior Distribution Date, (C) any Class C Additional Interest for such Distribution Date and any Class C Additional Interest previously due but not distributed to the Class C Noteholders on a prior Distribution Date shall be distributed to the Paying Agent for payment to the Class C Noteholders;

			

 

	 	
			iv.

				
			the Series 2018-One Monthly Fees previously due but not distributed shall be distributed to the Paying Agent for payment to the Servicer, the Backup Servicer, the Indenture Trustee, the Owner Trustee and the Seller; and

			

 

(c)     Notwithstanding anything to the contrary in this Supplement or the Indenture, all amounts distributed to the Paying Agent pursuant to subsection 8.01(b) for payment to the Series 2018-One Noteholders shall be deemed distributed in full to the Series 2018-One Noteholders on the date on which such funds are distributed to the Paying Agent pursuant to this Section and the Series 2018-One Notes shall be deemed to be no longer Outstanding as such term is defined in Section 1.01 of the Indenture.

 

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ARTICLE IX 

 

The Series 2018-One Notes; Covenants; Event of Default

 

Section 9.01.     Form of Delivery of Series 2018-One Notes; Denominations.

 

(a)     The Series 2018-One Notes shall be substantially in the form attached hereto as Exhibits A-1, A-2, A-3, B-1, B-2, B-3, C-1, C-2, and C-3, respectively. The Class A Global Notes and the Class B Global Notes shall be delivered as Book-Entry Notes in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof. The Class C Global Notes shall be delivered as Book-Entry Notes in minimum denominations of $250,000 and integral multiples of $1,000 in excess thereof. The Indenture Trustee shall authenticate the Series 2018-One Notes upon the written order of the Issuer as provided in Section 2.03 of the Indenture.

 

(b)     The Depositary for the Class A Global Notes, the Class B Global Notes and the Class C Global Notes shall be The Depository Trust Company and the Class A Global Notes, the Class B Global Notes and the Class C Global Notes shall be initially registered in the name of Cede & Co., its nominee, and will initially be held by the Indenture Trustee as custodian for The Depository Trust Company.

 

(c)     Holders of a beneficial interest in Class A Notes and Class B Notes sold in reliance on Regulation S as Temporary Regulation S Global Notes are prohibited from receiving distributions or from exchanging beneficial interests in such Temporary Regulation S Global Notes for Permanent Regulation S Global Notes until the later of (i) the expiration of the Distribution Compliance Period (the “Release Date”) and (ii) the furnishing of a certificate, substantially in the form of Exhibit G attached hereto, certifying that the beneficial owner of the Temporary Regulation S Global Note is a non-United States Person (a “Regulation S Certificate”) as provided in Section 9.07.

 

Section 9.02.     Private Placement of Securities.

 

The Series 2018-One Notes have not been registered under the Securities Act or any state securities law. No transfer of any Series 2018-One Note shall be made except in accordance with Sections 9.03 and 9.04 of this Supplement. The Series 2018-One Notes shall bear a legend to the effect set forth in Exhibits A-1, A-2, A-3, B-1, B-2, B-3 and C-1. Neither the Issuer nor the Indenture Trustee is obligated to register the Series 2018-One Notes under the Securities Act or to take any other action not otherwise required under this Supplement or the Indenture to permit the transfer of the Series 2018-One Notes without registration.

 

Section 9.03.     Representations, Warranties and Agreements of Noteholders.

 

Each purchaser of a Class A Note, Class B Note or Class C Note will be deemed to have acknowledged, represented, warranted and agreed by its purchase of a Class A Note, Class B Note or Class C Note, as follows:

 

(a)     that (A) (i) it is QIB, (ii) it is aware that the sale to it is being made in reliance on Rule 144A and, if it is acquiring such Class A Note, Class B Note or Class C Note or any interest or participation therein for the account of another QIB, such other QIB is aware that the sale is being made in reliance on Rule 144A and (iii) it is acquiring its Class A Note, Class B Note or Class C Note for its own account or for one or more accounts, each of which is a QIB, and as to each of which the owner exercises sole investment discretion, and in a principal amount of not less than the minimum denomination of such Class A Note, Class B Note or Class Note for the purchaser and for each such account, or (B) with respect to Class A Notes or Class B Notes only, it is not a U.S. Person and is purchasing its Class A Note or Class B Note or any interest or participation therein in an offshore transaction meeting the requirements of Rules 903 and 904 of Regulation S;

 

(b)     it will hold each Class A, Class B or Class C Note, as applicable, in a principal amount of not less than the minimum denomination of such Class A Note, Class B Note or Class C Note for the purchaser and for each such account, and with respect to the Class C Notes, it will not sell, assign, transfer, pledge or otherwise dispose of any Class C Note or beneficial interest therein, or enter into any financial instrument or contract the value of which is determined by reference in whole or in part to any such Class C Note or beneficial interest therein, in each case if the effect of doing so would be that the beneficial interest of any person in the Class C Note would be in an amount that is less than the minimum denomination for such Notes as set forth in the Indenture;

 

(c)     it understands that each Class A Note, Class B Note or Class C Note will bear a legend set forth on the forms of the Class A Global Notes, the Class B Global Notes and the Class C Global Notes included as Exhibits A-1, A-2, A-3, B-1, B-2, B-3 or C-1;

 

(d)     it understands that the Class A Notes, Class B Notes or Class C Notes are being offered only in a transaction not involving any public offering within the meaning of the Securities Act, and that it will not pledge, re-offer or resell or otherwise transfer any Class A Note, Class B Note or Class C Note or any interest therein except (i) to the Issuer, (ii) inside the United States in accordance with Rule 144A to a person who the seller reasonably believes is a QIB that purchases for its own account or for the account of a QIB to whom notice is given that the re-offer, resale, pledge or transfer is being made in reliance on Rule 144A or (iii) with respect to Class A Notes or Class B Notes only, outside the United States in an offshore transaction in accordance with Rule 903 or 904 of Regulation S, in each case in compliance with all applicable state securities or “blue sky” laws;

 

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(e)     it understands that an investment in a Class A Note, Class B Note or Class C Note involves certain risks, including the risk of loss of all or a substantial part of its investment under certain circumstances. It has had access to such financial and other information concerning the Indenture Trustee, the Note Registrar, the Paying Agent, the Seller, the Servicer, the Issuer, the Receivables and the Series 2018-One Notes as it deemed necessary or appropriate in order to make an informed investment decision with respect to its purchase of a Class A Note, Class B Note or Class C Note, including an opportunity to ask questions of and request information from the Issuer and the Servicer. It has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in a Class A Note, Class B Note or Class C Note, and it and any accounts for which it is acting are each able to bear the economic risk of the holder’s or of its investment.

 

(f)     if it is acquiring its Class A Note or Class B Note or any interest or participation therein in an “offshore transaction” (as defined in Regulation S), it acknowledges that its Class A Note or Class B Note initially will be represented by the Temporary Regulation S Global Note and that transfers thereof or any interest or participation therein are restricted as provided herein and in the Indenture; if it is a QIB, it acknowledges that the Class A Notes, the Class B Notes or the Class C Notes offered in reliance on Rule 144A will be represented by the Rule 144A Global Note and that transfers thereof or any interest or participation therein are restricted as provided herein and in Section 9.01(a);

 

(g)      (i) it understands that none of the Issuer, the Servicer, the Note Registrar, the Paying Agent, nor the Indenture Trustee is acting as a fiduciary or financial or investment adviser for the purchaser, (ii) it is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of the Issuer, the Servicer, the Note Registrar, the Paying Agent or the Indenture Trustee, (iii) none of the Issuer, the Servicer, the Note Registrar, the Paying Agent nor the Indenture Trustee has given it (directly or indirectly through any other person) any assurance, guarantee, or representation whatsoever as to the expected or projected success, profitability, return, performance, result, effect, consequence, or benefit (including legal, regulatory, tax, financial, accounting, or otherwise) of its purchase or the documentation for the Notes, (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial, and accounting advisers to the extent it has deemed necessary, and it has made its own investment decisions (including decisions regarding the suitability of any transaction pursuant to the Indenture) based upon its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuer, the Servicer, the Note Registrar, the Paying Agent or the Indenture Trustee, (v) it has determined that the rates, prices or amounts and other terms of the purchase and sale of the Notes reflect those in the relevant market for similar transactions, (vi) the transferee is purchasing the Notes with a full understanding of all of the terms, conditions and risks thereof (economic and otherwise), and is capable of assuming and willing to assume (financially and otherwise) these risks, and (vii) it is a sophisticated investor familiar with transactions similar to its investment in the a Class A Note, Class B Note or Class C Note;

 

(h)     (i) if it is acquiring (and any fiduciary acting on its behalf) a beneficial interest in a Class A Note or Class B Note, so long as it holds such Class A Note or Class B Note (or a beneficial interest therein) either (A) it is not (and will not be) a Plan (as defined in Section 4975(e)(1) of the Code), and that it is not (and will not be) acquiring or holding such Class A Note or Class B Note (or any interest therein) on behalf of, or with, the assets of, a Plan, or (B)(1) such Note is rated at least “BBB-” or its equivalent by a nationally recognized statistical rating organization at the time of purchase or transfer and (2) its acquisition, holding and disposition of such Note (or any interest therein) will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any similar law; if it is acquiring (and any fiduciary acting on its behalf) a beneficial interest in a Class C Note, so long as it holds such Class C Note (or a beneficial interest therein), it is not (and will not be) a Plan and it is not (and will not be) acquiring or holding such Class C Note (or any interest therein) on behalf of, or with, the assets of, a Plan.

 

(i)      with respect to a purchaser of Class C Note, (i) it is not, and will not become, a partnership, a corporation taxed under Subchapter S of the Code or a grantor trust for U.S. federal income tax purposes (or a disregarded entity the single owner of which is any of the foregoing) or (ii) is such an entity, but (x) no more than 50% of the value of any of the direct or indirect beneficial interests in such purchaser (or in the case of a disregarded entity, the interests of its single owner) is or will be attributable to such transferee’s (or in the case of a disregarded entity, the single owner’s) interest in the Class C Notes and (y) it is not and will not be a principal purpose of the arrangement involving such entity’s beneficial interest in any Class C Notes to permit any partnership to satisfy the 100 partner limitation of Treasury Regulation Section 1.7704-1(h)(1)(ii) necessary for such partnership not to be classified as a publicly traded partnership under the Code. Furthermore, it will not acquire or transfer any Class C Note (or any interest therein) or cause any Class C Note (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. If any Class C Note held by a purchaser is required to be treated other than as described in Section 3.16 of the Indenture, then the purchaser, or, if different, the beneficial owner of such Class C Note, shall agree to the designation of the Seller as the partnership representative of any partnership in which such holder or beneficial owner is deemed to be a partner under Section 6223(a) of the Amended Partnership Audit Rules and any applicable Treasury Regulations thereunder.

 

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(j)     (i) Each holder or beneficial owners of a Class C Note shall provide to the Indenture Trustee on behalf of the Issuer any further information required by the Issuer to comply with the Amended Partnership Audit Rules, including Section 6226(a) of the Amended Partnership Audit Rules and, to the extent the Issuer determines such appointment necessary for it to make an election under Section 6226(a) of the Amended Partnership Audit Rules, it hereby appoints the holder as the agent of any beneficial owner which is not the holder of such Class C Note for purposes of receiving any notifications or information pursuant to the notice requirements under Section 6226(a)(2) of the Amended Partnership Audit Rules and (ii) to the extent applicable, each holder of a Class C Note and, if different, each beneficial owner of a Class C Note shall hold the Issuer and its Affiliates harmless for any losses (x) resulting from a beneficial owner of a Class C Note not properly taking into account or paying its allocated adjustment or liability under Section 6226 of the Amended Partnership Audit Rules or (y) that the Issuer or its affiliates may suffer due to actions it takes with respect to and to comply with the rules under Sections 6221 through 6241 of the Amended Partnership Audit Rules.

 

(k)     it acknowledges that it is not acquiring any Class A Note, Class B Note or Class C Note with a view to the resale, distribution, or other disposition thereof in violation of the Securities Act;

 

(l)     it acknowledges that the Class A Notes, the Class B Notes and the Class C Notes do not represent deposits with or other liabilities of the Indenture Trustee, the Servicer, the Note Registrar, the Paying Agent or any entity related to any of them (other than the Issuer) or any other purchaser of the Class A Notes, the Class B Notes and the Class C Notes and unless otherwise expressly provided in the Indenture, each of the Indenture Trustee, the Servicer, any entity related to any of them and any other purchaser of Series 2018-One Notes will not, in any way, be responsible for or stand behind the capital value or the performance of the Series-2018-One Notes or the assets held by the Issuer; it acknowledges that acquisition of Notes involves investment risks including prepayment and interest rate risks, possible delay in repayment and loss of income and principal invested;

 

(m)     it acknowledges that transfers of the Class A Notes, the Class B Notes or the Class C Notes or any interest or participation therein shall otherwise be subject in all respects to the restrictions applicable thereto contained in this Supplement and the Indenture and shall provide notice to each person to whom it proposes to transfer any interest in the of the Class A Notes, the Class B Notes or the Class C Notes of the restrictions application hereto and the representations set forth herein and in the Indenture;

 

(n)     it acknowledges that the Indenture Trustee, the Issuer, the Servicer, the Transferor and others will rely upon the truth and accuracy of the foregoing acknowledgements, representations, warranties and agreements, and agrees that if any of the foregoing acknowledgements, representations, warranties and agreements made by it are no longer accurate, it promptly notify the Issuer and the Indenture Trustee. If it is acquiring any Class A Note, Class B Note or Class C Note as a fiduciary or agent for one or more investor accounts, it will be deemed to have represented that it has sole investment discretion with respect to each such account and it has full power to make the foregoing acknowledgements, representations, warranties and agreements on behalf of each such account; and

 

Any transfer, resale, pledge or other transfer of the Class A Notes, the Class B Notes or the Class C Notes contrary to the restrictions set forth above and in this Supplement and the Indenture shall be deemed void ab initio by the Indenture Trustee, notwithstanding any instructions to the contrary to the Issuer, the Indenture Trustee, the Note Registrar or any intermediary. If at any time the Issuer determines or is notified that holder of a Series 2018-One Note or a beneficial owner of a Series 2018-One Note, as the case may be, was in breach, at the time given, of any of the representations set forth herein, the Issuer may consider the acquisition of such Series 2018-One Note or such beneficial interest in such Series 2018-One Note void ab initio and require that such Series 2018-One Note or such beneficial interest therein be transferred to a person designated by the Issuer. If the transferee fails to transfer such Series 2018-One Note or such beneficial interests in such Series 2018-One Note within 30 days after notice of the voided transfer, then the Issuer shall cause such holder’s interest or beneficial owner’s interest in such Series 2018-One Note to be transferred in a commercially reasonable sale arranged by the Issuer (conducted by the Issuer or an agent of the Issuer in accordance with Section 9-610(b) of the UCC as applied to securities that are sold on a recognized market or that may decline speedily in value) to a person that certifies to the Indenture Trustee, the Note Registrar and the Issuer, in connection with such transfer, that such person is a QIB. As used in this Section 9.03, the terms “United States” and “U.S. persons” have the respective meanings given them in Regulation S.

 

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Section 9.04.     Transfer Restrictions.

 

(a)      No Class A Note, Class B Note or Class C Note may be transferred unless it is transferred in compliance with Section 9.03 and (i) to the Issuer, (ii) pursuant to Rule 144A under the Securities Act, or (iii) with respect to Class A Notes or Class B Notes only, to persons other than U.S. Persons in offshore transactions pursuant to Regulation S under the Securities Act and, in each case, in compliance with any applicable state securities or “blue sky” laws.

 

(b)     No transfer of Class C Notes (or any interest therein) will be permitted to the extent that such transfer could cause the number of direct or indirect holders of an interest in the Series 2018-One Notes (and any other interests in the Issuer other than the Series 2018-One Notes) to exceed a number equal to 66 persons. The Note Registrar shall have the duty and obligation to ascertain the number of direct or indirect holders of an interest in the Class C Notes.

 

(c)     No Class C Note may be transferred unless the transferee Class C Noteholder has delivered to the Issuer, Indenture Trustee and the Note Registrar a letter substantially in the form attached hereto as Exhibit D (a “Transferee Letter”).

 

Section 9.05.     Regulation S Global Notes.

 

(a)     Class A Notes and Class B Notes issued in reliance on Regulation S will initially be in the form of a Temporary Regulation S Global Note. Any interest in a Class A Note or a Class B Note evidenced by the Temporary Regulation S Global Note is exchangeable for an interest in a Permanent Regulation S Global Note upon the later of (i) the Release Date and (ii) the furnishing of a Regulation S Certificate.

 

(b)     On or prior to the Release Date, each beneficial owner of a Temporary Regulation S Global Note shall deliver to the Euroclear Operator or Clearstream (as applicable) a Regulation S Certificate; provided, however, that any beneficial owner of a Temporary Regulation S Global Note on the Release Date or on any Distribution Date that has previously delivered a Regulation S Certificate hereunder shall not be required to deliver any subsequent Regulation S Certificate (unless the certificate previously delivered is no longer true as of such subsequent date, in which case such beneficial owner shall promptly notify the Euroclear Operator or Clearstream, as applicable, thereof and shall deliver an updated Regulation S Certificate). The Euroclear Operator and/or Clearstream, as applicable, shall deliver to the Paying Agent or the Indenture Trustee a certificate substantially in the form of Exhibit F (a “Non-U.S. Certificate”) attached hereto promptly upon the receipt of each such Regulation S Certificate, and no such beneficial owner (or transferee from such beneficial owner) shall be entitled to receive an interest in a Permanent Regulation S Global Note or any payment of principal or interest on or any other payment with respect to its beneficial interest in a Temporary Regulation S Global Note prior to the Paying Agent or the Indenture Trustee receiving such Non-U.S. Certificate from the Euroclear Operator or Clearstream with respect to the portion of the Temporary Regulation S Global Note owned by such beneficial owner (and, with respect to an interest in the Permanent Regulation S Global Note, prior to the Release Date).

 

(c)     Any payments of principal of, interest on or any other payment on a Temporary Regulation S Global Note received by the Euroclear Operator or Clearstream with respect to any portion of such Regulation S Global Note owned by a beneficial owner of a Class A Global Note or Class B Global Note that has not delivered the Regulation S Certificate required by this Section 9.05 shall be held by the Euroclear Operator and Clearstream solely as agents for the Paying Agent and the Indenture Trustee. The Euroclear Operator and Clearstream shall remit such payments to the applicable beneficial owner of a Class A Global Note or a Class B Global Note (or to a Euroclear System or Clearstream member on behalf of such beneficial owner of a Class A Global Note or a Class B Global Note) only after the Euroclear Operator or Clearstream has received the requisite Regulation S Certificate. Until the Paying Agent or the Indenture Trustee has received a Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, the Paying Agent or the Indenture Trustee may revoke the right of the Euroclear Operator or Clearstream, as applicable, to hold any payments made with respect to such portion of such Temporary Regulation S Global Note. If the Paying Agent or the Indenture Trustee exercises its right of revocation pursuant to the immediately preceding sentence, the Euroclear Operator or Clearstream, as applicable, shall return such payments to the Paying Agent or the Indenture Trustee and the Indenture Trustee shall hold such payments in the Collection Account until the Euroclear Operator or Clearstream, as applicable, has provided the necessary Non-U.S. Certificates to the Paying Agent or the Indenture Trustee (at which time the Paying Agent shall forward such payments to the Euroclear Operator or Clearstream, as applicable, to be remitted to the beneficial owner of a Class A Global Note or a Class B Global Note that is entitled thereto on the records of the Euroclear Operator or Clearstream (or on the records of their respective members)).

 

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(d)     Each beneficial owner of a Class A Global Note or a Class B Global Note with respect to a Temporary Regulation S Global Note shall exchange its interest therein for an interest in a Permanent Regulation S Global Note on or after the Release Date upon furnishing to the Euroclear Operator or Clearstream (as applicable) the Regulation S Certificate and upon receipt by the Paying Agent or the Indenture Trustee, as applicable, of the Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, in each case pursuant to the terms of this Section 9.07. On and after the Release Date, upon receipt by the Paying Agent or the Indenture Trustee of any Non-U.S. Certificate from the Euroclear Operator or Clearstream described in the immediately preceding sentence (i) with respect to the first such certification, the Issuer shall execute, upon receipt of an order to authenticate, and the Indenture Trustee shall authenticate the applicable Permanent Regulation S Global Note and (ii) with respect to the first and all subsequent certifications, the Indenture Trustee shall exchange on behalf of the applicable beneficial owners the portion of the applicable Temporary Regulation S Global Note covered by such certification for a comparable portion of the applicable Permanent Regulation S Global Note. Upon any exchange of a portion of a Temporary Regulation S Global Note for a comparable portion of a Permanent Regulation S Global Note, the Indenture Trustee shall endorse on the schedules affixed to each of such Regulation S Global Notes (or on continuations of such schedules affixed to each of such Regulation S Global Notes and made parts thereof) appropriate notations evidencing the date of transfer and (x) with respect to the Temporary Regulation S Global Note, a decrease in the principal amount thereof equal to the amount covered by the applicable certification and (y) with respect to the Permanent Regulation S Global Note, an increase in the principal amount thereof equal to the principal amount of the decrease in the Temporary Regulation S Global Note pursuant to clause (x) above.

 

(e) The Series 2018-One Notes will be issued as Definitive Notes to beneficial owners of the Series 2018-One Notes or their nominees, rather than to DTC or its nominee, upon the occurrence of any of the following:

 

	 	
			(i)

				
			the Issuer advises the Indenture Trustee that DTC, Euroclear or Clearstream, as applicable, is no longer willing or able to discharge properly its responsibilities as depository with respect to the Series 2018-One Notes and the Issuer is unable to locate and reach an agreement on satisfactory terms with a qualified successor;

			

 

	 	
			(ii)

				
			the Issuer, at its option, advises the Indenture Trustee in writing that it elects to terminate the book-entry system through DTC, Euroclear or Clearstream, as applicable, with respect to the Series 2018-One Notes; or

			

 

	 	
			(iii)

				
			after the occurrence of a Servicer Default or an Event of Default, beneficial owners representing not less than 50% of the outstanding principal amount of the Series 2018-One Notes advise the Indenture Trustee through DTC, Euroclear or Clearstream, as applicable, in writing that the continuation of a book-entry system is no longer in the best interest of the beneficial owners of the Series 2018-One Notes.

			

 

Upon the occurrence of any such event, the Indenture Trustee shall notify all beneficial owners of the Series 2018-One Notes through DTC, Euroclear or Clearstream, as applicable, of the availability of Definitive Notes. Upon surrender by DTC of the definitive instrument representing the Series 2018-One Notes and instructions for re-registration, the Issuer shall execute and the Indenture Trustee shall authenticate the Series 2018-One Notes as Definitive Notes. Thereafter the Indenture Trustee shall recognize the registered holders of those Definitive Notes as Noteholders for all purposes under the Indenture.

 

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Section 9.06.     Special Transfer Provisions.

 

(a)     If a holder of a beneficial interest in the Rule 144A Global Note wishes at any time to exchange its interest in the Rule 144A Global Note for an interest in the Regulation S Global Note, or to transfer its interest in the Rule 144A Global Note to a person who wishes to take delivery thereof in the form of an interest in the Regulation S Global Note, such holder may, subject to the rules and procedures of the Clearing Agency and to the requirements set forth in the following sentence, exchange or transfer or cause the exchange or transfer of such interest for an equivalent beneficial interest in the Regulation S Global Note. Upon receipt by the Indenture Trustee of (1) instructions given in accordance with the Clearing Agency’s procedures from or on behalf of a beneficial owner of the Rule 144A Global Note, directing the Indenture Trustee (via DWAC), as transfer agent, to credit or cause to be credited a beneficial interest in the Regulation S Global Note in an amount equal to the beneficial interest in the Rule 144A Global Note to be exchanged or transferred, (2) a written order in accordance with the Clearing Agency’s procedures containing information regarding the Euroclear System or Clearstream account to be credited with such increase and the name of such account, and (3) a certificate given by such beneficial owner stating that the exchange or transfer of such interest has been made pursuant to and in accordance with Rule 903 or Rule 904 of Regulation S under the Securities Act, the Indenture Trustee, as transfer agent, shall promptly deliver appropriate instructions to the Clearing Agency (via DWAC), its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Rule 144A Global Note to be so exchanged or transferred from the relevant participant, and the Indenture Trustee, as transfer agent, shall promptly deliver appropriate instructions (via DWAC) to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of such Regulation S Global Note by the aggregate principal amount of the beneficial interest in the Rule 144A Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions (who may be the Euroclear Operator or Clearstream or another agent member of the Euroclear System or Clearstream, or both, as the case may be, acting for and on behalf of them) a beneficial interest in such Regulation S Global Note equal to the reduction in the principal amount of the Rule 144A Global Note. Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class A Global Notes, the Class B Global Notes and the Class C Global Notes.

 

(b)     If a holder of a beneficial interest in the Regulation S Global Note wishes at any time to exchange its interest in the Regulation S Global Note for an interest in the Rule 144A Global Note, or to transfer its interest in the Regulation S Global Note to a person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Note, such holder may, subject to the rules and procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, and to the requirements set forth in the following sentence, exchange or transfer or cause the exchange or transfer of such interest for an equivalent beneficial interest in the Rule 144A Global Note. Upon receipt by the Indenture Trustee, as transfer agent, of (1) instructions given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, from or on behalf of a beneficial owner of the Regulation S Global Note directing the Indenture Trustee, as transfer agent, to credit or cause to be credited a beneficial interest in the Rule 144A Global Note in an amount equal to the beneficial interest in the Regulation S Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, containing information regarding the account with the Clearing Agency to be credited with such increase and the name of such account, and (3) prior to the expiration of the Distribution Compliance Period, a certificate given by such beneficial owner stating that the person transferring such interest in such Regulation S Global Note reasonably believes that the person acquiring such interest in the Rule 144A Global Note is a QIB and is obtaining such beneficial interest for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction, the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Global Note by the aggregate principal amount of the beneficial interest in such Regulation S Global Note to be exchanged or transferred, and the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Regulation S Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Rule 144A Global Note equal to the reduction in the principal amount of the Regulation S Global Note. After the expiration of the Distribution Compliance Period, the certification requirement set forth in clause (3) of the second sentence of this Section 9.08(b) will no longer apply to such exchanges and transfers. Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class A Global Notes, the Class B Global Notes or the Class C Global Notes.

 

(c)     Any beneficial interest in one of the Class A Global Notes, Class B Global Notes or Class C Global Notes that is transferred to a person who takes delivery in the form of an interest in the other Class A Global Note, Class B Global Note or Class C Global Note will, upon transfer, cease to be an interest in such Class A Global Note, Class B Global Note or Class C Global Note and become an interest in the other Class A Global Note, Class B Global Note or Class C Global Note and, accordingly, will thereafter be subject to all transfer restrictions and other procedures applicable to beneficial interests in such other Class A Global Note, Class B Global Note or Class C Global Note for as long as it remains such an interest.

 

(d)     Until the later of the Release Date and the provision of the certifications required by Section 9.05, beneficial interests in a Regulation S Global Note may only be held through the Euroclear System or Clearstream or another agent member of the Euroclear System or Clearstream acting for and on behalf of them. During the Distribution Compliance Period, interests in the Regulation S Global Note may be exchanged for interests in the Rule 144A Global Note only in accordance with the certification requirements described above.

 

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Section 9.07.     Withholding.

 

Prior to the first Distribution Date, and at any subsequent time as required by applicable Requirements of Law, (i) each holder of a Series 2018-One Note shall deliver to the Paying Agent and the Issuer a correct, complete and properly executed U.S. IRS Form W-9, W-8BEN, W-8BEN-E, W-8ECI, W-8IMY (with applicable supporting documentation) or W-8EXP, or any successor form, as applicable (“Noteholder Tax Identification Information”) and (ii) each holder of a Series 2018-One Note shall deliver to the Paying Agent and the Issuer any documentation that is required under FATCA or is otherwise necessary (in the sole determination of the Issuer, the Paying Agent and the Indenture Trustee or other agent of the Issuer, as applicable) to enable the Issuer, the Paying Agent and any other agent of the Issuer to comply with their obligations under FATCA and to determine that such holder of a Series 2018-One Note (or holder of any beneficial interest in a Series 2018-One Note) has complied with its obligations under FATCA, or to determine the amount to deduct and withhold from a payment (“Noteholder FATCA Information”).

 

Each holder of a Series 2018-One Note or an interest therein, by acceptance of such Series 2018-One Note or such interest in such Series 2018-One Note, will be deemed to have agreed to provide the Issuer, the Paying Agent and the Indenture Trustee with the Noteholder Tax Identification Information and, to the extent applicable, the Noteholder FATCA Information.  In addition, each holder of a Series 2018-One Note or an interest therein will be deemed to understand that the Indenture Trustee, the Paying Agent and any other agent of the Issuer may withhold interest and principal payable with respect to a Series 2018-One Note (without any corresponding gross-up) on any holder of a Series 2018-One Note or beneficial owner of an interest in a Series 2018-One Note that fails to comply with the foregoing requirements.

 

ARTICLE X

Miscellaneous Provisions

 

Section 10.01.     Ratification of Agreement. As supplemented by this Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Supplement shall be read, taken and construed as one and the same instrument.

 

Section 10.02.     Counterparts. This Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.

 

Section 10.03.     Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW). EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS SECTION 9.03 SHALL AFFECT THE RIGHT OF ANY PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OF THE PARTIES HERETO OR ANY OF THEIR RESPECTIVE PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.

 

EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY OF THEM ARISING OUT OF, CONNECTED WITH, RELATING TO OR INCIDENTAL TO THE RELATIONSHIP BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS.

 

Section 10.04.     Limitation of Liability. It is expressly understood and agreed by the parties hereto that (a) this Supplement is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement, (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any Indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Supplement or any other document to which the Issuer is a party.

 

33

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

Section 10.05.     Additional Covenants.

 

(a) So long as the Series 2018-One Notes remain Outstanding, the Discount Option shall not be reduced below [*****]%.

 

(b) On each Measurement Date, the Servicer shall determine the Series Required Transferor Amount and the Adjusted Transferor Amount as of the last day of the related Monthly Period. Notwithstanding anything in the Transaction Documents to the contrary, if the Servicer determines that the Adjusted Transferor Amount is less than the Series Required Transferor Amount, the Transferor shall cause to be designated additional Eligible Accounts to be included as Accounts in a sufficient amount such that the Adjusted Transferor Amount is at least equal to the Series Required Transferor Amount. Receivables from such additional Eligible Accounts shall be transferred to the Issuer on or before the Distribution Date occurring in the next Monthly Period.

 

Section 10.06.     Excess Concentration Amount.

 

(a) As of the first day of any Monthly Period, an amount of Principal Receivables equal to the sum, without duplication, of the following amounts shall constitute the “Excess Concentration Amount” for such Monthly Period:

 

(i) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(ii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(iii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(iv) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(v) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(vi) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors have no FICO Score or a FICO Score of less than [*****] exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(vii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which the sector is home improvement – in store exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(viii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which the sector is home improvement – in home exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

 (ix) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which the sector is furniture exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(x) the aggregate amount of all Principal Receivables that cause the weighted average annual percentage rate of interest of all Eligible Accounts to be less than [*****]%;

 

(xi) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which the Obligors reside in the state with the highest number of Accounts exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(xii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors reside in the state with the second highest number of Accounts exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(xiii) the aggregate amount of all Principal Receivables that constitute Eligible Receivables with the same industry sector for which the sector is other than those named above exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(xiv)  the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors reside in any single state (other than the states described in (xi) and (xii)  above) exceeds [*****]% of the aggregate amount of Eligible Receivables;

 

(xv) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which Obligors reside in the State of Colorado and whose APR is greater than the maximum rate of interest permitted by the State of Colorado exceeds [*****]% of the aggregate amount of Eligible Receivables; and

 

(xvi) the aggregate amount of all Principal Receivables that constitute Eligible Receivables for which the related Obligor was a resident of the State of New York, the State of Connecticut, or the State of Vermont as of the time of such Receivable’s creation exceeds [*****]% of the aggregate amount of all Principal Receivables that constitute Eligible Receivables.

 

(b) At the option of the Transferor, any Receivables which constitute Excess Concentration Amounts shall be treated as Ineligible Receivables in accordance with Section 2.05 of the Transfer and Servicing Agreement.

 

Section 10.07.        The Indenture Trustee. The Indenture Trustee shall be entitled to the same rights, protections and indemnities under this Supplement that it is provided under the Indenture.

 

34

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

 

 

IN WITNESS WHEREOF, the Issuer, the Servicer and the Indenture Trustee have caused this Indenture Supplement to be duly executed by their respective officers thereunto duly authorized, all as of the date first above written.

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST,

Issuer

 

By: Wilmington Trust, National association

not in its individual capacity, but solely

as Owner Trustee

 

 

By:     /s/Nedine P Sutton

Name: Nedine P. Sutton

Title: Vice President     

 

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity, but solely as

Indenture Trustee

 

By:     /s/Mirtza J. Escobar

Name: Mirtza J. Escobar

Title: Vice President

 

 

 

 

ACCESS FINANCING, LLC,

Servicer

 

By:     /s/Brian Stone

Name:     Brian Stone

Title:     President

 

 

For purposes of Section 10.05 and 10.06 only:

 

FRC Funding Corporation

As Transferor

 

By: /s/Joshua C. Miller

Name: Joshua C. Miller

Title: Assistant Secretary

 

35

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

 

 

	
			TABLE OF CONTENTS

				 
	 	 	
			Page

			
	
			ARTICLE I

				 
	
			Creation of the Series 2018-One Notes

				 
	
			Section 1.01. 

				
			    Designation     

				 
	
			ARTICLE II

				 
	
			Definitions

				 
	
			Section 2.01. 

				
			    Definitions     

				 
	
			ARTICLE III

				 
	
			Fees

				 
	
			Section 3.01. 

				
			    Servicing Compensation; Backup Servicing Fee  

				 
	
			ARTICLE IV

				 
	
			Rights of Series 2018-One Noteholders and Allocation and Application of Collections

				 
	
			Section 4.01. 

				
			    Collections and Allocations     

				 
	
			Section 4.02. 

				
			    Determination of Monthly Interest     

				 
	
			Section 4.03. 

				
			    Required Amounts     

				 
	
			Section 4.04. 

				
			    Application of Available Finance Charge Collections and Available Principal Collections

			
	
			Section 4.05. 

				
			    Defaulted Amounts; Reduction Amounts     

				 
	
			Section 4.06  

				
			   Reallocated Principal Collections     

				 
	
			Section 4.07. 

				
			    Series 2018-One Distribution Account     

				 
	
			Section 4.08. 

				
			    Spread Account     

				 
	
			Section 4.09. 

				
			    Optional Redemption     

				 
	
			ARTICLE V

				 
	
			Distributions and Reports to Series 2018-One Noteholders

				 
	
			Section 5.01. 

				
			    Distributions     

				 
	
			Section 5.02. 

				
			    Reports and Statements to Series 2018-One Noteholders 

			
	
			ARTICLE VI

				 
	
			Early Redemption Events; Events of Default

				 
	
			Section 6.01. 

				
			    Early Redemption Events     

				 
	
			ARTICLE VII

				 
	
			Administrative Redemption; Series Termination

				 
	
			Section 7.01. 

				
			    Administrative Redemption     

				 
	
			Section 7.02. 

				
			    Repayment     

				 
	
			ARTICLE VIII

				 
	
			Redemption of Series 2018-One Notes; Final Distributions

				 
	
			Section 8.01. 

				
			    Sale of Receivables or Redemption of the Notes pursuant to Section 2.04(c) or 8.01 of the Transfer and Servicing Agreement and Sections 5.05 and 5.17 of the Indenture and Section 7.01 of this Supplement

			
	
			ARTICLE IX

				 
	
			The Series 2018-One Notes; Covenants; Event of Default

				 
	
			Section 9.01. 

				
			    Form of Delivery of the Series 2018-One Notes; Denominations

			
	
			Section 9.02. 

				
			    Private Placement of Securities     

				 
	
			Section 9.03. 

				
			    Representations and Warranties of Noteholders 

				 
	
			Section 9.04. 

				
			    Transfer Restrictions     

				 
	
			Section 9.05. 

				
			    Regulation S Global Notes     

				 
	
			Section 9.06. 

				
			    Special Transfer Provisions     

				 
	
			ARTICLE X

				 
	
			Miscellaneous Provisions

				 
	
			Section 10.01.

				
			     Ratification of Agreement     

				 
	
			Section 10.02.

				
			     Counterparts     

				 
	
			Section 10.03.

				
			     Governing Law     

				 
	
			Section 10.04.

				
			     Limitation of Liability     

				 
	
			Section 10.05.

				
			     Additional Covenants     

				 
	
			Section 10.06.

				
			     Excess Concentration Amounts     

				 

 

36

 

Exhibit A-1

FORM OF CLASS A SERIES 2018-ONE ASSET BACKED 

RULE 144A GLOBAL NOTE

 

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS A NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS CLASS A NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE, (2) TO PERSONS THAT ARE NOT “U.S. PERSONS” AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S OF THE SECURITIES ACT, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, OR (3) TO ISSUER OR ANY OF ITS AFFILIATES AND BY ISSUER OR ANY OF ITS AFFILIATES AS PART OF THE INITIAL DISTRIBUTION OR ANY REDISTRIBUTION OF THE NOTES BY ISSUER OR ANY OF ITS AFFILIATES AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE. 

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS CLASS A NOTE OR SUCH BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS A NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS A NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

A-1-1

 

 

BY YOUR ACQUISITION OF THIS CLASS A NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS A NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS A NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

A-1-2

 

 

                                                                                                                        up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OF ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

A-1-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

CLASS A SERIES 2018-ONE ASSET BACKED NOTES

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO _____________________ DOLLARS ($___________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class A Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Class A Note shall be due and payable on the Stated Maturity Date.  The principal sum of the Rule 144A Global Notes and the Regulation S Global Notes shall not exceed $___________ (unless otherwise permitted pursuant to the Indenture).  The Issuer will pay interest on the Class A Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.

 

The principal of and interest on this Class A Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

 

Reference is made to the further provisions of this Class A Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class A Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

A-1-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed.

FORTIVA RETAIL CREDIT MASTER NOTE

BUSINESS TRUST,

                                                            as Issuer

By:   WILMINGTON TRUST, NATIONAL

         ASSOCIATION,

         not in its individual capacity

         but solely as Owner Trustee

         under the Trust Agreement

By:  _____________________________

Name:

Title:  

                                                                  

  Date:  November ____, 2018

A-1-5

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

 

By:                                                                  

      Name:

      Title:

                                                                   Date:  November ____, 2018

A-1-6

 

 

[REVERSE OF NOTE]

 

This Class A Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class A Series 2018-One Asset Backed Notes (herein called the “Class A Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class A Notes.  The Class A Notes are subject to all terms of the Indenture.  All terms used in this Class A Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class A Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class A Note due and payable on any Distribution Date, to the extent not in full payment of this Class A Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class A Note (or one or more predecessor Class A Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class A Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class A Note be submitted for notation of payment.  Any reduction in the principal amount of this Class A Note (or any one or more predecessor Class A Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.   Any final payment shall be made in accordance with the provisions of the Indenture.

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class A Note may be registered on the Note Register upon surrender of this Class A Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of the same Series of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class A Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

A-1-7

 

 

Upon any redemption, purchase, exchange or cancellation of any of the Class A Notes represented by this Rule 144A Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Rule 144A Global Note and the Class A Notes represented by this Rule 144A Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

Each Noteholder or beneficial owner, by acceptance of a Class A Note or, in the case of a beneficial owner, a beneficial interest in a Class A Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class A Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class A Note, the Issuer, the Indenture Trustee, the Paying Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Class A Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of not less than a majority of Holders of the Class A Notes.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class A Note (or any one of more predecessor Class A Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

A-1-8

 

 

The Class A Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class A Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class A Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Class A Note or the Indenture.  The Holder of this Class A Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A Note.

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

A-1-9

 

 

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 Note and all rights thereunder, and hereby irrevocably constitutes and appoints                                                                                     , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

 

 

Dated:

                                                

           

                                                            

 *

 

            Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

 

A-1-10

 

 

SCHEDULE A

SCHEDULE OF EXCHANGES BETWEEN THE REGULATION S GLOBAL

NOTE AND THIS RULE 144A GLOBAL NOTE,

OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following increases or decreases in principal amount of this Rule 144A Global Note, or redemptions, purchases or cancellations of this Rule 144A Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Rule 144A Global Note due to exchanges between the Regulation S Global Note

			and this Rule 144A Global Note

				
			Remaining principal amount of this Rule 144A Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	 	 	 	 

 

A-1-11

 

 

 

Exhibit A-2

FORM OF CLASS A SERIES 2018-ONE ASSET BACKED TEMPORARY REGULATION S GLOBAL NOTE

 

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS A NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF THE NOTES AND THE CLOSING OF THE OFFERING OF THE NOTES, (1) IN THE UNITED STATES OR TO A PERSON THAT IS A “U.S. PERSON” (AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT (“REGULATION S”), A “U.S. PERSON”) OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OTHER THAN A DISTRIBUTOR (AS DEFINED UNDER REGULATION S) AND (2) OTHER THAN IN ACCORDANCE WITH RULE 903 OR 904 UNDER REGULATION S AND (B) OTHER THAN IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF AND IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF SUCH BENEFICIAL INTEREST IN SUCH NOTE WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS A NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS A NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

BY YOUR ACQUISITION OF THIS CLASS A NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS A NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS A NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

A-2-1

 

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

TRANSFERS OF THIS CLASS A NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THIS REGULATION S GLOBAL NOTE IS A BOOK-ENTRY NOTE WHICH IS EXCHANGEABLE FOR INTERESTS IN OTHER BOOK-ENTRY NOTES AND DEFINITIVE NOTES SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE INDENTURE (AS DEFINED HEREIN).

 

NO BENEFICIAL OWNERS OF THIS CLASS A NOTE WILL BE ENTITLED TO RECEIVE ANY PAYMENT OF PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE INDENTURE (AS DEFINED HEREIN).

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

A-2-2

 

 

                                                                                                                        Up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

ISIN:  _______________

COMMON CODE:  _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OF ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

A-2-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS A SERIES 2018-ONE ASSET BACKED NOTES

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO ______________________ DOLLARS ($______________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class A Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Class A Note shall be due and payable on the Stated Maturity Date.  The aggregate principal sum of the Regulation S Global Notes and the Rule 144A Global Note shall not exceed $_______________.  The Issuer will pay interest on the Class A Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.  Such principal of and interest on this Class A Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class A Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class A Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Class A Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class A Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

A-2-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed.

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST,

            as Issuer

By:   WILMINGTON TRUST, NATIONAL

ASSOCIATION,

         not in its individual capacity but solely as

         Owner Trustee under the Trust Agreement

By:                                                                     

      Name:

      Title:

                                                                     Date: November ______, 2018

 

A-2-5

 

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

By:   ___________________________________

               Name:

               Title:

Date: November ____, 2018

 

A-2-6

 

 

 

[REVERSE OF NOTE]

 

This Class A Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class A Series 2018-One Asset Backed Notes (herein called the “Class A Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class A Notes.  The Class A Notes are subject to all terms of the Indenture.  All terms used in this Class A Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class A Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class A Note due and payable on any Distribution Date, to the extent not in full payment of this Class A Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class A Note (or one or more predecessor Class A Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class A Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class A Note be submitted for notation of payment.  Any reduction in the principal amount of this Class A Note (or any one or more predecessor Class A Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. 

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class A Note may be registered on the Note Register upon surrender of this Class A Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class A Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

Any interest in a Class A Note evidenced by this Temporary Regulation S Global Note is exchangeable for an interest in a Permanent Regulation S Global Note upon the later of (i) the Release Date and (ii) the furnishing of a Regulation S Certificate substantially in the form of Exhibit G to the Indenture Supplement.

 

A-2-7

 

 

On or prior to the Release Date, each beneficial owner of a Temporary Regulation S Global Note shall deliver to the Euroclear Operator or Clearstream (as applicable) a Regulation S Certificate; provided, however, that any beneficial owner of a Temporary Regulation S Global Note on the Release Date or on any Distribution Date that has previously delivered a Regulation S Certificate hereunder shall not be required to deliver any subsequent Regulation S Certificate (unless the certificate previously delivered is no longer true as of such subsequent date, in which case such beneficial owner shall promptly notify the Euroclear Operator or Clearstream, as applicable, thereof and shall deliver an updated Regulation S Certificate).  The Euroclear Operator and/or Clearstream, as applicable, shall deliver to the Paying Agent or the Indenture Trustee a certificate substantially in the form of Exhibit F (a “Non-U.S. Certificate”) to the Indenture Supplement promptly upon the receipt of each such Regulation S Certificate, and no such beneficial owner (or transferee from such beneficial owner) shall be entitled to receive an interest in a Permanent Regulation S Global Note or any payment of principal or interest on or any other payment with respect to its beneficial interest in a Temporary Regulation S Global Note prior to the Paying Agent or the Indenture Trustee receiving such Non-U.S. Certificate from the Euroclear Operator or Clearstream with respect to the portion of the Temporary Regulation S Global Note owned by such beneficial owner (and, with respect to an interest in the Permanent Regulation S Global Note, prior to the Release Date).

 

Any payments of principal of, interest on or any other payment on a Temporary Regulation S Global Note received by the Euroclear Operator or Clearstream with respect to any portion of such Regulation S Global Note owned by a beneficial owner of a Class A Global Note that has not delivered the Regulation S Certificate required by Section 9.05 of the Indenture Supplement shall be held by the Euroclear Operator and Clearstream solely as agents for the Paying Agent and the Indenture Trustee.  The Euroclear Operator and Clearstream shall remit such payments to the applicable beneficial owner of a Class A Global Note (or to a Euroclear System or Clearstream member on behalf of such beneficial owner of a Class A Global Note) only after the Euroclear Operator or Clearstream has received the requisite Regulation S Certificate.  Until the Paying Agent or the Indenture Trustee has received a Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, the Paying Agent or the Indenture Trustee may revoke the right of the Euroclear Operator or Clearstream, as applicable, to hold any payments made with respect to such portion of such Temporary Regulation S Global Note.  If the Paying Agent or the Indenture Trustee exercises its right of revocation pursuant to the immediately preceding sentence, the Euroclear Operator or Clearstream, as applicable, shall return such payments to the Paying Agent or the Indenture Trustee and the Indenture Trustee shall hold such payments in the Collection Account until the Euroclear Operator or Clearstream, as applicable, has provided the necessary Non-U.S. Certificates to the Paying Agent or the Indenture Trustee (at which time the Paying Agent shall forward such payments to the Euroclear Operator or Clearstream, as applicable, to be remitted to the beneficial owner of a Class A Global Note that is entitled thereto on the records of the Euroclear Operator or Clearstream (or on the records of their respective members)).

 

A-2-8

 

 

Each beneficial owner of a Class A Global Note with respect to a Temporary Regulation S Global Note shall exchange its interest therein for an interest in a Permanent Regulation S Global Note on or after the Release Date upon furnishing to the Euroclear Operator or Clearstream (as applicable) the Regulation S Certificate and upon receipt by the Paying Agent or the Indenture Trustee, as applicable, of the Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, in each case pursuant to the terms of Section 9.05 of the Indenture Supplement.  On and after the Release Date, upon receipt by the Paying Agent or the Indenture Trustee of any Non-U.S. Certificate from the Euroclear Operator or Clearstream described in the immediately preceding sentence (i) with respect to the first such certification, the Issuer shall execute, upon receipt of an order to authenticate, and the Indenture Trustee shall authenticate the applicable Permanent Regulation S Global Note and (ii) with respect to the first and all subsequent certifications, the Indenture Trustee shall exchange on behalf of the applicable beneficial owners the portion of the applicable Temporary Regulation S Global Note covered by such certification for a comparable portion of the applicable Permanent Regulation S Global Note.  Upon any exchange of a portion of a Temporary Regulation S Global Note for a comparable portion of a Permanent Regulation S Global Note, the Indenture Trustee shall endorse on the schedules affixed to each of such Regulation S Global Notes (or on continuations of such schedules affixed to each of such Regulation S Global Notes and made parts thereof) appropriate notations evidencing the date of transfer and (x) with respect to the Temporary Regulation S Global Note, a decrease in the principal amount thereof equal to the amount covered by the applicable certification and (y) with respect to the Permanent Regulation S Global Note, an increase in the principal amount thereof equal to the principal amount of the decrease in the Temporary Regulation S Global Note pursuant to clause (x) above.

 

If a holder of a beneficial interest in the Regulation S Global Note wishes at any time to exchange its interest in the Regulation S Global Note for an interest in the Rule 144A Global Note, or to transfer its interest in the Regulation S Global Note to a person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Note, such holder may, subject to the rules and procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, and to the requirements set forth in the following sentence, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Rule 144A Global Note.  Upon receipt by the Indenture Trustee, as transfer agent, of (1) instructions given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, from or on behalf of a beneficial owner of the Regulation S Global Note directing the Indenture Trustee, as transfer agent, to credit or cause to be credited a beneficial interest in the Rule 144A Global Note in an amount equal to the beneficial interest in the Regulation S Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, containing information regarding the account with the Clearing Agency to be credited with such increase and the name of such account, and (3) prior to the expiration of the Distribution Compliance Period, a certificate given by such beneficial owner stating that the person transferring such interest in such Regulation S Global Note reasonably believes that the person acquiring such interest in the Rule 144A Global Note is a QIB and is obtaining such beneficial interest for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction, the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Global Note by the aggregate principal amount of the beneficial interest in such Regulation S Global Note to be exchanged or transferred, and the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Regulation S Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Rule 144A Global Note equal to the reduction in the principal amount of the Regulation S Global Note.  After the expiration of the Distribution Compliance Period, the certification requirement set forth in clause (3) of the second sentence of this paragraph will no longer apply to such exchanges and transfers.  Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class A Global Notes.

 

A-2-9

 

 

Until the later of the Release Date and the provision of the certifications required by Section 9.05 of the Indenture Supplement, beneficial interests in a Regulation S Global Note may only be held through the Euroclear System or Clearstream or another agent member of the Euroclear System or Clearstream acting for and on behalf of them.  During the Distribution Compliance Period, interests in the Regulation S Global Note may be exchanged for interests in the Rule 144A Global Note only in accordance with the certification requirements described above.

 

On any redemption, purchase, exchange or cancellation of any of the Class A Notes represented by this Temporary Regulation S Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation and shall be signed on by or on behalf of the Issuer.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Temporary Regulation S Global Note and the Notes represented by this Permanent Regulation S Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

Each Noteholder or beneficial owner, by acceptance of a Class A Note or, in the case of a beneficial owner, a beneficial interest in a Class A Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class A Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class A Note, the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Class A Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

A-2-10

 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Class A Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of a majority of Holders of the Class A Notes.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class A Note (or any one of more predecessor Class A Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

The Class A Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class A Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class A Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Class A Note or the Indenture.  The Holder of this Class A Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A Note.

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

A-2-11

 

 

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 Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

 

 

Dated:

                                      

         

                                            

 

 *

 

Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

A-2-12

 

 

SCHEDULE A

SCHEDULE OF EXCHANGES

FOR NOTES REPRESENTED BY THE TEMPORARY

REGULATION S GLOBAL NOTE OR THE RULE 144A

GLOBAL NOTE, OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following exchanges of a part of this Temporary Regulation S Global Note for the Permanent Regulation S Global Note or the Rule 144A Global Note, in whole or in part, or redemptions, purchases or cancellation of this Temporary Regulation S Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Rule 144A Global Note due to exchanges between the Regulation S Global Note

			and this Rule 144A Global Note

				
			Remaining principal amount of this Rule 144A Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	 	 	 	 

A-2-13

 

 

Exhibit A-3

FORM OF CLASS A SERIES 2018-ONE ASSET BACKED PERMANENT REGULATION S GLOBAL NOTE

 

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS A NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF THE NOTES AND THE CLOSING OF THE OFFERING OF THE NOTES, (1) IN THE UNITED STATES OR TO A PERSON THAT IS A “U.S. PERSON” (AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT (“REGULATION S”), A “U.S. PERSON”) OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OTHER THAN A DISTRIBUTOR (AS DEFINED UNDER REGULATION S) AND (2) OTHER THAN IN ACCORDANCE WITH RULE 903 OR 904 UNDER REGULATION S AND (B) OTHER THAN IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF AND IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF SUCH BENEFICIAL INTEREST IN SUCH NOTE WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS A NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS A NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

A-3-1

 

 

BY YOUR ACQUISITION OF THIS CLASS A NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS A NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS A NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

TRANSFERS OF THIS CLASS A NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

A-3-2

 

 

                                                                                                                        Up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP NO. _______________

USIN:  _______________

COMMON CODE:  _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION, OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

A-3-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS A SERIES 2018-ONE ASSET BACKED NOTE

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO ____________________ DOLLARS ($________________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class A Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Class A Note shall be due and payable on the Stated Maturity Date.  The aggregate principal sum of the Regulation S Global Notes and the Rule 144A Global Note shall not exceed $_____________.  The Issuer will pay interest on the Class A Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.  Such principal of and interest on this Class A Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class A Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class A Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Class A Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class A Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

A-3-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed.

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST,

            as Issuer

 

By:   WILMINGTON TRUST, NATIONAL

ASSOCIATION,

         not in its individual capacity but solely as

         Owner Trustee under the Trust Agreement

 

By:                                                                     

      Name:

      Title:

 

                                                                     Date: _______________, _________

 

 

A-3-5

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

By:   ___________________________________

               Name:

               Title:

Date: ____________, _____

 

A-3-6

 

 

 

[REVERSE OF NOTE]

 

This Class A Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class A Series 2018-One Asset Backed Notes (herein called the “Class A Notes”), all issued under a Master Indenture, dated as of November 9, 2018, (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class A Notes.  The Class A Notes are subject to all terms of the Indenture.  All terms used in this Class A Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class A Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class A Note due and payable on any Distribution Date, to the extent not in full payment of this Class A Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class A Note (or one or more predecessor Class A Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class A Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class A Note be submitted for notation of payment.  Any reduction in the principal amount of this Class A Note (or any one or more predecessor Class A Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  Any final payment shall be made in accordance with provisions of the Indenture.

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class A Note may be registered on the Note Register upon surrender of this Class A Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class A Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

A-3-7

 

 

On any redemption, purchase, exchange or cancellation of any of the Notes represented by this Permanent Regulation S Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation and shall be signed on by or on behalf of the Issuer.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Permanent Regulation S Global Note and the Notes represented by this Permanent Regulation S Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

If a holder of a beneficial interest in the Regulation S Global Note wishes at any time to exchange its interest in the Regulation S Global Note for an interest in the Rule 144A Global Note, or to transfer its interest in the Regulation S Global Note to a person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Note, such holder may, subject to the rules and procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, and to the requirements set forth in the following sentence, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Rule 144A Global Note.  Upon receipt by the Indenture Trustee, as transfer agent, of (1) instructions given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, from or on behalf of a beneficial owner of the Regulation S Global Note directing the Indenture Trustee, as transfer agent, to credit or cause to be credited a beneficial interest in the Rule 144A Global Note in an amount equal to the beneficial interest in the Regulation S Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, containing information regarding the account with the Clearing Agency to be credited with such increase and the name of such account, and (3) prior to the expiration of the Distribution Compliance Period, a certificate given by such beneficial owner stating that the person transferring such interest in such Regulation S Global Note reasonably believes that the person acquiring such interest in the Rule 144A Global Note is a QIB and is obtaining such beneficial interest for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction, the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Global Note by the aggregate principal amount of the beneficial interest in such Regulation S Global Note to be exchanged or transferred, and the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Regulation S Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Rule 144A Global Note equal to the reduction in the principal amount of the Regulation S Global Note.  After the expiration of the Distribution Compliance Period, the certification requirement set forth in clause (3) of the second sentence of this paragraph will no longer apply to such exchanges and transfers.  Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class A Global Notes.

 

Each Noteholder or beneficial owner, by acceptance of a Class A Note or, in the case of a beneficial owner, a beneficial interest in a Class A Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class A Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

A-3-8

 

 

Prior to the due presentment for registration of transfer of this Class A Note, the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Class A Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of a majority of Holders.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class A Note (or any one of more predecessor Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Class A Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

The Class A Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class A Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class A Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Note or the Indenture.  The Holder of this Class A Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A Note.

 

A-3-9

 

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

A-3-10

 

 

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 Class A Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Class A Note on the books kept for registration thereof, with full power of substitution in the premises.

 

Dated:                                                                                              *

Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

A-3-11

 

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES BETWEEN THIS PERMANENT REGULATION S GLOBAL

NOTE OR THE RULE 144A GLOBAL NOTE,

OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following increases or decreases in principal amount of this Permanent Regulation S Global Note or redemptions, purchases or cancellation of this Permanent Regulation S Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Permanent Regulation S Global Note due to exchanges between the Rule 144A Global Note and this Permanent Regulation S Global Note

				
			Remaining principal amount of this Permanent Regulation S Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	 	 	 	 
	
			___________

				
			________________

				
			______________

				
			_____________

			
	
			___________

				
			________________

				
			______________

				
			_____________

			
	
			___________

				
			________________

				
			______________

				
			_____________

			
	 	 	 	 

A-3-12

 

 

Exhibit B-1

 

FORM OF CLASS B SERIES 2018-ONE ASSET BACKED

RULE 144A GLOBAL NOTE

 

THIS CLASS B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS B NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS CLASS B NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE, (2) TO PERSONS THAT ARE NOT “U.S. PERSONS” AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S OF THE SECURITIES ACT, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, OR (3) TO ISSUER OR ANY OF ITS AFFILIATES AND BY ISSUER OR ANY OF ITS AFFILIATES AS PART OF THE INITIAL DISTRIBUTION OR ANY REDISTRIBUTION OF THE NOTES BY ISSUER OR ANY OF ITS AFFILIATES AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS CLASS B NOTE OR SUCH BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS B NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS B NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

BY YOUR ACQUISITION OF THIS CLASS B NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS B NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS B NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

B-1-1

 

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

B-1-2

 

 

                                                                                                                        up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

B-1-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS B SERIES 2018-ONE ASSET BACKED NOTES

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO _____________________ DOLLARS ($___________) payable in an amount equal to aggregate amount, if any, payable from the Collection Account in respect of principal on the Class B Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Note shall be due and payable on the Stated Maturity Date.  The principal sum of the Rule 144A Global Notes and the Regulation S Global Notes shall not exceed $___________ (unless otherwise permitted pursuant to the Indenture).  The Issuer will pay interest on the Class B Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.  Such principal of and interest on this Class B Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class B Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

 

Reference is made to the further provisions of this Class B Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class B Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

B-1-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed.

 

FORTIVA RETAIL CREDIT MASTER NOTE

BUSINESS TRUST,

                                                                     as Issuer

By:   WILMINGTON TRUST, NATIONAL

ASSOCIATION,

         not in its individual capacity

         but solely as Owner Trustee

         under the Trust Agreement

 

By:  _____________________________

Name:

Title:

Date: November ______, 2018

 

B-1-5

 

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class B Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

 

By:                                                                  

      Name:

      Title:

 

      Date: November ____, 2018

B-1-6

 

 

[REVERSE OF NOTE]

 

This Class B Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class B Series 2018-One Asset Backed Notes (herein called the “Class B Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class B Notes.  The Class B Notes are subject to all terms of the Indenture.  All terms used in this Class B Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class B Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class B Note due and payable on any Distribution Date, to the extent not in full payment of this Class B Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class B Note (or one or more predecessor Class B Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class B Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class B Note be submitted for notation of payment.  Any reduction in the principal amount of this Class B Note (or any one or more predecessor Class B Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.   Any final payment shall be made in accordance with the provisions of the Indenture.

 

B-1-7

 

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class B Note may be registered on the Note Register upon surrender of this Class B Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of the same Series of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class B Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

Upon any redemption, purchase, exchange or cancellation of any of the Class B Notes represented by this Rule 144A Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Rule 144A Global Note and the Class B Notes represented by this Rule 144A Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

Each Noteholder or beneficial owner, by acceptance of a Class B Note or, in the case of a beneficial owner, a beneficial interest in a Class B Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class B Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class B Note, the Issuer, the Indenture Trustee, the Paying Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class B Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

B-1-8

 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Class B Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of not less than a majority of Holders of the Class B Notes.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class B Note (or any one of more predecessor Class B Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class B Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

The Class B Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class B Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class B Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class B Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Class B Note or the Indenture.  The Holder of this Class B Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class B Note.

 

B-1-9

 

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

B-1-10

 

 

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 Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

 

Dated:                                                                                                                          *

            Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

B-1-11

 

 

SCHEDULE A

SCHEDULE OF EXCHANGES BETWEEN THE REGULATION S GLOBAL

NOTE AND THIS RULE 144A GLOBAL NOTE,

OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following increases or decreases in principal amount of this Rule 144A Global Note, or redemptions, purchases or cancellations of this Rule 144A Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Rule 144A Global Note due to exchanges between the Regulation S Global Note

			and this Rule 144A Global Note

				
			Remaining principal amount of this Rule 144A Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	 	 	 	 

B-1-12

 

 

Exhibit B-2

FORM OF CLASS B SERIES 2018-ONE ASSET BACKED TEMPORARY REGULATION S GLOBAL NOTE

 

THIS CLASS B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS B NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF THE NOTES AND THE CLOSING OF THE OFFERING OF THE NOTES, (1) IN THE UNITED STATES OR TO A PERSON THAT IS A “U.S. PERSON” (AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT (“REGULATION S”), A “U.S. PERSON”) OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OTHER THAN A DISTRIBUTOR (AS DEFINED UNDER REGULATION S) AND (2) OTHER THAN IN ACCORDANCE WITH RULE 903 OR 904 UNDER REGULATION S AND (B) OTHER THAN IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF AND IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF SUCH BENEFICIAL INTEREST IN SUCH NOTE WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS B NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS B NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

B-2-1

 

 

BY YOUR ACQUISITION OF THIS CLASS B NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS B NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS B NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

TRANSFERS OF THIS CLASS B NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

B-2-2

 

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THIS REGULATION S GLOBAL NOTE IS A BOOK-ENTRY NOTE WHICH IS EXCHANGEABLE FOR INTERESTS IN OTHER BOOK-ENTRY NOTES AND DEFINITIVE NOTES SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE INDENTURE (AS DEFINED HEREIN).

 

NO BENEFICIAL OWNERS OF THIS CLASS B NOTE WILL BE ENTITLED TO RECEIVE ANY PAYMENT OF PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE INDENTURE (AS DEFINED HEREIN).

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

B-2-3

 

 

                                                                                                                        Up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

ISIN:  _______________

COMMON CODE:  _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION, OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

B-2-4

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS B SERIES 2018-ONE ASSET BACKED NOTES

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO ______________________ DOLLARS ($______________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class B Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Class B Note shall be due and payable on the Stated Maturity Date.  The aggregate principal sum of the Regulation S Global Notes and the Rule 144A Global Note shall not exceed $_______________.  The Issuer will pay interest on the Class B Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.  Such principal of and interest on this Class B Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class B Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class B Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Class B Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class B Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

B-2-5

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed.

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST,

            as Issuer

By:   WILMINGTON TRUST, NATIONAL

ASSOCIATION,

         not in its individual capacity but solely as

         Owner Trustee under the Trust Agreement

By:                                                                     

      Name:

      Title:

Date:  November  _____, 2018

 

B-2-6

 

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class B Notes described in the within-mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

By:   ___________________________________

               Name:

               Title:

Date: November ____, 2018

 

B-2-7

 

 

 

[REVERSE OF NOTE]

 

This Class B Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class B Series 2018-One Asset Backed Notes (herein called the “Class B Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class B Notes.  The Class B Notes are subject to all terms of the Indenture.  All terms used in this Class B Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class B Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class B Note due and payable on any Distribution Date, to the extent not in full payment of this Class B Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class B Note (or one or more predecessor Class B Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class B Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class B Note be submitted for notation of payment.  Any reduction in the principal amount of this Class B Note (or any one or more predecessor Class B Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. 

 

B-2-8

 

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class B Note may be registered on the Note Register upon surrender of this Class B Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class B Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

Any interest in a Class B Note evidenced by this Temporary Regulation S Global Note is exchangeable for an interest in a Permanent Regulation S Global Note upon the later of (i) the Release Date and (ii) the furnishing of a Regulation S Certificate substantially in the form of Exhibit G to the Indenture Supplement.

 

On or prior to the Release Date, each beneficial owner of a Temporary Regulation S Global Note shall deliver to the Euroclear Operator or Clearstream (as applicable) a Regulation S Certificate; provided, however, that any beneficial owner of a Temporary Regulation S Global Note on the Release Date or on any Distribution Date that has previously delivered a Regulation S Certificate hereunder shall not be required to deliver any subsequent Regulation S Certificate (unless the certificate previously delivered is no longer true as of such subsequent date, in which case such beneficial owner shall promptly notify the Euroclear Operator or Clearstream, as applicable, thereof and shall deliver an updated Regulation S Certificate).  The Euroclear Operator and/or Clearstream, as applicable, shall deliver to the Paying Agent or the Indenture Trustee a certificate substantially in the form of Exhibit F (a “Non-U.S. Certificate”) to the Indenture Supplement promptly upon the receipt of each such Regulation S Certificate, and no such beneficial owner (or transferee from such beneficial owner) shall be entitled to receive an interest in a Permanent Regulation S Global Note or any payment of principal or interest on or any other payment with respect to its beneficial interest in a Temporary Regulation S Global Note prior to the Paying Agent or the Indenture Trustee receiving such Non-U.S. Certificate from the Euroclear Operator or Clearstream with respect to the portion of the Temporary Regulation S Global Note owned by such beneficial owner (and, with respect to an interest in the Permanent Regulation S Global Note, prior to the Release Date).

 

Any payments of principal of, interest on or any other payment on a Temporary Regulation S Global Note received by the Euroclear Operator or Clearstream with respect to any portion of such Regulation S Global Note owned by a beneficial owner of a Class B Global Note that has not delivered the Regulation S Certificate required by Section 9.05 of the Indenture Supplement shall be held by the Euroclear Operator and Clearstream solely as agents for the Paying Agent and the Indenture Trustee.  The Euroclear Operator and Clearstream shall remit such payments to the applicable beneficial owner of a Class B Global Note (or to a Euroclear System or Clearstream member on behalf of such beneficial owner of a Class B Global Note) only after the Euroclear Operator or Clearstream has received the requisite Regulation S Certificate.  Until the Paying Agent or the Indenture Trustee has received a Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, the Paying Agent or the Indenture Trustee may revoke the right of the Euroclear Operator or Clearstream, as applicable, to hold any payments made with respect to such portion of such Temporary Regulation S Global Note.  If the Paying Agent or the Indenture Trustee exercises its right of revocation pursuant to the immediately preceding sentence, the Euroclear Operator or Clearstream, as applicable, shall return such payments to the Paying Agent or the Indenture Trustee and the Indenture Trustee shall hold such payments in the Collection Account until the Euroclear Operator or Clearstream, as applicable, has provided the necessary Non-U.S. Certificates to the Paying Agent or the Indenture Trustee (at which time the Paying Agent shall forward such payments to the Euroclear Operator or Clearstream, as applicable, to be remitted to the beneficial owner of a Class B Global Note that is entitled thereto on the records of the Euroclear Operator or Clearstream (or on the records of their respective members)).

 

B-2-9

 

 

Each beneficial owner of a Class B Global Note with respect to a Temporary Regulation S Global Note shall exchange its interest therein for an interest in a Permanent Regulation S Global Note on or after the Release Date upon furnishing to the Euroclear Operator or Clearstream (as applicable) the Regulation S Certificate and upon receipt by the Paying Agent or the Indenture Trustee, as applicable, of the Non-U.S. Certificate from the Euroclear Operator or Clearstream, as applicable, in each case pursuant to the terms of Section 9.05 of the Indenture Supplement.  On and after the Release Date, upon receipt by the Paying Agent or the Indenture Trustee of any Non-U.S. Certificate from the Euroclear Operator or Clearstream described in the immediately preceding sentence (i) with respect to the first such certification, the Issuer shall execute, upon receipt of an order to authenticate, and the Indenture Trustee shall authenticate the applicable Permanent Regulation S Global Note and (ii) with respect to the first and all subsequent certifications, the Indenture Trustee shall exchange on behalf of the applicable beneficial owners the portion of the applicable Temporary Regulation S Global Note covered by such certification for a comparable portion of the applicable Permanent Regulation S Global Note.  Upon any exchange of a portion of a Temporary Regulation S Global Note for a comparable portion of a Permanent Regulation S Global Note, the Indenture Trustee shall endorse on the schedules affixed to each of such Regulation S Global Notes (or on continuations of such schedules affixed to each of such Regulation S Global Notes and made parts thereof) appropriate notations evidencing the date of transfer and (x) with respect to the Temporary Regulation S Global Note, a decrease in the principal amount thereof equal to the amount covered by the applicable certification and (y) with respect to the Permanent Regulation S Global Note, an increase in the principal amount thereof equal to the principal amount of the decrease in the Temporary Regulation S Global Note pursuant to clause (x) above.

 

If a holder of a beneficial interest in the Regulation S Global Note wishes at any time to exchange its interest in the Regulation S Global Note for an interest in the Rule 144A Global Note, or to transfer its interest in the Regulation S Global Note to a person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Note, such holder may, subject to the rules and procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, and to the requirements set forth in the following sentence, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Rule 144A Global Note.  Upon receipt by the Indenture Trustee, as transfer agent, of (1) instructions given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, from or on behalf of a beneficial owner of the Regulation S Global Note directing the Indenture Trustee, as transfer agent, to credit or cause to be credited a beneficial interest in the Rule 144A Global Note in an amount equal to the beneficial interest in the Regulation S Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, containing information regarding the account with the Clearing Agency to be credited with such increase and the name of such account, and (3) prior to the expiration of the Distribution Compliance Period, a certificate given by such beneficial owner stating that the person transferring such interest in such Regulation S Global Note reasonably believes that the person acquiring such interest in the Rule 144A Global Note is a QIB and is obtaining such beneficial interest for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction, the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Global Note by the aggregate principal amount of the beneficial interest in such Regulation S Global Note to be exchanged or transferred, and the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Regulation S Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Rule 144A Global Note equal to the reduction in the principal amount of the Regulation S Global Note.  After the expiration of the Distribution Compliance Period, the certification requirement set forth in clause (3) of the second sentence of this paragraph will no longer apply to such exchanges and transfers.  Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class B Global Notes.

 

B-2-10

 

 

Until the later of the Release Date and the provision of the certifications required by Section 9.05 of the Indenture Supplement, beneficial interests in a Regulation S Global Note may only be held through the Euroclear System or Clearstream or another agent member of the Euroclear System or Clearstream acting for and on behalf of them.  During the Distribution Compliance Period, interests in the Regulation S Global Note may be exchanged for interests in the Rule 144A Global Note only in accordance with the certification requirements described above.

 

On any redemption, purchase, exchange or cancellation of any of the Class B Notes represented by this Temporary Regulation S Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation and shall be signed on by or on behalf of the Issuer.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Temporary Regulation S Global Note and the Notes represented by this Permanent Regulation S Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

Each Noteholder or beneficial owner, by acceptance of a Class B Note or, in the case of a beneficial owner, a beneficial interest in a Class B Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class B Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class B Note, the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Class B Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class B Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

B-2-11

 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Class B Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of a majority of Holders of the Class B Notes.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class B Note (or any one of more predecessor Class B Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class B Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

The Class B Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class B Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class B Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class B Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Class B Note or the Indenture.  The Holder of this Class B Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class B Note.

 

B-2-12

 

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

 

B-2-13

 

 

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 Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

 

 

Dated:                                                                                             *

Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

B-2-14

 

 

SCHEDULE A

SCHEDULE OF EXCHANGES

FOR NOTES REPRESENTED BY THE TEMPORARY

REGULATION S GLOBAL NOTE OR THE RULE 144A

GLOBAL NOTE, OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following exchanges of a part of this Temporary Regulation S Global Note for the Permanent Regulation S Global Note or the Rule 144A Global Note, in whole or in part, or redemptions, purchases or cancellation of this Temporary Regulation S Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Rule 144A Global Note due to exchanges between the Regulation S Global Note

			and this Rule 144A Global Note

				
			Remaining principal amount of this Rule 144A Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	
			________________

				
			________________

				
			________________

				
			_____________

			
	 	 	 	 

	
			 

			 

			 

				 	 	 	 

B-2-15

 

 

Exhibit B-3

FORM OF CLASS B SERIES 2018-ONE ASSET BACKED PERMANENT REGULATION S GLOBAL NOTE

 

THIS CLASS B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS B NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING OF THE NOTES AND THE CLOSING OF THE OFFERING OF THE NOTES, (1) IN THE UNITED STATES OR TO A PERSON THAT IS A “U.S. PERSON” (AS DEFINED UNDER REGULATION S OF THE SECURITIES ACT (“REGULATION S”), A “U.S. PERSON”) OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OTHER THAN A DISTRIBUTOR (AS DEFINED UNDER REGULATION S) AND (2) OTHER THAN IN ACCORDANCE WITH RULE 903 OR 904 UNDER REGULATION S AND (B) OTHER THAN IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF AND IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF SUCH BENEFICIAL INTEREST IN SUCH NOTE WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS B NOTE OR SUCH INTEREST IN SUCH NOTE VOID AND ISSUER MAY REQUIRE THAT THIS CLASS B NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

BY YOUR ACQUISITION OF THIS CLASS B NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT EITHER (A) YOU ARE NOT (AND WILL NOT BE) A BENEFIT PLAN INVESTOR (AS DEFINED BELOW) OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A BENEFIT PLAN INVESTOR OR AN EMPLOYEE BENEFIT PLAN SUBJECT TO SIMILAR LAW OR (B)(1) THIS CLASS B NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION AT THE TIME OF PURCHASE OR TRANSFER AND (2) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS CLASS B NOTE OR INTEREST HEREIN WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SIMILAR LAW (AS DEFINED BELOW). FOR THESE PURPOSES, A “BENEFIT PLAN INVESTOR” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY, AND “SIMILAR LAW” MEANS ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE.

 

B-3-1

 

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

TRANSFERS OF THIS CLASS B NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

B-3-2

 

 

                                                                                                                        Up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

USIN:  _______________

COMMON CODE:  _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION, OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

B-3-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS B SERIES 2018-ONE ASSET BACKED NOTE

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO ____________________ DOLLARS ($________________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class B Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Class B Note shall be due and payable on the Stated Maturity Date.  The aggregate principal sum of the Regulation S Global Notes and the Rule 144A Global Note shall not exceed $_____________.  The Issuer will pay interest on the Class B Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement.  Such principal of and interest on this Class B Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class B Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class B Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Class B Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class B Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

B-3-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed.

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST,

            as Issuer

By:   WILMINGTON TRUST, NATIONAL

ASSOCIATION,

         not in its individual capacity but solely as

         Owner Trustee under the Trust Agreement

By:                                                                     

      Name:

      Title:

  Date: _____________, ______

 

B-3-5

 

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class B Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

By:   ___________________________________

               Name:

               Title:

Date:  ______________, _____

 

B-3-6

 

 

 

[REVERSE OF NOTE]

 

This Class B Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class B Series 2018-One Asset Backed Notes (herein called the “Class B Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018, among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class B Notes.  The Class B Notes are subject to all terms of the Indenture.  All terms used in this Class B Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class B Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class B Note due and payable on any Distribution Date, to the extent not in full payment of this Class B Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class B Note (or one or more predecessor Class B Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class B Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class B Note be submitted for notation of payment.  Any reduction in the principal amount of this Class B Note (or any one or more predecessor Class B Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  Any final payment shall be made in accordance with provisions of the Indenture.

 

B-3-7

 

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class B Note may be registered on the Note Register upon surrender of this Class B Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class B Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

On any redemption, purchase, exchange or cancellation of any of the Notes represented by this Permanent Regulation S Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation and shall be signed on by or on behalf of the Issuer.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Permanent Regulation S Global Note and the Notes represented by this Permanent Regulation S Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

If a holder of a beneficial interest in the Regulation S Global Note wishes at any time to exchange its interest in the Regulation S Global Note for an interest in the Rule 144A Global Note, or to transfer its interest in the Regulation S Global Note to a person who wishes to take delivery thereof in the form of an interest in the Rule 144A Global Note, such holder may, subject to the rules and procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, and to the requirements set forth in the following sentence, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in the Rule 144A Global Note.  Upon receipt by the Indenture Trustee, as transfer agent, of (1) instructions given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, from or on behalf of a beneficial owner of the Regulation S Global Note directing the Indenture Trustee, as transfer agent, to credit or cause to be credited a beneficial interest in the Rule 144A Global Note in an amount equal to the beneficial interest in the Regulation S Global Note to be exchanged or transferred, (2) a written order given in accordance with the procedures of the Euroclear System or Clearstream and the Clearing Agency, as the case may be, containing information regarding the account with the Clearing Agency to be credited with such increase and the name of such account, and (3) prior to the expiration of the Distribution Compliance Period, a certificate given by such beneficial owner stating that the person transferring such interest in such Regulation S Global Note reasonably believes that the person acquiring such interest in the Rule 144A Global Note is a QIB and is obtaining such beneficial interest for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A and any applicable securities laws of any state of the United States or any other jurisdiction, the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Global Note by the aggregate principal amount of the beneficial interest in such Regulation S Global Note to be exchanged or transferred, and the Indenture Trustee, as transfer agent, shall promptly deliver (via DWAC) appropriate instructions to the Clearing Agency, its nominee, or the custodian for the Clearing Agency, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of the Rule 144A Global Note by the aggregate principal amount of the beneficial interest in the Regulation S Global Note to be so exchanged or transferred, and to credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Rule 144A Global Note equal to the reduction in the principal amount of the Regulation S Global Note.  After the expiration of the Distribution Compliance Period, the certification requirement set forth in clause (3) of the second sentence of this paragraph will no longer apply to such exchanges and transfers.  Notwithstanding anything to the contrary, the Indenture Trustee may conclusively rely upon the completed schedule set forth in the certificate evidencing the Class B Global Notes.

 

B-3-8

 

 

Each Noteholder or beneficial owner, by acceptance of a Class B Note or, in the case of a beneficial owner, a beneficial interest in a Class B Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class B Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class B Note, the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Class B Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class B Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of a majority of Holders.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class B Note (or any one of more predecessor Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class B Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Class B Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

B-3-9

 

 

The Class B Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class B Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class B Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class B Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Note or the Indenture.  The Holder of this Class B Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class B Note.

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

 

B-3-10

 

 

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 Class B Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Class B Note on the books kept for registration thereof, with full power of substitution in the premises.

 

Dated:                                                                                             *

Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

B-3-11

 

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES BETWEEN THIS PERMANENT REGULATION S GLOBAL

NOTE OR THE RULE 144A GLOBAL NOTE,

OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following increases or decreases in principal amount of this Permanent Regulation S Global Note or redemptions, purchases or cancellation of this Permanent Regulation S Global Note have been made:

 

	
			Date of exchange, or redemption or purchase or cancellation

				
			Increase or decrease in principal amount of this Permanent Regulation S Global Note due to exchanges between the Rule 144A Global Note and this Permanent Regulation S Global Note

				
			Remaining principal amount of this Permanent Regulation S Global Note following such exchange, or redemption or purchase or cancellation

				
			Notation made by or on behalf of the Issuer

			
	 	 	 	 
	
			___________

				
			________________

				
			______________

				
			_____________

			
	
			___________

				
			________________

				
			______________

				
			_____________

			
	
			___________

				
			________________

				
			______________

				
			_____________

			
	 	 	 	 

B-3-12

 

 

Exhibit C

FORM OF CLASS C SERIES 2018-ONE ASSET BACKED

RULE 144A GLOBAL NOTE

 

THIS CLASS C NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS C NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $250,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS CLASS C NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE, OR (2) TO ISSUER OR ANY OF ITS AFFILIATES AND BY ISSUER OR ANY OF ITS AFFILIATES AS PART OF THE INITIAL DISTRIBUTION OR ANY REDISTRIBUTION OF THE NOTES BY ISSUER OR ANY OF ITS AFFILIATES, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS CLASS C NOTE OR ANY BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS C NOTE OR SUCH INTEREST HEREIN VOID AND ISSUER MAY REQUIRE THAT THIS CLASS C NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

BY YOUR ACQUISITION OF THIS CLASS C NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT YOU ARE NOT (AND WILL NOT BE) A PLAN (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A PLAN. FOR THESE PURPOSES, A “PLAN” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY OR ANY GOVERNMENTAL, NON-U.S. OR CHURCH PLAN THAT IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”).

 

C-1-1

 

 

TRANSFERS OF THIS CLASS C NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

C-1-2

 

 

                                                                                                                        up to $____________

No. R-_

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. _______________

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION OR JOIN IN ANY INSTITUTION AGAINST FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST OR FRC FUNDING CORPORATION, OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

C-1-3

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

CLASS C SERIES 2018-ONE ASSET BACKED NOTES

 

Fortiva Retail Credit Master Note Business Trust, a Nevada business trust (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of UP TO _____________________ DOLLARS ($___________) payable in an amount equal to the aggregate amount, if any, payable from the Collection Account in respect of principal on the Class C Notes pursuant to Section 4.04 of the Indenture Supplement.  The entire unpaid principal amount of this Note shall be due and payable on the Stated Maturity Date.  The Issuer will pay interest on the Class C Notes with respect to each Interest Period in accordance with Sections 4.02 and 4.04 of the Indenture Supplement. Such principal of and interest on this Class C Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class C Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

 

Reference is made to the further provisions of this Class C Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has been executed by the Authentication Agent whose name appears below by manual signature, this Class C Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

 

 

C-1-4

 

 

IN WITNESS WHEREOF, the Issuer has caused this Class C Note to be duly executed.

 

FORTIVA RETAIL CREDIT MASTER NOTE

BUSINESS TRUST,

                                                                     as Issuer

By:   WILMINGTON TRUST, NATIONAL

         ASSOCIATION,

         not in its individual capacity

         but solely as Owner Trustee

         under the Trust Agreement

By:  _____________________________

Name:

Title:  

Date:  November ___, 2018

 

C-1-5

 

 

 

AUTHENTICATION AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Class C Notes described in the within-mentioned Indenture.

 

U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity

         but solely as Indenture Trustee

 

By:                                                                  

      Name:

      Title:

Date: November ____, 2018

C-1-6

 

 

[REVERSE OF NOTE]

 

This Class C Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Class C Series 2018-One Asset Backed Notes (herein called the “Class C Notes”), all issued under a Master Indenture, dated as of November 9, 2018 (such indenture, as amended to the date hereof and as supplemented by the Series 2018-One Indenture Supplement, dated as of November 9, 2018 among the parties to the Master Indenture (the “Indenture Supplement”), is herein called the “Indenture”), among the Issuer, Access Financing, LLC, a Georgia limited liability company, as Servicer, and U.S. Bank National Association, a national banking association, as indenture trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Class C Notes.  The Class C Notes are subject to all terms of the Indenture.  All terms used in this Class C Note that are not defined herein shall have the meanings assigned to them in or pursuant to the Indenture, as supplemented or amended.

 

The Class C Notes are and will be equally and ratably entitled to the benefits of the Indenture without preference, priority or distinction, all in accordance with the terms and provisions of the Indenture.

 

Payments of interest on and principal of this Class C Note due and payable on any Distribution Date, to the extent not in full payment of this Class C Note, shall be made by wire transfer to the Person whose name appears as the registered Holder of this Class C Note (or one or more predecessor Class C Notes) on the Note Register as of the close of business on each Record Date (the “Registered Holder”), except that with respect to Class C Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such wire transfer shall be made to the Person entitled thereto at the account specified by such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Class C Note be submitted for notation of payment.  Any reduction in the principal amount of this Class C Note (or any one or more predecessor Class C Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class C Note and of any Class C Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.   Any final payment shall be made in accordance with the provisions of the Indenture.

 

C-1-7

 

 

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Class C Note may be registered on the Note Register upon surrender of this Class C Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney-in-fact duly authorized in writing, and such other documents as the Note Registrar may reasonably require, and thereupon one or more new Notes of the same Series of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange of this Class C Note, but the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange.

 

Upon any redemption, purchase, exchange or cancellation of any of the Class C Notes represented by this Rule 144A Global Note, details of such redemption, purchase, exchange or cancellation shall be entered by the Paying Agent in Schedule A hereto recording any such redemption, purchase, exchange or cancellation.  Upon any such redemption, purchase, exchange or cancellation, the principal amount of this Rule 144A Global Note and the Class C Notes represented by this Rule 144A Global Note shall be reduced or increased, as appropriate, by the principal amount so redeemed, purchased, exchanged or cancelled.

 

Each Noteholder or beneficial owner, by acceptance of a Class C Note or, in the case of a beneficial owner, a beneficial interest in a Class C Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Class C Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or the Indenture Trustee or of any successor or assign of the Indenture Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

 

Prior to the due presentment for registration of transfer of this Class C Note, the Issuer, the Indenture Trustee, the Paying Agent, the Note Registrar and any agent of the foregoing shall treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class C Note be overdue, and neither the Issuer, the Indenture Trustee, the Paying Agent, the Authentication Agent, the Note Registrar nor any such agent of the foregoing shall be affected by notice to the contrary.

 

C-1-8

 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Class C Notes under the Indenture at any time by the Issuer and the Indenture Trustee with the consent of not less than a majority of Holders of the Class C Notes.  The Indenture also contains provisions permitting the Holders of Series 2018-One Notes representing specified percentages of the aggregate principal balance of the Series 2018-One Notes, on behalf of the Holders of all the Series 2018-One Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Class C Note (or any one of more predecessor Class C Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Class C Note and of any Class C Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class C Note.  The Indenture also permits, subject to the conditions set forth in the Indenture, the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder or without the consent of holders of Series of Notes not affected thereby.

 

The Class C Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

 

This Class C Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, including Section 5-1401 of the New York General Obligations Law, but otherwise without regard to its conflict of law principles.

 

No reference herein to the Indenture and no provision of this Class C Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class C Note at the times, place, and rate, and in the coin or currency herein prescribed.

 

C-1-9

 

 

Anything herein to the contrary notwithstanding, except as expressly provided in the Transaction Documents, neither any owner of a beneficial interest in the Issuer, nor any of its partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Class C Note or the Indenture.  The Holder of this Class C Note by the acceptance hereof agrees that, except as expressly provided in the Transaction Documents, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class C Note.

 

It is expressly understood and agreed that (a) this Note is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Agreement and by any person claiming by, through or under the parties to this Agreement,  (d) Wilmington Trust, National Association has not verified and has conducted no investigation as to the accuracy or completeness of any representation, warranty or covenant of the Issuer and (e) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Note or any other document to which the Issuer is a signatory.

C-1-10

 

 

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 Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

 

Dated:                                                                                                                         *

            Signature Guaranteed:

 

* NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

C-1-11

 

 

EXHIBIT D

 

Form of Transferee Representation Letter

_____________, 20___

 

Fortiva Retail Credit Master Note Business Trust

as Issuer

c/o Wilmington Trust, National Association

3993 Howard Hughes Parkway

Suite 250

Las Vegas, Nevada 89169

Attention: Corporate Trust Administration

(facsimile no. (702) 866-2244)

 

U.S. Bank National Association,

as Indenture Trustee and Note Registrar

190 LaSalle Street

Chicago, Illinois 60603

Attn: Fortiva Retail Credit Master Note Business Trust

 

	
			Re:

				
			Fortiva Retail Credit Master Note Business Trust

			

Series 2018-One Asset-Backed Notes, Class C Notes (the “ Class C Notes”)

 

Dear Sirs:

 

This letter (this “Transferee Letter”) is delivered to you by the undersigned (the “Transferee”) in connection with the transfer (the “Transfer”) by ________________ (the “Transferor”) to the Transferee of the above-captioned Class C Notes representing $____ principal balance of the Class C Notes pursuant to Section 9.04(b) of the Series 2018-One Indenture Supplement (the “Supplement”) dated as of November 9, 2018, to the Master Indenture (the “Indenture”) dated as of November 9, 2018, each among Fortiva Retail Credit Master Note Business Trust, a business trust organized and existing under the laws of the State of Nevada (the “Issuer”), Access Financing, LLC, a Georgia limited liability company, as servicer (together with its successors and permitted assigns, the “Servicer”), and U.S. Bank National Association, a national banking association, not in its individual capacity, but solely as Indenture Trustee.  All terms used herein and not otherwise defined shall have the respective meanings set forth in the Indenture or the Supplement, as applicable.  The Transferee hereby certifies, covenants, represents and warrants to you, that:

 

1.         The Transferee understands that an investment in a Class C Note involves certain risks, including the risk of loss of all or a substantial part of its investment under certain circumstances. It has had access to such financial and other information concerning the Indenture Trustee, the Note Registrar, the Paying Agent, the Seller, the Servicer, the Issuer, the Receivables and the Series 2018-One Notes as it deemed necessary or appropriate in order to make an informed investment decision with respect to its purchase of a Class C Note, including an opportunity to ask questions of and request information from the Issuer and the Servicer. It has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in a Class C Note, and it and any accounts for which it is acting are each able to bear the economic risk of the holder’s or of its investment.

 

D-1

 

 

2.         (i) The Transferee understands that none of the Issuer, the Servicer, the Note Registrar, the Paying Agent, nor the Indenture Trustee is acting as a fiduciary or financial or investment adviser for the purchaser, (ii) it is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of the Issuer, the Servicer, the Note Registrar, the Paying Agent or the Indenture Trustee, (iii) none of the Issuer, the Servicer, the Note Registrar, the Paying Agent nor the Indenture Trustee has given it (directly or indirectly through any other person) any assurance, guarantee, or representation whatsoever as to the expected or projected success, profitability, return, performance, result, effect, consequence, or benefit (including legal, regulatory, tax, financial, accounting, or otherwise) of its purchase or the documentation for the Notes, (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial, and accounting advisers to the extent it has deemed necessary, and it has made its own investment decisions (including decisions regarding the suitability of any transaction pursuant to the Indenture) based upon its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuer, the Servicer, the Note Registrar, the Paying Agent or the Indenture Trustee, (v) it has determined that the rates, prices or amounts and other terms of the purchase and sale of the Notes reflect those in the relevant market for similar transactions, (vi) it is purchasing the Class C Notes with a full understanding of all of the terms, conditions and risks thereof (economic and otherwise), and is capable of assuming and willing to assume (financially and otherwise) these risks, and (vii) it is a sophisticated investor familiar with transactions similar to its investment in the Class C Note.

 

3.         The Transferee understands that each Class C Note will bear the following legends unless the Issuer determines otherwise in compliance with applicable law:

 

THIS CLASS C NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND ISSUER HAS NOT BEEN REGISTERED UNDER THE UNITED STATES INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT COMPANY ACT”). THIS CLASS C NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $250,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS CLASS C NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE, OR (2) TO ISSUER OR ANY OF ITS AFFILIATES AND BY ISSUER OR ANY OF ITS AFFILIATES AS PART OF THE INITIAL DISTRIBUTION OR ANY REDISTRIBUTION OF THE NOTES BY ISSUER OR ANY OF ITS AFFILIATES, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR OR ANY INTERMEDIARY. IF AT ANY TIME, ISSUER DETERMINES OR IS NOTIFIED THAT THE HOLDER OF THIS CLASS C NOTE OR ANY BENEFICIAL INTEREST HEREIN WAS IN BREACH, AT THE TIME GIVEN, OF ANY OF THE REPRESENTATIONS SET FORTH IN THE INDENTURE, ISSUER MAY CONSIDER THE ACQUISITION OF THIS CLASS C NOTE OR SUCH INTEREST HEREIN VOID AND ISSUER MAY REQUIRE THAT THIS CLASS C NOTE OR SUCH INTEREST HEREIN BE TRANSFERRED TO A PERSON DESIGNATED BY ISSUER.

 

D-2

 

 

BY YOUR ACQUISITION OF THIS CLASS C NOTE OR ANY INTEREST HEREIN, YOU (AND ANY FIDUCIARY ACTING ON YOUR BEHALF) SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF SELLER, ISSUER, INDENTURE TRUSTEE, NOTE REGISTRAR, PAYING AGENT AND SERVICER, THAT YOU ARE NOT (AND WILL NOT BE) A PLAN (AS DEFINED BELOW) AND THAT YOU ARE NOT (AND WILL NOT BE) ACQUIRING OR HOLDING SUCH NOTE OR ANY INTEREST HEREIN ON BEHALF OF, OR WITH THE ASSETS OF, A PLAN. FOR THESE PURPOSES, A “PLAN” INCLUDES 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 TITLE I OF ERISA, A “PLAN” (AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)), WHICH IS SUBJECT TO SECTION 4975 OF THE CODE, ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF SUCH EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY OR ANY GOVERNMENTAL, NON-U.S. OR CHURCH PLAN THAT IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”).

 

TRANSFERS OF THIS CLASS C NOTE MUST GENERALLY BE ACCOMPANIED BY APPROPRIATE TAX TRANSFER DOCUMENTATION AND ARE SUBJECT TO RESTRICTIONS AS PROVIDED IN THE INDENTURE.

 

ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE.

 

PRIOR TO PURCHASING ANY NOTE, INVESTORS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. NONE OF ISSUER, SELLER NOR SERVICER HAS AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OR TO PROVIDE REGISTRATION RIGHTS TO ANY INVESTOR.

 

THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

D-3

 

 

4.        The Transferee acknowledges that the interests in the Class C Notes (and any other interests in the Issuer other than the Series 2018-One Notes that are not Class C Notes) may at no time be held by more than 66 persons.   No transfer of a Class C Note (or any interest therein) will be permitted to the extent that such transfer could cause the number of direct or indirect holders of an interest in the Class C Notes (and any other interests in the Issuer other than Series 2018-One Notes that are not Class C Notes) to exceed a number equal to 66 persons. The provisions of the Indenture and the Supplement regarding transfer restrictions on the Class C Notes are generally intended to prevent the Issuer from being characterized as a “publicly traded partnership” within the meaning of Section 7704 of the Code, in reliance on Treasury Regulations Sections 1.7704-1.

 

5.         The Transferee acknowledges that no transfer of Class C Notes (or any interest therein) will be permitted to the extent that such transfer could cause the number of direct or indirect holders of an interest in the Class C Notes and other Series 2018-One Notes (and any other interests in the Issuer other than Series 2018-One Notes that are not Class C Notes) to exceed a number equal to 95 persons. The Note Registrar shall have the duty and obligation to ascertain the number of direct or indirect holders of an interest in the Class C Notes.

 

6.         The Transferee represents and warrants that it (a) is not, and will not become, a partnership, a corporation taxed under Subchapter S of the Code or a grantor trust for U.S. federal income tax purposes (or a disregarded entity the single owner of which is any of the foregoing) or (b) is such an entity, but (x) no more than 50% of the value of any of the direct or indirect beneficial interests in such transferee (or in the case of a disregarded entity, the interests of its single owner) is or will be attributable to such transferee’s (or in the case of a disregarded entity, the single owner’s) interest in the Class C Notes and (y) it is not and will not be a principal purpose of the arrangement involving such entity’s beneficial interest in any Class C Notes to permit any partnership to satisfy the 100 partner limitation of Treasury Regulation Section 1.7704-1(h)(1)(ii) necessary for such partnership not to be classified as a publicly traded partnership under the Code.

 

7.         The Transferee acknowledges that it is not acquiring nor shall it transfer any Class C Note (or any interest therein) or cause any Class C Note (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.

 

8.         The Transferee’s interest in the Class C Note is not and will not be in an amount that is less than $250,000, and the Transferee does not and will not hold any interest on behalf of any person whose beneficial interest in such Note is in an amount that is less than $250,000.

 

9.         The Transferee will not sell, assign, transfer, pledge or otherwise dispose of any Class C Note or beneficial interest therein, or enter into any financial instrument or contract the value of which is determined by reference in whole or in part to any such Note or beneficial interest therein, in each case if the effect of doing so would be that the beneficial interest of any person in the Class C Note would be in an amount that is less than the minimum denomination for such Notes as set forth in the Supplement.

 

10.       The Transferee agrees to treat, or, if different, cause the beneficial owner of its Class C Notes to treat, its Class C Notes in a manner consistent with the intended characterization referred to in Section 3.16 of the Indenture.  If any Class C Note held by the Transferee is required to be treated other than as described under Section 3.16 of the Indenture, then the Transferee, on behalf of itself or, if different, any beneficial owner of such Class C Note, hereby agrees to the designation of the Seller as the partnership representative of any partnership in which such Transferee or beneficial owner is deemed to be a partner under Section 6223(a) of the Amended Partnership Audit Rules and any applicable Treasury Regulations thereunder.

 

D-4

 

 

11.       The Transferee agrees to provide to the Indenture Trustee on behalf of the Issuer any further information required by the Issuer to comply with the Amended Partnership Audit Rules, including Section 6226(a) of the Amended Partnership Audit Rules, (B) if such Transferee is not the beneficial owner of such Class C Note, the beneficial owner of such Class C Note will provide to the Indenture Trustee on behalf of the Issuer any further information required by the Issuer to comply with the Amended Partnership Audit Rules, including Section 6226(a) of the Amended Partnership Audit Rules and, to the extent the Issuer determines such appointment necessary for it to make an election under Section 6226(a) of the Amended Partnership Audit Rules, hereby appoints the Transferee as its agent for purposes of receiving any notifications or information pursuant to the notice requirements under Section 6226(a)(2) of the Amended Partnership Audit Rules and (C) to the extent applicable, the Transferee and, if different, each beneficial owner of a Class C Note shall hold the Issuer and its Affiliates harmless for any losses (i) resulting from a beneficial owner of a Class C Note not properly taking into account or paying its allocated adjustment or liability under Section 6226 of the Amended Partnership Audit Rules or (ii) that the Issuer or its Affiliates may suffer due to actions it takes with respect to and to comply with the rules under Sections 6221 through 6241 of the Amended Partnership Audit Rules.

 

12.       The Transferee (and any fiduciary acting on behalf of the Transferee) covenants to the Issuer, the Indenture Trustee, the Note Registrar, Paying Agent and the Servicer that for so long as it holds the Class C Notes (or a beneficial interest therein) it is not (and will not be) a Plan (as defined in the Code) and that it is not (and will not be) acquiring or holding such Class C Note (or any interest therein) on behalf of, or with, the assets of, a Plan.

 

13.       The Transferee (i) is a QIB, (ii) is aware that the sale of the Class C Notes to it is being made in reliance on the exemption from registration provided by Rule 144A, and (iii) is acquiring the Notes for its own account or for one or more accounts, each of which is a QIB, and as to each of which the owner exercises sole investment discretion, and in a principal amount of not less than the minimum denomination of such Class C Note.

 

14.       The Transferee will, in connection with any subsequent resale of the Notes by the Transferee, comply with all applicable United States federal and State securities laws, rules and regulations.

 

15.       The Transferee will provide notice to each person to whom it proposes to transfer any interest in the Class C Notes of the transfer restrictions and representations set forth in the Indenture, including the exhibits thereto. Further, the Transferee will not transfer any Class C Note (or any interest therein) unless, prior to the transfer, the person to whom it proposes to transfer any interest in the Class C Notes shall have provided to the Indenture Trustee, the Note Registrar and the Issuer, and any of their respective successors or assigns, a written representation letter substantially in the form hereof.

 

D-5

 

 

16.      The Transferee agrees that any transfer in violation of this Transferee Letter will be of no force and effect, will be void ab initio, and will not operate to transfer any rights to the Transferee, notwithstanding any instructions to the contrary to the Issuer, the Indenture Trustee, the Note Registrar or any intermediary. Furthermore, the Transferee agrees that the Issuer may sell any Class C Notes acquired in violation of the above at the cost and risk of the purported owner. If at any time the Issuer determines or is notified that a holder or beneficial owner of a Class C Note, as the case may be, was in breach, at the time given, of any of the representations set forth above, the Issuer may consider the acquisition of such Class C Note or such beneficial interest in such Class C Note void and require that such Class C Note or such beneficial interest therein be transferred to a person designated by the Issuer. If the transferee fails to transfer such Class C Note or such beneficial interests in such Class C Note within 30 days after notice of the voided transfer, then the Issuer shall cause such holder’s interest or beneficial owner’s interest in such Class C Note to be transferred in a commercially reasonable sale arranged by the Issuer (conducted by the Issuer or an agent of the Issuer in accordance with Section 9-610(b) of the UCC as applied to securities that are sold on a recognized market or that may decline speedily in value), subject to satisfaction of the requirements set forth above.

 

 

Very truly yours,

                                                                        

(Transferee)

By:                                                                  

Name:                                                             

Title:                                                               

D-6

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

EXHIBIT E

FORM OF MONTHLY SERVICER’S STATEMENT

 

	
			Fortiva Retail Credit Master Note Business Trust

			
	
			Monthly Servicer Statement

			
	
			Month 2018

			
	
			Series 2018-One

			

 

	 	 	 
	
			Monthly Period:

				
			From:

				
			mm/dd/yy

			
	 	
			To:      

				
			mm/dd/yy

			
	
			Number of days in the Monthly Period:

				 	
			 # 

			
	
			Determination Date:

				 	
			mm/dd/yy

			
	
			Transfer Date:

				 	
			mm/dd/yy

			
	
			Distribution Date:

				 	
			mm/dd/yy

			

 

	
			Pursuant to Section 3.04(b) of the Transfer and Servicing Agreement, dated as of [_], 2018 as amended from time to time, among Access Financing, as Servicer (the "Servicer"), FRC Funding Corporation, LLC, as Transferor (the "Transferor"), Fortiva Retail Credit Master Note Business Trust, as Issuer (the "Issuer") and US Bank, NA as Indenture Trustee (the "Indenture Trustee"), and Section 5.02(a) of the Series 2018-One Indenture Supplement, dated as of  [_], 2018 2018 and as amended from time to time (the "Supplement"), each among Servicer, Issuer, and the Indenture Trustee, Servicer is required to prepare certain information each month regarding the current distributions to the Noteholders and the performance of related collateral during the previous month. The undersigned, a duly authorized representative of the Servicer, does hereby certify in this Monthly Servicer's Certificate (this "Certificate"):  

			

 

	 	
			i

				
			Capitalized terms used in this Certificate have their respective meanings set forth in the Transaction Documents.  References herein to certain subsections and Sections are references to their respective Subsections and Sections of the Indenture.

			
	 	 	 
	 	
			ii

				
			This Certificate is being delivered Pursuant to Section 5.02(a) of the Indenture Supplement.

			
	 	 	 
	 	
			iii

				
			Access Financing is the Servicer under the Transaction Documents.  The undersigned is an authorized servicing officer of the Servicer.

			
	 	 	 
	 	
			iv

				
			The date of this Certificate is on, or prior to, the Determination Date related to the Distribution Date specified above.

			
	 	 	 
	 	
			v

				
			No Early Redemption Event has occurred under the Agreement.

			
	 	 	 
	 	
			vi

				
			As of the date hereof, to the best knowledge of the undersigned, the Servicer has performed in all material respects all its obligations under the Transaction Documents for the Monthly Period preceding such Distribution Date.

			

 

	
			A

				
			Receivables & Collateral Information

				 	 
	 	 	 	 	
			Eligible

			
	 	 	
			1

				
			Receivables on the Closing date

				
			$

				-
	 	 	
			2

				
			New Principal Receivables net of returns

				
			$

				-
	 	 	
			3

				
			Finance and Fees billed net of adjustments

				
			$

				-
	 	 	
			4

				
			Principal Collections 

				
			$

				-
	 	 	
			5

				
			Finance Charge and Fee Collections (Inclusive of Recoveries) 

				
			$

				-
	 	 	
			6

				
			Collection Adjustments (CBR, NSF, etc)

				
			$

				-
	 	 	
			7

				
			Principal Default Amounts 

				
			$

				-
	 	 	
			8

				
			Finance Charge Default Amounts 

				
			$

				-

E-1

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	 	 	
			9

				
			Miscellaneous adjustments

				
			 $                         -   

			
	 	 	
			10

				
			Receivables on the last day of the Monthly Period (sum of lines 1 through 9)

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			11

				
			Principal Receivables outstanding on the last day of the Monthly Period per the System of Record

				
			 $                         -   

			
	 	 	
			12

				
			Finance Receivables outstanding on the last day of the Monthly Period per the System of Record

				
			 $                         -   

			
	 	 	
			13

				
			Total Receivables outstanding on the last day of the Monthly Period per the System of Record (sum of lines 11 through 12)

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			14

				
			Discount Percentage

				
			[*****]

			
	 	 	 	 	 	 
	 	 	
			15

				
			Principal Receivables outstanding on the last day of the Monthly Period net of Discount Option Receivables (line 11 times (100%- line 14))

				
			 $                         -   

			
	 	 	
			16

				
			Finance Receivables outstanding on the last day of the Monthly Period net of Discount Option Receivables (line 12 plus (line 11 times line 14))

				
			 $                         -   

			
	 	 	
			17

				
			Total Receivables outstanding on the last day of the Monthly Period net of Discount Option Receivables (sum of lines 15 through 16)

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			18

				
			Average Principal Receivables during the Monthly Period

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			19

				
			Principal Receivables (line 15)

				
			 $                         -   

			
	 	 	
			20

				
			Eligibility Criteria of Eligible Principal Receivables

				 
	 	 	 	
			(a)

				
			First Payment Default Account

				
			 $                         -   

			
	 	 	
			21

				
			Eligible Principal Receivables (sum of lines 19 through 20)

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			22

				
			Special Funding Account balance as of the last day of the Monthly Period

				
			 $                         -   

			
	 	 	 	 	 	 
	 	
			 

				
			23

				
			Collections Account balance as of the last day of the Monthly Period

				
			 $                         -   

			

 

	
			 

				
			 

				
			24

				
			Excess Concentration Amounts of Eligible Principal Receivables

				 	
			 

			
	
			 

				
			 

				
			 

				
			(a)

				
			Obligor does not have a FICO Score or has a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(b)

				
			Obligor does not have a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(c )

				
			Obligor does not have a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(d)

				
			Obligor does not have a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(e)

				
			Obligor does not have a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(f )

				
			Obligor does not have a FICO Score less than [*****] exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(g)

				
			Amount of Eligible Receivables that would need to be removed to cause the home improvement - in store sector to be  greater than [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(h)

				
			Amount of Eligible Receivables that would need to be removed to cause the home improvement - in home sector to be  greater than [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(i)

				
			Amount of Eligible Receivables that would need to be removed to cause the furniture sector to be  greater than [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(j)

				
			Amount of Eligible Receivables that would need to be removed to cause the average weighted APR to be less than [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(k)

				
			Obligor reside in the state with the highest number of Accounts exceeds [*****]% 

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(l)

				
			Obligor reside in the state with the second highest number of Accounts exceeds [*****]% 

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(m)

				
			Amount of Eligible Receivables that would need to be removed to cause the same industry sector for which sector is other than those named above exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(n)

				
			Obligor reside in a state (other than those in (k) or (l)) exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(o)

				
			Obligor reside in the State of Colorado and whose APR is greater than the maximum rate of interest permitted exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(p)

				
			Obligor reside in the State of New York, the State of Connecticut, or the State of Vermont exceeds [*****]%

				 	 $                         -   
	
			 

				
			 

				
			 

				
			(q)

				
			Excess Concentration Amounts (sum of lines 24(a) through 24(p))

				 	 $                         -   

 

	 	 	 	 	 	 
	 	
			 

				
			25

				
			Required Spread Account balance as of the last day of the Monthly Period

				
			 $                         -   

			
	 	 	 	 	 	 
	 	 	
			26

				
			Available Spread Account balance as of the last day of the Monthly Period

				
			 $                         -   

			
	 	 	 	 	 	 
	
			B

				
			 Default Information

				 
	 	 	 	 	 	 
	 	 	
			27

				
			Defaulted Amount for the Monthly Period Pursuant to Section 1.01 of the TSA

				
			 $                         -   

			
	 	 	
			28

				
			Series 2018-One Allocable Defaulted Amount for the Monthly Period (line 27 times line 39 times line 42)

				
			 $                         -   

			
	 	 	
			29

				
			Reduction Amount Pursuant to Section 4.06 (the amount by which (the sum of line 56(a) & line 57 & line 65(d) & line 152 & line 67 exceeds line 55)

				
			 $                         -   

			

E-2

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	
			C

				
			Investor Information

				 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
			 Class A 

				
			 Class B 

				
			 Class C 

				
			 Total 

			
	 	 	
			30

				
			Note Principal Balance on the last day of the prior Monthly Period

				
			 $                    -   

				
			 $                    -   

				
			 $                    -   

				
			 $                        -   

			
	 	 	
			31

				
			Note Principal Balance Increases made during the Monthly Period

				
			 $                    -   

				
			 $                    -   

				
			 $                    -   

				
			 $                        -   

			
	 	 	
			32

				
			Note Principal Balance Decreases made during the Monthly Period

				
			 $                    -   

				
			 $                    -   

				
			 $                    -   

				
			 $                        -   

			
	 	 	
			33

				
			Note Principal Balance on the last day of the Monthly Period (sum of lines 30 through 32)

				
			 $                    -   

				
			 $                    -   

				
			 $                    -   

				
			 $                        -   

			
	 	 	 	 	 	 	 	 
	 	 	
			34

				
			The average Note Principal Balance during the Monthly Period

				
			 $                    -   

				
			 $                   -   

				
			 $                   -   

				
			 $                        -   

			
	 	 	 	 	 	 	 	 
	 	 	
			35

				
			Aggregate Allocation Amount

				
			 $                    -   

				
			 $                    -   

				
			 $                    -   

				
			 $                        -   

			
	 	 	 	 	 	 	 	 
	 	 	
			36

				
			Transferor Amount on the last day of the Monthly Period (line 21 plus line 22 plus line 23

			minus line 35 minus line 24(n))

				 	 	
			 $                        -   

			
	 	 	 	 	 	 	 	 
	 	 	
			37

				
			Series Required Transferor Amount ((line 33 times 95%) minus line 33)

				 	 	 	
			 $                        -   

			
	 	 	 	 	 	 	 	 
	 	 	
			38

				
			Is the Transferor Amount greater than the Series Required Transferor Amount?

				 	 	 	
			 No 

			
	 	 	 	 	 	 	 	 
	
			D

				
			Series Information

				 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
			39

				
			Series 2018-One Allocation Percentage

				 	 	 	
			0.00%

			
	 	 	
			40

				
			Series Allocation Amount

				 	 	 	
			 $                        -   

			
	 	 	
			41

				
			Fixed/Floating Allocation Percentage for the related Monthly Period

				 	 	 	
			0.00%

			
	 	 	
			42

				
			Floating Allocation Percentage for the related Monthly Period

				 	 	 	
			0.00%

			
	 	 	
			43

				
			Series 2018-One Required Amounts Pursuant to Section 4.03 of the Indenture Supplement

				 	 	 	
			 $                        -   

			

E-3

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	
			F

				
			Collection Information For The Monthly Period

				 	 
	 	 	 	 	 	 	 
	 	 	
			44

				
			Net Eligible Collections for the Monthly Period

				 	
			 $                        -   

			
	 	 	
			45

				
			Net Ineligible Collections for the Monthly Period

				 	
			 $                        -   

			
	 	 	
			46

				
			Collections of Interchange and net earnings on Eligible Investments for the Monthly Period

				 	
			 $                        -   

			
	 	 	
			47

				
			Recoveries for the Monthly Period 

				 	 $                        - 
	 	 	
			48

				
			Aggregate amount of Collections of Principal Receivables (actual Collections of Principal Receivables without regard to Discount Options Receivables, if any)

				 	 $                        - 
	 	 	
			49

				
			[*****]

				 	 $                        - 
	 	 	
			50

				
			Collections of Principal Receivables (line 48 minus line 49)

				 	 $                        - 
	 	 	
			51

				
			Aggregate amount of Collections of Finance Charge Receivables (sum of lines 44 through 47 minus line 50)

				 	 $                        - 
	 	 	
			52

				
			The Series 2018-One Allocable Principal Collections (line 50 times line 39)

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Allocable Principal Collections (line 52 times line 41)

				 	 $                        - 
	 	 	 	
			(b)

				
			The Transferor portion of Series 2018-One Allocable Principal Collections (line 52 times (1 minus lines 41))

				 	 $                        - 
	 	 	
			53

				
			The Series 2018-One Allocable Finance Collections (line 51 times line 39)

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Allocable Finance Collections (line 53 times line 42)

				 	 $                        - 
	 	 	 	
			(b)

				
			Transferor percentage of Series 2018-One Finance Collections (line 53 times (1 minus lines 42))

				 	 $                        - 
	 	 	
			54

				
			Cross check s/b zero: ((line 50 plus line 51) times line 39 minus line 52 minus line 53)

				 	 $                        - 
	 	 	 	 	 	 	 
	
			G

				
			Withdrawal Information From The Collection Account Relating To Collections of Finance Charge Receivables and Reallocated Principal Collections

				 	 
	 	 	 	 	 	 	 
	 	 	
			Pursuant to Section 4.04(a)

				 	 
	 	 	
			55

				
			Available Funds to be distributed

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(i)

				 	 
	 	 	
			56

				
			Monthly Servicing Fee (line 56(a) plus line 56(b))

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Monthly Servicing Fee (line 96(a) times 42 times 39)

				 	 $                        - 
	 	 	 	
			(b)

				
			Transferor portion of Series 2018-One Monthly Servicing Fee (line 96(a) times (1 minus line 42) times line 39)

				 	 $                        - 
	 	 	
			57

				
			Previously due but not distributed Monthly Servicing Fees

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(i)

				 	 
	 	 	
			58

				
			Program Fees (Annual Fees owend to Owner Trustee & Indenture Trustee)(Program Fees times line 39)

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Program Fees (line 58 times 42)

				 	 $                        - 
	 	 	 	
			(b)

				
			Transferor portion of Series 2018-One Program Fees (line 58 times (1 minus lines 42))

				 	 $                        - 
	 	 	
			59

				
			Previously due but not distributed Program Fees

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(i)

				 	 
	 	 	
			60

				
			Capped Program Expenses (Capped Program Espenses times line 39)

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Program Fees (line 60 times )

				 	 $                        - 
	 	 	 	
			(b)

				
			Transferor portion of Series 2018-One Program Fees (line 60 times (1 minus lines ))

				 	 $                        - 
	 	 	
			61

				
			Previously due but not distributed Capped Program Expenses

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(i)

				 	 
	 	 	
			62

				
			Monthly Backup Servicing Fee (Line 62(a) plus line 62(b))

				 	 $                        - 
	 	 	 	
			(a)

				
			Noteholder portion of the Series 2018-One Monthly Backup Servicing Fee (line 97 times 42 times 39)

				 	 $                        - 
	 	 	 	
			(b)

				
			Transferor portion of Series 2018-One Monthly Backup Servicing Fee (line 97 times (1 minus lines 42) times line 39)

				 	 $                        - 
	 	 	
			63

				
			Previously due but not distributed Monthly Backup Servicing Fees

				 	 $                        - 

E-4

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	 	 	
			Pursuant to Section 4.04(a)(ii)-(iv)

				 	
			 

			
	 	 	
			64

				
			Number of Days in Interest Period:

				 	
			 

			
	 	 	
			 

				
			Beginning:   mm/dd/yy                                            Ending:    mm/dd/yy

				 	 	
			#

			
	 	 	
			65

				
			Monthly Interest

				
			Rate

				 	
			 

			
	 	 	
			 

				
			(a)

				
			Class A Interest

				
			0%

				 	 $                        - 
	 	 	
			 

				
			(b)

				
			Class B Interest

				
			0%

				 	 $                        - 
	 	 	
			 

				
			(c)

				
			Class C Interest

				
			0%

				 	 $                        - 
	 	 	
			 

				
			(d)

				
			Total Class A Interest for Monthly Period (line 65(a) through (c))

				
			 

				 	 $                        - 
	 	 	
			66

				
			Previously due not distributed Class A Monthly Interest

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(v)

				 	
			 

			
	 	 	
			67

				
			Series Default Amount for the Monthly Period shall be treated as a portion of Available Principal Collections (line 28)

				 	 $                        - 
	 	 	
			Pursuant to Section 4.04(a)(vi)

				 	
			 

			
	 	 	
			68

				
			Aggregate amount of Reduction Amounts which have not been previously reimbursed shall be treated as a portion of Available Principal Collections

				 	
			 $                        - 

			
	 	 	
			Pursuant to Section 4.04(a)(vi)

				 	
			 

			
	 	 	
			69

				
			Aggregate amount of Transfer Reduction Amounts which have not been previously reimbursed shall be treated as a portion of Available Principal Collections

				 	
			 $                        - 

			
	 	 	
			Pursuant to Section 4.04(a)(vii)

				 	
			 

			
	 	 	
			70

				
			Prior to the date on which the Spread Account terminates, an amount up to the excess, if any, of the Required Spread Account Amount over the Available Spread Account Amount shall be deposited into the Spread Account

				 	
			 $                        - 

			
	 	 	
			 

				
			 

				 	
			 

			
	 	 	
			Pursuant to Section 4.04(a)(viii)

				 	
			 

			
	 	 	
			71

				
			If an Early Redemption Event has occurred on or prior to such Distribution Date, an amount up to the Class A Note Principal Balance on such Distribution Date shall be treated as a portion of Available Principal Collections

				 	
			 $                        - 

			
	 	 	
			 

				
			 

				 	
			 

			
	 	 	
			Pursuant to Section 4.04(a)(ix)

				 	
			 

			
	 	 	
			72

				
			An amount equal to Program Expenses for such Distribution Date (Program Expenses times line 39)

				 	
			 $                        - 

			
	 	 	
			 

				
			(a)

				
			Noteholder portion of the Series 2018-One Program Expenses (line 72 times 42)

				 	
			 $                        - 

			
	 	 	
			 

				
			(b)

				
			Transferor portion of Series 2018-One Program Expenses (line 72times (1 minus lines 42))

				 	
			 $                        - 

			
	 	 	
			73

				
			Previously due not distributed Program Expenses 

				 	
			 $                        - 

			
	 	 	
			Pursuant to Section 4.04(a)(x)

				 	
			 

			
	 	 	
			74

				
			The balance, if any, of Available Funds shall constitute a portion of Excess Finance Charge Collections shall be applied in accordance section 4.02 of the TSA

				 	
			 $                        - 

			

 

E-5

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	
			H

				
			Withdrawal Information From The Collection Account Relating To Collections of Principal Receivables

				 	 
	 	 	
			75

				
			Noteholder portion of Collections of Principal Receivables (line 52(a))

				 	 $                        - 
	 	 	
			76

				
			Noteholder portion of Collections of Finance Charge Receivables recharacterized as Available Principal Collections Pursuant to Section 4.04(a) (sum of (line 76(a) through 76(c))

				 	 $                        - 
	 	 	 	
			(a)

				
			Series Default Amount for the preceding Monthly Period shall be treated as Available Principal Collections (line 67)

				 	 $                        - 
	 	 	 	
			(b)

				
			Aggregate amount of Reduction Amounts and Transferor Reduction Amounts and Reallocated Principal Collections that under Section 4.05 were used to fund the

				 	 $                        - 
	 	 	 	 	
			Class A-C Required Amounts which have not been previously reimbursed shall be treated as a portion of Available Principal Collections (line 68 plus line 69)

				 	 
	 	 	 	
			(c)

				
			If an Early Redemption Event has occurred, an amount up to the Class A Note Principal Balance shall be treated as Available Principal Collections (line 71)

				 	 $                        - 
	 	 	
			77

				
			Reallocated Principal Collections Pursuant to Section 4.06 (line 43)

				 	 $                        - 
	 	 	
			78

				
			Available Principal Collections (sum of line 75 through 77)

				 	 $                        - 
	 	 	 	 	 	 	 
	 	
			If Revolving Period, the amount specified in line 78 shall be allocated as follows:

				 	 
	 	 	
			Pursuant to Section 4.04(b)

				 	 
	 	 	
			79

				
			Amount equal to the balance, if any, of such Available Principal Collections shall be distributed to the Issuer and applied in accounrdance with the Trust Agreement. (line 78)

				 	 $                        - 
	 	 	 	 	 	 	 
	
			I

				
			Instructions To Make Certain Payments

				 	 
	 	 	
			Pursuant to Section 5.01 of the Indenture Supplement, the Servicer does hereby instruct the Indenture Trustee and the Paying Agent to pay on the Distribution Date in accordance with

				 	 
	 	 	
			Section 5.01 from amounts held by the Paying Agent, the following amounts as set forth below:

				 	 
	 	 	
			80

				
			Total Collections (line 52 plus line 53)

				 	 $                        - 
	 	 	
			81

				
			Permitted Series 2018-One Allocable Principal Collections withdrawals made by the Servicer from the Collection Account during Monthly Period

				 	 $                        - 
	 	 	
			82

				
			Amount to be deposited into Spread Account pursuant to section 4.04(a)(vii)(line 70)

				 	 $                        - 
	 	 	
			83

				
			Net collections (sum of lines 80 through 82)

				 	 $                        - 
	 	 	 	 	 	 	 
	 	 	
			84

				
			Pay to Servicer (line 56 plus line 57)

				 	 $                        - 
	 	 	
			85

				
			Pay to Owner Trustee (line 58 plus line 72)

				 	 $                        - 
	 	 	
			86

				
			Pay to Indenture Trustee (line 58 plus line 72)

				 	 $                        - 
	 	 	
			87

				
			Pay to Backup Servicer (line 62 plus line 63)

				 	 $                        - 
	 	 	
			88

				
			Pay to Noteholders (line 65 plus line 66 )

				 	 $                        - 
	 	 	
			89

				
			Pay to Transferor (line 52(b) plus line 53(b) minus line 56(b) minus line 58(b) minus line 60(b)  minus line 62(b)  minus line 72(b))

				 	 $                        - 
	 	 	
			90

				
			Cross check should be zero: sum of line 84 through line 89 must equal line 83

				 	 $                        - 
	 	 	 	 	 	 	 

E-6

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	
			J

				
			Management Reporting Data

				 	 
	 	 	 	 	 	 	 
	 	 	
			91

				
			Monthly Principal Delinquency Information:

				 	 
	 	 	 	
			(a)

				
			Current

				 	                          - 
	 	 	 	
			(b)

				
			1-30 Days

				 	                          - 
	 	 	 	
			(c)

				
			31-60 Days

				 	                          - 
	 	 	 	
			(d)

				
			61-90 Days

				 	                          - 
	 	 	 	
			(e)

				
			91-120 Days

				 	                          - 
	 	 	 	
			(f)  

				
			121-150 Days

				 	                          - 
	 	 	 	
			(g)  

				
			151-180 Days

				 	                          - 
	 	 	 	
			(h)

				
			180+ Days

				 	                          - 
	 	 	 	
			(i)   

				
			Total Principal Receivables (line 91(a) through line 91(h))

				 	                          - 
	 	 	 	 	 	 	 
	 	 	
			92

				
			Princiapl Receivables as of the last day of the prior Monthly Period (prior month line 15)

				 	 $                        - 
	 	 	 	 	 	 	 
	 	 	
			93

				
			Charge-Off Information:

				 	 
	 	 	 	
			(a)

				
			Charge-Off Ratio for the current Monthly Period (((line 27 minus line 47) divided by line 92) times 12)

				 	
			0.00%

			
	 	 	 	
			(b)

				
			Charge-Off Ratio previous Monthly Period (prior month line 93(a))

				 	
			0.00%

			
	 	 	 	
			(c)

				
			Charge-Off Ratio two months ago (prior month line 93(b))

				 	
			0.00%

			
	 	 	 	
			(d)

				
			Three-Month Charge-Off Ratio (average of lines 93(a), (b), and (c))

				 	
			0.00%

			
	 	 	 	
			(e)

				
			Required average Three-Month Charge-Off Ratio for any three consecutive Monthly Periods Pursuant to Section 6.01(e)(i)

				 	
			[*****]

			
	 	 	 	
			(f)

				
			Line 93(d) less than or equal to line 93(e)

				 	
			Yes/No

			
	 	 	 	 	 	 	 
	 	 	
			94

				
			Principal Payment Information:

				 	 
	 	 	 	 	 	 	 
	 	 	 	
			(a)

				
			Principal Payment Rate for current Monthly Period ((line 50  divided by line 92) times 12)

				 	
			0.00%

			
	 	 	 	
			(b)

				
			Principal Payment Rate previous Monthly Period (prior month line 94(a))

				 	
			0.00%

			
	 	 	 	
			(c)

				
			Principal Payment Rate two months ago (prior month line 94(b))

				 	
			0.00%

			
	 	 	 	
			(d)

				
			Three-Month Principal Payment Rate (average of lines 94(a), (b), and (c))

				 	
			0.00%

			
	 	 	 	
			(e)

				
			Required average Three-Month Principal Payment Rate for any three consecutive Monthly Periods Pursuant to Section 6.01(e)(ii)

				 	
			[*****]

			
	 	 	 	
			(f)

				
			Line 94(d) is less than line 94(e)

				 	
			Yes/No

			

E-7

 

CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY [*****] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

	 	 	
			95

				
			Monthly Excess Spread  Information:

				 	 
	 	 	 	 	 	 	 
	 	 	 	
			(a)

				
			Gross Yield ((line 27 divided by line 92) times 12)

				 	
			0.00%

			
	 	 	 	
			(b)

				
			Base Rate (((line 65(d) plus line 56 plus line 62) divided by line 92) times 12)

				 	
			0.00%

			
	 	 	 	
			(c)

				
			Charge-Off Ratio ((line 93(a))

				 	
			0.00%

			
	 	 	 	
			(d)

				
			Excess Spread Percentage for the current Monthly Period (((line 95(a) minus line 95(b) minus line 95(c)))

				 	
			0.00%

			
	 	 	 	
			(e)

				
			Excess Spread Percentage previous Monthly Period (prior month line 95(d))

				 	
			0.00%

			
	 	 	 	
			(f)

				
			Excess Spread Percentage two months ago (prior month line 95(e))

				 	
			0.00%

			
	 	 	 	
			(g)

				
			Three-Month Excess Spread Percentage (average of lines 95(d), (e), and (f))

				 	
			0.00%

			
	 	 	 	
			(h)

				
			Required average Three-Month Excess Spread Percentage for any three consecutive Monthly Periods Pursuant to Section 6.01(e)(iii)

				 	
			[*****]

			
	 	 	 	
			(i)

				
			Line 95(g) greater than or equal to line 95(h)

				 	
			Yes/No

			
	 	 	 	 	 	 	 
	 	 	
			96

				
			Servicing Compensation:

				 	 
	 	 	 	
			(a)

				
			Monthly Servicing Fee ((line 18 time line 96(b))

				 	 $                        - 
	 	 	 	
			(b)

				
			Servicing Fee Rate

				 	
			[*****]

			
	 	 	 	 	 	 	 
	 	 	
			97

				
			Backup Servicing Fee:

				 	 $                        - 
	 	 	 	
			(a)

				
			Receivables – up to $50M

				 	
			[*****]

			
	 	 	 	 	
			Receivables – $50.1-$150M

				 	
			[*****]

			
	 	 	 	 	
			Receivables - $150M-$350M

				 	
			[*****]

			
	 	 	 	
			(b)

				
			Receivables on the last day of the Monthly Period (Line 10)

				 	 $                        - 

 

	
			IN WITNESS WHEREOF, the undersigned has duly executed this Certificate on mm/dd/yy.

				 	 	 
	 	 	 	 
	 	
			 

				 	 
	 	
			Name: Bettie Lass

				 	 
	 	
			Title: Treasurer

				 	
			c

			

 

E-8

 

 

                                                                                                                                     EXHIBIT F

 [FORM OF EUROCLEAR AND CLEARSTREAM NON-U.S. CERTIFICATE]

 (Pursuant to Section 9.05(b) of the Indenture Supplement)

 

Re:      Fortiva Retail Credit Master Note Business Trust, Series 2018-One Class [A][B] Asset Backed Notes

 

U.S. Bank National Association,

as Indenture Trustee

190 LaSalle Street

Chicago, Illinois 60603

Attn: Fortiva Retail Credit Master Note Business Trust

 

This is to certify that, based solely on certifications we have received in writing, by tested telex or by electronic transmission from member organizations appearing in our records as persons being entitled to a portion of the principal amount of the Class [A][B] Notes set forth below (our “Member Organizations”) substantially to the effect set forth in the Indenture Supplement, dated as of November 9, 2018 (the “Indenture Supplement”), among Fortiva Retail Credit Master Note Business Trust, as issuer, Access Financing, LLC, as servicer and U.S. Bank National Association, as indenture trustee, U.S. $[                   ___   ] principal amount of the above-captioned Class [A][B] Notes held by us or on our behalf are beneficially owned by non-U.S. person(s).  As used in this paragraph, the term “U.S. person” has the meaning given to it by Regulation S under the United States Securities Act of 1933, as amended.

 

We further certify that as of the date hereof we have not received any notification from any of our Member Organizations to the effect that the statements made by such Member Organizations with respect to any interest in the securities identified above are no longer true and cannot be relied upon as of the date hereof.

 

[On Release Date: We hereby acknowledge that no portion of the Temporary Regulation S Global Note shall be exchanged for an interest in the Permanent Regulation S Global Note (as each such term is defined in the Indenture) with respect to the portion thereof for which we have not received the applicable certifications from our Member Organizations.]

 

[On                                      and upon any other payments under the Temporary Regulation S Global Note:  We hereby agree to hold (and return to the [      ] upon request) any payments received by us on the Temporary Regulation S Global Note (as defined in the Indenture Supplement) with respect to the portion thereof for which we have not received the applicable certifications from our Member Organizations.]*

 

We understand that this certification is required in connection with certain securities laws of the United States of America.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification to any interested party in such proceedings.

 

Dated:                                      **

[EUROCLEAR BANK S.A./N.V.

or

CLEARSTREAM, LUXEMBOURG]

By:   ____________________________

Name:

Title:

 

*           Select as applicable.

**         Insert Release Date or applicable Payment Date, as the case may be.

F-1

 

 

EXHIBIT G

 

 [FORM OF CERTIFICATION TO BE GIVEN BY HOLDER OF BENEFICIAL INTEREST IN A TEMPORARY REGULATION S GLOBAL NOTE]

 (Pursuant to Section 9.01(c) of the Indenture Supplement)

 

	
			Re:

				
			Fortiva Retail Credit Master Note Business Trust, Series 2018-One Class [A][B]] Asset Backed Notes

			

 

[Euroclear Bank S.A./N.V.]

[Clearstream, Luxembourg]

 

Series 2018-One Notes, CUSIP[?] No. ____________ ISIN No. _____________

 

Reference is hereby made to the Master Indenture, dated as of November 9, 2018 (as amended, amended and restated, supplemented or other modified from time to time, the “Indenture”), among Fortiva Retail Credit Master Note Business Trust, as issuer, Access Financing, LLC, as servicer, and U.S. Bank National Association, as indenture trustee.  Capitalized terms used herein and not otherwise defined have the meanings set forth in the Indenture.

 

[For purposes of acquiring a beneficial interest in the Permanent Regulation S Global Note upon the expiration of the Distribution Compliance Period,] [For purposes of receiving payments under the Temporary Regulation S Global Note,] the undersigned holder of a beneficial interest in the Temporary Regulation S Global Note issued under the Indenture certifies that it is not a U.S. Person as defined by Regulation S under the Securities Act of 1933, as amended.

 

We undertake to advise you promptly by telex on or prior to the date on which you intend to submit your corresponding certification relating to the Class [A][B] Notes held by you if any applicable statement herein is not correct on such date, and in the absence of any such notification it may be assumed that this certificate applies as of such date.

 

We understand that this certificate is required in connection with certain securities laws of the United States of America.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certificate is or would be relevant, we irrevocably authorize you to produce this certificate to any interested party in such proceedings.

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the Initial Purchaser.

 

Dated:                                    ,         

 

By:   ________________________________

as, or as agent for, the

holder of a beneficial interest

in the Class [A][B] Notes to which this certificate relates

 

 

G-1ex_135560.htm

Exhibit 10.12(b)

 

 

 

 

 

AMENDED AND RESTATED

 

TRUST AGREEMENT

 

Dated as of November 9, 2018

 

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

 

 

between

 

FRC FUNDING CORPORATION

as Transferor

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Owner Trustee

 

 

 

 

 

 

 

 

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AMENDED AND RESTATED TRUST AGREEMENT of FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST, dated as of November 9, 2018, between FRC FUNDING CORPORATION, organized and existing under the laws of the State of Nevada, as Transferor and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as Owner Trustee.

 

ARTICLE I

DEFINITIONS

 

Section 1.01.     Capitalized Terms. For all purposes of this Agreement, the following terms shall have the meanings set forth below:

 

“Administration Agreement” shall mean the Administration Agreement, dated as of November 9, 2018, among Access Financing, LLC, as Administrator, FRC Funding Corporation, as Transferor, and the Trust, as the same may be amended, modified or supplemented from time to time.

 

“Administrator” shall mean Access Financing, LLC or any successor Administrator under the Administration Agreement.

 

“Agreement” shall mean this Amended and Restated Trust Agreement of Fortiva Retail Credit Master Note Business Trust, as the same may be amended, modified or otherwise supplemented from time to time.

 

“Applicable Law” shall have the meaning assigned to such term in Section 3.05(c).

 

“Business Trust Statute” shall mean Chapter 88A of the Nevada Revised Statutes, as the same may be amended from time to time.

 

“Certificates” shall mean, unless otherwise indicated, the Trust Certificate, the Transferor Certificates and the Supplemental Certificates.

 

“Certificateholders” shall mean the registered holders of Certificates.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended. 

 

“Corporate Trust Office” shall mean, with respect to the Owner Trustee, the principal corporate trust office of the Owner Trustee located at 3993 Howard Hughes Parkway, Suite 250, Las Vegas, Nevada 89169, Attention: Corporate Trust Administration (facsimile no. (702) 866-2244); or at such other address as the Owner Trustee may designate by notice to the Transferor, or the principal corporate trust office of any successor Owner Trustee (the address of which the successor Owner Trustee will notify the Transferor).

 

“Distribution Date” shall mean the fifteenth day of each calendar month, or if such fifteenth day is not a Business Day, the next succeeding Business Day.

 

“Expenses” shall have the meaning assigned to such term in Section 7.02.

 

“Indemnified Parties” shall have the meaning assigned to such term in Section 7.02.

 

“Indenture” shall mean the Master Indenture among the Trust, the Indenture Trustee and Access Financing, LLC, as Servicer, dated as of November 9, 2018, as the same may be amended, supplemented or otherwise modified from time to time.

 

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“Indenture Trustee” shall mean U.S. Bank National Association, not in its individual capacity but solely as Indenture Trustee under the Indenture, and any successor Indenture Trustee under the Indenture.

 

“Monthly Period” shall mean a calendar month.

 

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

 

“Nevada Certificate of Trust” shall mean the Nevada Certificate of Trust which has been filed for the Trust pursuant to Section 88A.210 of the Business Trust Statute.

 

“Owner” shall mean the registered holder of the Trust Certificate.

 

“Owner Trustee” shall mean Wilmington Trust, National Association, a national banking association, not in its individual capacity but solely as owner trustee under this Agreement (unless otherwise specified herein), and any successor Owner Trustee hereunder.

 

 “Secretary of State” shall mean the Secretary of State of the State of Nevada.

 

“Standard & Poor’s” shall mean S&P Global Ratings.

 

“Supplemental Certificate” shall have the meaning set forth in Section 3.04(b).

 

“Transaction Documents” shall mean the Nevada Certificate of Trust, this Agreement, the Transfer and Servicing Agreement, the Indenture, each Indenture Supplement, the Administration Agreement, and any note purchase agreement or any other document relating to any Notes or Series.

 

“Transfer and Servicing Agreement” shall mean the Transfer and Servicing Agreement among the Trust, the Transferor, Access Financing, LLC, as Servicer, and the Indenture Trustee, dated as of November 9, 2018, as the same may be amended, modified or supplemented from time to time.

 

“Transferor” shall mean FRC Funding Corporation, a Nevada corporation in its capacity as Transferor hereunder or under the Transfer and Servicing Agreement, and its successors and assigns.

 

“Transferor Certificates” shall mean the certificates executed by the Owner Trustee on behalf of the Trust, substantially in the form attached hereto as Exhibit B.

 

“Transferor Certificate Supplement” shall have the meaning set forth in Section 3.04(b).

 

“Trust” shall mean the trust created by this Agreement and the filing of the Nevada Certificate of Trust.

 

“Trust Accounts” shall mean the Collection Account and the Series Accounts, as such terms are defined in the Indenture.

 

“Trust Assets” shall mean all right, title and interest of the Trust in and to the property and rights assigned to the Trust pursuant to this Agreement and Article II of the Transfer and Servicing Agreement, all monies, investment property, instruments and other property from time to time on deposit in or credited to the Trust Accounts and all other property of the Trust from time to time, including any rights of the Owner Trustee and the Trust pursuant to the Transaction Documents.

 

“Trust Certificate” shall mean the certificate evidencing the beneficial interest of the Owner in the Trust, substantially in the form attached hereto as Exhibit A.

 

“Trust Officer” shall mean any officer within the Corporate Trust Office including any Vice President, Managing Director, Assistant Vice President, Secretary, Assistant Secretary or Assistant Treasurer or any other officer of the Owner Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge and familiarity with the particular subject.

 

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“Trust Termination Date” shall have the meaning set forth in Section 8.01(a).

 

Section 1.02.     Other Definitional Provisions.

 

(a)     Capitalized terms used herein and not otherwise defined have the meanings assigned to them in the Transfer and Servicing Agreement or, if not defined therein, in the Indenture (including by way of reference to other documents).

 

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

 

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

 

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

 

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

 

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ARTICLE II

ORGANIZATION

 

Section 2.01.     Name. The Trust created hereby shall be known as “Fortiva Retail Credit Master Note Business Trust,” in which name the Trust and the Owner Trustee on behalf of the Trust each shall have power and authority and is hereby authorized and empowered to and may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued.

 

Section 2.02.     Office. The office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address in the State of Nevada as the Owner Trustee may designate by written notice to the Owner, the Indenture Trustee and the Transferor.

 

Section 2.03.     Purpose and Powers. The purpose of the Trust is to engage in the activities set forth in this Section 2.03. The Trust shall have power and authority and is hereby authorized and empowered, without the need for further action on the part of the Trust, and the Owner Trustee shall have power and authority, and is hereby authorized and empowered, in the name of and on behalf of the Trust, to do or cause to be done all acts and things necessary, appropriate or convenient to cause the Trust to engage in the activities set forth in this Section 2.03 as follows:

 

(i)     to execute, deliver and issue the Notes from time to time pursuant to the Indenture and to execute, deliver, authenticate, and issue the Certificates pursuant to this Agreement and, in connection with such execution, delivery or issuance of such Notes and Certificates, to purchase or enter into any futures, forwards, swaps, option contracts, interest rate caps or other financial instruments with similar characteristics, which financial instruments cannot be contrary to the status of the Trust as a qualified special purpose entity under existing accounting literature;

 

(ii)     with the proceeds of the sale of the Notes, to acquire the Trust Assets from the Transferor pursuant to Section 2.01 of the Transfer and Servicing Agreement;

 

(iii)     to assign, grant a security interest in, grant, transfer, pledge and mortgage the Trust Estate pursuant to the Indenture and to hold, manage and distribute to the Transferor and the Owner or the Noteholders pursuant to the terms of this Agreement and the Transaction Documents any portion of the Trust Estate released from the lien of, and remitted to the Trust pursuant to, the Indenture;

 

(iv)     to enter into, execute, deliver and perform the Transaction Documents to which it is to be a party;

 

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

 

(vi)     subject to compliance with the Transaction Documents, to engage in such other activities as may be required in connection with conservation of the Trust Assets and the making of payments to the Noteholders and distributions to the Transferor, which activities shall not be contrary to the status of the Trust as a qualified special purpose entity.

 

The Trust shall not have power, authority or authorization to, and shall not, engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement or the Transaction Documents.

 

Section 2.04.     Appointment of Owner Trustee. The Transferor hereby appoints the Owner Trustee as trustee of the Trust effective as of the date hereof, to have all the rights, powers and duties set forth herein.

 

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Section 2.05.     Initial Capital Contribution of Trust Assets. The Transferor hereby assigns, transfers, conveys and sets over to the Owner Trustee, as of the date hereof, the sum of $1 in consideration for the Trust Certificate. The Owner Trustee hereby acknowledges receipt in trust from the Transferor, as of the date hereof, of the foregoing contribution, which shall constitute the initial Trust Assets and shall be held by the Owner Trustee. The Transferor shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee. Upon termination of the Trust, the Owner will receive the $1 conveyed to the Trust in consideration for the Trust Certificate, and the Owner shall have no other economic interest in the Trust by virtue of its ownership of the Trust Certificate.

 

Section 2.06.     Declaration of Trust. The Owner Trustee hereby declares that it will hold the Trust Assets provided to it in trust upon and subject to the conditions set forth herein for the use and benefit of the holders of the Certificates, subject to the obligations of the Trust under the Transaction Documents. It is the intention of the parties hereto that the Trust constitute a business trust under the Business Trust Statute and that this Agreement constitutes the governing instrument of such business trust. It is the intention of the parties hereto that, for income tax purposes, the Trust shall be treated as a security device and disregarded as an entity and its assets shall be treated as owned in whole by the Transferor. The Transferor shall be responsible for all tax matters. The parties hereto agree that they will take no action contrary to the foregoing intention. Effective as of the date hereof, the Owner Trustee shall have all rights, powers and authority set forth herein and, to the extent not inconsistent herewith, in the Business Trust Statute with respect to accomplishing the purposes of the Trust.

 

Section 2.07.     Title to Trust Property. Legal title to all the Trust Assets shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Trust Assets to be vested in a trustee or trustees, in which case legal title shall be deemed to be vested in the Owner Trustee (subject to the Owner Trustee’s prior written consent), a co-trustee and/or a separate trustee, as the case may be.

 

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

 

Section 2.09.     Representations and Warranties of Transferor. The Transferor hereby represents and warrants to the Owner Trustee (as such or in its individual capacity) that:

 

(a)     The Transferor is a corporation duly organized and validly existing in good standing under the laws of the State of Nevada, 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 to execute, deliver and perform its obligations under this Agreement and any other documents related hereto to which it is a party and to perform its obligations as contemplated hereby and thereby.

 

(b)     The Transferor is duly qualified to do business as a foreign corporation in good standing (or is exempt from such requirement), and has obtained all necessary licenses and approvals in all jurisdictions in which the failure to so qualify or to obtain such licenses or approvals would have a material adverse effect on its ability to perform its obligations under this Agreement or any other document related hereto to which the Transferor is a party.

 

(c)     The Transferor has the power and authority to execute and deliver this Agreement and the other Transaction Documents to which the Transferor is a party and to carry out the terms of the same; the Transferor has full power and authority to assign the property to be assigned to and deposited with the Trust and the Transferor shall have duly authorized such assignment and deposit to the Trust by all necessary action; and the execution, delivery and performance of this Agreement by the Transferor has been duly authorized by the Transferor by all necessary action.

 

(d)     The execution and delivery by the Transferor of this Agreement and the consummation by the Transferor of the transactions contemplated by this Agreement and the fulfillment by the Transferor of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the articles of incorporation or by-laws of the Transferor, or any indenture, agreement or other instrument to which the Transferor 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 Transaction Documents); nor violate any law or, to the Transferor’s knowledge, any order, rule or regulation applicable to the Transferor of any court, federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Transferor or its properties.

 

(e)     There are no proceedings or investigations pending, or, to the Transferor’s knowledge, threatened, against the Transferor before any court, federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Transferor or its properties which (i) assert the invalidity of this Agreement or any of the Transaction Documents, (ii) seek to prevent the consummation of any of the transactions contemplated by this Agreement or any of the Transaction Documents, or (iii) seek any determination or ruling that might materially and adversely affect the performance by the Transferor of its obligations under, or the validity or enforceability of, this Agreement or any of the Transaction Documents.

 

Section 2.10.     Liability of Certificateholders. The registered holders of the Trust Certificate, the Transferor Certificates and any Supplemental Certificates shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Nevada.

 

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ARTICLE III

CERTIFICATES

 

Section 3.01.     Initial Ownership. The Owner, in its capacity as owner of the Trust Certificate, and the Transferor, as the owner of a Transferor Certificate, (i) shall be the sole beneficial owners of the Trust and (ii) shall be bound by the provisions of this Agreement.

 

Section 3.02.     Form of Certificates. On the date hereof, a Trust Certificate will be issued in registered form in substantially the form of Exhibit A. On the date hereof, a Transferor Certificate will be issued in registered form, substantially in the form attached as Exhibit B. The Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Trust Officer of the Owner Trustee. The 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, when duly authenticated pursuant to Section 3.03, be validly issued and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of the Certificates or did not hold such offices at the date of authentication and delivery of the Certificates.

 

Section 3.03.     Authentication of Certificates. Concurrently with the initial assignment of the Receivables to the Trust pursuant to the Transfer and Servicing Agreement, the Owner Trustee shall cause (i) a single Trust Certificate to be executed on behalf of the Trust, authenticated and delivered to the Owner and (ii) a single Transferor Certificate to be executed on behalf of the Trust, authenticated and delivered to the Transferor. 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 provided herein, executed by the Owner Trustee or the Owner Trustee’s authentication agent, by manual or facsimile signature; such authentication shall constitute conclusive evidence that the Certificate shall have been duly authenticated and delivered hereunder. Each Certificate shall be dated the date of its authentication.

 

Section 3.04.     Issuance of New Transferor Certificates.

 

(a)     Taken together, the Transferor Certificate and Trust Certificate shall represent an undivided beneficial interest in the Trust Assets and the lien of the Notes as provided in the Indenture, including the right to receive Collections with respect to the Receivables and other amounts at the times and in the amounts specified in the Indenture and any Indenture Supplement to be paid to the Transferor on behalf of all holders of the Transferor Certificates. All amounts payable to the Trust under and pursuant to the Transfer and Servicing Agreement, the Indenture and the Indenture Supplements are to be paid to the holders of the Transferor Certificates.

 

(b)     At any time the Transferor may surrender its Transferor Certificate to the Owner Trustee in exchange for a newly issued Transferor Certificate and a second certificate (a “Supplemental Certificate”), the form and terms of which shall be defined in a supplement (a “Transferor Certificate Supplement”) to this Agreement (which Transferor Certificate Supplement shall be subject to Section 10.01 to the extent that it amends any of the terms of this Agreement) to be delivered to or upon the order of the Transferor. The issuance of any such Supplemental Certificate shall be subject to satisfaction of the following conditions:

 

(i)     on or before the fifth day immediately preceding the Transferor Certificate surrender and exchange, the Transferor shall have given the Owner Trustee, the Servicer and the Indenture Trustee notice (unless such notice requirement is otherwise waived) of such Transferor Certificate surrender and exchange;

 

(ii)     the Transferor shall have delivered to the Owner Trustee and the Indenture Trustee any related Transferor Certificate Supplement in form satisfactory to the Owner Trustee and the Indenture Trustee, executed by each party hereto; and

 

(iii)     such surrender and exchange will not result in any Adverse Effect and the Transferor shall have delivered to the Owner Trustee and the Indenture Trustee an Officer’s Certificate, dated the date of such surrender and exchange to the effect that the Transferor reasonably believes that such surrender and exchange will not, based on the facts known to such officer at the time of such certification, have an Adverse Effect and that all other conditions to the issuance of such Supplemental Certificate have been satisfied.

 

7

 

 

Section 3.05.     Restrictions on Transfer.

 

(a) The Trust Certificate and the Transferor Certificates, including any Supplemental Certificates (or any interest therein), may not be sold, transferred, assigned, participated, pledged or otherwise disposed of to any Person.

 

(b)     The Owner Trustee shall require that every Certificate issued or surrendered for registration of exchange shall be accompanied by an Internal Revenue Service Form W-9, duly executed by the Certificateholder or such Person’s attorney duly authorized in writing and the Owner Trustee shall deliver a copy of each Form W-9 to the Servicer.

 

(c)     Pursuant to applicable law, including the Customer Identification Program requirements established under the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Title III of Pub. L. 107 56 (signed into law October 26, 2001) and its implementing regulations (collectively, “USA PATRIOT Act”), the Financial Crimes Enforcement Network’s (FinCEN) Customer Due Diligence Requirements and such other laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions (“Applicable Law”), the Owner Trustee is required to obtain on or before closing, and from time to time thereafter, documentation to verify and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a trust or other legal entity, the Owner Trustee will ask for documentation to verify the entity’s formation and existence, its financial statements, licenses, tax identification documents, identification and authorization documents from individuals claiming authority to represent the entity and other relevant documentation and information (including beneficial owners of such entities). To the fullest extent permitted by Applicable Law, the Owner Trustee may conclusively rely on, and shall be fully protected and indemnified in relying on, any such information received. Failure to provide such information may result in an inability of the Owner Trustee to perform its obligations hereunder, which, at the sole option of the Owner Trustee, may result in the Owner Trustee’s resignation in accordance with the terms hereof. In the event of any change in beneficial ownership in the Trust (or any beneficial interest in that interest, regardless of form), such change shall be accompanied by IRS Form W-9, and such other documentation as may be required by the Owner Trustee in order to comply with Applicable Law.

 

Section 3.06.     Mutilated, Destroyed, Lost or Stolen Certificate. If (a) a mutilated Certificate shall be surrendered to the Owner Trustee, or if the Owner Trustee shall receive evidence to its satisfaction of the destruction, loss or theft of a Certificate and (b) in the case of a destroyed, lost or stolen Certificate, there shall be delivered to the Owner Trustee (as such and in its individual capacity) such security or indemnity as may be required by it to save it harmless, then the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee shall authenticate and deliver, in exchange for or in lieu of the 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 3.06, the Owner Trustee may require the payment of a sum sufficient to cover any tax or other governmental charge or expense that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this Section 3.06 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.

 

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ARTICLE IV

ACTIONS BY OWNER TRUSTEE

 

Section 4.01.     Prior Notice to Owner and Transferor with Respect to Certain Matters. With respect to the following matters, unless otherwise instructed by the Transferor, the Trust shall not take action unless the Owner Trustee shall have notified the Transferor and the Transferor shall have given its prior written consent:

 

(a)     the initiation of any claim or lawsuit by the Trust (other than an action to collect on the Trust Assets) and the compromise of any action, claim or lawsuit brought by or against the Trust (other than an action to collect on the Trust Assets);

 

(b)     the election by the Trust to file an amendment to the Nevada Certificate of Trust (unless required by the Business Trust Statute);

 

(c)     the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is required;

 

(d)     the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interest of the Transferor;

 

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

 

(f)     the appointment pursuant to the Indenture of a successor Note Registrar or Indenture Trustee, or the consent to the assignment by the Note Registrar or Indenture Trustee of its obligations under the Indenture;

 

(g)     the dissolution, liquidation or termination of the Trust;

 

(h)     the institution of a case or other proceeding under any Debtor Relief Law involving the Trust;

 

(i)     the material amendment of any Transaction Document to which the Trust is a party; or

 

(j)     the change in the business of the Trust.

 

Section 4.02.     Action By Transferor with Respect to Certain Matters. The Owner Trustee shall not have the power, except upon the direction of the Transferor, to (a) remove the Administrator under the Administration Agreement pursuant to Section 8 thereof, (b) appoint a successor Administrator pursuant to Section 8 of the Administration Agreement, (c) remove the Servicer under the Transfer and Servicing Agreement pursuant to Article VIII thereof or (d) except as expressly provided in the Transaction Documents, sell the Trust 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 Transferor.

 

Section 4.03.     Restrictions on Power. The Transferor or the Administrator shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the Transaction Documents or would be contrary to Section 2.03 nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

(b)     The Owner Trustee shall have no power to create, assume or incur indebtedness or other liabilities in the name of the Trust other than as contemplated in this Agreement, the Administration Agreement, the Transfer and Servicing Agreement and the Indenture.

 

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ARTICLE V

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 5.01.     General Authority. Each of the Trust and the Owner Trustee in the name and on behalf of the Trust shall have power and authority, and is hereby authorized and empowered to execute and deliver the Transaction 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 Transaction Documents to which the Trust is to be a party, or any amendment thereto or other agreement, in each case, in such form as the Transferor shall approve as evidenced conclusively by the Owner Trustee’s execution thereof. In addition to the foregoing, the Owner Trustee in the name and on behalf of the Trust shall also have power and authority and is hereby authorized and empowered, but shall not be obligated, to take all actions required of the Trust pursuant to the Transaction Documents. Subject to Section 2.03 and Section 4.03, the Owner Trustee in the name and on behalf of the Trust shall also have power and authority and is hereby authorized and empowered, from time to time, to take such action as the Transferor or the Administrator directs in writing with respect to the Transaction Documents.

 

Section 5.02.     General Duties. 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 Transaction Documents to which it is a party and to administer the Trust in the interest of the holders of the Certificates, subject to the Transaction Documents and in accordance with the provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Transaction Documents to the extent the Administrator has agreed in the Administration Agreement or another Transaction Document to perform any act or to discharge any duty of the Owner Trustee hereunder or under any Transaction Document, and the Owner Trustee shall not be personally liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement.

 

Section 5.03.     Action Upon Instruction.

 

(a)     Subject to Article IV, the Transferor 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 Transferor pursuant to Article IV.

 

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

 

(c)     Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or any Transaction Document, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Transferor requesting instruction as to the course of action to be adopted, and to the extent the Owner Trustee acts or refrains from acting in good faith in accordance with any such instruction of the Transferor, the Owner Trustee shall not be personally liable on account of such action or inaction to any Person. If the Owner Trustee shall not have received appropriate instruction within ten (10) days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the Transaction Documents, as it shall deem to be in the best interest of the holder of the Certificates, and shall have no personal liability to any Person for such action or inaction.

 

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

 

Section 5.04.     No Duties Except as Specified in this Agreement or in Instructions. 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 Assets, or to otherwise take or refrain from taking any action under, or in connection with, this Agreement or any document contemplated hereby to which the Owner Trustee is a party, except as expressly provided by the terms of this Agreement or in any document or written instruction received by the Owner Trustee pursuant to Section 5.03; and no implied duties or obligations shall be read into this Agreement or any Transaction Document against the Owner Trustee. The Owner Trustee shall have no responsibility for filing any financing statement or amendment to a financing statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it or the Trust hereunder or to prepare or file any Commission filing for the Trust or to record this Agreement or any Transaction Document or make any tax or other filing. The Owner Trustee in its individual capacity 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 Assets that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the ownership or the administration of the Trust Assets.

 

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Section 5.05.     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 Assets 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 Transaction Documents and (iii) in accordance with any document or instruction delivered to the Owner Trustee pursuant to Section 5.03 and Section 4.02.

 

Section 5.06.     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 Trust Officer of the Owner Trustee, would result in the Trust’s becoming taxable as a corporation for federal income tax purposes. None of the Administrator the Transferor or any Certificateholder shall direct the Owner Trustee to take any action that would violate the provisions of this Section.

 

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ARTICLE VI

CONCERNING THE OWNER TRUSTEE

 

Section 6.01.     Acceptance of Trusts and Duties. 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. The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Trust Assets upon the terms of the Transaction Documents and this Agreement. The Owner Trustee shall not be personally answerable or accountable hereunder or under any Transaction Document under any circumstances, except (i) for its own willful misconduct or gross negligence in the performance of its duties or the omission to perform any such duties or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 6.03 expressly made by the Owner Trustee in its individual capacity. In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

 

(a)     the Owner Trustee shall not be personally liable for any error of judgment made in good faith by a Trust Officer of the Owner Trustee;

 

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

 

(c)     no provision of this Agreement or any Transaction Document shall require the Owner Trustee to expend or risk funds or otherwise incur any personal financial liability in the exercise or performance of any of its duties, rights or powers hereunder or under any Transaction Document;

 

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

 

(e)     the Owner Trustee shall not be personally responsible for or in respect of the validity or sufficiency of this Agreement, the due execution hereof by the Transferor or the form, character, genuineness, sufficiency, value or validity of any of the Trust Assets, the Transaction Documents, the Notes or the Certificates other than the genuineness of the Owner Trustee’s signature on the certificate of authentication on the Certificates, and the Owner Trustee shall in no event assume or incur any personal liability, duty, or obligation to any Noteholder or to the Owner or any other Person, other than as expressly provided for herein and in the Transaction Documents;

 

(f)     the Owner Trustee shall not be personally liable for the default or misconduct of the Transferor, the Administrator, the Indenture Trustee or the Servicer under any of the Transaction Documents or otherwise, and the Owner Trustee shall have no obligation or liability to monitor the foregoing or perform the obligations of the Trust under this Agreement or the Transaction Documents, including those that are required to be performed by the Transferor under this Agreement, the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Servicer under the Transfer and Servicing Agreement;

 

(g)     the Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any Transaction Document, at the request, order or direction of the Transferor, unless the Transferor has advanced any necessary costs and offered to the Owner Trustee (as such and in its individual capacity) security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee to perform any discretionary act enumerated in this Agreement or in any Transaction Document shall not be construed as a duty, and the Owner Trustee shall not be answerable or personally liable to any Person for any such act other than liability to the Trust and the beneficial owners of the Trust for its own gross negligence or willful misconduct in the performance of any such act or the omission to perform any such act;

 

(h)     to the extent that, at law or in equity, the Owner Trustee has duties and liabilities relating to the Transferor, the Owner or the Trust, such duties and liabilities are replaced by the terms of this Agreement;

 

(i)     the Owner Trustee shall not be personally liable for (x) special, indirect, 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 and hardware) services;

 

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(j)     in accepting and performing the trusts hereby created, the Owner Trustee acts solely as trustee hereunder and not in its individual capacity, and all persons having any claim against the Owner Trustee by reason of the transactions contemplated by this Agreement shall look only to the Trust's property for payment or satisfaction thereof; and

 

(k)     notwithstanding anything contained herein to the contrary, the Owner Trustee shall not be required to take any action in any jurisdiction other than in the State of Nevada if the taking of such action will (i) require the registration with, licensing by or the taking of any other similar action in respect of, any state or other governmental authority or agency of any jurisdiction other than the State of Nevada by or with respect to the Owner Trustee (as such and in its individual capacity); (ii) result in any fee, tax or other governmental charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof other than the State of Nevada becoming payable by the Owner Trustee (as such and in its individual capacity); or (iii) subject the Owner Trustee (as such and in its individual capacity) to personal jurisdiction in any jurisdiction other than the State of Nevada for causes of action arising from acts unrelated to the consummation of the transactions by the Owner Trustee contemplated hereby. The Owner Trustee shall be entitled to obtain advice of counsel (which advice shall be an expense of the Transferor) to determine whether any action required to be taken pursuant to this Agreement results in the consequences described in clauses (i), (ii) and (iii) of the preceding sentence. In the event that said counsel advises the Owner Trustee that such action will result in such consequences, the Owner Trustee may, or if instructed to do so by the Transferor, shall, appoint an additional trustee pursuant to Section 9.05 hereby to proceed with such action.

 

Section 6.02.     Furnishing of Documents. The Owner Trustee shall furnish to the Owner and the Indenture Trustee, promptly upon written request therefor, copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee under the Transaction Documents.

 

Section 6.03.     Representations and Warranties. (a) The Owner Trustee (as such and in its individual capacity) hereby represents and warrants to the Transferor and the Owner that:

 

(i)     It is a national banking association duly organized and validly existing in good standing under the laws of the United States of America. It has all requisite power and authority to execute, deliver and perform its obligations under this Agreement.

 

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

 

(iii)     Neither the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby nor compliance by it with any of the terms or provisions hereof will contravene any federal or Nevada law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee (as such and in its individual capacity) 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.

 

Section 6.04.     Reliance; Advice of Counsel.

 

(a)     The Owner Trustee shall incur no personal liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by the proper party or parties. The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any Person 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 may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officer of an appropriate Person, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

(b)     In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement or the Transaction Documents, the Owner 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 be personally liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care, and (ii) may consult with counsel, accountants and other skilled persons to be selected with reasonable care and employed by it. The Owner Trustee shall not be personally liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or written advice of any such counsel, accountants or other such Persons.

 

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Section 6.05.     Not Acting in Individual Capacity. Except as provided in this Article VI, in accepting the trusts hereby created, Wilmington Trust, National Association acts solely as Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by this Agreement or any Transaction Document shall look only to the Trust Assets for payment or satisfaction thereof.

 

Section 6.06.     Owner Trustee Not Liable for Certificates, Notes or Receivables. The statements contained herein and in the Certificates, Notes and other Transaction Documents (other than the signature and authentication (as applicable) of the Owner Trustee on the Certificates and its representations and warranties in Section 6.03) shall not be taken as the statements of the Owner Trustee, and the Owner Trustee assumes no responsibility for the correctness thereof. The Owner Trustee makes no representations as to the validity or sufficiency of this Agreement, or of the Certificates (other than the signature and authentication (as applicable) of the Owner Trustee on the Certificates) or the Notes or of any other Transaction Document or of any related documents. The Owner Trustee shall at no time have any responsibility or personal liability for or with respect to the legality, validity and enforceability of the Receivables, or the perfection and priority of any security interest in the Receivables or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Estate or its ability to generate the payments to be distributed to the Noteholders under the Indenture, including, without limitation: the existence, condition and ownership of the Receivables; the existence and enforceability of any insurance thereon; the existence and contents of the Receivables on any computer or other record thereof; the validity of the assignment of the Receivables to the Trust or of any intervening assignment; the completeness of the Receivables; the performance or enforcement of the Receivables; the compliance by the Transferor or the Servicer with any warranty or representation made under any Transaction Document or in any related document or the accuracy of any such warranty or representation or any action of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee.

 

Section 6.07.     Owner Trustee May Own Notes. The Owner Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may deal with the Transferor, the Administrator, the Indenture Trustee and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee.

 

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ARTICLE VII

COMPENSATION OF OWNER TRUSTEE

 

Section 7.01.     Owner Trustee’s Fees and Expenses.

 

(a)     The Owner Trustee shall receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Transferor and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Transferor for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder and under the Transaction Documents; provided, however, that the Owner Trustee’s right to enforce such obligation shall be subject to the provisions of Sections 10.08 and 10.09.

 

(b)     The Owner Trustee agrees that any payment obligation of the Transferor under this Agreement, including but not limited to indemnification pursuant to Section 7.02, (i) shall be fully subordinated to all rated obligations of the Transferor and (ii) does not constitute a claim against the Transferor to the extent that funds available to the Transferor are insufficient to pay such obligations.

 

Section 7.02.     Indemnification. The Transferor and the Trust shall indemnify, defend and hold harmless the Owner Trustee (as such and in its individual capacity) and its officers, directors, employees, successors, assigns, agents and servants (collectively, the “Indemnified Parties”) from and against any and all liabilities, obligations, losses, damages, taxes (other than any income or similar taxes payable by an Indemnified Party), claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses and any legal fees or expenses incurred in connection with any action, suit, arbitration or mediation brought by an Indemnified Party to enforce any indemnification or other obligation hereunder or in connection with investigating, preparing or defending any legal action, commenced or threatened, in connection with the exercise or performance of any of its powers or duties under this Agreement) of any kind and nature whatsoever (collectively, “Expenses”) which may at any time be imposed on, incurred by, or asserted against the Owner Trustee or any Indemnified Party in any way relating to the Trust or relating to or arising out of this Agreement, the Transaction Documents, the Trust Assets, the administration of the Trust Assets or the action or inaction of the Owner Trustee hereunder, except that the Transferor shall not be liable for or required to indemnify the Owner Trustee from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 6.01; provided, further, that the Transferor shall not be liable for or required to indemnify an Indemnified Party from and against expenses arising or resulting from (i) the Indemnified Party’s own willful misconduct, bad faith or gross negligence, or (ii) the inaccuracy of any representation or warranty contained in Section 6.03. An Indemnified Party’s right to enforce such obligation shall be subject to the provisions of Section 10.09. The indemnities contained in this Section shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement. In the event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Transferor, which approval shall not be unreasonably withheld. To the fullest extent permitted by law, Expenses to be incurred by an Indemnified Person shall, from time to time, be advanced to the Indemnified Party prior to the final disposition of any matter.

 

Section 7.03.     Payments to the Owner Trustee. Any amounts paid to an Indemnified Party pursuant to this Article VII shall not be construed to be a part of the Trust Assets.

 

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ARTICLE VIII

TERMINATION OF TRUST AGREEMENT

 

Section 8.01.     Termination of Trust Agreement.

 

(a)     The Trust shall dissolve upon the earlier of (i) at the option of the Transferor (written notice of which shall be provided to the Owner Trustee), on any day on or after the day on which the rights of all Series of Notes to receive payments from the Trust have terminated (the “Trust Termination Date”) and (ii) dissolution of the Trust in accordance with applicable law. After satisfaction of liabilities of the Trust as provided by applicable law, any money or other property held as part of the Trust Assets following such distribution shall be distributed to the Transferor. The bankruptcy, liquidation, dissolution, termination, death or incapacity of the Owner shall not (x) operate to terminate this Agreement or annul, dissolve or terminate the Trust, (y) entitle the Owner’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for partition or winding up of all or any part of the Trust or Trust Assets, or (z) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)     Except as provided in Section 8.01(a), neither the Transferor nor the Owner shall be entitled to revoke, dissolve or terminate the Trust.

 

(c)     Upon completion of the winding up of the Trust and its termination, the Owner Trustee shall cause the Nevada Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 88A.420 of the Business Trust Statute and thereupon the Trust and this Agreement (other than Article VI, Article VII and Section 10.08) shall terminate. Prior to filing such certificate of cancellation, the Owner Trustee may require certification from the Transferor as to compliance with this Section 8.01 and payment of fees and expenses.

 

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ARTICLE IX

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 9.01.     Eligibility Requirements for Owner Trustee. The Owner Trustee shall at all times be a Person satisfying any applicable provisions of the Business Trust Statute, authorized to exercise trust powers; having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal or state authorities; and having (or having a parent which has) a rating of at least Baa3 by Moody’s and at least BBB- by Standard & Poor’s or if not rated, otherwise satisfactory to such Rating Agencies. If such Person 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, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 9.02.

 

Section 9.02.     Resignation or Removal of Owner Trustee. The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Transferor; provided, however, that such resignation and discharge shall only be effective upon the appointment of a successor Owner Trustee. Upon receiving such notice of resignation, the Transferor shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been so appointed and have accepted appointment within thirty (30) days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 9.01 and shall fail to resign after written request therefor by the Transferor, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Transferor may remove the Owner Trustee. If the Transferor shall remove the Owner Trustee under the authority of the immediately preceding sentence, the Transferor shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and pay all amounts owed to the outgoing Owner Trustee in its individual capacity.

 

Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section 9.02 shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 9.03. The Transferor shall provide notice of such resignation or removal of the Owner Trustee to each of the Rating Agencies.

 

Section 9.03.     Successor Owner Trustee. Any successor Owner Trustee appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the Transferor and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee shall deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement, and the Transferor and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee 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 be eligible pursuant to Section 9.01.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Transferor shall mail notice of the appointment of such successor Owner Trustee to the Owner, the Indenture Trustee, the Noteholders and the Rating Agencies. If the Transferor shall fail to mail such notice within ten (10) days after acceptance of appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Transferor.

 

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Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section 9.03, such successor Owner Trustee shall file an amendment to the Nevada Certificate of Trust with the Secretary of State identifying the name and principal place of business of such successor Owner Trustee.

 

Section 9.04.     Merger or Consolidation of Owner Trustee. Any Person into which the Owner Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder; provided such Person shall be eligible pursuant to Section 9.01, 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 (a) the Owner Trustee shall mail notice of such merger or consolidation to the Rating Agencies, the Indenture Trustee and the Transferor and (b) the Owner Trustee shall file any necessary amendments to the Nevada Certificate of Trust with the Secretary of State.

 

Section 9.05.     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 Assets may at the time be located, the Transferor 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 each of the Transferor and 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 Assets, and to vest in such Person, in such capacity, such title to the Trust Assets, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Transferor and the Owner Trustee may consider necessary or desirable. If the Transferor shall not have joined in such appointment within fifteen (15) 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 successor trustee pursuant to Section 9.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 9.03.

 

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

 

(i)     all rights, powers, duties, and obligations conferred or imposed upon the 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 Assets 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 Servicer (or 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 Transferor 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 effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the 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 Transferor.

 

Any separate trustee or co-trustee may at any time appoint the Owner Trustee its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this 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 and subject to the Owner Trustee’s consent, without the appointment of a new or successor trustee.

 

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ARTICLE X

MISCELLANEOUS

 

Section 10.01.     Supplements and Amendments.

 

(a)     This Agreement may be amended from time to time, by a written amendment duly executed and delivered by the Transferor and the Owner Trustee, with the written consent of the Indenture Trustee, but without the consent of any of the Noteholders or the Owner or any other Person, (i) to cure any ambiguity, (ii) to correct or supplement any provisions herein which may be inconsistent with any other provisions herein and (iii) to add any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement; provided, however, that such amendment will not (x) as evidenced by an Officer’s Certificate of the Transferor addressed and delivered to the Owner Trustee and the Indenture Trustee, materially and adversely affect the interest of any Noteholder or any Certificateholder and (y) as evidenced by an Opinion of Counsel addressed and delivered to the Owner Trustee and the Indenture Trustee, cause the Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes.

 

Additionally, notwithstanding the preceding sentence, this Agreement may be amended by the Transferor and the Owner Trustee without the consent of the Indenture Trustee or any of the Noteholders to add, modify or eliminate such provisions as may be necessary or advisable in order to avoid the imposition of state or local income or franchise taxes imposed on the Trust’s property or its income; provided, however, that (y) the Transferor delivers to the Indenture Trustee and the Owner Trustee an Officer’s Certificate to the effect that the proposed amendments meet the requirements set forth in this subsection, and (z) such amendment does not affect the rights, duties or obligations of the Owner Trustee hereunder without the consent of the Owner Trustee. The amendments which the Transferor may make without the consent of Noteholders pursuant to the preceding sentence may include, without limitation, the addition of a sale of Receivables. Notwithstanding any provisions of this subsection 10.01(a), no amendment pursuant to this subsection 10.01(a) shall effect a significant change in Section 2.03. Any amendment which effects a significant change in Section 2.03 shall be made in accordance with subsection 10.01(b) or (c). Any amendment pursuant to subsection 10.01(a) shall be accompanied by an Officer’s Certificate of the Transferor addressed and delivered to the Owner Trustee and the Indenture Trustee to the effect that such amendment does not effect a significant change in Section 2.03.

 

(b)     This Agreement may also be amended from time to time by a written amendment duly executed and delivered by the Transferor and the Owner Trustee, with the consent of the Indenture Trustee and the holders of Notes evidencing not less than a majority of the outstanding principal amount of the Notes and the consent of the Owner, 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 and the Owner; provided, however, that without the consent of all Noteholders, no such amendment shall (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made for the benefit of the Noteholders or (ii) reduce the aforesaid percentage of the outstanding principal amount of the Notes, the Holders of which are required to consent to any such amendment; provided further that such amendment will not, as evidenced by an Opinion of Counsel addressed and delivered to the Owner Trustee and the Indenture Trustee, cause the Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes.

 

(c)     In addition to amendments which are permitted to be made under the provisions of subsection 10.01(a) or (b), amendments may be made to Section 2.03 by a written amendment duly executed and delivered by the Transferor and the Owner Trustee without the consent of any Noteholder to preserve the intended treatment of the Trust for accounting purposes if (y) such amendment will not, as evidenced by an Opinion of Counsel addressed and delivered to the Owner Trustee and the Indenture Trustee, cause the Trust to be classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes, and (z) the Transferor delivers to the Issuer and the Indenture Trustee an Officer’s Certificate to the effect that the proposed amendment will not have a material adverse effect on the interests of the Noteholders or the Owner.

 

(d)     Promptly after the execution of any such amendment or consent, the Transferor shall furnish written notification of the substance of such amendment or consent to the Indenture Trustee and each of the Rating Agencies.

 

(e)     It shall not be necessary for the consent of the Noteholders or the Owner 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.

 

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

 

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(g)     The Owner Trustee and the Indenture Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Officer’s Certificate of the Transferor to the effect that such amendment is authorized or permitted by this Agreement and the conditions to such amendment have been satisfied. The Owner Trustee may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise.

 

Section 10.02.     No Legal Title to Trust Assets in Owner. The Owner shall not have legal title to any part of the Trust Assets. No transfer, by operation of law or otherwise, of any right, title, and interest of the Owner to and in its undivided beneficial interest in the Trust Assets shall operate to terminate this Agreement, annul, dissolve or terminate the Trust 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 Assets.

 

Section 10.03.     Limitations on Rights of Others. The provisions of this Agreement are solely for the benefit of the Owner Trustee (as such or in its individual capacity), the other Indemnified Parties, the Transferor, the holder of any Certificate and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders, and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Assets or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 10.04.     Notices. 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 (3) Business Days after mailing if mailed by certified mail, postage prepaid and return receipt requested (except that notice to the Owner Trustee, the Transferor or Indenture Trustee shall be deemed given only upon actual receipt by the Owner Trustee, the Transferor or Indenture Trustee), if to the Owner Trustee, addressed to the Corporate Trust Office; if to the Indenture Trustee, addressed to U.S. Bank National Association, U.S. Bank National Association, 190 S. LaSalle Street, Chicago, Illinois 60603 Attn: Fortiva Retail Credit Master Note Business Trust; if to the Transferor, addressed to FRC Funding Corporation, 101 Convention Center Drive, Suite 850-20A, Las Vegas, NV 89109, Attention: Joshua Miller (facsimile no. (702) 866-2244) with a copy to (which copy shall not constitute delivery of notice) Colleen A. Dolan, Fennemore Craig PC, 300 E. 2nd Street, Suite 1510, Reno, NV 89501-1591 (facsimile no. (775) 778-2219), or, as to each party, at such other address as shall be designated by such party in a written notice to each other party.

 

Section 10.05.     Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 10.06.     Separate Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 10.07.     Successors and Assigns. All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Transferor and the Owner Trustee and their respective successors, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by the Owner shall bind the successors and assigns of the Owner.

 

Section 10.08.     No Petition. The Owner Trustee in its individual capacity and as Owner Trustee, by entering into this Agreement, the Owner (to the extent that the Owner is not the Transferor), by accepting the Trust Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against the Trust or the Transferor, or join in any institution against the Trust or the Transferor of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law. This Section 10.08 shall survive the termination of this Agreement.

 

Section 10.09.     No Recourse. Each Person holding or owning a Certificate, by accepting the Certificates, acknowledges that the Certificates do not represent an interest in or obligation of the Transferor, the Owner, the Servicer, the Owner Trustee, the Indenture Trustee or any Affiliate thereof (other than the Trust), and no recourse may be had against such parties or their assets, or against the assets pledged under the Indenture, except as expressly provided in the Transaction Documents.

 

20

 

 

Section 10.10.     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 10.11.     GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, 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 10.12.     Acceptance of Terms of Agreement. THE RECEIPT AND ACCEPTANCE OF THE TRUST CERTIFICATE BY THE OWNER AND THE TRANSFEROR CERTIFICATE BY THE TRANSFEROR, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE OWNER AND THE TRANSFEROR, RESPECTIVELY, OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST THAT THE TERMS AND PROVISIONS OF THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS AMONG THE TRUST AND THE TRANSFEROR.

 

Section 10.13.     Integration of Documents. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof.

 

21

 

 

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

 

FRC FUNDING CORPORATION,

as Transferor

 

           By:     /s/Joshua C. Miller

Name:  Joshua C. Miller

Title:     Assistant Secretary

 

 

 

WILMINGTON TRUST, NATIONAL

ASSOCIATION,

as Owner Trustee

 

           By:     /s/Nedine P. Sutton

Name: Nedine P. Sutton

Title:    Vice President

 

 

 

 

 

22

 

 

EXHIBIT A

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST 

 

FORM OF TRUST CERTIFICATE

 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THIS

CERTIFICATE (OR ANY INTEREST HEREIN) MAY NOT BE TRANSFERRED TO

ANY PERSON EXCEPT IN ACCORDANCE WITH THE AMENDED AND RESTATED TRUST AGREEMENT.

 

No. R-__

 

(This Trust Certificate does not represent an interest in or obligation of FRC Funding Corporation, Access Financing, LLC or any of their respective affiliates, other than the Trust.)

 

THIS CERTIFIES THAT FRC Funding Corporation is the registered Owner of the Fortiva Retail Credit Master Note Business Trust (the “Trust”).

 

The Trust was created pursuant to (i) the filing of the Nevada Certificate of Trust with the Secretary of State of the State of Nevada and (ii) the Amended and Restated Trust Agreement, dated as of November 9, 2018 (the “Trust Agreement”), between FRC Funding Corporation, a Nevada corporation (the “Transferor”), and Wilmington Trust, National Association, a national banking association, as owner trustee (the “Owner Trustee”). To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement including as specified in Section 1.02(a) of the Trust Agreement.

 

This Trust Certificate is the duly authorized Trust Certificate evidencing a beneficial ownership interest in the Trust (herein called the “Trust Certificate”). Also issued from time to time under the Master Indenture, dated as of November 9, 2018, among the Trust, Access Financing, LLC, as servicer, and U.S. Bank National Association, as indenture trustee, are notes (the “Notes”). This Trust Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the Owner by virtue of the acceptance hereof assents and by which the Owner is bound.

 

Notwithstanding any prior termination of the Trust Agreement, the Owner, by its acceptance of the Trust Certificate, covenants and agrees that it shall not at any time with respect to the Trust or the Transferor (if the holder of this Certificate is not the Transferor), acquiesce, petition or otherwise invoke or cause the Trust or the Transferor (if the holder of this Certificate is not the Transferor) to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Trust or the Transferor (if the holder of this Certificate is not the Transferor), 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 Trust or the Transferor (if the holder of this Certificate is not the Transferor) or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Trust or the Transferor (if the holder of this Certificate is not the Transferor).

 

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

 

THIS TRUST CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

A-1

 

 

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

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

	 	
			By:

				
			Wilmington Trust, National Association

			

not in its individual capacity but

solely as Owner Trustee

 

	 	
			By:

				
			_________________________________

			
	 	 	
			Name:

			Title:

			

 

 

 

Dated:     _________ __, 20__

 

 

 

 

 

 

 

A-2

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

 

 

Wilmington Trust, National Association,     or     Wilmington Trust, National Association

not in its individual capacity     not in its individual capacity

but solely as Owner Trustee     but solely as Owner Trustee          

 

 

 

 

By ______________________________

      Authenticating Agent

 

 

 

 

By __________________________     By ______________________________

     Authorized Signatory                           Authorized Signatory

 

A-3

 

 

EXHIBIT B

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST 

 

FORM OF TRANSFEROR CERTIFICATE

 

 

THIS TRANSFEROR CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NEITHER THIS TRANSFEROR CERTIFICATE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF SUCH ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS.

 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THIS TRANSFEROR CERTIFICATE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE TRUST AGREEMENT REFERRED TO HEREIN.

 

No. R-__     One Unit

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST]

TRANSFEROR CERTIFICATE

 

THIS CERTIFICATE REPRESENTS AN INTEREST

IN CERTAIN ASSETS OF THE

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST]

 

 

 

Evidencing an interest in a trust, the corpus of which consists primarily of receivables generated from time to time in the ordinary course of business in a portfolio of consumer loan accounts transferred by FRC Funding Corporation (the “Transferor”).

 

(Not an interest in or obligation of the Transferor

or any affiliate thereof other than the Trust)

 

This certifies that FRC Funding Corporation is the registered owner of an undivided beneficial interest in the assets of Fortiva Retail Credit Master Note Business Trust (the “Trust”), subject to the lien of the Notes as provided in the Master Indenture, dated as of November 9, 2018 (as amended and supplemented, the “Indenture”), among U.S. Bank National Association, as Indenture Trustee (the “Indenture Trustee”), Access Financing, LLC, as Servicer (the “Servicer”), and the Trust, established pursuant to the Amended and Restated Trust Agreement, dated as of November 9, 2018 (as amended and supplemented, the “Trust Agreement”), between the Transferor, and Wilmington Trust, National Association, as owner trustee (not in its individual capacity, but solely as owner trustee the “Owner Trustee”). The corpus of the Trust consists of a portfolio of certain receivables (the “Receivables”) existing in the consumer loan accounts identified under the Transfer and Servicing Agreement, dated as of November 9, 2018, as amended from time to time (the “Transfer and Servicing Agreement”), among the Transferor, the Servicer, the Indenture Trustee and the Trust, as Issuer, from time to time and certain other property. Although a summary of certain provisions of the Transfer and Servicing Agreement, the Trust Agreement and the Indenture (collectively, the “Agreements”) is set forth below, this Certificate does not purport to summarize the Agreements and reference is made to the Agreements for information with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights, duties and obligations of the Owner Trustee. A copy of the Agreements may be requested from the Owner Trustee by writing to the Owner Trustee at the Corporate Trust Office. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in the Agreements.

 

This Certificate is issued under and is subject to the terms, provisions and conditions of the Agreements, to which Agreements, as amended and supplemented from time to time, the holder of this Certificate by virtue of the acceptance hereof assents and is bound.

 

This Certificate (this “Certificate”) is the Transferor Certificate, which represents the undivided beneficial interest in certain assets of the Trust, subject to the lien of the Notes, including the right to receive certain amounts at the times and in the amounts specified in the Indenture. In addition to the Transferor Certificate, (a) Notes will be issued to investors pursuant to the Indenture, (b) a Trust Certificate will be issued to the Owner and (c) Supplemental Certificates may be issued pursuant to the Trust Agreement.

 

Unless otherwise specified in an Indenture Supplement with respect to a particular Series or Class, the Transferor has entered into the Transfer and Servicing Agreement, and this Certificate is issued, with the intention that, for federal, state and local income and franchise tax purposes, (a) the Notes of each Series which are characterized as indebtedness at the time of their issuance will qualify as indebtedness of the Trust and (b) the Trust shall not be treated as an association (or a publicly traded partnership) taxable as a corporation. Unless otherwise specified in an Indenture Supplement with respect to a particular Series or Class, the holder of this Certificate by the acceptance of this Certificate agrees to treat the Notes for federal, state and local income and franchise tax purposes as indebtedness of the Trust.

 

Subject to certain conditions and exceptions specified in the Agreements, the obligations created by the Agreements and the Trust shall terminate upon the earlier of (a) at the option of the Transferor, on or after the day on which the rights of all Series of Notes to receive payments from the Trust have terminated and (b) dissolution of the Trust in accordance with applicable law.

 

Unless the certificate of authentication hereon has been executed by or on behalf of the Owner Trustee, by manual or facsimile signature, this Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose.

 

THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

 

B-1

 

 

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

 

FORTIVA RETAIL CREDIT MASTER NOTE BUSINESS TRUST

	 	
			By:

				
			Wilmington Trust, National Association

			

not in its individual capacity but

solely as Owner Trustee

 

	 	
			By:

				
			_________________________________

			
	 	 	
			Name:

			Title:

			

 

 

 

Dated:     _________ __, 20__

 

 

 

 

 

 

B-2

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

 

 

Wilmington Trust, National Association,     or     Wilmington Trust, National Association

not in its individual capacity     not in its individual capacity

but solely as Owner Trustee     but solely as Owner Trustee          

 

 

 

 

By ______________________________

      Authenticating Agent

 

 

 

 

By __________________________     By ______________________________

     Authorized Signatory                            Authorized Signatory

 

 

 

B-3

 

 

	 	
			TABLE OF CONTENTS

				 
	 	 	
			Page

			
	 	
			ARTICLE I

				 
	 	
			DEFINITIONS

				 
	 	 	 
	
			Section 1.01.     

				
			Capitalized Terms

				 
	
			Section 1.02.     

				
			Other Definitional Provisions     

				 
	 	 	 
	 	
			ARTICLE II

				 
	 	
			ORGANIZATION

				 
	 	 	 
	
			Section 2.01.     

				
			Name     

				 
	
			Section 2.02.     

				
			Office     

				 
	
			Section 2.03.     

				
			Purpose and Powers     

				 
	
			Section 2.04.     

				
			Appointment of Owner Trustee     

				 
	
			Section 2.05.     

				
			Initial Capital Contribution of Trust Assets    

				 
	
			Section 2.06.     

				
			Declaration of Trust    

				 
	
			Section 2.07.     

				
			Title to Trust Property     

				 
	
			Section 2.08.     

				
			Situs of Trust     

				 
	
			Section 2.09.     

				
			Representations and Warranties of Transferor     

				 
	
			Section 2.10.     

				
			Liability of Certificateholders     

				 
	 	 	 
	 	
			ARTICLE III

				 
	 	
			CERTIFICATES

				 
	 	 	 
	
			Section 3.01.     

				
			Initial Ownership     

				 
	
			Section 3.02.     

				
			Form of Certificates     

				 
	
			Section 3.03.     

				
			Authentication of Certificates     

				 
	
			Section 3.04.     

				
			Issuance of New Transferor Certificates     

				 
	
			Section 3.05.     

				
			Restrictions on Transfer     

				 
	
			Section 3.06.     

				
			Mutilated, Destroyed, Lost or Stolen Certificate     

				 
	 	 	 
	 	
			ARTICLE IV

				 
	 	
			ACTIONS BY OWNER TRUSTEE

				 
	 	 	 
	
			Section 4.01.     

				
			Prior Notice to Owner and Transferor with Respect to Certain Matters     

				 
	
			Section 4.02.     

				
			Action By Transferor with Respect to Certain Matters     

				 
	
			Section 4.03.     

				
			Restrictions on Power     

				 
	 	 	 
	 	
			ARTICLE V

				 
	 	
			AUTHORITY AND DUTIES OF OWNER TRUSTEE

				 
	 	 	 
	
			Section 5.01.     

				
			General Authority     

				 
	
			Section 5.02.     

				
			General Duties     

				 
	
			Section 5.03.     

				
			Action Upon Instruction     

				 
	
			Section 5.04.     

				
			No Duties Except as Specified in this Agreement or in Instructions     

				 
	
			Section 5.05.     

				
			No Action Except under Specified Documents or Instructions     

				 
	
			Section 5.06.     

				
			Restrictions     

				 
	 	 	 
	 	
			ARTICLE VI

				 
	 	
			CONCERNING THE OWNER TRUSTEE

				 
	 	 	 
	
			Section 6.01.     

				
			Acceptance of Trusts and Duties     

				 
	
			Section 6.02.     

				
			Furnishing of Documents     

				 
	
			Section 6.03.     

				
			Representations and Warranties     

				 
	
			Section 6.04.     

				
			Reliance; Advice of Counsel     

				 
	
			Section 6.05.     

				
			Not Acting in Individual Capacity     

				 
	
			Section 6.06.     

				
			Owner Trustee Not Liable for Certificates, Notes or Receivables     

				 
	
			Section 6.07.     

				
			Owner Trustee May Own Notes     

				 
	 	 	 
	 	
			ARTICLE VII

				 
	 	
			COMPENSATION OF OWNER TRUSTEE

				 
	 	 	 
	
			Section 7.01.     

				
			Owner Trustee’s Fees and Expenses     

				 
	
			Section 7.02.     

				
			Indemnification     

				 
	
			Section 7.03.     

				
			Payments to the Owner Trustee     

				 
	 	 	 
	 	
			ARTICLE VIII

				 
	 	
			TERMINATION OF TRUST AGREEMENT

				 
	 	 	 
	
			Section 8.01.     

				
			Termination of Trust Agreement     

				 
	 	 	 
	 	
			ARTICLE IX

				 
	 	
			SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

				 
	 	 	 
	
			Section 9.01.     

				
			Eligibility Requirements for Owner Trustee     

				 
	
			Section 9.02.     

				
			Resignation or Removal of Owner Trustee     

				 
	
			Section 9.03.     

				
			Successor Owner Trustee     

				 
	
			Section 9.04.     

				
			Merger or Consolidation of Owner Trustee     

				 
	
			Section 9.05.     

				
			Appointment of Co-Trustee or Separate Trustee     

				 
	 	 	 
	 	
			ARTICLE X

				 
	 	
			MISCELLANEOUS

				 
	 	 	 
	
			Section 10.01.    

				
			Supplements and Amendments     

				 
	
			Section 10.02.    

				
			No Legal Title to Trust Assets in Owner     

				 
	
			Section 10.03.    

				
			Limitations on Rights of Others     

				 
	
			Section 10.04.    

				
			Notices     

				 
	
			Section 10.05.    

				
			Severability     

				 
	
			Section 10.06.    

				
			Separate Counterparts     

				 
	
			Section 10.07.    

				
			Successors and Assigns     

				 
	
			Section 10.08.    

				
			No Petition     

				 
	
			Section 10.09.    

				
			No Recourse     

				 
	
			Section 10.10.    

				
			Headings     

				 
	
			Section 10.11.    

				
			GOVERNING LAW     

				 
	
			Section 10.12.    

				
			Acceptance of Terms of Agreement     

				 
	
			Section 10.13.    

				
			Integration of Documents     

				 
	 	 	 
	 	
			EXHIBITS

				 
	 	 	 
	
			Exhibit A

				
			Form of Trust Certificate     

				A-1
	
			Exhibit B

				
			Form of Transferor Certificate     

				B-1

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