Document:

EXHIBIT
4.3

CO-TRUSTEE AGREEMENT

THIS CO-TRUSTEE AGREEMENT
(this “Co-Trustee
Agreement”) dated as
of September 1, 2006, is between The Bank of New York (the “Trustee”) and The Bank of New York (Delaware) (the “Delaware Trustee”).

W
I  T  N  E  S  S  E  T  H
:

WHEREAS, CNH Capital Receivables LLC and the Trustee
have entered into a Trust Agreement dated as of September 1, 2006 (as the same
may be further amended or restated from time to time the “Trust Agreement”) with the intention of forming CNH
Equipment Trust 2006-B, a Delaware statutory trust (the “Trust”) pursuant to the Delaware Statutory Trust Act, 12 Del. C. §3801, et
seq. (the “Trust Statute”); capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to them in the Trust Agreement;
and

WHEREAS, the Trust Statute requires that at least one
trustee of the Trust have its principal place of business in the State of
Delaware; and

WHEREAS, the Delaware Trustee has its principal place
of business in the State of Delaware.

NOW, THEREFORE, the parties hereto hereby agree as
follows:

FOR VALUABLE CONSIDERATION RECEIVED it is mutually
covenanted and agreed pursuant to the terms of Section 2.4
of the Trust Agreement that the Delaware Trustee has been and by this document
is, appointed to serve as the trustee of the Trust in the State of Delaware
pursuant to Section 3807 of the Trust Statute. 
It is understood and agreed that (a) the duties and responsibilities of
the Delaware Trustee shall be limited to the execution and delivery of all documents,
and the maintenance of all records, necessary to form and maintain the
existence of the Trust under the Trust Statute, and (b) the Delaware Trustee
shall be entitled to all of the benefits, immunities and protections provided
to the Trustee in the Trust Agreement and any other related documents.  By the execution hereof, the Delaware Trustee
accepts the trust created hereinabove and in the Trust Agreement; provided
however, that the Delaware Trustee shall owe no other fiduciary duties to the
holders of the Certificates or the Trust other than as expressly provided for
in the Co-Trustee Agreement.

This Co-Trustee Agreement may be executed in separate
counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.  This Co-Trustee Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware.

(signature page follows)

 

IN WITNESS WHEREOF, the parties have executed this
Co-Trustee Agreement as of the day and year above written.

	
   

  	
   

  	
  THE BANK OF NEW YORK, not in its individual

  capacity but solely as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
  /s/Catherine Murray

  	
   

  
	
   

  	
   

  	
  NAME:

  	
  Catherine Murray

  
	
   

  	
   

  	
  TITLE:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK (DELAWARE), not in its individual capacity but solely as Delaware
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Kristine K. Gullo

  	
   

  
	
   

  	
   

  	
  NAME:

  	
  Kristine K. Gullo

  
	
   

  	
   

  	
  TITLE:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
  Acknowledged:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  As of September
  1, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NEW HOLLAND CREDIT COMPANY, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Brian O’
  Keane

  	
   

  	
   

  	
   

  
	
  Name: Brian
  O’Keane

  	
   

  	
   

  
	
  Title: Treasurer

  	
   

  	
   

  
									

 

 S-1EXHIBIT
4.4

 

 

CNH
EQUIPMENT TRUST 2006-B

SALE
AND SERVICING AGREEMENT

among

CNH EQUIPMENT
TRUST 2006-B,

as Issuing Entity,

and

CNH CAPITAL RECEIVABLES LLC,

as Seller,

and

NEW HOLLAND CREDIT COMPANY,
LLC,

as Servicer

Dated as of September 1, 2006

 

 

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  I

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.2.

  	
   

  	
  Other
  Definitional Provisions

  	
   

  	
  1

  
	
  ARTICLE
  II

  	
  Conveyance
  of Receivables and Grant of Security Interest in the Backup Servicer Account

  	
   

  	
  2

  
	
  SECTION 2.1.

  	
   

  	
  Conveyance
  of Initial Receivables

  	
   

  	
  2

  
	
  SECTION 2.2.

  	
   

  	
  Conveyance
  of Subsequent Receivables

  	
   

  	
  3

  
	
  ARTICLE
  III

  	
  The
  Receivables

  	
   

  	
  6

  
	
  SECTION 3.1.

  	
   

  	
  Representations
  and Warranties of Seller

  	
   

  	
  6

  
	
  SECTION 3.2.

  	
   

  	
  Repurchase
  upon Breach

  	
   

  	
  6

  
	
  SECTION 3.3.

  	
   

  	
  Custody
  of Receivable Files

  	
   

  	
  7

  
	
  SECTION 3.4.

  	
   

  	
  Duties
  of Servicer as Custodian

  	
   

  	
  8

  
	
  SECTION 3.5.

  	
   

  	
  Instructions;
  Authority To Act

  	
   

  	
  8

  
	
  SECTION 3.6.

  	
   

  	
  Custodian’s
  Indemnification

  	
   

  	
  8

  
	
  SECTION 3.7.

  	
   

  	
  Effective
  Period and Termination

  	
   

  	
  9

  
	
  SECTION 3.8.

  	
   

  	
  Backup
  Servicer as Custodian

  	
   

  	
  9

  
	
  ARTICLE
  IV

  	
  Administration
  and Servicing of Receivables

  	
   

  	
  9

  
	
  SECTION 4.1.

  	
   

  	
  Duties
  of Servicer

  	
   

  	
  9

  
	
  SECTION 4.2.

  	
   

  	
  Collection
  and Allocation of Receivable Payments

  	
   

  	
  10

  
	
  SECTION 4.3.

  	
   

  	
  Realization
  upon Receivables

  	
   

  	
  10

  
	
  SECTION 4.4.

  	
   

  	
  Maintenance
  of Security Interests in Financed Equipment

  	
   

  	
  10

  
	
  SECTION 4.5.

  	
   

  	
  Covenants
  of Servicer

  	
   

  	
  11

  
	
  SECTION 4.6.

  	
   

  	
  Purchase
  of Receivables upon Breach

  	
   

  	
  11

  
	
  SECTION 4.7.

  	
   

  	
  Servicing
  Fee

  	
   

  	
  11

  
	
  SECTION 4.8.

  	
   

  	
  Servicer’s
  Certificate

  	
   

  	
  11

  
	
  SECTION 4.9.

  	
   

  	
  Annual
  Statement as to Compliance; Notice of Default

  	
   

  	
  12

  
	
  SECTION 4.10.

  	
   

  	
  Annual
  Independent Certified Public Accountants’ Report

  	
   

  	
  12

  
	
  SECTION 4.11.

  	
   

  	
  Access
  to Certain Documentation and Information Regarding Receivables

  	
   

  	
  13

  
	
  SECTION 4.12.

  	
   

  	
  Servicer
  Expenses

  	
   

  	
  13

  
	
  SECTION 4.13.

  	
   

  	
  Appointment
  of Subservicer

  	
   

  	
  13

  
						

 

 i
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  Distributions:
  Spread Account; Statements to Certificateholders and Noteholders

  	
   

  	
  14

  
	
  SECTION 5.1.

  	
   

  	
  Establishment
  of Trust Accounts and the Backup Servicer Account

  	
   

  	
  14

  
	
  SECTION 5.2.

  	
   

  	
  Interest
  Rate Swap Agreement

  	
   

  	
  17

  
	
  SECTION 5.3.

  	
   

  	
  Collections

  	
   

  	
  17

  
	
  SECTION 5.4.

  	
   

  	
  Application
  of Collections

  	
   

  	
  18

  
	
  SECTION 5.5.

  	
   

  	
  Additional
  Deposits

  	
   

  	
  18

  
	
  SECTION 5.6.

  	
   

  	
  Distributions

  	
   

  	
  18

  
	
  SECTION 5.7.

  	
   

  	
  Spread
  Account

  	
   

  	
  20

  
	
  SECTION 5.8.

  	
   

  	
  Pre-Funding
  Account

  	
   

  	
  20

  
	
  SECTION 5.9.

  	
   

  	
  Negative
  Carry Account

  	
   

  	
  21

  
	
  SECTION 5.10.

  	
   

  	
  Principal
  Supplement Account

  	
   

  	
  21

  
	
  SECTION 5.11.

  	
   

  	
  Statements
  to Certificateholders and Noteholders

  	
   

  	
  22

  
	
  SECTION 5.12.

  	
   

  	
  Net
  Deposits

  	
   

  	
  24

  
	
  SECTION 5.13.

  	
   

  	
  Backup
  Servicer Account

  	
   

  	
  24

  
	
  ARTICLE
  VI

  	
  The
  Seller

  	
   

  	
  24

  
	
  SECTION 6.1.

  	
   

  	
  Representations
  of Seller

  	
   

  	
  24

  
	
  SECTION 6.2.

  	
   

  	
  Company
  Existence

  	
   

  	
  26

  
	
  SECTION 6.3.

  	
   

  	
  Liability
  of Seller; Indemnities

  	
   

  	
  26

  
	
  SECTION 6.4.

  	
   

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

  	
   

  	
  27

  
	
  SECTION 6.5.

  	
   

  	
  Limitation
  on Liability of Seller and Others

  	
   

  	
  28

  
	
  SECTION 6.6.

  	
   

  	
  Seller
  May Own Certificates or Notes

  	
   

  	
  28

  
	
  ARTICLE
  VII

  	
  The
  Servicer

  	
   

  	
  28

  
	
  SECTION 7.1.

  	
   

  	
  Representations
  of Servicer

  	
   

  	
  28

  
	
  SECTION 7.2.

  	
   

  	
  Indemnities
  of Servicer

  	
   

  	
  29

  
	
  SECTION 7.3.

  	
   

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

  	
   

  	
  31

  
	
  SECTION 7.4.

  	
   

  	
  Limitation
  on Liability of Servicer and Others

  	
   

  	
  32

  
	
  SECTION 7.5.

  	
   

  	
  NH
  Credit Not to Resign as Servicer

  	
   

  	
  32

  
	
  SECTION 7.6.

  	
   

  	
  Servicer
  to Act as Administrator

  	
   

  	
  32

  
						

 

 ii
 

 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
  Default

  	
   

  	
  33

  
	
  SECTION 8.1.

  	
   

  	
  Servicer
  Default

  	
   

  	
  33

  
	
  SECTION 8.2.

  	
   

  	
  Appointment
  of Successor Servicer

  	
   

  	
  34

  
	
  SECTION 8.3.

  	
   

  	
  Notification
  to Noteholders and Certificateholders

  	
   

  	
  35

  
	
  SECTION 8.4.

  	
   

  	
  Waiver
  of Past Defaults

  	
   

  	
  35

  
	
  ARTICLE
  IX

  	
  Termination

  	
   

  	
  35

  
	
  SECTION 9.1.

  	
   

  	
  Optional
  Purchase of All Receivables

  	
   

  	
  35

  
	
  ARTICLE
  X

  	
  Miscellaneous
  Provisions

  	
   

  	
  37

  
	
  SECTION 10.1.

  	
   

  	
  Amendment

  	
   

  	
  37

  
	
  SECTION 10.2.

  	
   

  	
  Protection
  of Title to Trust

  	
   

  	
  38

  
	
  SECTION 10.3.

  	
   

  	
  Notices

  	
   

  	
  40

  
	
  SECTION 10.4.

  	
   

  	
  Assignment

  	
   

  	
  41

  
	
  SECTION 10.5.

  	
   

  	
  Limitations
  on Rights of Others

  	
   

  	
  41

  
	
  SECTION 10.6.

  	
   

  	
  Severability

  	
   

  	
  41

  
	
  SECTION 10.7.

  	
   

  	
  Separate
  Counterparts

  	
   

  	
  41

  
	
  SECTION 10.8.

  	
   

  	
  Headings

  	
   

  	
  41

  
	
  SECTION 10.9.

  	
   

  	
  Governing
  Law

  	
   

  	
  41

  
	
  SECTION 10.10.

  	
   

  	
  Assignment
  to Indenture Trustee

  	
   

  	
  41

  
	
  SECTION 10.11.

  	
   

  	
  Nonpetition
  Covenants

  	
   

  	
  41

  
	
  SECTION 10.12.

  	
   

  	
  Limitation
  of Liability of Trustee and Indenture Trustee

  	
   

  	
  42

  
	
  SECTION 10.13.

  	
   

  	
  Conditions
  Precedent to Other Financing Transactions

  	
   

  	
  42

  
	
  SECTION 10.14.

  	
   

  	
  Information
  Requests

  	
   

  	
  42

  
						

 

 iii
 

 

EXHIBITS

	
  EXHIBIT A

  	
   

  	
  Form of Noteholder’s Statement Pursuant to Section
  5.11(a)

  
	
  EXHIBIT B

  	
   

  	
  Form of Certificateholder’s Statement Pursuant to
  Section 5.11(a)

  
	
  EXHIBIT C

  	
   

  	
  Form of Servicer’s Certificate

  
	
  EXHIBIT D

  	
   

  	
  Form of Assignment

  
	
  EXHIBIT E

  	
   

  	
  Form of Subsequent Transfer Assignment

  
	
  EXHIBIT F

  	
   

  	
  Form of Accountants’ Letter in Connection with
  Subsequent

  
	
   

  	
   

  	
  Transfer Assignment

  
	
  EXHIBIT G

  	
   

  	
  Form of Initial Interest Rate Swap Agreement

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  	
   

  	
   

  
	
  SCHEDULE P

  	
   

  	
  Perfection Representations & Warranties

  

 

 iv

SALE AND SERVICING
AGREEMENT (as amended or otherwise modified, this “Agreement”) dated as of September 1, 2006 among CNH EQUIPMENT TRUST 2006-B, a Delaware statutory trust (the “Issuing Entity” or the “Trust”),
CNH CAPITAL
RECEIVABLES LLC, a Delaware limited liability company (the “Seller”), and NEW HOLLAND CREDIT COMPANY, LLC, a Delaware limited liability
company (the “Servicer”).

RECITALS

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

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

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

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

ARTICLE I

Definitions

SECTION 1.1.  Definitions.  Capitalized terms used herein and not
otherwise defined herein are defined in Appendix
A to the Indenture, dated as of the date hereof, between the Issuing Entity and
JPMorgan Chase Bank, N.A.

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

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

(c)  The words “hereof”, “herein”, “hereunder” and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement;
Section, Schedule and Exhibit references contained in this Agreement are

 

references to Sections, Schedules and Exhibits in or to this Agreement
unless otherwise specified; and the term “including” shall mean “including,
without limitation,”.

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

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

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

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

ARTICLE II

Conveyance of Receivables and Grant of Security

Interest in the Backup Servicer Account

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

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

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

(iii)  any proceeds with respect to the Initial
Receivables from claims on insurance policies covering Financed Equipment or
Obligors;

(iv)  the Liquidity Receivables Purchase Agreement
(only with respect to Owned Contracts included in the Initial Receivables) and
the Purchase Agreement, including the right of the Seller to cause CNHCA to
repurchase Initial Receivables from the Seller under the circumstances
described therein;

(v)  any proceeds from recourse to Dealers with
respect to the Initial Receivables other than any interest in the Dealers’
reserve accounts maintained with CNHCA;

 2
 

 

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

(vii)  all funds on deposit from time to time in the
Trust Accounts, including the Spread Account Initial Deposit, any Principal
Supplement Account Deposit, the Negative Carry Account Initial Deposit and the
Pre-Funded Amount, and in all investments and proceeds thereof (including all
income thereon); and

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

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

(b)  The Seller hereby Grants to JPMorgan Chase
Bank, N.A., as Indenture Trustee on behalf of the Noteholders and the
Counterparty, all of the Seller’s right, title and interest in and to all funds
on deposit from time to time in the Backup Servicer Account, including the
Backup Servicer Account Initial Deposit, and in all investments and proceeds
thereof (including all income thereon). The foregoing Grant is made to secure
the Seller’s obligation to make funds available in the Backup Servicer Account
available to the Indenture Trustee to pay Backup Servicer Expenses.  JPMorgan Chase Bank, N.A., as Indenture
Trustee on behalf of the Noteholders and the Counterparty, (1) acknowledges
such Grant and (2) agrees to perform its duties with respect thereto expressly
set forth in this Agreement.

SECTION 2.2.  Conveyance
of Subsequent Receivables. 
(a)  Subject to the conditions set
forth in clause (b) below
and the proviso set forth in clause (c)
below, in consideration of the Trustee’s delivery on the related Subsequent
Transfer Date to or upon the order of the Seller of the amount described in Section 5.8(a)
to be delivered to the Seller, the Seller does hereby sell, transfer, assign,
set over and otherwise convey to the Issuing Entity, without recourse (subject
to the obligations herein), all of its right, title and interest in, to and
under (collectively, the “Subsequent Assets”;
and together with the Initial Assets, the “CNHCR
Assets”):

(i)  the Subsequent Receivables listed on Schedule A to the related 
Subsequent Transfer Assignment, including all documents constituting
chattel paper included therewith, and all obligations of the Obligors
thereunder, including all monies paid thereunder on or after the related
Subsequent Cutoff Date;

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

(iii)  any proceeds with respect to such Subsequent
Receivables from claims on insurance policies covering Financed Equipment or
Obligors;

(iv)  the Liquidity Receivables Purchase Agreement
(only with respect to Subsequent Receivables purchased by the Seller pursuant
to such Agreement) and the Purchase Agreement, including the right of the
Seller to cause CNHCA to repurchase Subsequent Receivables from the Seller
under the circumstances described therein;

 3
 

 

(v)  any proceeds with respect to such Subsequent
Receivables from recourse to Dealers other than any interest in the Dealers’
reserve accounts maintained with CNHCA;

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

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

(b)  Subject to the proviso set forth in clause (c)
below, the Seller shall transfer to the Issuing Entity the Subsequent
Receivables and the other property and rights related thereto described in clause (a) only
upon the satisfaction of each of the following conditions precedent on or prior
to the related Subsequent Transfer Date:

(i)  the Seller shall have delivered to the
Trustee and the Indenture Trustee a duly executed written assignment in
substantially the form of Exhibit E (the “Subsequent Transfer Assignment”), which shall include a Schedule A to
the Subsequent Transfer Assignment listing the Subsequent Receivables;

(ii)  the Seller shall, to the extent required by Section 5.3,
have deposited in the Collection Account all collections in respect of the
Subsequent Receivables;

(iii)  as of such Subsequent Transfer Date: (A) the
Seller was not insolvent and will not become insolvent as a result of the
transfer of Subsequent Receivables on such Subsequent Transfer Date, (B) the
Seller did not intend to incur or believe that it would incur debts that would
be beyond the Seller’s ability to pay as such debts matured, (C) such transfer
was not made with actual intent to hinder, delay or defraud any Person and (D)
the assets of the Seller did not constitute unreasonably small capital to carry
out its business as conducted;

(iv)  the applicable Spread Account Initial Deposit
for such Subsequent Transfer Date shall have been made;

(v)  the applicable Principal Supplement Account
Deposit, if any, for such Subsequent Transfer Date shall have been made;

(vi)  the Receivables in the Trust, including the
Subsequent Receivables to be conveyed to the Trust on such Subsequent Transfer
Date, shall meet the following criteria: (A) each of the Receivables is a
Retail Installment Contract, (B) the weighted average original term of the
Receivables in the Trust will not be greater than 55 months, and (C) not
more than 35% of the aggregate Contract Value of the Receivables in the Trust
will represent Contracts for the financing of construction equipment, (D) each Receivable has a remaining term
to maturity of not more than 72 months and (E) each Receivable has a
Statistical Contract Value as of the applicable Cutoff Date that (when combined
with the Statistical Contract Value of any other Receivables with the same or
an affiliated Obligor) does not exceed 1% of the aggregate Statistical Contract
Value of all the Receivables;

(vii)  the Funding Period shall not have terminated;

 4
 

 

(viii)  each of the representations and warranties
made by the Seller pursuant to Section 3.1 of this Agreement and by CNHCA pursuant to Section 3.2(b) of the Purchase Agreement, in each case with
respect to the Subsequent Receivables, shall be true and correct as of such
Subsequent Transfer Date, and the Seller shall have performed all obligations
to be performed by it hereunder on or prior to such Subsequent Transfer Date;

(ix)  the Seller shall, at its own expense, on or
prior to such Subsequent Transfer Date, indicate in its computer files that the
Subsequent Receivables identified in the related Subsequent Transfer Assignment
have been sold to the Issuing Entity pursuant to this Agreement and the
Subsequent Transfer Assignment;

(x)  the Seller shall have taken any action
required to maintain the first priority perfected ownership interest of the
Issuing Entity in the Trust Estate and the first priority perfected security
interest of the Indenture Trustee in the Collateral;

(xi)  no selection procedures believed by the
Seller to be adverse to the interests of the Trust, the Noteholders or the
Certificateholders shall have been utilized in selecting the Subsequent
Receivables;

(xii)  the addition of the Subsequent Receivables
will not result in a material adverse tax consequence to the Trust, the
Noteholders or the Certificateholders;

(xiii)  the Seller shall have provided the Indenture
Trustee, the Trustee and the Rating Agencies a statement listing the aggregate
Contract Value of such Subsequent Receivables and any other information
reasonably requested by any of the foregoing with respect to such Subsequent
Receivables;

(xiv)  the Seller shall have delivered to the
Trustee and the Indenture Trustee a letter of a firm of Independent certified
public accountants confirming the satisfaction of the conditions set forth in clause (vi) with
respect to the Subsequent Receivables, and covering substantially the same
matters with respect to the Subsequent Receivables as are set forth in Exhibit F hereto;

(xv)  the Seller shall have delivered to the
Indenture Trustee and the Trustee an Officer’s Certificate confirming the
satisfaction of each condition specified in this clause (b) (substantially in the
form attached as Annex A to the Subsequent
Transfer Assignment); and

(xvi)  the Rating Agency Condition shall have been
satisfied in connection therewith.

(c)  The Seller covenants to transfer to the
Issuing Entity pursuant to clause (a) Subsequent Receivables with an aggregate Contract
Value approximately equal to $346,632,032.01 subject only to availability thereof.

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ARTICLE III

The Receivables

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

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

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

(b)  All Filings Made. All filings
(including UCC filings) necessary in any jurisdiction to give the Issuer a
first priority perfected ownership interest in the Receivables, and to give the
Indenture Trustee a first priority perfected security interest therein, have
been made.

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

SECTION 3.2.  Repurchase
upon Breach.  (a)  The Seller, the Servicer or the Trustee, as
the case may be, shall inform the other parties
to this Agreement and the Indenture Trustee promptly, in writing, upon the
discovery of any breach of the Seller’s representations and warranties made
pursuant to Section
3.1 or Section
6.1, CNHCA’s
representations and warranties made pursuant to Section
3.2(b) of the Liquidity Receivables Purchase Agreement, or CNHCA’s
representations and warranties made pursuant to Section
3.2(b) of the Purchase Agreement.

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

(b)  With respect to all Receivables repurchased
by the Seller pursuant to this Agreement, the Issuing Entity shall sell,
transfer, assign, set over and otherwise convey to the Seller, without
recourse, representation or warranty, all of the Issuing Entity’s right, title
and interest in, to and under such Receivables, and all security and documents
relating thereto.

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

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

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

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

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

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SECTION 3.4.  Duties of Servicer as
Custodian.

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

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

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

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

 8
 

 

pursuant to this Section 3.6 for its acts or omissions committed during the
period it is serving as custodian hereunder. 
Indemnification under this Section shall
survive the resignation or removal of the Servicer as custodian, the
resignation or removal of the Indenture Trustee or the termination of this
Agreement.

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

SECTION 3.8.  Backup Servicer as
Custodian.  The Backup
Servicer shall only act as custodian pursuant to Section 3.4 hereunder if it is simultaneously
acting as Successor Servicer pursuant to this Agreement.

ARTICLE IV

Administration and Servicing of Receivables

SECTION 4.1.  Duties
of Servicer.  The
Servicer, for the benefit of the Issuing Entity, and (to the extent provided herein) the Indenture Trustee shall manage,
service, administer and make collections on the Receivables with reasonable
care, using that degree of skill and attention that the Servicer exercises with
respect to all comparable equipment receivables that it services for its
Affiliates or others. The Servicer’s duties shall include collection and
posting of all payments, responding to inquiries of Obligors on such
Receivables, investigating delinquencies, sending payment coupons or statements
to Obligors, reporting tax information to Obligors, accounting for collections
and furnishing monthly and annual statements to the Trustee and the Indenture
Trustee with respect to distributions. Subject to Section 4.2, the Servicer shall follow its then current
customary standards, policies and procedures in performing its duties as
Servicer.

Without limiting the generality of the foregoing, the
Servicer is authorized and empowered to execute and deliver, on behalf of
itself, the Issuing Entity, the Trustee, the Indenture Trustee, the
Certificateholders, the Noteholders or any of them, any and all instruments of
satisfaction or cancellation, or partial or full release or discharge, and all
other comparable

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instruments, with respect
to such Receivables or the Financed Equipment securing such Receivables. If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuing
Entity shall thereupon be deemed to have automatically assigned, solely for the
purpose of collection, such Receivable to the Servicer. If in any enforcement
suit or legal proceeding it shall be held that the Servicer may not enforce a
Receivable on the ground that it shall not be a real party in interest or a
holder entitled to enforce such Receivable, the Trustee shall, at the Servicer’s
direction (and, so long as the Servicer is NH Credit, at the Servicer’s
expense), take steps to enforce such Receivable, including bringing suit in its
name or the name of the Trust, the Indenture Trustee, the Certificateholders or
the Noteholders. The Trustee or the Indenture Trustee shall, upon the written
request of the Servicer, furnish the Servicer with any powers of attorney and
other documents reasonably necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder.

SECTION 4.2.  Collection
and Allocation of Receivable Payments.  The Servicer shall make reasonable efforts to
collect all payments called for under the
Receivables as and when the same shall become due and shall follow such
collection procedures as it follows with respect to all comparable equipment
receivables that it services for its Affiliates or others.  The Servicer shall allocate collections
between principal and interest in accordance with the customary servicing
procedures it follows with respect to all comparable equipment receivables that
it services for its Affiliates or others. 
The Servicer may grant extensions or adjustments on a Receivable; provided, however, that if the
Servicer extends the date for final payment by the Obligor of any Receivable
beyond the Final Scheduled Maturity Date, it shall promptly purchase the
Receivable from the Issuing Entity in accordance with Section 4.6.  The Servicer may, in its discretion, waive
any late payment charge or any other fees (other than extension fees or any
other fees that represent interest charges on deferred Scheduled Payments) that
may be collected in the ordinary course of servicing a Receivable.  The Servicer shall not agree to any decrease
of the interest rate on any Receivable or reduce the aggregate amount of the
Scheduled Payments due on any Receivable except as required by law.

SECTION 4.3.  Realization
upon Receivables.  For the
benefit of the Issuing Entity and the Indenture Trustee, the Servicer shall use reasonable efforts, consistent
with its customary servicing procedures, to repossess or otherwise convert the
ownership of the Financed Equipment securing any Receivable as to which the
Servicer shall have determined eventual payment in full is unlikely.  The Servicer shall follow such customary and
usual practices and procedures as it shall deem necessary or advisable in its
servicing of equipment receivables, which may include reasonable efforts to
realize upon any recourse to Dealers and selling the Financed Equipment at
public or private sale (it being understood that, if the Backup Servicer is
acting as Successor Servicer, it shall have no duty to enforce remedies against
Dealers).  The foregoing shall be subject
to the provision that, in any case in which the Financed Equipment shall have
suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Equipment unless it shall determine
in its discretion that such repair and/or repossession will increase the
Liquidation Proceeds by an amount greater than the amount of such expenses.

SECTION 4.4.  Maintenance
of Security Interests in Financed Equipment.  The Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created
by each Receivable in the related Financed

 10
 

 

Equipment. The Servicer is hereby authorized to take such steps as are
necessary to re-perfect such security interest for the benefit of the Issuing
Entity and the Indenture Trustee in the event of the relocation of any Financed
Equipment, any change to the UCC or for any other reason.  Any out-of-pocket expenses incurred by the Successor
Servicer in connection with any such re-perfection shall be reimbursable in
accordance with Section 5.6(b)(x).

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

SECTION 4.6.  Purchase
of Receivables upon Breach. 
The Servicer or the Trustee shall inform the other party, the Indenture Trustee, the Seller, NH Credit and CNHCA
promptly, in writing, upon the discovery of any breach pursuant to Sections 4.2, 4.4 or 4.5.  Unless the breach shall have been cured by
the last day of the Collection Period in which such breach is discovered, the
Servicer shall purchase or shall cause CNHCA to purchase any Receivable
materially and adversely affected by such breach as of such last day.  If the Servicer takes any action during any
Collection Period pursuant to Section 4.2 that impairs the rights of the Issuing Entity,
the Indenture Trustee, the Certificateholders or the Noteholders in any
Receivable or as otherwise provided in Section 4.2, the Servicer shall purchase or shall cause
CNHCA to purchase such Receivable as of the last day of such Collection Period.
As consideration for the purchase of any such Receivable pursuant to either of
the two preceding sentences, the Servicer shall remit or shall cause CNHCA to
remit the Purchase Amount in the manner specified in Section 5.5.  Subject to Section 7.2, the sole remedy of the Issuing Entity, the Trustee,
the Indenture Trustee, the Certificateholders or the Noteholders with respect
to a breach pursuant to Sections
4.2, 4.4 or 4.5 shall be to
require the Servicer to purchase or to cause CNHCA to purchase Receivables
pursuant to this Section.  The Trustee shall have no duty to conduct any
affirmative investigation as to the occurrence of any condition requiring the
purchase of any Receivable pursuant to this Section.  In no event shall the Backup Servicer as
Successor Servicer be obligated to purchase any Receivables pursuant to this Section 4.6.

SECTION 4.7.  Servicing
Fee.  The Servicing Fee
for each Collection Period shall be equal to 1/12th of 1.00% of the Pool Balance as of the first day of such
Collection Period; provided that with respect to any Successor Servicer
hereunder, the Servicing Fee for each Collection Period shall be equal to the
greater of (a) 1/12th of 1.00% of the Pool Balance as of the first day of such
Collection Period, (b) $8.50 per Contract in the Trust Estate as of the first
day of such Collection Period and (c) $5,000.

SECTION 4.8.  Servicer’s
Certificate.  On each
Determination Date the Servicer shall deliver to the Trustee, the Indenture Trustee, the Seller and the Backup
Servicer, with a copy to the Rating Agencies and the Counterparty, a Servicer’s
Certificate containing all information necessary to make the distributions
pursuant to Sections
5.6 and 5.7
and the deposits to the Collection Account pursuant to Section 5.3 for
the Collection Period preceding the date of such Servicer’s Certificate.  Receivables to be repurchased by the Seller
or purchased by the Servicer

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shall be identified by the Servicer by account number with respect to
such Receivable (as specified in the Schedule of Receivables delivered on the
Closing Date or attached to the applicable Subsequent Transfer Assignment).

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

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

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

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

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

In the event that such firm requires the Indenture
Trustee to agree to the procedures performed by such firm, the Servicer shall
direct the Indenture Trustee in writing to so agree; it being understood and
agreed that the Indenture Trustee will deliver such letter of agreement in
conclusive reliance upon the direction of the Servicer and the Indenture
Trustee makes no independent inquiry or investigation as to, and shall have no
obligation or liability in respect of, the sufficiency, validity or correctness
of such procedures.

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

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Notwithstanding the preceding in this Section 4.10 or 4.9(b), if the
Backup Servicer is acting as the Successor Servicer, as to any fiscal year of
the Issuing Entity when the Issuing Entity’s reporting obligations under
Section 15(d) of the Exchange Act are suspended as provided in Rule 15d-22
under the Exchange Act, the Backup Servicer shall only be required to provide a
copy of its annual SAS 70 report and its audited financial statements.

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

SECTION 4.12.  Servicer
Expenses.  The Servicer
shall be required to pay all expenses incurred by it in connection with its activities hereunder, including fees and
disbursements of independent accountants, taxes imposed on the Servicer and
expenses incurred in connection with distributions and reports to
Certificateholders and the Noteholders. All reasonable costs and expenses and
indemnities (including attorneys’ fees and expenses) incurred in connection
with the engagement of a Backup Servicer (including obtaining a Backup Servicer
to replace SST as Backup Servicer), or transitioning the Backup Servicer to the
role of Successor Servicer, including any engagement fees, travel expenses or
due diligence costs and other reasonable expense reimbursements incurred by the
Backup Servicer pursuant to the Backup Servicing Agreement and all
indemnification payments payable to the Backup Servicer pursuant to the Backup
Servicing Agreement (collectively, such fees, expenses and costs and
indemnities, the “Backup Servicer Expenses”)
shall be paid from funds available in the Backup Servicer Account upon
presentation of reasonable documentation to the Servicer.  Distributions of Backup Servicer Expenses
shall be made in accordance with Section
5.13. To the extent that any Backup Servicer Expenses exceed the
amount on deposit in the Backup Servicer Account (any such shortfall, a “Backup Servicer Account Shortfall Amount”),
the Servicer (so long as the Servicer is NH Credit) agrees, within thirty days
of demand thereof, to deliver to the Indenture Trustee for deposit in the
Backup Servicer Account,  such Backup
Servicer Account Shortfall Amount.

If amounts in the Backup
Servicer Account are insufficient to fully reimburse the Backup Servicer in
respect of Backup Servicer Expenses, the Backup Servicer shall be reimbursed
pursuant to Section  5.6(b)(xi).

SECTION 4.13.  Appointment
of Subservicer.  The
Servicer may at any time appoint a subservicer to perform all or any portion of its obligations as Servicer
hereunder; provided, however,
that the Rating Agency Condition shall have been satisfied in connection
therewith

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(other than with respect to the appointment of CNHCA, as subservicer,
with respect to the Receivables); and
provided further, that the Servicer shall remain obligated and be
liable to the Issuing Entity, the Trustee, the Indenture Trustee, the
Counterparty, the Certificateholders and the Noteholders for the servicing and
administering of the Receivables in accordance with the provisions hereof
without diminution of such obligation and liability by virtue of the
appointment of such subservicer and to the same extent and under the same terms
and conditions as if the Servicer alone were servicing and administering the
Receivables. The fees and expenses of any subservicer shall be as agreed
between the Servicer and such subservicer from time to time and none of the
Issuing Entity, the Trustee, the Indenture Trustee, the Counterparty, the
Certificateholders or the Noteholders shall have any responsibility
therefor.  Notwithstanding the foregoing,
the Backup Servicer as Successor Servicer shall have the right to terminate any
prior or existing subservicing arrangement with or without cause.

ARTICLE V

Distributions: Spread Account; 

Statements to Certificateholders and Noteholders

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

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

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

(iv)  The Servicer, for the benefit of the
Noteholders, the Counterparty and the Certificateholders, shall establish and
maintain in the name of the Indenture Trustee an Eligible Deposit Account (the “Pre-Funding Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Noteholders, the Counterparty
and the Certificateholders; provided, however that the Servicer shall not be required to establish
such account so long as no amount greater than $0.00 shall be required to be
deposited into such account pursuant to this Agreement or any other Basic
Document.

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

 14
 

 

Counterparty and the
Certificateholders; provided, however
that the Servicer shall not be required to establish such account so long as no
amount greater than $0.00 shall be required to be deposited into such account
pursuant to this Agreement or any other Basic Document.

(vi)  The Servicer, for the benefit of the Noteholders,
the Counterparty and the Certificateholders, shall establish and maintain in
the name of the Indenture Trustee an Eligible Deposit Account (the “Principal Supplement Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Noteholders, the Counterparty and the Certificateholders; provided,
however that the Servicer shall not be
required to establish such account so long as no amount greater than $0.00
shall be required to be deposited into such account pursuant to this Agreement
or any other Basic Document.

(vii)  The Servicer on behalf of the Seller, for the
benefit of the Indenture Trustee on behalf of the Noteholders and the Backup
Servicer, shall establish and maintain in the name of the Indenture Trustee, an
Eligible Deposit Account (the “Backup
Servicer  Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Indenture Trustee on behalf of the Noteholders and the Backup Servicer, provided, however that
the Servicer shall not be required to maintain such account so long as no
amount greater than $0.00 shall be required to be held on deposit in such
account pursuant to this Agreement or any other Basic Document.  The Backup Servicer Account shall not be a “Trust
Account” (as hereinafter defined) and shall not constitute part of the Trust
Estate. Except as provided in Section 5.13,
the only permitted withdrawal from or application of funds on deposit in, or
otherwise standing to the credit of, the Backup Servicer Account shall be for
application to Backup Servicer Expenses.

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

 15
 

 

preceding the following Payment Date; provided, however,
that funds on deposit in Trust Accounts and the Backup Servicer Account may be
invested in Eligible Investments of the entity serving as Indenture Trustee
payable on demand or that mature so that such funds will be available on the
Payment Date. Funds deposited in a Trust Account or the Backup Servicer Account
on the Transfer Date that precedes a Payment Date upon the maturity or
liquidation of any Eligible Investments are not required to be invested
overnight.

(c)  (i) 
The Indenture Trustee shall possess or control all right, title and
interest in all funds on deposit from time to time in the Trust Accounts and in
all proceeds thereof (including all income thereon) and all such funds,
investments, proceeds and income shall be part of the Trust Estate.  The Trust Accounts shall be under the sole
dominion and control of the Indenture Trustee for the benefit of the
Noteholders, the Counterparty and the Certificateholders or the Noteholders and
the Counterparty, as the case may be. The Indenture Trustee shall possess or
control all right, title and interest in all funds on deposit from time to time
in the Backup Servicer Account and in all proceeds thereof (including all
income thereon). The Backup Servicer Account shall be under the sole dominion
and control of the Indenture Trustee for the benefit of the Noteholders and the
Backup Servicer. If, at any time, any of the Trust Accounts or the Backup
Servicer 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 each Rating Agency
may consent) establish a new Trust Account or new Backup Servicer Account, as
the case may be, as an Eligible Deposit Account and shall transfer any cash
and/or any investments held in the no-longer Eligible Deposit Account to such
new Trust Account or new Backup Servicer Account, as the case may be.

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

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

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

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

 16
 

 

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

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

(d)  All Trust Accounts as well as the Backup
Servicer Account will initially be established at the Indenture Trustee.

SECTION 5.2.  Interest Rate Swap
Agreement.  (a)  The Issuing Entity shall on or prior to the
Closing Date enter into the Interest Rate Swap
Agreement with the Counterparty for the benefit of the Noteholders and
Certificateholders, such that the aggregate notional amount under the Interest
Rate Swap Agreement shall, at any time, be equal to the Outstanding Amount of
the Class A-4 Notes at such time.  Net
Swap Receipts shall be deposited by the Indenture Trustee into the Collection
Account on the day received and shall constitute part of the Total Distribution
Amount.  Subject to Section 5.6,
on any Payment Date when there shall be a Net Swap Payment, the Indenture
Trustee shall pay such Net Swap Payment from the Total Distribution Amount; and
on any day when there shall be a Swap Termination Payment, the Indenture
Trustee shall pay such Swap Termination Payment from the Total Distribution
Amount.

(b)  The Interest Rate Swap Agreement shall be in
substantially the same form as the Interest Rate Swap Agreement attached hereto
as Exhibit G.

(c)  The Servicer (so long as the Servicer is NH
Credit), when required under the Interest Rate Swap Agreement, shall cause the
Issuing Entity to enter into a replacement Interest Rate Swap Agreement.

SECTION 5.3.  Collections.  The Servicer shall, and shall cause any
subservicer to,  remit within two
Business Days of receipt thereof to the
Collection Account all payments by or on behalf of the Obligors with respect to
the Receivables, and all Liquidation Proceeds, both as collected during the
Collection Period. Notwithstanding the foregoing, for so long as: (i) NH Credit
remains the Servicer, (ii) no Servicer Default shall have occurred and be
continuing and (iii) prior to ceasing remittances as described in the preceding
sentence, the Rating Agency Condition shall have been satisfied (and any
conditions or limitations imposed by the Rating Agencies in connection
therewith are complied with), the Servicer shall remit such collections with
respect to the related Collection Period to the Collection Account on the
Transfer Date immediately following the end of such Collection Period.  For purposes of this Article V, the phrase “payments
by or on behalf of the Obligors” shall mean payments made with respect to the
Receivables by Persons other than the Servicer or the Seller.  On any Payment Date with respect to which the
Backup Servicer shall have been acting as Successor Servicer during the related
Collection Period, the Backup Servicer, in its capacity as Successor Servicer,
may direct the Indenture Trustee to withdraw from the Collection Account and
pay to the Backup Servicer, in

 17
 

 

its capacity as Successor Servicer, the sum of any accrued amounts
expended by such Successor Servicer in connection with the liquidation of any
Liquidated Receivables, but solely to the extent such amounts were not netted
out of Liquidation Proceeds with respect of such Liquidated Receivables or
previously recovered by such Successor Servicer pursuant to this Section 5.3; provided that,
the amount that such Successor Servicer may withdraw from the Collection
Account pursuant to this Section 5.3 on
any Payment Date shall not exceed the aggregate amount of Liquidation Proceeds
collected during the related Collection Period and deposited into the
Collection Account prior to such Payment Date. 
Any such withdrawals permissible under this Section 5.3
shall be made prior to any distributions under Section 5.6.

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

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

SECTION 5.5.  Additional
Deposits.  The Servicer
and the Seller shall deposit or cause to be deposited in the Collection Account the aggregate Purchase Amount
with respect to Purchased Receivables on the Transfer Date related to the
Collection Period on the last day of which the purchase occurs, and the
Servicer shall deposit therein all amounts to be paid under Section 9.1 on
the Transfer Date falling in the Collection Period referred to in Section 9.1.  The Servicer shall deposit the aggregate
Purchase Amount with respect to Purchased Receivables when such obligations are
due, unless the Servicer shall not be required to make deposits within two
Business Days of receipt of funds pursuant to Section 5.3, in which case such deposits shall be made on the
Transfer Date following the related Collection Period.  This Section 5.5
shall not apply to the Backup Servicer as Successor Servicer.

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

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

(i)  to the Backup Servicer, the Backup Servicer
Fees and all unpaid Backup Servicer Fees from prior Collection Periods;

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

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

 18
 

 

(iv)  to the Note Distribution Account, the Net
Swap Payment (including interest on any overdue Net Swap Payment), if any;

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

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

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

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

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

(x)  to the Note Distribution Account, any Swap
Termination Payment payable by the Issuing Entity, to the extent not deposited
pursuant to clause (v) above;

(xi)  first, to the Backup Servicer, to cover any
accrued and unpaid reimbursable expenses (including the Backup Servicer
Expenses) that remain unpaid after the application, when applicable, of amounts
in the Backup Servicer Account, and second, to the Servicer, to cover any
accrued and unpaid reimbursable expenses; and

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

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

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

 19
 

 

paid on such Payment
Date, and (iv) make any other calculation, adjustment or correction that may be
required as a result of any payment made on the A-1 Note Final Scheduled
Maturity Date.

SECTION 5.7.  Spread
Account.  (a)  On the Closing Date and on each Subsequent
Transfer Date, the Seller shall deposit the
applicable Spread Account Initial Deposit into the Spread Account.

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

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

(d)  In the event that the sum of (x) the First
Principal Payment Amount and the Noteholders’ Distributable Amount for a
Payment Date, (y) the Net Swap Payment (including interest on any overdue Net
Swap Payment) for a Payment Date, if any, and (z) the Priority Swap Termination
Payment payable by the Issuing Entity, if any, exceeds the amount deposited
into the Note Distribution Account pursuant to Sections 5.6(b)(iv), (v), (vi),
(vii) and (viii) on
such Payment Date, the Servicer shall instruct the Indenture Trustee on such
Payment Date to withdraw from the Spread Account on such Payment Date an amount
equal to such excess, to the extent of funds available therein, and deposit
such amount into the Note Distribution Account.

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

SECTION 5.8.  Pre-Funding
Account.  (a)  Subject to the proviso set forth in Section 5.1(a)(iv),
on the Closing Date, the Trustee will deposit,
on behalf of the Seller, in the Pre-Funding Account $346,632,032.01 from the
net proceeds of the sale of the Notes. On each

 20
 

 

Subsequent Transfer Date, the Servicer shall instruct the Indenture
Trustee to withdraw from the Pre-Funding Account an amount equal to: (i) the
aggregate Contract Value of the Subsequent Receivables transferred to the
Issuing Entity on such Subsequent Transfer Date less the amounts described in clause (ii) and clause (iii) below,
and distribute such amount to or upon the order of the Seller upon satisfaction
of the conditions set forth in Section 2.2(b) with respect to such transfer, (ii) the
Spread Account Initial Deposit for such Subsequent Transfer Date and, on behalf
of the Seller, deposit such amount in the Spread Account and (iii) the
Principal Supplement Account Deposit for such Subsequent Transfer Date, and, on
behalf of the Seller, deposit such amount in the Principal Supplement Account.

(b)  If: (i) the Pre-Funded Amount has not been
reduced to zero on the Payment Date on which the Funding Period ends (or, if
the Funding Period does not end on a Payment Date, on the first Payment Date
following the end of the Funding Period) or (ii) the Pre-Funded Amount has been
reduced to $200,000 or less on any Determination Date, in either case after
giving effect to any reductions in the Pre-Funded Amount on such date pursuant
to paragraph (a),
the Servicer shall instruct the Indenture Trustee to withdraw from the
Pre-Funding Account, in the case of clause (i),
on such Payment Date or, in the case of clause (ii), on the Payment Date immediately succeeding such
Determination Date, the amount remaining at the time in the Pre-Funding Account
(such remaining amount being the “Remaining
Pre-Funded Amount”)
and deposit such amounts in the Collection Account, for inclusion in the Total
Distribution Amount for that Payment Date.

SECTION 5.9.  Negative
Carry Account.  Subject to
the proviso set forth in Section 5.1(a)(v), on the Closing Date, the Seller shall deposit the Negative Carry
Account Initial Deposit into the Negative Carry Account. On each Payment Date,
the Servicer will instruct the Indenture Trustee to withdraw from the Negative
Carry Account and deposit into the Collection Account an amount equal to the
Negative Carry Amount for such Collection Period. If the amount on deposit in
the Negative Carry Account on any Payment Date (after giving effect to the
withdrawal therefrom of the Negative Carry Amount for such Payment Date) is
greater than the Required Negative Carry Account Balance, the excess will be
released to the Seller.

SECTION 5.10.  Principal
Supplement Account.  On
each Subsequent Transfer Date the Servicer shall calculate the amount, if any, of the Principal Supplement
Account Deposit applicable to such Subsequent Transfer Date, and, if such
amount is positive, the Seller shall deposit such amount into the Principal
Supplement Account (subject to the proviso set forth in Section 5.1(a)(vi)).  In the event that the sum of (x) the First
Principal Payment Amount and the Noteholders’ Distributable Amount for a
Payment Date, (y) the Net Swap Payment (including interest on any overdue Net
Swap Payment) for a Payment Date, if any, and (z) the Priority Swap Termination
Payment payable by the Issuing Entity, if any, exceeds the amount deposited
into the Note Distribution Account pursuant to Sections 5.6(b)(iv), (v), (vi),
(vii) and (viii) on
such Payment Date and Section
5.7(d) on such Payment Date, the Servicer shall instruct the
Indenture Trustee on such Payment Date to withdraw from the Principal
Supplement Account on such Payment Date an amount equal to such excess, to the
extent of funds available therein, and deposit such amount into the Note
Distribution Account.  Funds on deposit
in the Principal Supplement Account may be withdrawn and paid to the Seller on
any day if each Rating Agency has confirmed that such action will not result in
a withdrawal or downgrade of its rating of any Class of Notes.

 21

 

SECTION 5.11.  Statements
to Certificateholders and Noteholders.  (a)  On
each Determination Date the Servicer shall
provide to the Indenture Trustee (with a copy to the Rating Agencies), for the
Indenture Trustee to make available to each Noteholder of record, and to the
Trustee, for the Trustee to forward to each Certificateholder of record, a
statement substantially in the form of Exhibits A and B,
respectively, setting forth at least the following information as to each Class
of the Notes and the Certificates to the extent applicable:

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

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

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

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

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

(vi)  the amount of the Backup Servicer Fees paid
to the Backup Servicer with respect to the prior Collection Period;

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

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

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

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

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

(xii)  for Payment Dates during the Funding Period,
the Remaining Pre-Funded Amount;

(xiii)  for the final Payment Date with respect to
the Funding Period, the amount of any Remaining Pre-Funded Amount that has not
been used to fund the purchase of Subsequent Receivables;

(xiv)  the balance of the Principal Supplement
Account on the related Payment Date, after giving effect to changes therein on
such Payment Date;

 22
 

 

(xv)  the balance of the Negative Carry Account on
the related Payment Date, after giving effect to changes therein on such
Payment Date;

(xvi)  the amount of Net Swap Payments or Net Swap
Receipts for the related Payment Date;

(xvii)  the amount of Swap Termination Payment paid
by the Issuing Entity on the related Payment Date;

(xviii)  the A-4 Note Rate for the next Interest
Period;

(xix)  if the related Payment Date falls in
September 2008 or March 2009;

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

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

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

(xx)  the Specified Spread Account Balance.

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

The Indenture Trustee will make the statement to
Noteholders available each month to Noteholders and other parties to the Basic
Documents via the Indenture  Trustee’s
internet website, which is presently located at www.jpmorgan.com/sfr.

Persons who are unable to use the above website are
entitled to have a paper copy mailed to them via first class mail by calling
the Indenture Trustee at 1-877-722-1095. 
The Indenture Trustee shall have the right to change the way the
statement to Noteholders is distributed in order to make such distribution more
convenient and/or more accessible to the above parties and to the
Noteholders.  The Indenture Trustee shall
provide timely and adequate notification to all above parties and to the
Noteholders regarding any such change.

In connection with any electronic transmissions of
information, including without limitation, the use of electronic mail or
internet or intranet web sites, the systems used in such transmissions are not
fully tested by the Indenture Trustee and may not be completely reliable as to
stability, robustness and accuracy. 
Accordingly, the parties hereto acknowledge and agree that information
electronically transmitted as described herein may not be relied upon as
timely, accurate or complete and that the Indenture Trustee shall have no
liability hereunder in connection with such information transmitted
electronically.  The parties hereto
further acknowledge that any and all systems, software or hardware utilized in
posting or retrieving any such information are utilized on an “as is” basis
without representation or warranty as to the intended uses of such systems,
software or hardware.  The Indenture
Trustee makes no

 23
 

 

representation or
warranty that the systems and the related software used in connection with the
electronic transmission of information are free and clear of threats known as
software and hardware viruses, time bombs, logic bombs, Trojan horses, worms,
or other malicious computer instructions, intentional devices or techniques
which may cause a component or system to become erased, damaged, inoperable, or
otherwise incapable of being used in the manner to which it is intended, or
which would permit unauthorized access thereto.

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

SECTION
5.13.  Backup Servicer Account.  (a) On the Closing Date, the Seller, or the
Servicer on its behalf, shall deposit the
Backup Servicer Account Initial Deposit into the Backup Servicer Account. On
each Payment Date to the extent that any Backup Servicer Expenses are then due
and payable, the Servicer will instruct the Indenture Trustee in writing to
withdraw an amount equal to such Backup Servicer Expenses then due and payable,
and distribute such amount to the Person entitled thereto. If the amount on
deposit in the Backup Servicer Account on any Payment Date (after giving effect
to the withdrawal therefrom for the payment of Backup Servicer Expenses for
such Payment Date) is greater than the Backup Servicer Account Required Amount,
the excess will be released to the Seller; provided however, such excess will
only be released to the Seller (i) to the extent that all reimbursable expenses
of the Backup Servicer as set forth in the following sentence that are due have
been paid and (ii) so long as no Servicer Default shall have occurred and be
continuing.  In addition, the amount on
deposit in the Backup Servicer Account will also be made available to pay
reasonable costs and expenses (including attorney’s fees) incurred by the
Backup Servicer.  The Seller (and any of
its transferees and assignees) shall in no event be required to refund any
amounts properly distributed to it pursuant to this Section 5.13.

(b)           If the amount on deposit in the
Backup Servicer Account is insufficient to cover any Backup Servicer Expenses,
NH Credit, as Servicer, shall pay such fees and expenses to the Backup Servicer
out of its Servicing Fee.

(c) Following: (i) the
payment in full of the aggregate Outstanding Amount of the Notes and all
amounts owing or to be distributed to the Backup Servicer hereunder and (ii)
the termination of the Trust, any amount remaining on deposit in the Backup
Servicer Account shall be distributed to the Seller or any transferee or
assignee.

ARTICLE VI

The Seller

SECTION 6.1.  Representations
of Seller.  The Seller
makes the following representations on which the Issuing Entity is deemed to have relied in acquiring the
Receivables.  The representations speak
as of the execution and delivery of this Agreement and

 24
 

 

shall survive the sale of the Receivables to the Issuing Entity and the
pledge thereof to the Indenture Trustee pursuant to the Indenture.

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

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

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

(d)  Binding Obligation.  This Agreement constitutes, and each
Subsequent Transfer Assignment when executed and delivered by the Seller will
constitute, a legal, valid and binding obligation of the Seller enforceable in
accordance with their terms.

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

(f)  No Proceedings. As of the date of the
Underwriting Agreement, the Prospectus Date and the Closing Date, there are no
proceedings or investigations pending

 25
 

 

or, to the Seller’s
knowledge, threatened against the Seller, before any court, regulatory body,
administrative agency or other tribunal or governmental instrumentality having
jurisdiction over the Seller or its properties (i) asserting the invalidity of
this Agreement, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement, or (iii) seeking any determination
or ruling that might materially and adversely affect the performance by the
Seller of its obligations under, or the validity or enforceability of, this
Agreement or otherwise be material to the Noteholders, except as otherwise may
be disclosed on the Prospectus; and

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

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

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

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

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

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

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

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

(a)  The Seller shall indemnify, defend and hold
harmless the Issuing Entity, the Trustee and the Indenture Trustee (and their
officers, directors, employees and agents)

 26
 

 

from and against any
taxes that may at any time be asserted against any of them with respect to the
sale of the Receivables to the Issuing Entity or the issuance and original sale
of the Notes, including any sales, gross receipts, general corporation,
tangible personal property, privilege or license taxes (but, in the case of the
Issuing Entity, not including any taxes asserted with respect to ownership of
the Receivables or federal or other income taxes arising out of the
transactions contemplated by this Agreement) and costs and expenses in
defending against the same.

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

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

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

 27
 

 

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

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

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

ARTICLE VII

The Servicer

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

(a)  Organization and Good Standing.  The Servicer is duly organized and validly
existing as a limited liability company in good standing under the laws of the
state of its organization, with the power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is presently conducted, and had at all relevant times, and has, the
power, authority and legal right to service the Receivables and to hold the
Receivable Files as custodian.

(b)  Due Qualification.  The Servicer is duly qualified to do business
as a foreign limited liability company in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership
or lease of property or the conduct of its business (including the servicing of
the Receivables as required by this Agreement)

 28
 

 

shall require such
qualifications, except where the failure to be so qualified and have such
licenses and approvals would not have a material adverse effect on the Trust
Estate, Servicer’s performance of its obligations under the Basic Documents to
which it is a party, or the business or condition (financial or otherwise) of
the Servicer or impair the validity or enforceability of any Receivable.

(c)  Power and Authority.  The Servicer has the power and authority to
execute and deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement have been duly authorized
by the Servicer by all necessary limited liability company action.

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

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

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

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

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

 29
 

 

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

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

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

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

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

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

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

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

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

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

 30
 

 

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

Notwithstanding anything herein to the contrary, Sections 7.2(a)(ii), (a)(iv), (b), (c), (d) and (e) shall not
apply to the Backup Servicer in its capacity as Successor Servicer.

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

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

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

 31
 

 

consummation of the
transactions referred to in clauses (a),
(b) or (c).;
provided, however,
that this Section 7.3 shall not apply to mergers
or consolidations of the Backup Servicer in its capacity as Successor Servicer
within JPMorgan Chase Bank, N.A.

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

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

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

SECTION 7.6.  Servicer
to Act as Administrator. 
In the event of the resignation or removal of the Administrator and the failure of a successor Administrator to
have been appointed and to have accepted such appointment as successor
Administrator, the Servicer shall become the successor Administrator and shall
be bound by the terms of the Administration Agreement.  Notwithstanding the foregoing, in no event
shall the Backup Servicer, in its capacity as Successor Servicer, be required
to act as Administrator.

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ARTICLE VIII

Default

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

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

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

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

(d)  the failure by NH Credit as Servicer to
engage a replacement Backup Servicer within one hundred eighty days after the
date that SST is terminated as Backup Servicer, unless SST is terminated as
Backup Servicer pursuant to Section 2.3 of
the Backup Servicing Agreement, in which case a Backup Servicer will no longer
be required, notwithstanding anything in the Basic Documents to the contrary;

then, and in each and every case, so long as the
Servicer Default shall not have been remedied, either the Indenture Trustee, or
the Holders of Notes evidencing not less than 25% of the Outstanding Amount of
the Notes, by notice then given in writing to the Servicer and to any Backup
Servicer that is engaged at that time (and to the Indenture Trustee and the
Trustee if given by the Noteholders), may terminate all the rights and
obligations (other than the obligations set forth in Section 7.2) of the Servicer under
this Agreement; provided, however,
that the Backup Servicer, acting as Successor Servicer, may not be terminated
for a Servicer Default set forth in Section 8.1(b)
or (c) with respect to the Seller or under Section 8.1(d).  On or
after the receipt by the Servicer and any Backup Servicer of such written
notice, all authority and power of the Servicer under this Agreement, whether
with respect to the Notes, the Certificates, the Receivables or otherwise,
shall, without further action, pass to and be vested in (a) the Backup
Servicer, or if no Backup Servicer is then engaged (b) the Indenture Trustee or
such Successor Servicer as may be appointed under Section 8.2; and, without limitation, the Indenture Trustee and
the Trustee are hereby authorized and empowered to execute and deliver, on
behalf

 33
 

 

of the predecessor Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, whether to complete the transfer and endorsement of
the Receivables and related documents, or otherwise.  The predecessor Servicer shall cooperate with
the Successor Servicer, the Indenture Trustee and the Trustee in effecting the
termination of the responsibilities and rights of the predecessor Servicer
under this Agreement, including the transfer to the Successor Servicer for
administration by it of: (i) all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or shall thereafter be received by it
with respect to a Receivable and (ii) all Receivable Files. All reasonable
costs and expenses (including attorneys’ fees) incurred in connection with such
transfer, including the costs of transferring the Receivable Files to the
Successor Servicer and amending this Agreement to reflect its succession as
Servicer, shall be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses.  Upon receipt of written notice of the
occurrence of a Servicer Default, the Trustee shall give written notice thereof
to the Rating Agencies and the Counterparty.

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

(b)  Upon appointment, the Successor Servicer
(including the Indenture Trustee acting as Successor Servicer) shall be the
successor in all respects to the predecessor Servicer (except with respect to
responsibilities and obligations of the predecessor Servicer set forth in Section 7.2) and
shall be subject to all the responsibilities, duties and liabilities arising
thereafter relating thereto placed on the predecessor Servicer and shall be
entitled to the Servicing Fee and all the rights granted to the predecessor
Servicer by this Agreement.  None of the
Backup Servicer, the Indenture Trustee or any other Successor Servicer shall be
deemed to be liable for or in breach of any obligations hereunder due to any
act or omission of a predecessor Servicer, including but not limited to failure
of such predecessor Servicer to timely deliver to the Indenture Trustee any
required information pertaining to the Receivables, any funds required to be
deposited with the

 34
 

 

Indenture Trustee, or any breach of duty of such predecessor Servicer to
cooperate with a transfer of servicing as required hereunder.  Any Successor Servicer shall from time to
time provide to NH Credit such information as NH Credit shall reasonably
request with respect to the Receivables and collections thereon.

(c)  Subject to the last sentence of clause (a), the
Servicer may not resign unless it is prohibited from serving as such by law as
evidenced by an Opinion of Counsel to such effect delivered to the Indenture
Trustee, the Backup Servicer and the Trustee.

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

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

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

ARTICLE IX

Termination

SECTION 9.1.  Optional
Purchase of All Receivables. 
(a)  As of the first day of any
Collection Period immediately preceding a
Payment Date as of which the Pool Balance is 10% or less of the Initial Pool
Balance, CNHCA shall have the option (but no obligation) to purchase all of the
Trust Estate, other than the Trust Accounts. 
To exercise such option, CNHCA shall deposit, pursuant to Section 5.5, in the Collection
Account an amount equal to the aggregate Purchase Amount for the Receivables plus the appraised value of any other
property held by the Trust, such value to be determined by an appraiser
mutually agreed upon by CNHCA, the Trustee and the Indenture Trustee, and shall
succeed to all interests in, to and under the Trust Estate, other than the
Trust Accounts; provided that CNHCA shall not exercise such option unless the
amount so deposited, together with funds on deposit in the Trust Accounts,
would be

 35
 

 

sufficient to pay the Redemption Price pursuant to Section 10.1(a)
of the Indenture and all amounts due and payable to the Counterparty.

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

(i)  first, to pay
the Backup Servicer its accrued and unpaid Backup Servicer Fees;

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

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

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

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

(vi)  sixth, first,
to the Backup Servicer, to cover any accrued and unpaid reimbursable expenses
(including the Backup Servicer Expenses) to the extent unreimbursed after
application of Section 4.12 of
the Sale and Servicing Agreement and second to the Servicer, to cover any
accrued and unpaid reimbursable expenses; and

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

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

(c)  As described in Article IX of the Trust
Agreement, notice of any termination of the Trust shall be given by the
Servicer to the Trustee, the Indenture Trustee and the Backup Servicer as soon
as practicable after the Servicer has received notice thereof.  In addition, the Servicer shall give notice
of termination of the Trust to the Counterparty.

(d)  Following the satisfaction and discharge of
the Indenture and the payment in full of the principal of and interest on the
Notes, the Certificateholders will succeed to the rights of the

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Noteholders hereunder and the Trustee will succeed to the rights of,
and assume the obligations of, the Indenture Trustee pursuant to this
Agreement.

ARTICLE X

Miscellaneous Provisions

SECTION 10.1.  Amendment.  The Agreement may be amended from time to
time by a written amendment duly executed and
delivered by the Seller, the Servicer and the Issuing Entity, with the written
consent of the Indenture Trustee, but without the consent of any of the
Noteholders or the Certificateholders, to cure any ambiguity, to correct or
supplement any provisions in this Agreement, to modify, delete or add any
provision hereof relating to the rights and obligations of the Backup Servicer,
or for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement or of modifying in any
manner the rights of the Noteholders or the Certificateholders; provided, however, that
such action shall not, as evidenced by an Officer’s Certificate of the Seller
delivered to the Trustee and the Indenture Trustee, (i) adversely affect in any
material respect the interests of any Noteholder or Certificateholder or (ii)
(a) adversely affect the Counterparty’s rights or obligations under the Class
A-4 Swap Agreement, or (b) adversely modify the obligations of, or adversely
impact the ability of, the Issuing Entity to fully perform any of the Issuing
Entity’s obligations under such Swap Agreement. 
An amendment shall be deemed not to adversely affect in any material
respect the interests of any Class of Notes if the Rating Agency Condition has
been satisfied with respect to such amendment for such Class of Notes.

The Specified Spread Account Balance may be reduced or
the definition thereof otherwise modified without the consent of any of the
Noteholders or the Certificateholders if the Rating Agency Condition is
satisfied.

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

This Agreement may also be amended from time to time
by the Seller, the Servicer and the Issuing Entity, with the written consent of
(a) the Indenture Trustee, (b) Noteholders holding Notes evidencing not less
than a majority of the Note Balance, and (c) the Holders of Certificates
evidencing not less than 50% of the beneficial interest in the Trust, for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement or of modifying in any manner the
rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall: (a) reduce
the interest rate or principal of any Note or Certificate, or delay the Class
Final Scheduled Maturity Date of any Note or (b) reduce the aforesaid
percentage of the Notes and the Certificates that are required to consent to
any such amendment, without the consent of the holders of all the outstanding
Notes and Certificates affected thereby.

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Promptly after the execution of any such amendment or
consent (or, in the case of the Rating Agencies and the Counterparty, 10 days
prior thereto), the Trustee shall furnish written notification of the substance
of such amendment or consent to each Certificateholder, the Indenture Trustee,
each of the Rating Agencies and the Counterparty.

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

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

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

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

(b)  Neither the Seller nor the Servicer shall
change its name, identity or organizational structure in any manner that would,
could or might make any financing statement or continuation statement filed in
accordance with paragraph
(a) seriously misleading within the applicable provisions of the
UCC, unless it shall have given the Trustee and the Indenture Trustee at least
five days’ prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

(c)  Each of the Seller and the Servicer shall
have an obligation to give the Trustee and the Indenture Trustee at least 60
days’ prior written notice of any relocation of its principal executive office
or its “location” as defined in Section 9-307 of the UCC if, as a result of
such relocation, the applicable provisions of the UCC would require the filing
of any amendment of

 38
 

 

any previously filed financing or continuation statement or of any new
financing statement and shall promptly file any such amendment. The Servicer
shall at all times maintain each office from which it shall service
Receivables, and its “location” (as defined in Section 9-307 of the UCC),
within the United States of America.

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

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

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

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

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

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

(1)           promptly after the execution and
delivery of this Agreement, an Opinion of Counsel either: (A) stating that, in
the opinion of such counsel, all financing statements

 39
 

 

and continuation
statements have been executed and filed that are necessary fully to preserve
and protect the interest of the Trustee and the Indenture Trustee in the
Receivables, and reciting the details of such filings or referring to prior
Opinions of Counsel in which such details are given, or (B) stating that, in
the opinion of such counsel, no such action shall be necessary to preserve and
protect such interest; and

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

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

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

(k)  If the Backup Servicer is acting as the
Successor Servicer, it shall be reimbursed pursuant to Section
5.6(b)(xi) for any costs incurred by it in performing its duties
pursuant to this Section.

SECTION
10.3.  Notices.  All
demands, notices, directions, instructions and communications upon or to the
Seller, the Servicer, the Issuing Entity, the
Trustee, the Indenture Trustee, the Counterparty or the Rating Agencies under
this Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given
upon receipt: (a) in the case of the Seller, to CNH Capital Receivables LLC,
100 South Saunders Road, Lake Forest, Illinois 60045, Attention of:  Treasurer (telephone (847) 735-9200 and
facsimile (847) 955-4940,
(b) in the case of the Servicer, to New Holland Credit Company, LLC, 33 South
Railroad Avenue, New Holland, Pennsylvania 17557, Attention of: Finance Manager
(telephone (717) 355-3091; with a copy to: New Holland Credit Company, LLC, 100
South Saunders Road, Lake Forest, Illinois 60045, Attention of: Senior Counsel
(c) in the case of the Issuing Entity or the Trustee, at the Trustee’s
Corporate Trust Office, (d) in the case of the Indenture Trustee, at its
Corporate Trust Office, (e) in the case of the Counterparty, to Bank of
America, N.A., Sears Tower, 233 South Wacker Drive, Suite 2800, Chicago,
Illinois, Attention of:  Swap Operation
(telephone (312) 234-2732), with a copy to Bank of America, N.A., 100 North
Tryon Street, NC1-007-13-01, Charlotte, North Carolina 28255, Attention of:
Global Markets Trading Agreements, (f) in the case of Moody’s, to Moody’s
Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007, (g) in the case of Standard & Poor’s, to Standard &
Poor’s Ratings Services, a division of McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041, Attention of: Asset Backed

 40
 

 

Surveillance Department, (h) in the case of Fitch, to Fitch, Inc., 55
East Monroe Street, Suite 3500, Chicago, Illinois 60603, Attention:  ABS Monitoring – Equipment Loans and (i) in
the case of any Counterparty, the address set forth in Section 11.4(c) of the
Indenture or at any other address previously furnished in writing to the
Issuing Entity, the Servicer or the Indenture Trustee by the Counterparty.

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

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

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

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

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

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

SECTION 10.10.  Assignment
to Indenture Trustee.  The
Seller hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security
interest by the Issuing Entity to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders and the Counterparty of all right,
title and interest of the Issuing Entity in, to and under the Receivables
and/or the assignment of any or all of the Issuing Entity’s rights and
obligations hereunder to the Indenture Trustee, and agrees that enforcement of
a right or remedy hereunder by the Indenture Trustee shall have the same force
and effect as if the right or remedy had been enforced or executed by the
Issuing Entity.

SECTION 10.11.  Nonpetition
Covenants.  (a)  Notwithstanding any prior termination of this
Agreement, the Servicer and the Seller shall
not, prior to the date that is one year and one

 41
 

 

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

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

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

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

SECTION 10.13.  Conditions
Precedent to Other Financing Transactions.  The Seller shall not enter into any receivables sale or other financing transaction
unless either the appropriate documents relating thereto contain provisions
substantially to the effect set out in Sections 11.17 and
11.19 of the Indenture or such
transaction otherwise shall have satisfied the Rating Agency Condition.

SECTION 10.14.  Information Requests.  The parties hereto shall provide any
information reasonably requested by the
Servicer, the Issuing Entity or the Seller or any of their

 42
 

 

Affiliates, at the expense of such party, in order to comply with or
obtain more favorable treatment under any current or future law, rule,
regulation, accounting rule or principle.

(signature page
follows)

 43

 

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

	
  

  	
  CNH EQUIPMENT TRUST 2006-B

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New
  York,

  not its individual capacity but solely

  as Trustee of the Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/Catherine Murray

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Catherine Murray

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CNH CAPITAL RECEIVABLES LLC,

  as Seller

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/Brian J. O’Keane

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Brian J. O’Keane 

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW HOLLAND CREDIT COMPANY, LLC,

  
	
   

  	
  as Servicer

  
							

 

	
  

  	
  By:

  	
   

  	
  /s/Brian J. O’Keane

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Brian J. O’Keane

  
	
   

  	
   

  	
  Title:

  	
  Treasurer

  
						

 

Acknowledged and Accepted:

	
  JPMorgan Chase Bank, N.A.,

  not in its individual capacity

  but solely as Indenture Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/Keith
  Richardson

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Keith Richardson

  	
   

  
	
   

  	
  Title:

  	
  Attorney-In-Fact

  	
   

  
						

 S-1
 

 

Acknowledged and Accepted:

	
  CNH Capital America LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Brian J. O’Keane

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Brian J. O’Keane

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
						

 

 S-2

 

EXHIBIT A

to
Sale and Servicing Agreement

FORM OF NOTEHOLDER’S

STATEMENT PURSUANT TO
SECTION 5.11(a)

Payment Date: 

(i)                                     Amount
of principal being paid on Notes:

	
  A-1 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-2 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-3 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-4 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  Class B Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  

(ii)                                  Amount
of interest being paid on Notes:

	
  A-1 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-2 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-3 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  A-4 Notes:

  	
   

  	
  ($     per $1,000 original
  principal amount)

  
	
   

  	
   

  	
   

  
	
  Class B Notes: 

  	
   

  	
  ($     per $1,000 original
  principal amount)

  

(iii)                               Pool
Balance at end of the preceding Collection Period: 

(iv)                              After
giving effect to distributions on this Payment Date:

(1)                                  Outstanding
Amount of A-1 Notes:  

(2)                                  Outstanding
Amount of A-2 Notes:  

(3)                                  Outstanding
Amount of A-3 Notes:  

(4)                                  Outstanding
Amount of A-4 Notes:  

(5)                                  Outstanding
Amount of Class B Notes:  

(6)                                  A-1
Note Pool Factor:  

(7)                                  A-2
Note Pool Factor:  

(8)                                  A-3
Note Pool Factor:  

(9)                                  A-4
Note Pool Factor:  

(10)                            Class
B Note Pool Factor:  

 A-1
 

 

(v)                                 Amount
of Backup Servicer Fee:                        ($            
per $1,000 original principal amount)

(vi)                              Amount
of Servicing Fee:                  ($          
per $1,000 original principal amount)

(vii)                           Amount
of Administration Fee:                   ($        
per $1,000 original principal amount)

(viii)                        Aggregate
Amount of Realized Losses for the Collection Period: 

(ix)                                Aggregate
Purchase Amounts for the Collection Period: 

(x)                                   Balance
of Spread Account: 

(xi)                                Pre-funded
Amount: 

(xii)                             Balance
of Principal Supplement Account:

(xiii)                          Balance
of Negative Carry Account:

(xiv)                         Amount
of Net Swap Payment or Net Swap Receipt:

(xv)                            Amount
of Swap Termination Payment paid by the Issuing Entity:

(xvi)                         A-4
Note Rate for the next Interest Period:

(xvii)                      If
the related Payment Date is in September 2008 or March 2009:

	
  (1) Average Delinquency
  Ratio:

  	
   

  	
   

  
	
  (2) Average Delinquency
  Ratio Test is met:

  	
   

  	
  Yes

  	
  No

  
	
  (3) Cumulative Net Loss
  Ratio:

  	
   

  	
   

  	
   

  
	
  (4) Cumulative Net Loss
  Ratio Test is met:

  	
   

  	
  Yes

  	
  No

  
	
  (5) Specified Spread
  Account Reduction Trigger is met:

  	
   

  	
  Yes

  	
  No

  

 

(xviii)                   Specified
Spread Account Balance:

 A-2

 

EXHIBIT B

to Sale and Servicing
Agreement

FORM OF
CERTIFICATEHOLDER’S

STATEMENT PURSUANT TO
SECTION 5.11(a)

Payment Date: 

(i)                                     Amount
of principal being paid or distributed:

(1)                                  A-1
Notes:  

(2)                                  A-2
Notes:  

(3)                                  A-3
Notes:  

(4)                                  A-4
Notes:  

(5)                                  Class
B Notes:  

(b)                                 Total:
                                           ($              
per $1,000 original principal amount)

(ii)                                  Amount
of interest being paid or distributed:

(a)                                  (1)                                  A-1
Notes:  

(2)                                  A-2
Notes:  

(3)                                  A-3
Notes:  

(4)                                  A-4
Notes:  

(5)                                  Class
B Notes:  

(b)                                 Total:
                                            ($                
per $1,000 original principal amount)

(iii)                               Amount
being distributed to the Certificateholders: 

(iv)                              Pool
Balance at end of the preceding Collection Period:  

(v)                                 After
giving effect to distributions on this Payment Date:

(a)                                  (1)                                  Outstanding
Amount of A-1 Notes:  

(2)                                  Outstanding
Amount of A-2 Notes:  

(3)                                  Outstanding
Amount of A-3 Notes:  

(4)                                  Outstanding
Amount of A-4Notes:  

(5)                                  Outstanding
Amount of Class B Notes:  

(6)                                  A-1
Note Pool Factor:  

(7)                                  A-2
Note Pool Factor:  

(8)                                  A-3
Note Pool Factor:  

(9)                                  A-4
Note Pool Factor:  

(10)                            Class
B Note Pool Factor:  

 B-1
 

 

(vi)                              Amount
of Backup Servicer Fee:                   ($       
per $1,000 original principal amount)

(vii)                           Amount
of Servicing Fee:              ($         
per $1,000 original principal amount)

(viii)                        Amount
of Administration Fee:              ($         
per $1,000 original principal amount)

(ix)                                Aggregate
Amount of Realized Losses for the Collection Period: 

(x)                                   Aggregate
Purchase Amounts for the Collection Period: 

(xi)                                Balance
of Spread Account: 

(xii)                             Pre-Funded
Amount:

(xiii)                          Balance
of Negative Carry Account:

(xiv)                         Amount
of Net Swap Payment or Net Swap Receipt: 

(xv)                            Amount
of Swap Termination Payment paid by the Issuing Entity: 

(xvi)                         A-4
Note Rate for the next Interest Period: 

(xvii)                      If
the related Payment Date is in September 2008 or March 2009:

	
  (1) Average Delinquency
  Ratio:

  	
   

  	
   

  	
   

  
	
  (2) Average
  Delinquency Ratio Test is met:

  	
   

  	
  Yes

  	
  No 

  
	
  (3) Cumulative
  Net Loss Ratio:

  	
   

  	
   

  	
   

  
	
  (4) Cumulative
  Net Loss Ratio Test is met:

  	
   

  	
  Yes

  	
  No

  
	
  (5) Specified
  Spread Account Reduction Trigger is met:

  	
   

  	
  Yes

  	
  No

  

(xviii)                   Specified
Spread Account Balance:

 B-2

 

EXHIBIT C

to Sale and Servicing
Agreement

FORM OF SERVICER’S CERTIFICATE

The Bank of New York

101 Barclay Street, 8W 

New York, New York  10286

Attention:  Corporate Trust
Administration - Asset Backed Finance Unit

JPMorgan Chase Bank, N.A. 

4 New York Plaza, 6th Floor

New York, New York 10004

Attention:  Institutional Trust Services
Group-CNH Equipment Trust 2006-B

CNH Capital Receivables LLC

100 South Saunders Road

Lake Forest, Illinois 60045

Attention:  Treasurer

Fitch, Inc.

55 East Monroe Street,

Suite 3500,

Chicago, Illinois 60603 

Attention:  ABS Monitoring – Equipment
Loans

Moody’s Investors Service, Inc.

ABS Monitoring Department

99 Church Street

New York, New York 10007

Standard & Poor’s Ratings Services,
  a division of McGraw-Hill Companies,
Inc.

55 Water Street

New York, New York 10041

Attention:  Asset Backed Surveillance
Department

Systems &
Services Technologies, Inc.

4315 Pickett Road

St. Joseph,
Missouri 64503

Attention:  John
J. Chappell and Joseph D. Booz

Bank of America,
N.A.

Sears Tower

233 South Wacker Drive, Suite 2800

Chicago, IL 60606

Attention:  Swap Operations

 C-1
 

 

Class A-1
Asset-Backed Notes

Class A-2
Asset-Backed Notes

Class A-3
Asset-Backed Notes

Class A-4
Asset-Backed Notes

Class B Asset-Backed Notes

	
  Determination Date:

  	
   

  	
   

  

 

DISTRIBUTIONS

	
  (1)

  	
   

  	
  Total Distribution Amount

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Backup Servicer Fee

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Servicing Fee

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Administration Fee

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Net Swap Payment

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Priority Swap Termination Payment Payable by the
  Issuing Entity

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Class A Noteholders’ Class Interest Amount

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Interest
  on Class A Notes ($                  )

  ·       Class
  A Noteholders’ Class Interest Shortfall, if any ($               )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  First Principal Payment Amount

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Class B Noteholders’ Class Interest Amount

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Interest
  on Class B Notes ($                )

  ·       Class
  B Noteholders’ Class Interest Shortfall ($                 )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Note Monthly Principal Distributable Amount

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Principal
  on Class A-1 Notes ($                          )

  ·       Principal
  on Class A-2 Notes ($                          )

  ·       Principal
  on Class A-3 Notes ($                          )

  ·       Principal
  on Class A-4 Notes ($                          )

  ·       Principal
  on Class B Notes ($                    )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  NOTEHOLDERS’
  DISTRIBUTABLE AMOUNT

  	
   

  	
  $

  
	
   

  	
   

  	
  (7)+(8)+(9)+(10)

  	
   

  	
   

  

 

 C-2
 

 

 

	
  (12)

  	
   

  	
  Deposit to Note Distribution Account

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Excess,
  if any, of Total Distribution Amount (1), less the Priority Swap Termination
  Payment payable by the Issuing Entity (6), less the Net Swap Payment (5),
  less the Administration Fee (4), less the Servicing Fee (3), less the Backup
  Servicer Fee (2)

  ·       Withdrawal
  from the Spread Account pursuant to Section 5.7(d)
  (see 20)

  ·       Withdrawal
  from Principal Supplement Account pursuant to Section
  5.10

  ·       But
  not greater than the Noteholders’ Distributable Amount (11)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (13)

  	
   

  	
  Deposit to Spread Account pursuant to Section 5.6(b)(ix)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Excess,
  if any, of Total Distribution Amount (1), less the Priority Swap Termination
  Payment payable by the Issuing Entity (6), less the Net Swap Payment (5),
  less the Administration Fee (4), less the Servicing Fee (3), less the Backup
  Servicer Fee (2), less the Noteholders’ Distributable Amount (11), less the
  First Principal Payment Amount (8)

  ·       But
  not greater than Item (19) below

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (14)

  	
   

  	
  Swap Termination payment Pursuant to Section 5.6(b)(x)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (15)

  	
   

  	
  Backup Servicer accrued and unpaid reimbursable
  expenses

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (16)

  	
   

  	
  Servicer accrued and unpaid reimbursable expenses

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (17)

  	
   

  	
  Deposit to Certificate Distribution Account

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Excess,
  if any, of Total Distribution Amount (1), less Servicer accrued and unpaid
  reimbursable expenses (16), less Backup Servicer accrued and unpaid
  reimbursable expenses (15), less the Deposit to Spread Account (13), less the
  Noteholders’ Distributable Amount (11), less the Priority Swap Termination
  Payment payable by the Issuing Entity (6), less the First Principal Payment
  Amount (8), less the Net Swap Payment (5), less the Administration Fee (4),
  less the Servicing Fee (3), less the Backup Servicer Fee (2)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPREAD ACCOUNT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (18)

  	
   

  	
  Spread Account Balance as of Determination Date (prior
  to any deposits or withdrawals)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (19)

  	
   

  	
  Specified Spread Account Balance (after all
  distributions and adjustments)

  	
   

  	
  $

  

 

 C-3
 

 

 

	
  

  	
   

  	
  With respect to any Payment Date in September 2008
  or March 2009: 

  	
   

  	
   

  
	
  

  	
   

  	
  A. Average
  Delinquency Ratio Test

   

  ·          Average
  Delinquency Ratio

  ·          Average
  Delinquency Ratio Test is met

  on such Payment Date                                                                                                                        Yes
              No            

   

  B. Cumulative Net
  Loss Ratio Test

   

  ·          Cumulative
  Net Loss Ratio

  ·          Cumulative
  Net Loss Ratio Test is met

  on such Payment Date                                                                                                                        Yes
         No       

   

  C. Specified Spread
  Account Reduction Trigger

   

  ·          Specified
  Spread Account Trigger is met

  on such Payment Date                                                                                                                        Yes
         No       

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (20)

  	
   

  	
  Limit on Deposit to the Spread Account

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       The
  excess, if any, of the Specified Spread Account Balance (19) less the Spread
  Account Balance as of the Determination Date (prior to any deposits or
  withdrawals) (17)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (21)

  	
   

  	
  Withdrawal from Spread Account distributed to Seller
  (as permitted in Sections 5.7(b)
  and (c) of the Sale and Servicing
  Agreement)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       The
  excess, if any, of the Spread Account Balance as of the Determination Date
  (prior to any deposits or withdrawals) (17) less the Specified Spread Account
  Balance (18)

  ·       But
  zero, if (a) the sum of the Pool
  Balance (23) and the Pre-Funded Amount as of the first day of the Collection
  Period; is less than (b) the sum of the Note Balance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (22)

  	
   

  	
  Withdrawal from Spread Account pursuant to Section 5.7(d) to be deposited in the Note Distribution
  Account

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·       Excess,
  if any, of the sum of the First Principal Payment Amount (8), the
  Noteholders’ Distributable Amount (11), the Net Swap Payment (5), and the
  Priority Swap Termination Payment payable by the Issuing Entity (6), less the
  Total Distribution Amount (1), less the Administration Fee (4), less the
  Servicing Fee (3), less the Backup Servicer Fee (2)

  ·       But
  not Greater than the Spread Account Balance (17)

  	
   

  	
   

  

 

 C-4
 

 

 

	
  (23)

  	
   

  	
  Final Spread Account Balance (17) + (19) – (20) –
  (21)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (24)

  	
   

  	
  Pool Balance at the beginning of this Collection
  Period

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (25)

  	
   

  	
  After giving effect to all distributions on the
  Payment Date during this Collection Period:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Outstanding Amount of A-1 Notes A-1 Note Pool
  Factor (.)

  	
   

  	
  $

  
	
   

  	
   

  	
  (b) Outstanding Amount of A-2 Notes A-2 Note Pool
  Factor (.)

  	
   

  	
  $

  
	
   

  	
   

  	
  (c) Outstanding Amount of A-3 Notes A-3 Note Pool
  Factor (.)

  	
   

  	
  $

  
	
   

  	
   

  	
  (d) Outstanding Amount of A-4 Notes A-4 Note Pool
  Factor (.)

  	
   

  	
  $

  
	
   

  	
   

  	
  (f) Outstanding Amount of Class B Notes Class B Note
  Pool Factor (.)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (26)

  	
   

  	
  Aggregate Purchase Amounts for the preceding
  Collection Period

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (27)

  	
   

  	
  Asset Balance at the beginning of this Collection
  Period

  	
   

  	
  $

  

 

 C-5

 

EXHIBIT D

to Sale and Servicing Agreement

FORM OF ASSIGNMENT

For value received, in accordance with and subject to
the Sale and Servicing Agreement dated as of September 1, 2006 (the “Sale and Servicing Agreement”) among the undersigned, New Holland
Credit Company, LLC (“NH Credit”) and CNH Equipment Trust 2006-B
(the “Issuing Entity”), the undersigned does hereby sell,
assign, transfer set over and otherwise convey unto the Issuing Entity, without
recourse, all of its right, title and interest in, to and under:  (a) the Initial Receivables, which are listed
on Schedule A hereto, including all
documents constituting chattel paper included therewith, and all obligations of
the Obligors thereunder, including all monies paid thereunder on or after the
Initial Cutoff Date, (b) the security interests in the Financed Equipment
granted by Obligors pursuant to the Initial Receivables and any other interest
of the undersigned in such Financed Equipment, (c) any proceeds with respect to
the Initial Receivables from claims on insurance policies covering Financed
Equipment or Obligors, (d) the Liquidity Receivables Purchase Agreement (only
with respect to Owned Contracts included in the Initial Receivables) and the
Purchase Agreement, including the right of the undersigned to cause CNH Capital
America LLC (“CNHCA”) to repurchase Receivables
from the undersigned under the circumstances described therein, (e) any
proceeds from recourse to Dealers with respect to the Initial Receivables other
than any interest in the Dealers’ reserve accounts maintained with CNHCA, (f)
any Financed Equipment that shall have secured an Initial Receivable and that
shall have been acquired by or on behalf of the Trust, (g) all funds on deposit
from time to time in the Trust Accounts, including the Spread Account Initial
Deposit, any Principal Supplement Account 
Deposit, the Negative Carry Account Initial Deposit and the Pre-Funded
Amount, and in all investments and proceeds thereof (including all income thereon),
and (h) the proceeds of any and all of the foregoing. The foregoing sale does
not constitute and is not intended to result in any assumption by the Issuing
Entity of any obligation of the undersigned to the Obligors, insurers or any
other person in connection with the Initial Receivables, Receivables Files, any
insurance policies or any agreement or instrument relating to any of them.

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

 D-1
 

 

IN WITNESS WHEREOF, the undersigned has caused this
Assignment to be duly executed as of September      ,
2006.

	
   

  	
  CNH CAPITAL RECEIVABLES LLC,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 D-2
 

 

SCHEDULE A

to Assignment

SCHEDULE OF INITIAL RECEIVABLES

[ON FILE WITH THE
INDENTURE TRUSTEE AND INCORPORATED BY

REFERENCE HEREIN]

 

 D-3

 

EXHIBIT E

to Sale and Servicing Agreement

FORM OF SUBSEQUENT TRANSFER
ASSIGNMENT

For value received, in accordance with and subject to
the Sale and Servicing Agreement dated as of September 1, 2006 (the “Sale and Servicing Agreement”) among CNH Equipment Trust 2006-B,
a Delaware statutory trust (the “Issuing
Entity”), CNH
Capital Receivables LLC, a Delaware limited liability company (the “Seller”), and New Holland Credit Company, LLC, a Delaware limited
liability company (“NH Credit”),
the Seller does hereby sell, transfer, assign, set over and otherwise convey to
the Issuing Entity, without recourse, all of its right, title and interest in,
to and under: (a) the Subsequent Receivables, with an aggregate Contract Value
equal to $[                    ],
listed on Schedule A hereto, including all
documents constituting chattel paper included therewith, and all obligations of
the Obligors thereunder including all monies paid thereunder on or after the
Subsequent Cutoff Date, (b) the security interests in the Financed Equipment
granted by Obligors pursuant to such Subsequent Receivables and any other
interest of the Seller in such Financed Equipment, (c) any proceeds with
respect to such Subsequent Receivables from claims on insurance policies
covering Financed Equipment or Obligors, (d) the Liquidity Receivables Purchase
Agreement (only with respect to Subsequent Receivables purchased by the Seller
pursuant to those Agreements) and the Purchase Agreement, including the right
of the Seller to cause CNHCA to repurchase Subsequent Receivables from the
Seller under the circumstances described therein, (e) any proceeds from
recourse to Dealers with respect to such Subsequent Receivables other than any
interest in the Dealers’ reserve accounts maintained with CNHCA, (f) any
Financed Equipment that shall have secured any such Subsequent Receivables and
that shall have been acquired by or on behalf of the Trust, and (g) the
proceeds of any and all of the foregoing. The foregoing sale does not
constitute and is not intended to result in any assumption by the Issuing
Entity of any obligation of the Seller to the Obligors, insurers or any other
person in connection with such Subsequent Receivables, Receivable Files, any
insurance policies or any agreement or instrument relating to any of them.

This Subsequent Transfer Assignment is made pursuant
to and upon the representations, warranties and agreements on the part of the
Seller contained in the Sale and Servicing Agreement (including the Officer’s
Certificate of the Seller accompanying this Agreement) and is to be governed in
all respects by the Sale and Servicing Agreement. Capitalized terms used but
not otherwise defined herein shall have the meanings assigned to them in the
Sale and Servicing Agreement.

 E-1
 

 

IN WITNESS WHEREOF, the undersigned has caused this
Subsequent Transfer Assignment to be duly executed as of                                  ,
2006.

	
  

  	
  CNH CAPITAL RECEIVABLES LLC,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 E-2
 

 

SCHEDULE A

to Subsequent Transfer Assignment

SCHEDULE OF SUBSEQUENT RECEIVABLES

[ON FILE WITH THE INDENTURE
TRUSTEE AND INCORPORATED BY

REFERENCE HEREIN.]

 E-3
 

 

ANNEX A

to Subsequent Transfer Assignment

OFFICER’S CERTIFICATE

I, the undersigned officer of CNH Capital Receivables
LLC. (the “Company”), do hereby certify, pursuant to Section 2.2(b)(xv) of the Sale and Servicing Agreement dated
as of September 1, 2006 among the Company, CNH Equipment Trust 2006-B and New
Holland Credit Company, LLC (the “Agreement”), that (i) all of the conditions
precedent to the transfer to the Issuing Entity of the Subsequent Receivables
listed on Schedule A to the Subsequent Transfer Assignment delivered herewith,
and the other property and rights related to such Subsequent Receivables as
described in Section 2.2(a) of the Agreement,
have been satisfied on or prior to the related Subsequent Transfer Date and
(ii) each statement of fact set forth in any Officer’s certificate executed by
an officer of the Company in connection with an Opinion of Counsel delivered on
the Closing Date with respect to a transfer of, or a security interest in, the
Receivables shall be true and correct as of the date hereof with respect to the
Subsequent Receivables listed on the aforementioned Schedule A.

Capitalized terms used but not defined herein shall
have the meanings assigned to such terms in the Agreement.

IN WITNESS WHEREOF, the undersigned has caused this
certificate to be duly executed this        day
of                      ,
2006.

	
  

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  	
   

  	
   

  
	
   

  	
   

  	
   Title:

  	
   

  	
   

  
							

 

 E-4

 

EXHIBIT F

to Sale and Servicing Agreement

FORM OF ACCOUNTANTS’ LETTER IN CONNECTION

WITH THE SUBSEQUENT TRANSFER ASSIGNMENT PURSUANT TO

SECTION 2.2(b)(xiv) OF THE SALE AND SERVICING AGREEMENT

[Letterhead of Ernst
& Young]

                          ,
              

CNH Capital Receivables LLC

100 South Saunders Road

Lake Forest, Illinois  60045

CNH Equipment Trust 2006-B

c/o The Bank of New York

101 Barclay Street, Floor 8W

New York, New York  10286

JPMorgan Chase Bank, N.A. 

4 New York Plaza, 6th Floor

New York, New York  10004

Attention:  Institutional Trust Services
Group-CNH Equipment Trust 2006-B

The Bank of New York

101 Barclay Street, Floor 8W

New York, New York  10286

Dear Ladies and Gentlemen:

This letter is issued at the request of CNH Capital
Receivables LLC. (the “Seller”) with respect to the sale of
certain retail receivables (the “Subsequent
Receivables”) to the
CNH Equipment Trust 2006-B (the “Trust”) pursuant to the Sale and Servicing
Agreement dated as of September 1, 2006 (the “Sale
and Servicing Agreement”)
among the Trust, the Seller and New Holland Credit Company, LLC (the “Servicer”). The sale of the Subsequent Receivables is described in the
prospectus dated September 6, 2006 and the prospectus supplement dated
September 7, 2006 (together, the “Prospectus”), which relates to the offering by
the Trust of 5.39275% Class A-1 Asset Backed Notes, 5.330% Class A-2 Asset
Backed Notes, 5.200% Class A-3 Asset Backed Notes, floating rate Class A-4
Asset Backed Notes and 5.360% Class B Asset Backed Notes (collectively, the “Notes”). 
Capitalized terms used herein and not otherwise defined have the meaning
described in the Prospectus or the Sale and Servicing Agreement, as applicable.
In connection therewith, we performed or have previously performed certain
agreed upon procedures as specified in the items below:

 F-1
 

 

1.                                       As
previously communicated in our letter to the Seller, the Trust,                                      ,
the Indenture Trustee and the Trustee dated                  ,
             
relating to the sale of certain retail receivables (the “Initial Receivables”) and the offering of the Notes [and
the Certificates], we performed several procedures based on a computer data
file (the “Initial
File”) received from
the Servicer, including the following:

a.                                       We
read certain fields on the Initial File to determine whether the data
pertaining to the Initial Receivables complied with the selection criteria as
noted in our previous letter.

b.                                      Proved
the arithmetic accuracy of the Aggregate Contract Value and the related
percentage of Initial Receivables coded as representing construction equipment
and the Total Aggregate Contract Value of the Initial Receivables as shown on
Schedule B.

c.                                       Proved
the arithmetic accuracy of the Weighted Average Original Term of the Initial
Receivables as shown in Schedule B.

2.                                       On
                         ,
          , we obtained a
computer data file (the “Subsequent File”) produced by and represented by the
Servicer to contain the list of the Subsequent Receivables.  The Subsequent File was received directly by
Deloitte & Touche from the Servicer. 
By use of data retrieval software, we have performed the following with
respect to the information contained in the Subsequent File:

a.                                       We
read certain fields on the Subsequent File to determine whether the data
relating to the Subsequent Receivables complied with selection criteria 1, 2
and 4 as shown on Schedule A.  For
purposes of selection criteria 3, as shown on Schedule A, we read certain
fields from the Initial File and Subsequent File to aggregate the total
Contract Value for each account number for the purpose of determining the
Contract Value for each Obligor.  The
total Contract Value for each account number was then compared to the aggregate
Contract Value to determine if the selection criteria was achieved.

b.                                      Proved
the arithmetic accuracy of the Aggregate Contract Value and the related
percentage of the Subsequent Receivables coded as representing construction
and  the Total Aggregate Contract Value
of the Subsequent Receivables as shown on Schedule B.

c.                                       Proved
the arithmetic accuracy of the Weighted Average Original Term of the Subsequent
Receivables as shown in Schedule B.

3.                                       We
proved the arithmetic accuracy of the columnar totals for Aggregate Contract
Value of construction equipment and the Total Aggregate Contract Value as shown
on Schedule B.

 F-2
 

 

4.                                       We
proved the arithmetic accuracy of the percent of total column as shown in 1 on
Schedule B by dividing the amount in the Total Aggregate Contract Value of
construction equipment column by the amount in the Total Aggregate Contract
Value column. We also proved the arithmetic accuracy of the Weighted Average
Original Term as shown in 2 on Schedule B by summing the products of Total
Aggregate Contract Value times Weighted Average Original Term for the Initial
Receivables and the Subsequent Receivables and dividing the resulting sum by
the columnar total of the Total Aggregate Contract Value.

The foregoing procedures do not constitute an audit
conducted in accordance with generally accepted auditing standards, and,
therefore, we are unable to and do not express an opinion on any individual
balances or summaries of selected transactions specifically set forth in this
letter.  Also, these procedures would not
necessarily reveal matters of significance with respect to the findings
described herein. Accordingly, we make no representations regarding the
sufficiency of the foregoing procedures for your purposes of for questions of
legal interpretation.  Had we performed
additional procedures, other matters might have come to our attention that
would have been reported to you. 
Further, we have addressed ourselves solely to the foregoing data in the
Sale and Servicing Agreement and the Prospectus and make no representations
regarding the adequacy of disclosure regarding whether any material facts have
been omitted.

This letter is solely for the information of the
addressees and is not to be used, circulated, quoted or otherwise referred to
for any other purpose including, but not limited to, the purchase or sale of
Notes, nor is it to be referred to in any document.  Furthermore, we undertake no responsibility
to update this letter for events and circumstances occurring after the date of
this letter.

Very truly yours,

 

ERNST & YOUNG

 F-3
 

 

SCHEDULE A

to Accountant’s Letter

	
   

  	
  Selection Criteria

  	
   

  	
  Results

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  No Subsequent
  Receivables was more than 90 days past due as of the applicable Subsequent
  Cutoff Date.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Each Subsequent
  Receivable has a Statistical Contract Value as of the Subsequent Cutoff Date
  that (when combined with the Statistical Contract Value of any other Receivables
  with the same or an affiliated Obligor) does not exceed 1% of the aggregate Contract
  Value of all Receivables.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Each Subsequent
  Receivable has a remaining term to maturity (i.e., the period from but excluding
  the applicable Subsequent Cutoff Date to and including the Receivables’
  maturity date) of not more than 72 months.

  	
   

  	
   

  

 

 F-4
 

 

SCHEDULE B

to Accountant’s Letter

1.                                       Percentage
of principal balance of the Receivables that represents construction equipment:

	
  

  	
   

  	
  Aggregate

  Contract Value of

  Construction

  Equipment

  	
   

  	
  Total Aggregate

  Contract Value

  	
   

  	
  Construction

  Equipment

  Percent of Total

  	
   

  
	
  Initial Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
  Subsequent Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
  Total Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

2.                                       Weighted
Average Original Term of the Receivables in the Trust.

	
  

  	
   

  	
  Total Aggregate

  Contract Value

  	
   

  	
  Weighted

  Average Original

  Term

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subsequent
  Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  months

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Receivables

  	
   

  	
  $

  	
   

  	
   

  	
  months

  	
   

  

 

As noted above, the Weighted Average Original Term does not exceed         
months as required by the Sale and Servicing Agreement.

 F-5

 

EXHIBIT G

to Sale and Servicing Agreement

FORM OF INITIAL INTEREST RATE SWAP AGREEMENT

[To be attached]

 G-1

 

Schedule P

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

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

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

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

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

 P-1
 

 

been terminated, or (iii) that has been
granted pursuant to the terms of the Basic Documents.  None of the tangible chattel paper that
constitutes or evidences the Receivables has any marks or notations indicating
that they have pledged, assigned or otherwise conveyed to any Person other than
the Indenture Trustee.  CNHCR is not
aware of any judgment, ERISA or tax lien filings against it.

6.      Survival of Perfection Representations.  Notwithstanding any other provision of the
Sale and Servicing Agreement or any other Basic Document, the Perfection
Representations contained in this Schedule P shall be continuing, and remain in
full force and effect.

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

8.    Servicer to Maintain Perfection and Priority.  The Servicer covenants that, in order to
evidence the interests of CNHCR and Issuing Entity under this Agreement,
Servicer shall take such action, or execute and deliver such instruments (other
than effecting a Filing (as defined below), unless such Filing is effected in
accordance with this paragraph) as may be necessary or advisable (including,
without limitation, such actions as are requested by Issuing Entity) to
maintain and perfect, as a first priority interest, Issuing Entity’s security
interest in the Receivables.  Servicer
shall, from time to time and within the time limits established by law, prepare
and present to Issuing Entity for Issuing Entity to authorize (based in
reliance on the Opinion of Counsel hereinafter provided for) the Servicer to
file, all financing statements, amendments, continuations, financing statements
in lieu of a continuation statement, terminations, partial terminations,
releases or partial releases, or any other filings necessary or advisable to
continue, maintain and perfect the Issuing Entity’s security interest in the
Receivables as a first-priority interest (each a “Filing”).  Servicer shall present each such Filing to
the Issuing Entity together with (x) an Opinion of Counsel to the effect that
such Filing is (i) consistent with grant of the security interest to the
Issuing Entity pursuant to the Granting Clause of this Agreement, (ii)
satisfies all requirements and conditions to such Filing in this Agreement and
(iii) satisfies the requirements for a Filing of such type under the Uniform
Commercial Code in the applicable jurisdiction (or if the Uniform Commercial
Code does not apply, the applicable statute governing the perfection of
security interests), and (y) a form of authorization for Issuing Entity’s
signature.  Upon receipt of such Opinion
of Counsel and form of authorization, Issuing Entity shall promptly authorize
in writing Servicer to, and Servicer shall, effect such Filing under the
Uniform Commercial Code without the signature of CNHCR or Issuing Entity where
allowed by applicable law. 
Notwithstanding anything else in the Indenture to the contrary, the
Servicer shall not have any authority to effect a Filing without obtaining
written authorization from the Issuing Entity in accordance with this paragraph
(c).

 P-2

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