Document:

Exhibit 10.124(u)

 

DECHERT DRAFT

January 19, 2006

 

 

 

 

FIRST INVESTORS AUTO FUNDING CORPORATION,

as Depositor,

 

and

 

WELLS FARGO DELAWARE TRUST COMPANY,

as Owner Trustee

 

 

 

AMENDED AND RESTATED TRUST AGREEMENT

Dated as of January 26, 2006

 

 

 

 

i

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Article I

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.2

  	
   

  	
  Other Definitional Provisions

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Article II

  	
  Organization of the Trust

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Name

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.2

  	
   

  	
  Office

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.3

  	
   

  	
  Purposes and Powers

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.4

  	
   

  	
  Appointment of Owner Trustee

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.5

  	
   

  	
  Organizational Matters

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.6

  	
   

  	
  Declaration of Trust

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.7

  	
   

  	
  Title of Trust Property

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.8

  	
   

  	
  Situs of Trust

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.9

  	
   

  	
  Representations and Warranties of the Depositor

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.10

  	
   

  	
  Federal Income Tax Matters

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Article III

  	
  Trust Certificates and Transfer of Interests

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Ownership

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.2

  	
   

  	
  The Certificate

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.3

  	
   

  	
  Authentication of the Certificate

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.4

  	
   

  	
  Registration of the Certificate

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.5

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Certificate

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.6

  	
   

  	
  Appointment of Paying Agent

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.7

  	
   

  	
  Regarding Indenture Trustee

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IV

  	
  Actions by Owner Trustee

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Prior Notice with Respect to Certain Matters

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.2

  	
   

  	
  Action by Depositor with Respect to Certain Matters

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.3

  	
   

  	
  Action by Owner Trustee with Respect to Bankruptcy

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.4

  	
   

  	
  Restrictions on Insurer’s Power

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Article V

  	
  Application of Trust Funds; Certain Duties

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Establishment of Depositor Account

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.2

  	
   

  	
  Application of Trust Funds

  	
  14

  
					

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.3

  	
   

  	
  Method of Payment

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.4

  	
   

  	
  No Segregation of Monies; No Interest

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VI

  	
  Authority and Duties of Owner Trustee

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  General Authority

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.2

  	
   

  	
  General Duties

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.3

  	
   

  	
  Action Upon Instruction

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.4

  	
   

  	
  No Duties Except as Specified in this Agreement or
  in Instructions

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.5

  	
   

  	
  No Action Except Under Specified Documents or
  Instructions

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.6

  	
   

  	
  Restrictions

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VII

  	
  Regarding The Owner Trustee

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Acceptance of Trusts and Duties

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.2

  	
   

  	
  Furnishing of Documents

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.3

  	
   

  	
  Representations and Warranties

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.4

  	
   

  	
  Reliance; Advice of Counsel

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.5

  	
   

  	
  Not Acting in Individual Capacity

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.6

  	
   

  	
  Owner Trustee Not Liable for Contracts

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.7

  	
   

  	
  Owner Trustee May Own Notes

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VIII

  	
  Compensation of Owner Trustee

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Owner Trustee’s Fees and Expenses

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.2

  	
   

  	
  Indemnification

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.3

  	
   

  	
  Payments to the Owner Trustee

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IX

  	
  Termination

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1

  	
   

  	
  Termination of Trust Agreement

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.2

  	
   

  	
  Notification Regarding Bankruptcy of the Depositor

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Article X

  	
  Successor Owner Trustees and Additional Owner
  Trustees

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1

  	
   

  	
  Eligibility Requirements for Owner Trustee

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.2

  	
   

  	
  Resignation or Removal of Owner Trustee

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.3

  	
   

  	
  Successor Owner Trustee

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.4

  	
   

  	
  Merger or Consolidation of Owner Trustee

  	
  26

  
					

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.5

  	
   

  	
  Appointment of Co-Trustee or Separate Trustee

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Article XI

  	
  Miscellaneous

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1

  	
   

  	
  Supplements and Amendments

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.2

  	
   

  	
  No Legal Title to Owner Trust Estate in the
  Depositor

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.3

  	
   

  	
  Limitation on Rights of Others

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.4

  	
   

  	
  Notices

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.5

  	
   

  	
  Severability

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.6

  	
   

  	
  Separate Counterparts

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.7

  	
   

  	
  Successors and Assigns

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.8

  	
   

  	
  Covenants of the Depositor

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.9

  	
   

  	
  No Petition

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.10

  	
   

  	
  Headings

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.11

  	
   

  	
  Governing Law

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.12

  	
   

  	
  Amendment of Trust Agreement

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.13

  	
   

  	
  Owner Trustee Presumption

  	
  32

  
					

 

iii

 

Exhibit A                Form of
Certificate

Exhibit B                Certificate
of Trust

 

iv

 

AMENDED AND RESTATED TRUST AGREEMENT, dated as of
January 26, 2006 (as amended, supplemented or otherwise modified and in effect
from time to time, this “Agreement”),
between FIRST INVESTORS AUTO FUNDING CORPORATION, a Delaware corporation, as
depositor (the “Depositor”),
and WELLS FARGO DELAWARE TRUST COMPANY, a Delaware limited purpose trust
company, (in its capacity as owner trustee and not in its individual capacity,
the “Owner Trustee”).

 

WHEREAS, the Depositor and the Owner Trustee have
entered into a Trust Agreement, dated as of January 4, 2006 (the “Original Trust Agreement”); and

 

WHEREAS, the Depositor and Owner Trustee desire to
amend and restate the Original Trust Agreement in its entirety as provided
herein.

 

NOW, THEREFORE, in consideration of the premises and
mutual covenants herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, it is hereby
agreed by and between the Depositor and the Owner Trustee that the Original
Trust Agreement be amended and restated and replaced in its entirety as
follows:

 

Article I

Definitions

 

Section
1.1            Definitions.

 

Except as otherwise specified herein or as the context
may otherwise require, the following terms shall have the respective meanings
set forth below for all purposes of this Agreement.

 

Administrator:  First Investors Financial Services, Inc., or
any successor administrator.

 

Affiliate:  With respect to any Person, any other Person
directly or indirectly controlling, controlled by or under direct or indirect
common control with such Person. For purposes of this definition, “control”
when used with respect to any Person shall mean the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise.

 

Business Day:  Any day other than a Saturday, a Sunday or a
day on which banking institutions or trust companies in New York, New York,
Wilmington, Delaware, Houston, Texas or Atlanta, Georgia are authorized or
obligated by law, executive order or governmental decree to remain closed.

 

Certificate: A physical certificate
evidencing the beneficial interest of the holder thereof in the Trust as
specified therein, substantially in the form of Exhibit A attached
hereto.

 

Certificate of Trust:  The Certificate of Trust attached hereto as Exhibit
B filed with the Secretary of the State of Delaware on January 4, 2006 for
the Trust pursuant to Section 3810(a) of the Statutory Trust Act.

 

 

Certificate Register:  As defined in Section 3.4.

 

Certificate Registrar:  As defined in Section 3.4.

 

Code:  The Internal Revenue Code of 1986, as amended
from time to time, and the Treasury Regulations promulgated thereunder.

 

Corporate Trust Office:  The principal office of the Owner Trustee at
which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is
located at, 919 North Market Street, Suite 700, Wilmington Delaware 19801,
Attention: Corporate Trust Administration, or at such other address as the
Owner Trustee may designate from time to time by notice to the Depositor, or
the principal corporate trust office of any successor Owner Trustee at the
address designated by such successor Owner Trustee by notice to the Depositor.

 

Depositor:  First Investors Auto Funding Corporation, a
Delaware corporation, in its capacity as depositor under this Agreement, and
its successors.

 

Depositor Account:  As defined in Section 5.1.

 

ERISA:  The Employee Retirement Income Security Act
of 1974, as amended.

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended.

 

Expenses:  As defined in Section 8.2(a) and shall
include amounts in connection with all liabilities, losses, damages, taxes,
claims, actions and suits referred to in such section.

 

Final Note Payment Date:  April 15, 2013.

 

Indemnified Parties:  As defined in Section 8.2(a).

 

Indenture:  The Indenture, dated as of January 26, 2006
between the Trust and Wells Fargo Bank, National Association, a national
banking association, as indenture trustee and as custodian, as amended,
supplemented or otherwise modified and in effect from time to time.

 

Independent:  As defined in the Indenture.

 

Initial Pool Balance:  $151,939,112.45.

 

Insurer:  MBIA Insurance Corporation, a New York stock
insurance company, and its successors.

 

Notes:  As defined in the Indenture.

 

Owner Trust Estate:  All right, title and interest of the Trust
in, to and under the property and rights assigned to the Trust pursuant to
Article II of the Sale and Allocation Agreement and all monies deposited from
time to time in the Collection Account, the Note Payment Accounts, the
Prefunding Account and the Reserve Account.

 

2

 

Owner Trustee:  Wells Fargo Delaware Trust Company, a
Delaware limited purpose trust company, not in its individual capacity but
solely as Owner Trustee under this Agreement, and any successor Owner Trustee
under this Agreement.

 

Paying Agent:  The Owner Trustee or any other Person
appointed as Paying Agent with respect to the Certificate in accordance with Section
3.6.

 

Prepayment Date:  The Payment Date specified by the Servicer
pursuant to Section 5.16 of the Sale and Allocation Agreement.

 

Record Date:  With respect to any Payment Date or
Prepayment Date, the close of business on the Business Day immediately
preceding such Payment Date or Prepayment Date.

 

Responsible Officer:  As defined in the Indenture.

 

Sale and Allocation Agreement:  The Sale and Allocation Agreement, dated as
of the date hereof, by and among the Depositor, the Indenture Trustee, the
Securities Intermediary, the Trust and the Servicer, as amended, supplemented
or otherwise modified and in effect from time to time.

 

Secretary of State:  The Secretary of State of the State of
Delaware.

 

Securities Act:  The Securities Act of 1933, as amended.

 

Statutory Trust Act:  Chapter 38 of Title 12 of the Delaware Code,
12 Del. Code section 3801 et seq., as the same may be amended, supplemented or
otherwise modified and in effect from time to time.

 

Transfer:  To sell, transfer, assign, participate,
pledge or otherwise dispose of.

 

Treasury Regulations:  Regulations, including proposed or temporary
regulations, promulgated under the Code. All references herein to specific
provisions of proposed or temporary Treasury Regulations shall include
analogous provisions of final Treasury Regulations or other successor Treasury
Regulations.

 

Trust:  The Delaware statutory trust established by
this Agreement.

 

Section
1.2            Other Definitional Provisions.

 

(a)           Capitalized
terms used herein and not otherwise defined herein have the meanings assigned
to them in the Sale and Allocation Agreement or, if not defined therein, in the
Indenture.

 

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

 

3

 

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

 

(d)           The
words “hereof,” “herein” and “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. Article, Section and Exhibit references
contained in this Agreement are references to Articles, Sections and Exhibits
in or to this Agreement unless otherwise specified. The term “including” shall
mean “including without limitation.”

 

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

 

(f)            Any
agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein. References to
a Person are also to its permitted successors and assigns.

 

Article II

Organization of the Trust

 

Section
2.1            Name.

 

The name of the Trust shall be “First Investors Auto
Owner Trust 2006-A,” in which name the Trust and the Owner Trustee shall have
power and authority and each is hereby authorized and empowered to conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

 

Section
2.2            Office.

 

The office of the Trust shall be in care of the Owner
Trustee at the Corporate Trust Office or at such other address in the State of
Delaware as the Owner Trustee may designate by written notice to the Depositor.

 

Section
2.3            Purposes and Powers.

 

The purpose of the Trust is, and the Trust shall have
power and authority and is hereby authorized and empowered, without the need
for further action on the part of the Trust, and the Owner Trustee shall have
power and authority and is hereby authorized and empowered, in the

 

4

 

name and on behalf of the
Trust, to do or cause to be done all acts and things necessary, appropriate or
convenient to cause the Trust, to engage solely in the following activities:

 

(a)           to
execute, issue and deliver the Notes pursuant to the Indenture, to execute,
authenticate, issue and deliver the Certificate pursuant to this Agreement, and
to sell Class A Notes;

 

(b)           to
use the proceeds of the sale of the Class A Notes to fund the Reserve Account
and the Prefunding Account, to pay the organizational, start-up and
transactional expenses of the Trust and to pay the balance to the Depositor
pursuant to the Sale and Allocation Agreement in consideration for the purchase
of Contracts;

 

(c)           to
pay interest on (with respect to the Class A Notes) and principal of the Notes
and amounts distributable with respect to the Certificate;

 

(d)           to
assign, grant, transfer, pledge, mortgage and convey the Collateral to the
Indenture Trustee pursuant to the Indenture;

 

(e)           to
enter into, execute, deliver and perform its obligations under the Transaction
Documents to which it is to be a party;

 

(f)            subject
to compliance with the Transaction Documents, to engage in such other
activities as may be required in connection with conservation of the Owner
Trust Estate and the making of distributions to the Noteholders and the holder
of the Certificate; and

 

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

 

The Trust is hereby authorized to engage in the
foregoing activities. The Trust shall not engage in any activity other than in
connection with the foregoing or other than as required or authorized by the
terms of this Agreement or the other Transaction Documents.

 

Any acts of the Owner Trustee and of any person
designated and authorized to act by the Depositor which acts would have been
authorized by this Agreement except that such acts were taken prior to the date
of this Agreement are hereby severally authorized, ratified, confirmed and
adopted as acts in the name and on behalf of the Trust, including without
limitation the execution, delivery and performance by the Trust of the Purchase
Agreement.

 

Section
2.4            Appointment of Owner Trustee.

 

The Depositor hereby appoints Wells Fargo Delaware
Trust Company as owner trustee, as trustee of the Trust effective as of the
date hereof, to have all the rights, powers and authority set forth herein and
in the Statutory Trust Act and Wells Fargo Delaware Trust Company, as owner trustee,
hereby accepts such appointment.

 

5

 

Section
2.5            Organizational Matters.

 

The Depositor shall pay from amounts payable to it
pursuant to Section 3.5(d)(xi) of the Sale and Allocation Agreement, the organizational
expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee, in its individual capacity, for
any such expenses paid by the Owner Trustee, in its individual capacity. The
net proceeds from the sale of the Class A Notes shall be used to purchase
Contracts and related property from the Depositor in accordance with Section
2.1 of the Sale and Allocation Agreement and to fund the Reserve Account and
the Prefunding Account in the amounts required by the Sale and Allocation
Agreement.

 

Section
2.6            Declaration of Trust.

 

The Owner Trustee hereby declares that it will hold
the Owner Trust Estate in trust upon and subject to the conditions set forth
herein for the use and benefit of the Depositor, subject to the obligations of
the Trust under the Transaction Documents. It is the intention of the parties
hereto that the Trust constitute a statutory trust under the Statutory Trust
Act and that this Agreement constitute the governing instrument of such
statutory trust. Effective as of the date hereof, the Owner Trustee shall have
all rights, powers and authority set forth herein and in the Statutory Trust
Act with respect to accomplishing the purposes of the Trust. The Owner Trustee
shall have power and authority and is hereby authorized and empowered to
execute and file any certificate to be filed under the Statutory Trust Act.

 

Section
2.7            Title of Trust Property.

 

Legal title to the entirety of the Owner Trust Estate
shall be vested at all times in the Trust as a separate legal entity, except
where applicable law in any jurisdiction requires title to any part of the
Owner Trust Estate to be vested in a trustee or trustees, in which case title
shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

 

Section
2.8            Situs of Trust.

 

The Trust shall be located in the State of Delaware.
All bank accounts maintained by the Owner Trustee on behalf of the Trust shall
be located in the State of Delaware. The Trust shall not have any employees in
any state other than the State of Delaware; provided, however,
that nothing herein shall restrict or prohibit the Owner Trustee from having
employees within or outside the State of Delaware. Payments will be received by
the Trust only in the State of Delaware, and payments will be made by the Trust
only from the State of Delaware. The only office of the Trust will be at the
Corporate Trust Office in the State of Delaware.

 

Section
2.9            Representations and Warranties of the Depositor.

 

The Depositor hereby represents and warrants to the
Owner Trustee (as such and in its individual capacity) that:

 

(a)           the
Depositor is duly organized and validly existing as a corporation in good
standing under the laws of the State of Delaware, with power and authority

 

6

 

to own its properties and to conduct its business as
such properties are currently owned and such business is presently conducted;

 

(b)           the
Depositor is duly qualified to do business as a foreign corporation in good
standing, and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its
business requires such qualifications;

 

(c)           the
Depositor has the power and authority to execute and deliver this Agreement and
each other Transaction Document to which it is a party and to carry out their
respective terms, and the Depositor has full power and authority to sell and
assign the property to be sold and assigned to, and deposited with, the Trust;
the Depositor has duly authorized such sale and assignment and deposit to the
Trust by all necessary action and the execution, delivery and performance of
this Agreement and each other Transaction Document to which it is a party has
been duly authorized by the Depositor by all necessary action;

 

(d)           the
consummation by the Depositor of the transactions contemplated by this
Agreement and each other Transaction Document to which it is a party and the
fulfillment of the terms hereof and thereof do not conflict with, result in any
breach of any of the terms and provisions of, or constitute (with or without
notice or lapse of time or both) a default under, the certificate of
incorporation or bylaws of the Depositor, or any indenture, agreement or other
instrument to which the Depositor is a party or by which it is bound, do not
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Transaction Documents) and do not violate any law
or, to the knowledge of the Depositor, any order, rule or regulation applicable
to the Depositor of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Depositor or its properties;

 

(e)           there
are no proceedings or investigations pending or, to the knowledge of the
Depositor, threatened, before any court, regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Depositor or
its properties (i) asserting the invalidity of this Agreement, the Indenture,
any of the other Transaction Documents or the Notes, (ii) seeking to prevent
the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Indenture or any of the other Transaction
Documents, (iii) seeking any determination or ruling that might materially and
adversely affect the performance by the Depositor of its obligations under, or
the validity or enforceability of, this Agreement or any other Transaction
Document to which the Depositor is a party or (iv) which might adversely affect
the federal income tax attributes, or Applicable Tax State franchise or income
tax attributes, of the Notes; and

 

(f)            the
representations and warranties of the Seller in Section 2.2 of the Sale and
Allocation Agreement are true and correct.

 

7

 

Section
2.10         Federal Income Tax Matters.

 

(a)           It is the intent of the Depositor
that, for purposes of federal income, state and local income and franchise tax
and any other taxes, the Trust will not be treated as an association or
publicly traded partnership taxable as a corporation. Any person having an
interest in the Certificate, including the Seller, by acceptance of its
interest in the Certificate, and the Owner Trustee agree to such treatment and
agree to take no action inconsistent with such treatment, including the making
of an election under Treasury Regulation Section 301.7701-3 on behalf of the
Trust such that the Trust is treated as an association taxable as a
corporation.

 

(b)           It is the intention of the Depositor
that, solely for income and franchise tax purposes, the Trust, shall be treated
as (i) a division of the Certificateholder that is ignored as an entity
separate from the Certificateholder if, for federal income tax purposes, there
is a single Certificateholder or (ii) a partnership if, for federal income tax
purposes, the Trust is considered to have more than one Certificateholder. The
parties agree that, unless otherwise required by appropriate tax authorities,
the Trust will file or cause to be filed annual or other necessary returns,
reports and other forms consistent with the characterization of the Trust, as
it relates to the assets in the Trust and the Certificate, as a division of the
Certificateholder or partnership, as just described, for such tax purposes and
that such parties will take no action inconsistent with such treatment.

 

(c)           Pursuant to the Administration
Agreement, the Administrator has agreed to perform the following actions on
behalf of the Trust: (i) deliver (or cause to be delivered) to the
Certificateholder, as may be required by the Code and applicable Treasury
Regulations, such information as may be required (including Schedule K-1 to IRS
Form 1065, if the Trust, is treated as a partnership for federal income tax
purposes), to enable the Certificateholder to prepare its federal and state
income tax returns, (ii) prepare or cause to be prepared, and file or cause to
be filed, all tax returns relating to the Trust (including a partnership
information return and IRS Form 1065 if the Trust is treated as a partnership
for federal income tax purposes) and the Certificateholders shall direct the
Administrator in writing to make such elections as may from time to time be
required or appropriate under any applicable state or federal statute or rule
or regulation thereunder so as to maintain the characterization of the Trust as
a division of a single Certificateholder or a partnership, as the case may be,
for federal income tax purposes (in each case, in the sole determination of the
Certificateholders unless otherwise required by appropriate taxing authorites)
and (iii) prepare or cause to be prepared, and file or cause to be filed,
deliver or cause to be delivered any annual or other necessary returns, reports
or forms relating to the Notes and the Certificate (including information
returns on IRS Form 1099). The Trust shall make all elections pursuant to this
Section 2.10 on returns relating to the Certificate, if any, furnished to it in
execution form by the Administrator and any other returns as may be required by
law and so furnished to it by and at the direction of the Administrator, and in
doing so shall be entitled to, and shall be fully protected if it shall, rely
entirely upon, and shall have no liability for information provided by, or
calculations provided by, the Administrator. All tax returns in respect of the
Trust shall be signed by the Seller, and if the Seller shall no longer hold the
Certificate, the Certificateholder holding the greatest percentage interest in
the Certificate, unless some other party is required by law to sign such return
(in which case such other party shall sign). If the Trust is characterized as a
partnership for federal income tax

 

8

 

purposes, the Seller, and
if the Seller shall no longer hold any Owner Trust Certificate, the
Certificateholder holding the greatest percentage interest, shall be the “tax
matters partner” of the Trust pursuant to the Code.

 

(d)           The holder of an interest in the
Certificate shall not sell or suffer to be transferred such interest unless it
shall first have either received an opinion of counsel to the effect that such
sale or transfer would not cause the Trust to be taxable as an association or
publicly traded partnership taxable as a corporation or provided the Trust
indemnification satisfactory to the Owner Trustee with respect to any such tax
or other expense that might be imposed on or incurred by the Trust as a result
of such action.

 

Article III

Trust Certificates and Transfer of Interests

 

Section
3.1            Ownership.

 

The Seller shall be the sole beneficial owner of the
Trust.

 

Section
3.2            The Certificate.

 

The Certificate shall be issued to the Seller on the
Closing Date as a registered, definitive, physical certificate, substantially
in the form set forth in Exhibit A attached hereto. The Certificate
shall not be Transferred by the Seller to any other Person.

 

The Certificate may be in printed or typewritten form
and shall be executed on behalf of the Trust by manual or facsimile signature
of an authorized officer of the Owner Trustee. If the Certificate bears the
manual or facsimile signatures of individuals who were, at the time when such
signatures shall have been affixed, authorized to sign on behalf of the Trust,
it shall be validly issued and entitled to the benefits of this Agreement,
notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the authentication and delivery of the Certificate or did
not hold such offices at the date of authentication and delivery of the
Certificate.

 

Section
3.3            Authentication of the Certificate.

 

As of the date hereof, the Owner Trustee shall cause
the Certificate to be executed on behalf of the Trust, authenticated, issued
and delivered upon written order of the Depositor signed by its manager, its
president, any vice president, its secretary or its treasurer, without further
action by the Depositor. Thereupon, such Certificate shall be duly authorized,
validly issued and entitled to the benefits of this Agreement. The Certificate
shall not entitle its holder to any benefit under this Agreement, or be valid
for any purpose, unless there shall appear on such Certificate a certificate of
authentication substantially in the form set forth in Exhibit A executed
by the Owner Trustee or its authenticating agent, by manual signature, which
authentication shall constitute conclusive evidence that the Certificate is
entitled to the benefits of this Agreement and has been duly authenticated,
duly authorized, validly issued and delivered hereunder. The Certificate shall
be dated the date of its authentication.

 

9

 

Section
3.4            Registration of the Certificate.

 

The Certificate Registrar (defined below) shall cause
to be kept, at its Corporate Trust Office (as defined in the Sale and
Allocation Agreement) a register (the “Certificate Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of the Certificate.
The Indenture Trustee initially shall be the registrar (the “Certificate Registrar”) for the
purpose of registering the Certificate as herein provided. The Certificate
Registrar shall, promptly upon request, furnish to the Owner Trustee
information regarding the Certificate Register, including a copy thereof. Upon
any resignation of any Certificate Registrar, the Owner Trustee shall promptly
appoint a successor or, if it elects not to make such an appointment, assume
the duties of Certificate Registrar.

 

Section
3.5            Mutilated, Destroyed, Lost or Stolen Certificate.

 

(a)           If
(i) a mutilated Certificate is surrendered to the Certificate Registrar, or the
Certificate Registrar receives evidence to its satisfaction of the destruction,
loss or theft of the Certificate, and (ii) there is delivered to the
Certificate Registrar and Owner Trustee (as such and in its individual
capacity) such security or indemnity as may be required by them to hold each of
the Trust, the Certificate Registrar and the Owner Trustee (as such and in its
individual capacity) harmless, then, in the absence of notice to the Trust, the
Certificate Registrar or the Owner Trustee that the Certificate has been
acquired by a protected purchaser, the Owner Trustee shall execute and the
Owner Trustee or its authenticating agent shall authenticate and deliver, in
exchange for, or in lieu of, such mutilated, destroyed, lost or stolen
Certificate, a replacement Certificate of like tenor and denomination. If,
after the delivery of such replacement Certificate, a protected purchaser of the
original Certificate in lieu of which such replacement Certificate was issued
presents for payment such original Certificate, the Trust shall be entitled to
recover such replacement Certificate (or such payment) from the Person to whom
such replacement Certificate was delivered or any Person taking such
replacement Certificate from such Person to whom such replacement Certificate
was delivered or any assignee of such Person, except a protected purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor
to the extent of any loss, damage, cost or expense incurred by the Trust or the
Owner Trustee (as such or in its individual capacity) in connection therewith.

 

(b)           Upon
the issuance of any replacement Certificate under this Section 3.5, the
Trust may require the payment by the Depositor of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with such
issuance and any other reasonable expenses (including the fees and expenses of
the Owner Trustee (as such and in its individual capacity)) related thereto.

 

(c)           Any
replacement Certificate issued pursuant to this Section 3.5 in
replacement of the mutilated, destroyed, lost or stolen Certificate shall
constitute an original additional contractual obligation of the Trust, whether
or not the mutilated, destroyed, lost or stolen Certificate shall be at any
time enforceable by anyone, and shall be duly authorized, validly issued and
entitled to all the benefits of this Agreement.

 

10

 

(d)           The
provisions of this Section 3.5 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of any mutilated, destroyed, lost or stolen Certificate.

 

Section
3.6            Appointment of Paying Agent.

 

The Paying Agent with respect to the Certificate shall
initially be the Owner Trustee, and any co-paying agent chosen by the Owner
Trustee (which may be Wells Fargo Bank, National Association). The Owner Trustee
shall be permitted to resign as Paying Agent upon thirty (30) days’ written
notice to the Depositor. In the event that Wells Fargo Delaware Trust Company
shall no longer be the Paying Agent, the Owner Trustee, with the consent of the
Insurer, shall appoint a successor to act as Paying Agent (which shall be a
bank or trust company). The rights, benefits, protections, privileges and
immunities of the Owner Trustee (as such or in its individual capacity) under
this Agreement shall apply to the Owner Trustee also in its role as Paying
Agent, for so long as the Owner Trustee shall act as Paying Agent and, to the
extent applicable, to any other paying agent appointed hereunder. Any reference
in this Agreement to the Paying Agent shall include any co-paying agent unless
the context requires otherwise.

 

Section
3.7            Regarding Indenture
Trustee.

 

The parties to this Trust Agreement and each holder of
a Certificate by its acceptance thereof expressly acknowledge and consent to
Wells Fargo Bank, National Association, an affiliate of the Owner Trustee,
acting as Indenture Trustee pursuant to the Indenture. The Owner Trustee may
discharge its functions hereunder and under the other Transaction Documents
fully, without hindrance or regard to conflict of interest principles, duty of
loyalty principles or other breach of fiduciary duties to the extent that any
such conflict or breach arises from the performance by it of its express duties
set forth in this Trust Agreement, all of which defenses, claims or assertions
are hereby expressly waived by the other parties hereto and each holder of a
Certificate.

 

Article IV

Actions by Owner Trustee

 

Section
4.1            Prior Notice with Respect to Certain Matters.

 

With respect to the following matters, the Trust shall
not take action unless (a) at least thirty (30) days before the taking of such
action, the Owner Trustee shall have notified the Insurer and the Rating
Agencies in writing of the proposed action and (b) the Insurer, if an Insurer
Default shall not have occurred and be continuing, shall have previously
consented in writing thereto and the Depositor shall not have (i) notified the
Owner Trustee in writing prior to the 30th day after such notice is given that
it has withheld consent or (ii) provided alternative written direction prior to
the 30th day after such notice is given:

 

(A)          the
initiation of any claim or lawsuit by the Trust (except claims or lawsuits
brought by the Servicer in connection with the collection of the Contracts) and
the settlement of any action, claim or lawsuit brought by or against

 

11

 

the Trust (except with respect to the aforementioned claims or lawsuits
for collection by the Servicer of the Contracts);

 

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

 

(C)           the
amendment of the Indenture by a supplemental indenture in circumstances where
the consent of any Noteholder is required;

 

(D)          the
appointment pursuant to the Indenture of a successor Note Registrar, Paying
Agent for the Notes or Indenture Trustee or pursuant to this Agreement of a
successor Certificate Registrar, or the consent to the assignment by the Note
Registrar, Paying Agent for the Notes or Indenture Trustee or Certificate
Registrar of its obligations under the Indenture or this Agreement, as
applicable;

 

(E)           the
consent to the calling or waiver of any default of any Transaction Document;

 

(F)           the
consent to the assignment by the Indenture Trustee or Servicer of their
respective obligations under any Transaction Document, unless permitted in the
Transaction Documents;

 

(G)           cause
the Trust to incur, assume or guaranty any indebtedness other than as set forth
in this Agreement or the Transaction Documents;

 

(H)          possess
Trust assets, or assign the Trust’s right to property, for other than a Trust
purpose;

 

(I)            cause
the Trust to lend any funds to any entity, unless permitted in this Agreement
or the Transaction Documents;

 

(J)            except
as provided in Article IX hereof, dissolve, terminate or liquidate the
Trust in whole or in part;

 

(K)          merge
or consolidate the Trust with or into any other entity, or convey or transfer
all or substantially all of the Trust’s assets to any other entity;

 

(L)           do
any act that conflicts with any other Transaction Document;

 

(M)         do
any act which would make it impossible to carry on the ordinary business of the
Trust as described in Section 2.3 hereof;

 

(N)          confess
a judgment against the Trust; or

 

(O)          change
the Trust’s purpose and powers from those set forth in this Agreement.

 

12

 

In addition, the Trust shall not commingle its assets
with those of any other entity. The Trust shall maintain its financial and
accounting books and records separately from those of any other entity. Except
as expressly set forth herein, the Trust shall not pay any indebtedness,
operating expenses or liabilities of any other entity. The Trust shall maintain
appropriate minutes or other records of all appropriate actions and shall
maintain its offices separate from the offices of the Depositor and the
Servicer. The Trust shall maintain an arms length relationship with its
Affiliates, conduct its own business in its own name and hold itself out as a
separate entity from all other Persons.

 

Section
4.2            Action by Depositor with Respect to Certain
Matters.

 

The Owner Trustee may not, except upon the occurrence
of an Event of Servicing Termination subsequent to the payment in full of the
Notes and in accordance with the written direction of the Insurer, if an
Insurer Default shall not have occurred and be continuing, or the Depositor
(with the consent of the Insurer, provided that an Insurer Default shall not
have occurred and be continuing) (a) remove the Servicer pursuant to 5.02 of
the Servicing Agreement, (b) appoint a successor Servicer pursuant to 5.02 of
the Servicing Agreement, (c) remove the Administrator pursuant to Section 9 of
the Administration Agreement, (d) appoint a successor Administrator pursuant to
Section 9 of the Administration Agreement or (e) sell the Contracts after the
termination of the Indenture, except as expressly provided in the Transaction
Documents.

 

Section
4.3            Action by Owner Trustee with Respect to Bankruptcy.

 

(a)           The
Trust shall not, without the prior written consent of the Owner Trustee,
(i) institute any proceedings to adjudicate the Trust as bankrupt or
insolvent, (ii) consent to the institution of bankruptcy or insolvency
proceedings against the Trust, (iii) file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy with respect to the Trust, (iv) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, (v) make any
assignment for the benefit of the Trust’s creditors, (vi) admit in writing its
inability to pay its debts generally as they become due, or (vii) take any
action in furtherance of any of the foregoing (any of the above foregoing
actions, a “Bankruptcy Action”). In
considering whether to give or withhold written consent to any Bankruptcy
Action by the Trust, the Owner Trustee, with the consent of the Depositor
(hereby given, which consent the Depositor believes to be in the Trust’s and
its best interests), shall consider the interest of the Noteholders and the
Insurer in addition to the interests of the Trust and whether the Trust is
insolvent. The Owner Trustee shall have no duty to give such written consent to
Bankruptcy Action by the Trust if the Owner Trustee shall not have been
furnished (at the expense of the Person that requested that such letter be
furnished to the Owner Trustee) a letter from an independent accounting firm of
national reputation stating that in the opinion of such firm the Trust is then
insolvent.

 

The Owner Trustee (as such and in its individual
capacity) shall not be personally liable to any Person on account of the Owner
Trustee’s good faith reliance on the provisions of this Section or in
connection with the Owner Trustee’s giving prior written consent to Bankruptcy
Action by the Trust in accordance herewith, or withholding such consent, in
good faith, and neither the Trust nor the Depositor shall have any claim for
breach of fiduciary duty or otherwise

 

13

 

against the Owner Trustee
(as such and in its individual capacity) for giving or withholding its consent
to any such Bankruptcy Action.

 

(b)           The
parties hereto stipulate and agree that the Depositor has no power to commence
any Bankruptcy Action on the part of the Trust or to direct the Owner Trustee
to take any Bankruptcy Action on the part of the Trust. To the extent permitted
by applicable law, the consent of the Insurer (provided that no Insurer Default
has occurred and is continuing) and the Indenture Trustee shall be obtained
prior to taking any Bankruptcy Action by the Trust.

 

(c)           The
provisions of this Section do not constitute an acknowledgment or admission by
the Trust, the Owner Trustee, or any creditor of the Trust that the Trust is
eligible to be a debtor under the United States Bankruptcy Code, 11 U.S.C. §101
et. Seq., as amended.

 

Section
4.4            Restrictions on Insurer’s Power.

 

Neither the Insurer nor the Depositor shall direct the
Owner Trustee to take or refrain from taking any action if such action or
inaction would be contrary to any obligation of the Trust or the Owner Trustee
under this Agreement or any of the other Transaction Documents or would be
contrary to Section 2.3, nor shall the Owner Trustee be obligated to
follow any such direction, if given.

 

Article V

Application of Trust Funds; Certain Duties

 

Section
5.1            Establishment of Depositor Account.

 

Pursuant to Section 3.1(c) of the Sale and Allocation
Agreement, there shall be maintained in the name of the Trust at an Eligible
Institution a segregated trust account designated as the Depositor Account (the
“Depositor Account”). The Depositor
Account shall be held in trust for the benefit of the holder of the
Certificate. All monies deposited from time to time in the Depositor Account
pursuant to the Sale and Allocation Agreement shall be applied as provided in
this Agreement.

 

Section
5.2            Application of Trust Funds.

 

(a)           On
each Payment Date the Paying Agent with respect to the Certificate shall, after
payment of all liabilities of the Trust, including any amounts owing to the
Owner Trustee and the Insurer under the Transaction Documents, distribute all
amounts on deposit in the Depositor Account to the holder of the Certificate.

 

In addition, the Paying Agent with respect to the
Certificate shall, after payment of all liabilities of the Trust, including any
amounts owing to the Owner Trustee and the Insurer under the Transaction Documents,
promptly remit to the holder of the Certificate any amounts received from the
Indenture Trustee for the benefit of the holder of the Certificate in respect
of excess

 

14

 

amounts from the Reserve
Account pursuant to Section 3.6(d) of the Sale and Allocation Agreement.

 

(b)           In
the event that any withholding tax is imposed on any payment (or allocations of
income) by the Trust to the holder of the Certificate, such tax shall reduce
the amount otherwise distributable to the holder of the Certificate in
accordance with this Section 5.2. The Owner Trustee and each Paying
Agent with respect to the Certificate is hereby authorized and directed to
retain (as directed in writing by the Administrator) from amounts otherwise
distributable to the holder of the Certificate, sufficient funds for the
payment of any such withholding tax that is legally owed by the Trust (but such
authorization shall not prevent the Trust from contesting any such tax in
appropriate proceedings, and withholding payment of such tax, if permitted by
law, pending the outcome of such proceedings). The amount of any withholding
tax imposed with respect to the holder of the Certificate shall be treated as
cash distributed to the holder of the Certificate at the time it is withheld by
the Trust and remitted to the appropriate taxing authority. If there is a
possibility that withholding tax is payable with respect to a distribution, the
Owner Trustee or the Paying Agent with respect to the Certificate may, in its
sole discretion, withhold such amounts in accordance with this Section 5.2.
If the holder of the Certificate wishes to apply for a refund of any such
withholding tax, the Owner Trustee shall reasonably cooperate with the holder
of the Certificate in making such claim so long as the holder of the
Certificate agrees to reimburse the Owner Trustee, as such and in its
individual capacity, for any expenses incurred.

 

Section
5.3            Method of Payment.

 

Subject to Section 9.1(c), distributions
required to be made to the holder of the Certificate on any Payment Date shall
be made to the holder of the Certificate by wire transfer, in immediately
available funds, to the account (reasonably identified to the Paying Agent in
writing) of the holder of the Certificate at a bank or other entity having
appropriate facilities therefor. Notwithstanding the foregoing, the final
distribution in respect of the Certificate (whether on the Final Note Payment
Date or otherwise) will be payable only upon presentation and surrender of the
Certificate at the office of the Paying Agent with respect to the Certificate.

 

Section
5.4            No Segregation of Monies; No Interest.

 

Subject to Sections 5.1 and 5.2, monies
received by the Owner Trustee hereunder need not be segregated in any manner
except to the extent required by law, the Indenture or the Sale and Allocation
Agreement and may be deposited under such general conditions as may be
prescribed by law, and the Owner Trustee shall not be personally liable for any
interest thereon.

 

Article VI

Authority and Duties of Owner Trustee

 

Section
6.1            General Authority.

 

The Owner Trustee shall have power and authority and
is hereby authorized and empowered in the name and on behalf of the Trust to
execute and deliver the Transaction Documents to which the Trust is to be a
party and each certificate or other document attached as

 

15

 

an exhibit to or
contemplated by the Transaction Documents to which the Trust is to be a party
and any amendment or other agreement, in each case in such form as the
Depositor shall approve, as evidenced conclusively by the Owner Trustee’s
execution thereof and the Depositor’s execution of this Agreement, and to
direct the Indenture Trustee to authenticate and deliver Class A-1 Notes, Class
A-2 Notes, Class A-3 Notes and Class A-4 Notes in the aggregate principal
amounts of $32,000,000, $47,000,000, $74,000,000 and $36,060,000 respectively,
and Class B Notes in the aggregate principal amount of $2,879,112.45. In addition
to the foregoing, the Owner Trustee shall have power and authority and is
hereby authorized and empowered in the name and on behalf of the Trust to take
all actions required of or permitted to be taken by the Trust pursuant to the
Transaction Documents. The Owner Trustee shall have power and authority and is
hereby authorized and empowered in the name and on behalf of the Trust from
time to time to take such action on behalf of the Trust as is permitted by the
Transaction Documents and which the Servicer or the Administrator recommends
with respect to the Transaction Documents.

 

Section
6.2            General Duties.

 

It shall be the duty of the Owner Trustee to perform
(or cause to be performed) all of the duties expressly required to be performed
by the Owner Trustee under this Agreement and the other Transaction Documents
to which the Trust is a party. Notwithstanding the foregoing, the Owner Trustee
shall be deemed to have discharged its duties and responsibilities hereunder
and under the Transaction Documents to the extent the Administrator or any
other Person is required in the Administration Agreement or any other
Transaction Document to perform any act or to discharge such duty of the Owner
Trustee or the Trust hereunder or under any other Transaction Document, and the
Owner Trustee shall not be held personally liable for the default or failure of
the Administrator or any other Person to carry out its obligations under the
Administration Agreement or any other Transaction Document.

 

Section
6.3            Action Upon Instruction.

 

(a)           Subject
to Article IV, and in accordance with the terms of the Transaction
Documents, the Depositor may, by written instruction, direct the Owner Trustee
in the management of the Trust.

 

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

 

(c)           Whenever
the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or any other Transaction
Document, the Owner Trustee shall promptly give notice (in such form as shall
be appropriate under the circumstances) to the Insurer (so long as no Insurer
Default has occurred and is continuing) and the Depositor requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written

 

16

 

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

 

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

 

Section
6.4            No Duties Except as Specified in this Agreement or
in Instructions.

 

The Owner Trustee shall not have any duty or
obligation to manage, make any payment with respect to, register, record, sell,
dispose of or otherwise deal with the Owner Trust Estate, or to otherwise take
or refrain from taking any action under, or in connection with, this Agreement
or any document contemplated hereby, except the duties expressly required to be
performed by the Owner Trustee by the terms of this Agreement or in any
document or written instruction received by the Owner Trustee pursuant to Section
6.3, and no implied duties or obligations shall be read into this Agreement
or any other Transaction Document against the Owner Trustee. The Owner Trustee
shall have no responsibility for filing any financing or continuation statement
in any public office at any time or otherwise to perfect or maintain the
perfection of any security interest or lien or to prepare or file any
Securities and Exchange Commission filing for the Trust or to record this Agreement
or any other Transaction Document. The Owner Trustee, in its individual
capacity, shall, however, at its own cost and expense, promptly take all action
as may be necessary to discharge any lien (other than the lien of the
Indenture) on any part of the Owner Trust Estate that results from actions by,
or claims against, the Owner Trustee, in its individual capacity, that are not
related to the ownership or the administration of the Owner Trust Estate or the
Trust or the Owner Trustee’s serving as trustee of the Trust.

 

17

 

Section
6.5            No Action Except Under Specified Documents or
Instructions.

 

The Owner Trustee shall not manage, control, use,
sell, dispose of or otherwise deal with any part of the Owner Trust Estate
except (a) in accordance with the powers granted to and the authority conferred
upon the Owner Trustee pursuant to this Agreement, (b) in accordance with the
other Transaction Documents to which the Trust or the Owner Trust is a party
and (c) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 6.3.

 

Section
6.6            Restrictions.

 

The Owner Trustee shall not take any action (a) that
is inconsistent with the purposes of the Trust set forth in Section 2.3
or (b) that, to the actual knowledge of the Owner Trustee, would (i) adversely
affect the treatment of the Class A Notes as indebtedness for federal income or
income or franchise tax purposes of any Applicable Tax State, (ii) be deemed to
cause a taxable exchange of the Class A Notes for federal income or income or
franchise tax purposes of any Applicable Tax State or (iii) cause the Trust or
any portion thereof to be taxable as an association or publicly traded
partnership taxable as a corporation for federal income or income or franchise
tax purposes of Applicable Tax State.

 

The Depositor shall not direct the Owner Trustee to
take action that would violate the provisions of this Section 6.6.

 

Article VII

Regarding The Owner Trustee

 

Section
7.1            Acceptance of Trusts and Duties.

 

The Owner Trustee accepts the trusts hereby created
and agrees to perform the duties expressly required to be performed by the
Owner Trustee hereunder. The Owner Trustee also agrees to disburse all monies
actually received by it constituting part of the Owner Trust Estate upon the
terms of this Agreement and the other Transaction Documents to which the Trust
is a party. The Owner Trustee shall not be personally answerable or accountable
hereunder or under any other Transaction Document under any circumstances,
except for liability to the Trust and the Depositor (a) for its own willful
misconduct, bad faith or gross negligence or (b) in the case of the breach of
any representation or warranty contained in Section 7.3 expressly made
by the Owner Trustee in its individual capacity. In particular, but not by way
of limitation (and subject to the exceptions set forth in the preceding
sentence):

 

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

 

(ii)           the
Owner Trustee shall not be personally liable with respect to any action taken
or omitted to be taken in good faith by it in accordance with the provisions of
this Agreement at the instructions of the Indenture Trustee, the Insurer, the

 

18

 

Depositor, the
Administrator or the Servicer or other instructions given in accordance with
this Agreement or any other Transaction Document;

 

(iii)          no
provision of this Agreement or any other Transaction Document shall require the
Owner Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers hereunder or under any other Transaction
Document if the Owner Trustee shall have reasonable grounds to believe that
repayment of such funds or indemnity satisfactory to it in its individual
capacity against such risk or liability is not reasonably assured or provided
to it in its individual capacity;

 

(iv)          under
no circumstances shall the Owner Trustee be personally liable for indebtedness
evidenced by or arising under any of the Transaction Documents, the
Certificate, the Notes or other indebtedness of the Trust, including the
principal of and interest on the Notes;

 

(v)           the
Owner Trustee shall not be responsible or personally liable for or in respect
of the validity or sufficiency of this Agreement or for the due execution
hereof by the Depositor or for the form, character, genuineness, sufficiency,
value or validity of any of the Owner Trust Estate or Transaction Documents and
the Owner Trustee shall in no event assume or incur any personal liability,
duty, or obligation to any Noteholder, the Depositor or any other Person other
than as expressly provided for herein;

 

(vi)          the
Owner Trustee shall not be personally liable for the default or misconduct of
the Servicer, the Administrator, the Depositor, the Indenture Trustee or any
other Person under any of the Transaction Documents or otherwise, and the Owner
Trustee shall have no duty to monitor or supervise any other trustee hereunder,
if any, the Certificate Registrar (if other than the Owner Trustee), the
Administrator, the Paying Agent with respect to the Certificate (if other than
the Owner Trustee), any agent or independent contractor of the Trust, any
delegatee of any trustee or any other Person and the Owner Trustee (as such in
its individual capacity) shall have no obligation or liability to perform the
obligations of the Trust under this Agreement or the other Transaction
Documents that are not expressly required to be performed by the Owner Trustee
or that are required to be performed by the Administrator under the
Administration Agreement, the Servicer under the Sale and Allocation Agreement
or the Indenture Trustee under the Indenture;

 

(vii)         the
Owner Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement or any other Transaction Document or to
institute, conduct or defend any litigation under this Agreement or otherwise
or in relation to this Agreement or any other Transaction Document at the
request, order or direction of the Depositor or otherwise, unless the Owner
Trustee (as such and in its individual capacity) has been offered security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner
Trustee to perform any discretionary act enumerated in this Agreement or any
other Transaction Document shall not be construed as a duty, and the Owner
Trustee shall not be answerable or liable in its individual capacity except to
the Trust or the Depositor for its own willful misconduct, bad faith or gross
negligence in the performance of any such act;

 

19

 

(viii)        under
no circumstances shall the Owner Trustee be personally liable for any
representation, warranty, covenant, agreement or indebtedness of the Trust;

 

(ix)           in
any capacity in which it may act (or 
refrain from acting) pursuant to this Agreement or the other Transaction
Documents, the Owner Trustee (as such and in its individual capacity) shall be
entitled to the benefits of the Trust Agreement; and

 

(x)            in no event shall
the Owner Trustee be liable for any damages in the nature of special, indirect
or consequential damages, however styled, including, without limitation, lost
profits, or for any losses due to forces beyond the control of the Owner
Trustee, including, without limitation, strikes, work stoppages, acts of war or
terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of
God and interruptions, loss or malfunctions of utilities, communications or
computer (software and hardware) services provided to the Owner Trustee by
third parties.

 

Section
7.2            Furnishing of Documents.

 

The Owner Trustee shall furnish to the Depositor (with
a copy to the Insurer) promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Transaction Documents.

 

Section
7.3            Representations and Warranties.

 

The Owner Trustee, in its individual capacity, hereby
represents and warrants to the Depositor that:

 

(a)           it
is a limited purpose trust company duly organized and validly existing in good
standing under the laws of the State of Delaware and has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement;

 

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

 

(c)           neither
the execution nor the delivery by it of this Agreement, nor the consummation by
it of the transactions contemplated hereby nor compliance by it with any of the
terms or provisions hereof will constitute any default under its charter
documents or by-laws or any indenture, mortgage, contract, agreement or
instrument to which it is a party or by which any of its properties may be
bound.

 

Section
7.4            Reliance; Advice of Counsel.

 

(a)           The
Owner Trustee may rely upon, shall be fully protected in relying upon, and
shall incur no personal liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond or other document or paper believed by it to be genuine and
believed by it to be signed by an appropriate

 

20

 

Person. The Owner Trustee may conclusively rely (and
shall be fully protected in relying) upon an Opinion of Counsel. The Owner
Trustee may accept a certified copy of a resolution of the board of directors
or other governing body of any Person as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full
force and effect. As to any fact or matter the method of the determination of
which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer or other authorized officer of an appropriate
Person, as to such fact or matter and such certificate shall constitute full
protection to the Owner Trustee (as such and in its individual capacity) for
any action taken or omitted to be taken by it in good faith in reliance
thereon.

 

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

 

Section
7.5            Not Acting in Individual Capacity.

 

Except as provided in this Article VII, in
accepting the trusts hereby created, Wells Fargo Delaware Trust Company, acts
solely as Owner Trustee hereunder and not in its individual capacity, and all
Persons having any claim against the Owner Trustee by reason of the
transactions contemplated by this Agreement or any other Transaction Document
shall look only to the Owner Trust Estate for payment or satisfaction thereof.

 

Section
7.6            Owner Trustee Not Liable for Contracts.

 

The recitals contained herein and in the Certificate
(other than the signature and countersignature of the Owner Trustee on the
Certificate) shall be taken as the statements of the Depositor, and the Owner
Trustee assumes no personal responsibility for the correctness thereof. The
Owner Trustee (as such or in its individual capacity) makes no representations
as to the validity or sufficiency of this Agreement, any other Transaction
Document or the Certificate (other than the signature and countersignature of
the Owner Trustee on the Certificate) or the Notes, or of any Contract or
related documents. The Owner Trustee shall at no time have any responsibility
or personal liability for or with respect to the legality, validity and
enforceability of any Contract, or the perfection and priority of any security
interest created by any Contract in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Owner Trust Estate or its ability to generate the payments to be
distributed to the holder of the Certificate under this Agreement or the
Noteholders under the Indenture, including, without limitation, the existence,
condition and ownership of any Financed Vehicle, the existence and
enforceability of any insurance thereon, the existence and contents of any
Contract on any computer or other record thereof, the validity of the
assignment of any

 

21

 

Contract to the Trust or
any intervening assignment, the completeness of any Contract, the performance
or enforcement of any Contract, the compliance by the Depositor or the Servicer
with any warranty or representation made under any Transaction Document or in
any related document, or the accuracy of any such warranty or representation or
any action of the Indenture Trustee, the Administrator or the Servicer or any
subservicer or any other Person taken in the name of the Owner Trustee.

 

Section
7.7            Owner Trustee May Own Notes.

 

The Owner Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may deal with the
Depositor, the Servicer, the Administrator and the Indenture Trustee in banking
transactions with the same rights as it would have if it were not Owner
Trustee.

 

Article VIII

Compensation of Owner Trustee

 

Section
8.1            Owner Trustee’s Fees and Expenses.

 

The Owner Trustee in its individual capacity shall
receive as compensation for its services hereunder the Owner Trustee Fee, in
accordance with the priorities set forth in Section 3.5(d) of the Sale and
Allocation Agreement, and the Owner Trustee shall be reimbursed in its
individual capacity by the Issuer in accordance with the priorities set forth
in Section 3.5(d) of the Sale and Allocation Agreement and in accordance with
the terms of the Owner Trustee Fee Letter for its other reasonable expenses
hereunder, including the reasonable compensation, expenses and disbursements of
such agents, representatives, experts and counsel as the Owner Trustee may
employ in connection with the exercise and performance of its rights, powers,
authorities and duties.

 

Section
8.2            Indemnification.

 

(a)           To
the extent not paid by the Trust in accordance with Section 3.5(d) of the Sale
and Allocation Agreement, the Depositor shall be liable for, and shall
indemnify, from funds available to it pursuant to Section 3.5(d)(xi) of the
Sale and Allocation Agreement, the Owner Trustee in its individual capacity and
its successors, assigns, directors, officers, employees, agents and servants
(collectively, the “Indemnified Parties”)
from and against, any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever (collectively, “Expenses”)
which may at any time be imposed on, incurred by, or asserted against the Owner
Trustee in its individual capacity, or any other Indemnified Party in any way
relating to or arising out of this Agreement, the other Transaction Documents,
the Owner Trust Estate, the administration of the Owner Trust Estate or the
action or inaction of the Owner Trustee hereunder; provided, however,
that the Depositor shall not be liable for or required to indemnify an
Indemnified Party from and against Expenses arising or resulting from any of the
matters described in clauses (a) and (b) of the third sentence of
Section 7.1. Neither of the Owner Trustee nor the Depositor will in
any event be entitled to

 

22

 

make any claim upon the Trust Property for the payment
or reimbursement of any Expenses except in accordance with the Transaction
Documents. The indemnities contained in this Section 8.2 and the other
benefits, protections and immunities of the Owner Trustee (as such and in its
individual capacity) under this Agreement shall survive the resignation or
removal of the Owner Trustee and the termination of this Agreement.

 

(b)           Any
obligations of the Depositor under this Agreement are obligations solely of the
Depositor and will not constitute a claim against the Depositor to the extent
that the Depositor does not have funds sufficient to make payment of such
obligations. In furtherance of and not in derogation of the foregoing, the
Owner Trustee, by entering into or accepting this Agreement, acknowledges and
agrees that it has no right, title or interest in or to the Other Assets of the
Depositor. To the extent that, notwithstanding the agreements and provisions
contained in the preceding sentence, the Owner Trustee either (i) asserts an
interest or claim to, or benefit from, Other Assets, or (ii) is deemed to have
any such interest, claim to, or benefit in or from Other Assets, whether by
operation of law, legal process, pursuant to applicable provisions of
insolvency laws or otherwise (including by virtue of Section 1111(b) of the
Bankruptcy Code or any successor provision having similar effect under the
Bankruptcy Code), then the Owner Trustee further acknowledges and agrees that
any such interest, claim or benefit in or from Other Assets is and will be
expressly subordinated to the indefeasible payment in full, which, under the
terms of the relevant documents relating to the securitization or conveyance of
such Other Assets, are entitled to be paid from, entitled to the benefits of,
or otherwise secured by such Other Assets (whether or not any such entitlement
or security interest is legally perfected or otherwise entitled to a priority
of distributions or application under applicable law, including insolvency
laws, and whether or not asserted against the Depositor), including the payment
of post-petition interest on such other obligations and liabilities. This
subordination agreement will be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. The Owner Trustee further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section 8.2(b) and the terms of this Section 8.2(b) may be
enforced by an action for specific performance. The provisions of this Section
8.2(b) will be for the third party benefit of those entitled to rely
thereon and will survive the termination of this Agreement.

 

Section
8.3            Payments to the Owner Trustee.

 

Any amounts paid to the Owner Trustee in its
individual capacity pursuant to this Article VIII shall be deemed not to
be a part of the Owner Trust Estate immediately after such payment.

 

Article IX

Termination

 

Section
9.1            Termination of Trust Agreement.

 

(a)           The
Trust shall dissolve at the earlier of (i) the payment to the Noteholders, the
Depositor and the Insurer of all amounts required to be paid to them pursuant
to the terms of the Indenture, the Sale and Allocation Agreement, the Insurance
Agreement and Article V herein or (ii) the Payment Date next succeeding
the month which is one year after the

 

23

 

maturity or other liquidation of the last Contract and
the disposition of any amounts received upon liquidation of any property
remaining in the Trust; provided, however, in each case, that the
Policy shall have been terminated in accordance with its terms and returned to
the Insurer for cancellation. The bankruptcy, liquidation, dissolution, death
or incapacity of the Depositor shall not operate to terminate or dissolve this
Agreement or the Trust, entitle the Depositor’s legal representatives or heirs
to claim an accounting or to take any action or proceeding in any court for a
partition or winding up of all or any part of the Trust or Owner Trust Estate
or otherwise affect the rights, obligations and liabilities of the parties
hereto.

 

(b)           The
Depositor shall not be entitled to revoke or terminate the Trust.

 

(c)           Notice
of any dissolution of the Trust, specifying the Payment Date upon which the
Depositor shall surrender the Certificate to the Paying Agent with respect to
the Certificate for payment of the final distribution and cancellation, shall
be given by the Owner Trustee by letter to the Depositor mailed within five (5)
Business Days of receipt by the Owner Trustee of written notice of such
dissolution from the Servicer, stating (i) the Payment Date upon or with
respect to which final payment of the Certificate shall be made upon
presentation and surrender of the Certificate at the office of the Paying Agent
therein specified, (ii) the amount of any such final payment and (iii) that the
Record Date otherwise applicable to such Payment Date is not applicable,
payments being made only upon presentation and surrender of the Certificate at
the office of the Paying Agent therein specified. The Owner Trustee shall give
such notice to the Certificate Registrar (if other than the Owner Trustee) and
the Paying Agent with respect to the Certificate at the time such notice is
given to the Depositor. Upon presentation and surrender of the Certificate, the
Paying Agent with respect to the Certificate shall cause to be distributed to
the Depositor amounts distributable on such Payment Date pursuant to Section
5.2. In the event that the Depositor shall not surrender the Certificate
for cancellation within six (6) months after the date specified in the above
mentioned written notice, the Owner Trustee shall give a second written notice
to the Depositor to surrender the Certificate for cancellation and receive the
final distribution with respect thereto. If within one year after the second
notice the Certificate shall not have been surrendered for cancellation, the
Owner Trustee may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the Depositor concerning surrender of the
Certificate and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Agreement. Subject to applicable
escheat laws, any funds remaining in the Trust after exhaustion of such
remedies shall be distributed by the Paying Agent with respect to the
Certificate to the holder of the Certificate.

 

(d)           Upon
the completion of the winding up of the Trust, the Owner Trustee, at the
written direction of the Administrator, shall cause the Certificate of Trust to
be canceled by filing a certificate of cancellation with the Secretary of State
in accordance with the provisions of Section 3810 of the Statutory Trust Act,
and thereupon, this Agreement shall terminate.

 

Section
9.2            Notification Regarding Bankruptcy of the Depositor.

 

Promptly after the occurrence of any Insolvency Event
with respect to the Depositor, (a) the Depositor shall give the Owner
Trustee, the Indenture Trustee and the Insurer written

 

24

 

notice of such Insolvency
Event, (b) the Owner Trustee shall, upon receipt of such written notice from
the Depositor, give prompt written notice to the Indenture Trustee of the
occurrence of such event and (c) the Indenture Trustee shall, upon receipt of
such written notice from the Depositor or the Owner Trustee, give prompt
written notice to the Noteholders of the occurrence of such event.

 

Article X

Successor Owner Trustees and Additional Owner Trustees

 

Section
10.1         Eligibility Requirements for Owner Trustee.

 

The Owner Trustee shall at all times (a) be a Person
satisfying the provisions of Section 3807(a) of the Statutory Trust Act, (b) be
authorized to exercise corporate trust powers, (c) have or have a parent that
has a combined capital, surplus and undivided profits of at least $50,000,000 and
be subject to supervision or examination by federal or state authorities and
(d) have (or have a parent that has) a long-term debt rating of investment
grade by each of the Rating Agencies or otherwise be acceptable to each of the
Rating Agencies and the Insurer (provided that no Insurer Default shall have
occurred and be continuing). If such Person shall publish reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purpose of this Section
10.1 the combined capital and surplus of such Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Owner Trustee shall cease to be
eligible in accordance with the provisions of this Section 10.1, the
Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 10.2.

 

Section
10.2         Resignation or Removal of Owner Trustee.

 

The Owner Trustee may at any time resign and be
discharged from the trusts hereby created by giving written notice thereof to
the Administrator and the Insurer. Upon receiving such notice of resignation,
the Administrator shall promptly appoint a successor Owner Trustee, with the
consent of the Insurer, by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee and one copy to
the successor Owner Trustee. If no successor Owner Trustee shall have been so
appointed and have accepted appointment within thirty (30) days after the
giving of such notice of resignation, the resigning Owner Trustee may petition
any court of competent jurisdiction at the expense of the Administrator for the
appointment of a successor Owner Trustee.

 

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

 

25

 

instrument, in duplicate,
one copy of which instrument shall be delivered to the removed Owner Trustee
and one copy to the successor Owner Trustee.

 

Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to this Section 10.2
shall not become effective until either (a) acceptance of appointment by the
successor Owner Trustee pursuant to Section 10.3 and payment of all
amounts owed to the outgoing Owner Trustee in its individual capacity or (b)
the Trust has been dissolved pursuant to Section 9.1 hereof and all
amounts received, if any, in connection with the liquidation of the Trust shall
have been distributed to the Noteholders and the Depositor and all amounts
owing to the Insurer have been paid. The Administrator shall provide notice of
such resignation or removal of the Owner Trustee to the Indenture Trustee, the
Depositor, the Noteholders and each of the Rating Agencies.

 

Section
10.3         Successor Owner Trustee.

 

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

 

No successor Owner Trustee shall accept appointment as
provided in this Section 10.3 unless, at the time of such acceptance,
such successor Owner Trustee shall be eligible pursuant to Section 10.1.

 

Any successor Owner Trustee appointed pursuant to this
Section 10.3 shall file an amendment to the Certificate of Trust with
the Secretary of State reflecting the name and principal place of business of
such successor in the State of Delaware.

 

Upon acceptance of appointment by a successor Owner
Trustee pursuant to this Section 10.3, the Administrator shall mail
notice of such appointment to the Depositor, the Indenture Trustee, the
Noteholders and the Rating Agencies. If the Administrator shall fail to mail
such notice within ten (10) days after acceptance of appointment by the
successor Owner Trustee, the successor Owner Trustee shall cause such notice to
be mailed at the expense of the Administrator.

 

Section
10.4         Merger or Consolidation of Owner Trustee.

 

(a)           If
the Owner Trustee consolidates with, merges or converts into, or transfers all
or substantially all its corporate trust business or assets to, another Person,
the resulting, surviving or transferee Person without any further act shall be
the successor Owner

 

26

 

Trustee; provided, however, that such
Person must be otherwise qualified and eligible under Section 10.1. The
Owner Trustee shall provide the Rating Agencies and Insurer with prior written
notice of any such transaction.

 

(b)           If
at the time such successor or successors by consolidation, merger or conversion
to the Owner Trustee shall succeed to the trusts created by this Agreement, a
Certificate shall have been authenticated but not delivered, any such successor
to the Owner Trustee may adopt the certificate of authentication of any
predecessor trustee and deliver the Certificate so authenticated, and in case
at that time the Certificate shall not have been authenticated, such successor
to the Owner Trustee may authenticate the Certificate either in the name of any
predecessor trustee or in the name of the successor to the Owner Trustee. In
all such cases such certificate shall have the full force which the Certificate
or this Agreement provide that the certificate of the Owner Trustee shall have.

 

Section
10.5         Appointment of Co-Trustee or Separate Trustee.

 

(a)           Notwithstanding
any other provisions of this Agreement, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Owner Trust
Estate or any Financed Vehicle may at the time be located, the Administrator
and the Owner Trustee acting jointly shall have the power and authority (with
the consent of the Insurer, provided that no Insurer Default shall have
occurred and be continuing) and may execute and deliver an instrument to
appoint one or more Persons approved by the Owner Trustee to act as co-trustee
or co-trustees, jointly with the Owner Trustee, or separate trustee or separate
trustees, of all or any part of the Owner Trust Estate, and to vest in such
Person or Persons, in such capacity and for the benefit of the Depositor, such
title to the Owner Trust Estate, or any part thereof, and, subject to the other
provisions of this Section 10.5, such powers, authority, duties,
obligations, rights and trusts as the Administrator and the Owner Trustee may
consider necessary or desirable. If the Administrator shall not have joined in
such appointment within fifteen (15) days after the receipt by it of a request
to do so, the Owner Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee under this Agreement shall be
required to meet the terms of eligibility as a successor trustee under Section
10.1 and no notice of the appointment of any co-trustee or separate trustee
shall be required under Section 10.3.

 

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

 

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

 

27

 

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

 

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

 

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

 

(d)           Any
separate trustee or co-trustee may at any time constitute the Owner Trustee,
its agent or attorney-in-fact with full power and authority, to the extent
permitted by law, to do any lawful act under or in respect of this Agreement on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

 

Article XI

Miscellaneous

 

Section
11.1         Supplements and Amendments.

 

(a)           This
Agreement may be amended from time to time by the Depositor and the Owner
Trustee in its individual capacity, with prior written notice to the Rating
Agencies and the Insurer, without the consent of any of the Noteholders, and
with the prior written consent of the Insurer (if no Insurer Default shall have
occurred and be continuing) to cure any ambiguity, to correct or supplement any
provision herein that may be inconsistent with any other provision herein or in
the offering document used in connection with the initial sale of the Notes or
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement; provided, however,
that (i) such action shall not, as evidenced by an Opinion of Counsel
satisfactory to the Owner Trustee and the Indenture Trustee, adversely affect
in any material respect the interests of any Noteholder and (ii) an Opinion of
Counsel shall be furnished to the Owner Trustee and the Indenture Trustee to
the effect that such amendment (A) will not materially adversely affect the
federal or any Applicable Tax State income or franchise taxation of any
outstanding Note or any Noteholder and (B) will not cause the Trust to be an
association or publicly traded partnership taxable as a corporation for federal
or any Applicable Tax State income or franchise tax purposes.

 

28

 

(b)           This
Agreement may be amended from time to time by the Depositor and the Owner
Trustee in its individual capacity, with prior written notice to the Rating
Agencies and the Insurer, with the prior written consent of the Insurer (if no
Insurer Default shall have occurred and be continuing) and with the consent of
the Holders (as defined in the Indenture) of Class A Notes evidencing not less
than 51% of the Class A Note Balance, for the purpose of adding any provisions
to, or changing in any manner or eliminating any of the provisions of this
Agreement or modifying in any manner the rights of the Noteholders; provided,
however, that, subject to the express rights of the Insurer under the
Transaction Documents, no such amendment shall (i) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, or change the
allocation or priority of, collections of payments on the Contracts or distributions
that are required to be made on any Note, or change the Class A Note Rate, or
(ii) reduce the aforesaid percentage of the Class A Note Balance required to
consent to any such amendment, without the consent of all the Noteholders
affected thereby or (iii) adversely affect the ratings of the Class A Notes by
the Rating Agencies (without giving effect to the Policy) without the consent
of the Holders (as defined in the Indenture) of Class A Notes evidencing not
less than 66 2/3% of the aggregate principal amount of the then outstanding
Class A Notes; and, provided  further, that (A) such action shall
not, as evidenced by an Opinion of Counsel satisfactory to the Owner Trustee,
the Insurer and the Indenture Trustee, adversely affect in any material respect
the interests of any Noteholder and (B) an Opinion of Counsel shall be
furnished to the Indenture Trustee, the Insurer and the Owner Trustee to the
effect that such amendment (1) will not materially adversely affect the federal
or any Applicable Tax State income or franchise taxation of any outstanding
Note or any Noteholder and (2) will not cause the Trust to be an association or
publicly traded partnership taxable as a corporation for federal or any
Applicable Tax State income or franchise tax purposes.

 

(c)           Promptly
after the execution of any such amendment or consent, the Owner Trustee shall
furnish, at the expense of the Depositor, written notification of the substance
of such amendment or consent to the Indenture Trustee and each of the Rating
Agencies.

 

(d)           It
shall not be necessary for the consent of the Noteholders or the Indenture
Trustee pursuant to this Section 11.1 to approve the particular form of
any proposed amendment or consent, but it shall be sufficient if such consent
shall approve the substance thereof. The manner of obtaining such consents (and
any other consents provided for in this Agreement or in any other Transaction
Document) and of evidencing the authorization of the execution thereof shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.

 

(e)           Promptly
after the execution of any amendment to the Certificate of Trust, the Owner
Trustee shall file such amendment or cause such amendment to be filed with the
Secretary of State.

 

(f)            The
Owner Trustee may, but shall not be obligated to, enter into any such amendment
that affects the Owner Trustee’s own rights, duties, liabilities or immunities
(as such or in its individual capacity) under this Agreement or otherwise.

 

29

 

(g)           Prior
to the execution of any amendment to this Agreement or any amendment to any
other agreement to which the Trust is a party, the Owner Trustee shall be
entitled to receive and shall be fully protected in relying upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and that all conditions precedent in this Agreement to the
execution and delivery of such amendment have been satisfied. Notwithstanding
any other provision herein or elsewhere, no amendment, supplement, waiver or
consent of or with respect to any other Transaction Document that affects any
right, power, authority, duty, benefit, protection, privilege, immunity or
indemnity of the Owner Trustee (as such or in its individual capacity) shall be
binding on the Owner Trustee (as such or in its individual capacity) unless the
Owner Trustee (as such and in its individual capacity) shall have expressly
consented thereto in writing.

 

Section
11.2         No Legal Title to Owner Trust Estate in the
Depositor.

 

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

 

Section
11.3         Limitation on Rights of Others.

 

The provisions of this Agreement are solely for the
benefit of the Owner Trustee (as such and in its individual capacity), the
Insurer, the Depositor, the Administrator, the Servicer, the Indemnified
Parties and, to the extent expressly provided herein, the Indenture Trustee and
the Noteholders, and nothing in this Agreement or the Certificate, whether
express or implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Owner Trust Estate or under or in
respect of this Agreement or any covenants, conditions or provisions contained
herein.

 

Section
11.4         Notices.

 

All demands, requests, directions, instructions,
notices and other communications under this Agreement shall be in writing,
personally delivered, sent by telecopier, overnight courier or mailed by
certified mail, return receipt requested, and shall be deemed to have been duly
given upon receipt 1. in the case of the Owner Trustee, at the Corporate Trust
Office, with a copy to Wells Fargo Delaware Trust Company, 919 North Market
Street, Suite 700, Wilmington, DE 19801, Attention:  Corporate Trust Administration, 2. in the
case of the Depositor, at the following address: 675 Bering Drive, Suite 710,
Houston, Texas 77057, 3. in the case of the Indenture Trustee, at the following
address: Sixth Street and Marquette Avenue MAC N9311-161, Minneapolis,
Minnesota 55479, Attention: Corporate Trust Services - Asset-Backed
Administration, 4. in the case of Moody’s, at the following address: Moody’s
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007,
ServicerReports@moodys.com, Attn: Yan Yan, with an additional copy to Moody’s
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007,
Attn: ABS Monitoring Department, 5. in the case of S&P, if

 

30

 

available electronically,
at Servicer_reports@sandp.com, and if not available electronically, at the
following address: Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, 43rd Floor, New York, New York
10041, Attention: ABS Surveillance Group, and 6. in the case of the Insurer, at
the following address: MBIA Insurance Corporation, 113 King Street, Armonk, New
York 10504, Attention: Insured Portfolio Management, Structured Finance.

 

Section
11.5         Severability.

 

If any provision of this Agreement or the Certificate
shall be held for any reason whatsoever invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions of this
Agreement and the Certificate shall not in any way be affected or impaired
thereby.

 

Section
11.6         Separate Counterparts.

 

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

 

Section
11.7         Successors and Assigns.

 

All covenants and agreements in this Agreement shall
be binding upon, and inure to the benefit of the Depositor, the Insurer and the
Owner Trustee (as such and in its individual capacity) and its successors as
herein provided.

 

Section
11.8         Covenants of the Depositor.

 

The Depositor shall not at any time institute against
the Trust, or join in any institution against the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Agreement or any
of the other Transaction Documents.

 

Section
11.9         No Petition.

 

The Owner Trustee (not in its individual capacity but
solely as Owner Trustee), by entering into this Agreement, and the Depositor,
the Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, hereby covenant and agree and shall be deemed to covenant and agree
that they will not at any time institute against or knowingly or intentionally
cooperate or encourage any other Person in instituting against, the Depositor
or the Trust, in any, bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to the Notes, this Agreement or any of the other Transaction Documents.

 

31

 

Section
11.10       Headings.

 

The Article and Section headings herein and the Table
of Contents are for convenience only and shall not define or limit any of the
terms or provisions hereof.

 

Section
11.11       Governing Law.

 

This Agreement shall be construed in accordance with
the laws of the State of Delaware and the obligations, rights and remedies of
the parties under this Agreement shall be determined in accordance with such
laws.

 

Section
11.12       Amendment of Trust Agreement.

 

This Agreement amends, restates and replaces in its
entirety the Original Trust Agreement.

 

Section
11.13       Owner Trustee Presumption.

 

For all purposes, the Owner Trustee shall be entitled
to presume (and shall be fully protected in presuming) that no Insurer Default
has occurred or exists unless a Responsible Officer of the Owner Trustee has
obtained actual knowledge or received written notice to the contrary.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

32

 

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

 

	
   

  	
  FIRST INVESTORS
  AUTO FUNDING CORPORATION,

  
	
   

  	
  as Depositor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  DELAWARE TRUST COMPANY,

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

Exhibit A

Form of Certificate

 

THIS CERTIFICATE
OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED,

ASSIGNED, EXCHANGED OR CONVEYED

 

FIRST INVESTORS AUTO OWNER TRUST 2006-A

 

CERTIFICATE

 

Evidencing a beneficial interest in the property of
the Trust, as defined below, which property includes a pool of retail
installment sales contracts secured by new and used automobiles and light-duty
trucks sold to the Trust by First Investors Auto Funding Corporation. The
property of the Trust has been pledged to the Indenture Trustee pursuant to the
Indenture to secure the payment of the Notes issued thereunder.

 

(This Certificate does not represent an interest in or
obligation of First Investors Auto Funding Corporation, Wells Fargo Delaware
Trust Company, First Investors Financial Services, Inc. or any of their
respective affiliates, except to the extent described below.)

 

THIS CERTIFIES THAT First Investors Auto Funding
Corporation is the registered owner of a beneficial interest in First Investors
Auto Owner Trust 2006-A (the “Trust”)
formed by First Investors Auto Funding Corporation, a Delaware company (the “Depositor”).

 

The Trust was created pursuant to an initial Trust
Agreement, dated as of January 4, 2006 as amended by the Amended and Restated
Trust Agreement (as further amended, supplemented or otherwise modified and in
effect from time to time, the “Trust  Agreement”),
by and between the Depositor and Wells Fargo Delaware Trust Company, as owner
trustee (the “Owner Trustee”), a summary of certain of the pertinent
provisions of which is set forth below. To the extent not otherwise defined
herein, the capitalized terms used herein have the meanings assigned to them in
the Trust Agreement or the Sale and Allocation Agreement, dated as of January
26, 2006 (as amended, supplemented or otherwise modified and in effect from
time to time, the “Sale and Allocation Agreement”),
by and among the Trust, the Indenture Trustee, the Depositor and First
Investors Servicing Corporation, as servicer (the “Servicer”),
as applicable.

 

This certificate is the Certificate referred to in the
Trust Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, to which Trust Agreement the
holder of this Certificate, by virtue of the acceptance hereof, assents and by
which the holder of this Certificate is bound. The property of the Trust
includes: (i) the Contracts; (ii) all amounts received on or in respect of the
Contracts after the applicable Cutoff Date (except interest received which is
accrued prior to the Cutoff Date); (iii) the Collection Account, the Reserve
Account, the Prefunding Account, the Class A Note Payment Account and the Class
B Note Payment Account and all amounts, securities, financial assets,
investments and other property deposited in or credited to any of the foregoing
and all proceeds thereof; (iv) the security interests in the Financed Vehicles;
(v) all proceeds from claims on or refunds of premiums with respect to physical
damage, theft, credit life and credit disability insurance policies and
extended warranties relating to the Financed Vehicles or the related Obligors; (vi)

 

 

any Liquidation Proceeds;
(vii) all of the Trust’s rights to the Contract Files; (viii) all of the
Trust’s rights under the Servicing Agreement, the Contribution Agreement and
the Sale and Allocation Agreement to cause the Servicer, the Seller and the
Depositor, respectively, to purchase Contracts affected materially and
adversely by breaches of the representations and warranties of the Servicer
made in the Servicing Agreement; and (ix) all present and future claims,
demands, causes of action and chooses in action in respect of any or all of the
foregoing and all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and
other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing. THE RIGHTS OF THE TRUST IN THE FOREGOING PROPERTY OF THE
TRUST HAVE BEEN PLEDGED TO THE INDENTURE TRUSTEE TO SECURE THE PAYMENT OF THE
NOTES.

 

Under the Trust Agreement, there will be distributed
on the fifteenth day of each month or, if such fifteenth day is not a Business
Day, the next Business Day (each, a “Payment Date”),
commencing on February 15, 2006, to the holder of this Certificate such amount
to be distributed to the holder of this Certificate in accordance with the Sale
and Allocation Agreement on such Payment Date. Notwithstanding the foregoing,
following the occurrence and during the continuation of an Event of Default
under the Indenture which has resulted in an acceleration of the Notes, no
distributions will be made on the Certificate until all the Notes have been
paid in full.

 

THE HOLDER OF THIS CERTIFICATE ACKNOWLEDGES AND AGREES
THAT ITS RIGHTS TO RECEIVE DISTRIBUTIONS IN RESPECT OF THIS CERTIFICATE ARE
SUBORDINATED TO THE RIGHTS OF THE NOTEHOLDERS AS DESCRIBED IN THE SALE AND
ALLOCATION AGREEMENT AND THE TRUST AGREEMENT.

 

It is the intent of the Depositor that, for purposes
of federal income, state and local income tax and any other income taxes, the
Trust will not be treated as an association or publicly traded partnership
taxable as a corporation. Any person having an interest in the Certificate by
acceptance of its interest in the Certificate agrees to such treatment and
agrees to take no action inconsistent with such treatment.

 

The holder of this Certificate, by its acceptance of
this Certificate or any beneficial interest therein, covenants and agrees and shall
be deemed to covenant and agree that it will not at any time institute against
or knowingly or intentionally cooperate or encourage any other Person in
instituting against the Trust, or join in any institution against the Trust,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Trust Agreement or any of the other Transaction Documents (as
defined in the Trust Agreement).

 

Distributions on this Certificate will be made as
provided in the Trust Agreement by the Paying Agent by wire transfer or check
mailed to the holder of this Certificate without the

 

A-2

 

presentation or surrender of this Certificate or the
making of any notation hereon. Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Owner Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency maintained for the purpose by the Paying
Agent.

 

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

 

This Certificate shall be construed in accordance with
the laws of the State of Delaware, and the obligations, rights and remedies of
the parties hereunder shall be determined in accordance with such laws.

 

A-3

 

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

 

	
   

  	
  FIRST INVESTORS AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wells Fargo Delaware Trust Company, not in

  its individual capacity but solely as Owner

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: January     , 2006

 

	
  Wells Fargo Delaware Trust Company not in its individual capacity but
  solely as Owner Trustee

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Authorized Officer

  	
  as Authenticating Agent

  
							

 

A-4

 

Exhibit B

Certificate of Trust

 

[Copy of Filed Certificate To Be
Attached]Exhibit 10.125(u)

 

EXECUTION COPY

 

 

 

FIRST INVESTORS AUTO OWNER TRUST 2006-A

As Issuer,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

As Indenture Trustee and Custodian

 

 

INDENTURE

Dated as of January 26, 2006

 

$32,000,000 4.5685% Class A-1 Asset-Backed Notes

$47,000,000 4.87% Class A-2 Asset-Backed Notes

$74,000,000 4.93% Class A-3 Asset-Backed Notes

$36,060,000 5.00% Class A-4 Asset-Backed Notes

$2,879,112.45 Class B Asset-Backed Notes

 

 

 

 

INDENTURE, dated as of January 26, 2006 (as amended,
supplemented or otherwise modified and in effect from time to time, this “Indenture”), between FIRST INVESTORS
AUTO OWNER TRUST 2006-A, a Delaware statutory trust (the “Issuer”), and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association, not in its individual
capacity but solely as indenture trustee and as custodian (in such capacities,
the “Indenture Trustee”
and the “Custodian”).

 

Each party agrees as follows for the benefit of the
other party and for the benefit of the Noteholders:

 

GRANTING
CLAUSE

 

The Issuer hereby Grants to the Indenture Trustee on
the Closing Date, for the benefit of the Noteholders and the Insurer, all of
the Issuer’s right, title and interest in, to and under, whether now owned or
existing or hereafter acquired or arising: 
(i) the Contracts listed in the Contract Schedule as of the Closing Date
(the “Initial Contracts”) and the Additional Contracts; (ii) all amounts
received on or in respect of the Contracts after the applicable Cutoff Dates
(except interest received which accrued before such Cutoff Dates); (iii) the
security interests in the Financed Vehicles granted by the Obligors pursuant to
the Contracts; (iv) all proceeds from claims on or refunds of premiums with
respect to any physical damage, credit life or credit disability insurance
policies covering the Financed Vehicles or the Obligors; (v) any Liquidation
Proceeds; (vi) all of the Issuer’s rights to the Contract Files; (vii) the
Collection Account, the Reserve Account, the Prefunding Account, the Class A
Note Payment Account and the Class B Note Payment Account and all amounts,
securities, financial assets, investments and other property deposited in or
credited to any of the foregoing and all proceeds thereof; (viii) all of the
Issuer’s rights under the Sale and Allocation Agreement, the Contribution
Agreement and the Servicing Agreement, including the right of the Issuer to
cause the Depositor, Seller or the Servicer, as applicable, to repurchase
Contracts from the Issuer; and (ix) all present and future claims, demands,
causes of action and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of
the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the “Collateral”).

 

The foregoing Grant is made in trust to secure the
payment of principal of and interest on, and any other amounts owing in respect
of, the Notes, equally and ratably without prejudice, priority or distinction,
and to secure compliance with the provisions of this Indenture, all as provided
in this Indenture.

 

The Indenture Trustee, as Indenture Trustee on behalf
of the Noteholders, acknowledges such Grant, accepts the trusts under this
Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the best of its ability to the
end that the interests of the Noteholders and the Insurer may be adequately and
effectively protected.

 

 

Article
I

 

Definitions

 

Section 1.1.           Definitions.

 

(a)           Except
as otherwise specified herein or as the context may otherwise require, the
following terms shall have the respective meanings set forth below for all
purposes of this Indenture.

 

Act: 
As defined in Section 11.3(a).

 

Administration
Agreement:  The Administration Agreement, dated as of the
date hereof, by and among the Administrator, the Issuer and the Indenture
Trustee, as the same may from time to time be amended, supplemented or
otherwise modified and in effect.

 

Administrator: 
First Investors or any successor Administrator under the Administration
Agreement.

 

Authenticating
Agent:  As defined in Section 2.14.

 

Authorized Officer: 
With respect to (i) the Issuer, any officer of the Owner Trustee who is
authorized to act for or on behalf of the Owner Trustee in matters relating to
the Issuer and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter) and, for so long
as the Administration Agreement is in full force and effect, any officer of the
Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to
the Administration Agreement; and (ii) the Seller or the Servicer, an officer
of the Seller or the Servicer, as applicable, authorized to act under the
Transaction Documents.

 

Authorized
Representative:  As defined in Section6A.2.

 

Book-Entry Notes: 
A beneficial interest in the Class A Notes, ownership and transfers of
which shall be made through book entries by a Clearing Agency as described in
Section 2.11.

 

Certificate of
Trust:  As defined in the Trust Agreement.

 

Certificate
Registrar:  As defined in the Trust Agreement.

 

Class: 
Any class of Notes of the Issuer.

 

Class A Holder or Class A Noteholder:  The Person in whose name a Class A Note is
registered in the Note Register.

 

Class A Notes: 
Collectively, the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes.

 

2

 

Class A-1 Notes: The Class A-1 Asset-Backed Notes issued
by the Issuer pursuant to this Indenture in the initial aggregate principal
amount of $32,000,000.

 

Class A-2 Notes: The Class A-2 Asset-Backed Notes issued
by the Issuer pursuant to this Indenture in the initial aggregate principal
amount of $47,000,000.

 

Class A-3 Notes: The Class A-3 Asset-Backed Notes issued
by the Issuer pursuant to this Indenture in the initial aggregate principal
amount of $74,000,000.

 

Class A-4 Notes: The Class A-4 Asset-Backed Notes issued
by the Issuer pursuant to this Indenture in the initial aggregate principal
amount of $36,060,000.

 

Class A Note
Payment Account:  As defined in the Sale and Allocation
Agreement.

 

Class B Holder or Class
B Noteholder:  The Person in whose name a Class B Note is
registered in the Note Register.

 

Class B Notes: 
The Class B Asset-Backed Notes issued by the Issuer pursuant to this
Indenture in the initial aggregate principal amount of $2,879,112.45.

 

Clearing Agency: 
An organization registered as a “clearing agency” pursuant to Section
17A of the Exchange Act.

 

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

 

Closing Date: 
January 26, 2006.

 

Code: 
The Internal Revenue Code of 1986, as amended from time to time, and the
Treasury Regulations promulgated thereunder.

 

Collateral: 
As defined in the Granting Clause of this Indenture.

 

Commission: 
The Securities and Exchange Commission.

 

Custodian: 
Wells Fargo Bank, National Association, not in its individual capacity
but solely as custodian, as specified herein.

 

Default:  Any
event that, with notice or the lapse of time or both, would become an Event of
Default.

 

Definitive Notes: 
As defined in Section 2.11.

 

Depositor: 
As defined in the Trust Agreement.

 

Depositor Account: 
As defined in the Trust Agreement.

 

Event of Default: 
As defined in Section 5.1.

 

3

 

Excess Prefunding
Amount:  The funds, if any, remaining in the
Prefunding Account on the Prefunding Account Ending Date.

 

Exchange Act: 
The Securities Exchange Act of 1934, as amended.

 

Executive Officer: 
With respect to any corporation, the Chief Executive Officer, the Chief
Operating Officer, the Chief Financial Officer, the President, any Executive
Vice President, any Senior Vice President, any Vice President, the Secretary or
the Treasurer of such corporation and with respect to any partnership, any
general partner of such partnership.

 

File Numbers: 
As defined Section 6A.1(f).

 

File Number List: 
As defined in Section 6A.1(f).

 

Final Note Payment
Date:  With respect to the Class A-1 Notes, January
16, 2007, with respect to the to the Class A-2 Notes, March 16, 2009, with
respect to the to the Class A-3 Notes, February 15, 2011, with respect to the
to the Class A-4 Notes, April 15, 2013 and with respect to the Class B Notes,
April 15, 2013.

 

First Investors: 
First Investors Financial Services, Inc.

 

FISC: 
First Investors Servicing Corporation, together with its successors and
assigns.

 

Fiscal Year: 
The period commencing on May 1 of each calendar year and ending on April
30 of the following year.

 

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

 

Guaranty: 
The guaranty entered into as of the date hereof by the Seller, FISC, the
Back-up Servicer and the Indenture Trustee.

 

Holder or Noteholder:  A Class A Holder or Class B Holder or a Class
A Noteholder or Class B Noteholder, respectively.

 

Indemnification
Agreement:  The Indemnification Agreement dated as of
January 10, 2006 among the Insurer, the Seller and Wachovia Capital Markets.

 

4

 

Indenture Trustee: 
Wells Fargo Bank, National Association, a national banking association,
not in its individual capacity but solely as Indenture Trustee under this
Indenture, and any successor indenture trustee under this Indenture.

 

Independent: 
When used with respect to any specified Person, that such Person (i) is
in fact independent of the Trust, any other obligor on the Notes, the Seller,
the Servicer and any Affiliate of any of the foregoing Persons, (ii) does not
have any direct financial interest or any material indirect financial interest
in the Trust, any such other obligor, the Seller, the Servicer or any Affiliate
(other than a special purpose securitization vehicle whose rating is based in
part on its being bankruptcy-remote) of any of the foregoing Persons and (iii)
is not connected with the Trust, any such other obligor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons as an officer,
employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

 

Indemnitees: 
As defined in Section 6A.3(d).

 

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

 

Initial Contracts: 
As defined in the Granting Clause.

 

Initial Cutoff
Date:  December 31, 2005.

 

Issuer: 
First Investors Auto Owner Trust 2006-A or any successor to First
Investors Auto Owner Trust 2006-A.

 

Issuer Order: 
A written order signed in the name of the Issuer by an Authorized
Officer of the Issuer and delivered to the Indenture Trustee.

 

Issuer Request: 
A written request signed in the name of the Issuer by an Authorized
Officer of the Issuer and delivered to the Indenture Trustee.

 

Issuer’s
Certificate:  A certificate signed by an Authorized Officer
of the Issuer and delivered to the Indenture Trustee, which certificate shall
comply with the applicable requirements of Section 11.1.

 

Losses: 
As defined in Sections 6.7(a) and 6A.3(d).

 

Monthly Note
Principal:  The Class A Monthly Note Principal and/or the
Class B Monthly Note Principal, as the context may require.

 

Note Balance: 
At any time, the sum of the Class A Note Balance and the Class B Note
Balance.

 

5

 

Note Depository
Agreement:  The agreement dated January 25, 2006, between
the Issuer and The Depository Trust Company, as the initial Clearing Agency,
relating to the Class A Notes.

 

Note Payment
Account:  The Class A Note Payment Account or the Class
B Note Payment Account, as the case may be.

 

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

 

Note Rate: 
With respect to the Class A-1 Notes, 4.5685% per annum, with respect to
the Class A-2 Notes, 4.87% per annum, with respect to the Class A-3 Notes,
4.93% per annum and with respect to the Class A-4 Notes, 5.00% per annum.

 

Note Register: 
As defined in Section 2.5.

 

Note Registrar: 
As defined in Section 2.5.

 

Noteholders: 
Collectively, the Class A Noteholders and the Class B Noteholders, it
being understood that with regards to voting prior to the payment in full of
the Class A Notes and the payment in full of all amounts owed to the Insurer, a
majority of Class A Noteholders will not include Class B Noteholders.

 

Notes: 
Collectively, the Class A Notes and the Class B Notes, it being
understood that with regards to voting prior to the payment in full of the
Class A Notes and the payment in full of all amounts owed to the Insurer, a
majority of Class A Notes will not include Class B Notes.

 

Opinion of Counsel: 
One or more written opinions of counsel who may, except as otherwise
expressly provided in this Indenture, be outside counsel to the Issuer, the
Seller or the Servicer and who shall be acceptable to the Indenture Trustee and
the Insurer (provided that no Insurer Default shall have occurred and is
continuing), which opinion or opinions shall be addressed to and delivered to
the Indenture Trustee as Indenture Trustee and the Insurer (provided that no
Insurer Default shall have occurred and is continuing), shall comply with any
applicable requirements of Section 11.1 and shall be in form and
substance satisfactory to the Indenture Trustee.

 

Outstanding: 
As of the date of determination, all Notes theretofore authenticated and
delivered under this Indenture except:

 

(i)                 Notes theretofore canceled by
the Note Registrar or delivered to the Note Registrar for cancellation;

 

(ii)                Notes or portions thereof the
payment for which money in the necessary amount has been theretofore deposited
with the Indenture Trustee or any Paying Agent in trust for the Holders of such
Notes; provided, however, that if such Notes are to be redeemed, notice of such
redemption must have been duly given pursuant to this

 

6

 

Indenture or provision for such notice must have been
made in a manner satisfactory to the Indenture Trustee; and

 

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

 

provided, however, that in determining
whether the Holders of the requisite Note Balance have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or under
any Transaction Document, Notes owned by the Issuer, the Seller, the Servicer
or any Affiliate of any of the foregoing Persons shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Indenture
Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that a
Responsible Officer knows to be so owned shall be so disregarded.  Notes so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Indenture Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Issuer, any other obligor
upon the Notes, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons.

 

Owner Trustee: 
Wells Fargo Bank Delaware Trust Company, a Delaware limited purpose
trust company, not in its individual capacity but solely as Owner Trustee under
the Trust Agreement, and any successor owner trustee under the Trust Agreement.

 

Pass-Through
Entity:  As defined in Section 2.16.

 

Paying Agent: 
The Indenture Trustee or any other Person that meets the eligibility
standards for the Indenture Trustee specified in Section 6.10 and is
authorized by the Issuer to make payments to and distributions from the
Collection Account, the Prefunding Account, the Reserve Account and each Note
Payment Account, including payment of principal of or interest on the Notes, on
behalf of the Issuer.

 

Predecessor Note: 
With respect to any particular Note, every previous Note evidencing all
or a portion of the same debt as that evidenced by such particular Note.  Any Note authenticated and delivered under Section
2.6 in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed,
for purposes of this definition, to evidence the same debt as the mutilated,
lost, destroyed or stolen Note.

 

Prefunding Account
Ending Date:  April 4, 2006.

 

Premium Side
Letter Agreement:  As defined in the Insurance Agreement.

 

Proceeding: 
Any suit in equity, action at law or other judicial or administrative
proceeding.

 

Purchase Agreement: 
That Purchase Agreement, dated January 10, 2006, among the Issuer, the
Seller and Wachovia Capital Markets.

 

Record Date: 
With respect to any Payment Date or Redemption Date, the close of
business on the Business Day preceding such Payment Date or Redemption Date;
provided, however, that if

 

7

 

Definitive Notes
have been issued pursuant to Section 2.13, Record Date shall mean, with
respect to any Payment Date or Redemption Date, the last day of the preceding
Collection Period.

 

Redemption Date: 
The Payment Date specified by the Servicer pursuant to Section 10.1
on which date the Indenture Trustee shall withdraw any amount remaining in the
Reserve Account and deposit the portion of such amount payable to the
Noteholders in the Note Payment Account.

 

Redemption Price: 
As defined in Section 5.16 of the Sale and Allocation Agreement.

 

Rule 144A: 
Rule 144A under the Securities Act.

 

Rule 144A
Information:  Such information as is specified pursuant to
Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).

 

Sale and
Allocation Agreement:  The Sale and Allocation Agreement, dated as
of the date hereof, by and among the Issuer, the Servicer, the Indenture
Trustee, the Securities Intermediary and the Depositor as the same may be
amended, supplemented or otherwise modified and in effect from time to time.

 

Securities Act: 
Securities Act of 1933, as amended.

 

Seller: 
First Investors Financial Services, Inc. a Texas corporation, in its
capacity as seller under the Contribution Agreement, and its successors in such
capacity.

 

Servicer: 
FISC, in its capacity as servicer under the Servicing Agreement, and any
Successor Servicer.

 

State: 
Any of the fifty states of the United States of America or the District
of Columbia.

 

Successor Servicer: 
As defined in the Servicing Agreement.

 

Transaction
Documents:  The Servicing Agreement, the Sale and
Allocation Agreement, the Contribution Agreement, the Premium Side Letter
Agreement, the Trust Agreement, the Indemnification Agreement, the Certificate
of Trust, this Indenture, the Administration Agreement, the Purchase Agreement,
the Note Depository Agreement, the Insurance Agreement, the Policy, the
Guaranty and the other documents and certificates delivered in connection therewith,
in each case as the same may from time to time be amended, supplemented or
otherwise modified and in effect.

 

Trust Accounts: 
The Collection Account, the Class A Note Payment Account, the Class B
Note Payment Account, the Prefunding Account, the Depositor Account and the
Reserve Account.

 

Trust Estate: 
All money, instruments, rights and other property that are subject or
intended to be subject to the lien and security interest of this Indenture for
the benefit of the Noteholders and the Insurer (including, but not limited to,
all property and interests Granted to the Indenture Trustee), including all
proceeds thereof.

 

8

 

Wachovia Capital
Markets:  Wachovia Capital Markets, LLC.

 

(b)           Except
as otherwise specified herein or as the context may otherwise require,
capitalized terms used but not otherwise defined herein have the respective
meanings set forth in, or incorporated by reference into, the Sale and
Allocation Agreement for all purposes of this Indenture.

 

Section 1.2.           Rules of Construction.

 

Unless the context otherwise requires:

 

(a)           a
term has the meaning assigned to it;

 

(b)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time
to time;

 

(c)           “or”
is not exclusive;

 

(d)          
“including” means including without limitation;

 

(e)           words
in the singular include the plural and words in the plural include the singular
and the masculine as well as the feminine and neuter genders of such terms;

 

(f)            any
agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; and

 

(g)           references
to a Person are also to its permitted successors and assigns.

 

Article
II

 

The
Notes

 

Section 2.1.           Form.

 

(a)           The
Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes
and the Class B Notes, together with the Indenture Trustee’s certificates of
authentication, shall be substantially in the form set forth in Exhibits A-1,
A-2, A-3, A-4 and B, respectively, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon
as may, consistently herewith, be determined by the officers executing such
Notes, as evidenced by their execution thereof. 
Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

 

9

 

(b)           The
Definitive Notes shall be typewritten, printed, lithographed or engraved, or
produced by any combination of these methods (with or without steel engraved borders),
all as determined by the officers executing such Notes, as evidenced by their
execution of such Notes.

 

(c)           Each
Note shall be dated the date of its authentication.  The terms of the Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes set forth in Exhibits
A-1, A-2, A-3, A-4 and B, respectively, hereto
are part of the terms of this Indenture and are incorporated herein by
reference.

 

Section 2.2.           Execution, Authentication and Delivery.

 

(a)           The
Notes shall be executed on behalf of the Issuer by any of its Authorized
Officers.  The signatures of any such
Authorized Officer on the Notes may be manual or facsimile.

 

(b)           Notes
bearing the manual or facsimile signature of individuals who were at any time
Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices on the
date of such Notes.

 

(c)           The
Indenture Trustee shall, upon Issuer Order, authenticate and deliver the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes
for original issue in an aggregate principal amount of $32,000,000,
$47,000,000, $74,000,000, $36,060,000  and
$2,879,112.45, respectively.  The Class A
Note Balance and the Class B Note Balance at any time may not exceed such
respective amounts.

 

(d)           Each
Note shall be dated the date of its authentication.  The Class A Notes shall be issuable as
registered Notes in minimum denominations of $250,000 and integral multiples of
$1,000 in excess thereof.  The Class B
Notes shall be issued in definitive form only.

 

(e)           No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Note a certificate of
authentication substantially in the form provided for herein executed by the
Indenture Trustee by the manual signature of one of its authorized signatories,
and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

 

Section 2.3.           Temporary Class A Notes.

 

(a)           Pending
the preparation of Definitive Notes, if Definitive Notes are to be prepared in
accordance with Section 2.13, the Issuer may execute, and upon receipt
of an Issuer Order the Indenture Trustee shall authenticate and deliver,
temporary Class A Notes that are printed, lithographed, typewritten,
mimeographed or otherwise produced of the tenor of the Definitive Notes in lieu
of which they are issued and with such variations not inconsistent with the
terms of this Indenture as the officers executing such Class A Notes may
determine, as evidenced by their execution of such Notes.

 

10

 

(b)           If
temporary Class A Notes are issued, the Issuer shall cause Definitive Notes to
be prepared without unreasonable delay. 
After the preparation of Definitive Notes in accordance with Section
2.13, the temporary Class A Notes shall be exchangeable for Definitive
Notes upon surrender of the temporary Class A Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.2, without charge
to the Class A Holder.  Upon surrender
for cancellation of any one or more temporary Class A Notes, the Issuer shall
execute, and the Indenture Trustee shall authenticate and deliver in exchange
therefor, a like principal amount of Definitive Notes of authorized
denominations.  Until so exchanged, the
temporary Class A Notes shall in all respects be entitled to the same benefits
under this Indenture as Definitive Notes.

 

Section 2.4.           Tax Treatment.

 

The Issuer has entered into this Indenture, and the
Notes shall be issued, with the intention that, for federal, state and local
income and franchise tax purposes, the Notes shall qualify as indebtedness of
the Issuer secured by the Trust Estate. 
The Issuer, by entering into this Indenture, and each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of an interest in
the applicable Book-Entry Note), agree to treat the Notes as indebtedness of
the Issuer for federal, state and local income and franchise tax purposes.

 

Section 2.5.           Registration; Registration of Transfer and Exchange.

 

(a)           The
Issuer shall cause to be kept a register (the “Note Register”) in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes.  The Indenture Trustee initially
shall be the registrar (the “Note
Registrar”) for the purpose of registering Notes and transfers
of Notes as herein provided.  Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar.  In addition, the
Indenture Trustee hereby accepts its appointment as Certificate Registrar, as
defined in and pursuant to Section 3.4 of the Trust Agreement.

 

(b)           If
a Person other than the Indenture Trustee is appointed by the Issuer as Note
Registrar, (i) the Issuer shall give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, or any
change in the location, of the Note Register, (ii) the Indenture Trustee shall
have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof and (iii) the Indenture Trustee shall have the right to
rely upon a certificate executed on behalf of the Note Registrar by an
Executive Officer thereof as to the names and addresses of the Noteholders and
the principal amounts and number of such Notes.

 

(c)           Upon
surrender for registration of transfer of any Note at the office or agency of
the Issuer to be maintained as provided in Section 3.2, if the requirements
of Section 8-401 of the Relevant UCC are met, the Issuer shall execute, and the
Indenture Trustee shall authenticate and deliver to the Noteholder making such
surrender, in the name of the designated transferee or transferees, one or more
new Notes in any authorized denomination, of a like aggregate principal
amount.  The Indenture Trustee may rely
upon the Administrator with respect to the determination of whether the
requirements of Section 8-401 of the Relevant UCC are met.

 

11

 

(d)           At
the option of the Noteholder, Notes may be exchanged for other Notes of the
same class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or
agency.  Whenever any Notes are so
surrendered for exchange, if the requirements of Section 8-401 the Relevant UCC
are met, the Issuer shall execute, and the Indenture Trustee shall authenticate
and deliver to the Noteholder making such exchange, the Notes which such
Noteholder is entitled to receive.  The
Indenture Trustee may rely upon the Administrator with respect to the
determination of whether the requirements of Section 8-401 of the Relevant UCC
are met.

 

(e)           All
Notes issued upon any registration of transfer or exchange of Notes shall be
the valid obligations of the Issuer, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Notes surrendered upon such
registration of transfer or exchange.

 

(f)            All
Notes presented or surrendered for registration of transfer or exchange shall
be duly endorsed by, or be accompanied by a written instrument of transfer in
the form of the Assignment attached to Exhibits A-1, A-2, A-3,
A-4 or B, as the case may be, satisfactory to the Indenture
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing, with such signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Note Registrar.

 

(g)           No
service charge shall be made to a Holder for any registration of transfer or
exchange of Notes, but the Issuer may require payment by such Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 2.3 or 9.5 not involving any
transfer.

 

(h)           The
Issuer shall not be required to make, and the Note Registrar need not register,
transfers or exchanges of Notes selected for redemption or Notes with respect
to which the due date for any payment will occur within 15 days.

 

Section 2.6.           Mutilated, Destroyed, Lost or Stolen Notes.

 

(a)           If
(i) any mutilated Note is surrendered to the Indenture Trustee, or the
Indenture Trustee receives evidence to its satisfaction of the destruction,
loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee
such security or indemnity as may be required by it to hold the Issuer and the
Indenture Trustee harmless, then, in the absence of notice to the Issuer, the
Note Registrar or the Indenture Trustee that such Note has been acquired by a
protected purchaser, and provided that the requirements of Section 8-405 of the
Relevant UCC are met, the Issuer shall execute and the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven (7) days of the Indenture Trustee’s receipt of evidence
to its satisfaction of such destruction, loss or theft shall be due and
payable, or shall have been called for redemption in whole pursuant to Section
10.1, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption
Date without surrender thereof.  The
Indenture Trustee may rely upon the Administrator with respect to the determination
of whether the requirements of Section 8-405 of the Relevant UCC

 

12

 

are met.  If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a protected
purchaser of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom such replacement Note was delivered or any Person
taking such replacement Note from such Person to whom such replacement Note was
delivered or any assignee of such Person, except a protected purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor
to the extent of any loss, damage, cost or expense incurred by the Issuer or
the Indenture Trustee in connection therewith.

 

(b)           Upon
the issuance of any replacement Note under this Section 2.6, the Issuer
may require the payment by the Holder of such Note of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with
such issuance and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) related thereto.

 

(c)           Every
replacement Note issued pursuant to this Section 2.6 in replacement of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

(d)           The
provisions of this Section 2.6 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

 

Section 2.7.           Persons Deemed Owners.

 

Prior to due presentation of a Note for registration
of transfer, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name such Note is
registered in the Note Register (as of the day of determination) as the owner
of such Note for the purpose of receiving payments of principal of and interest
on such Note and for all other purposes whatsoever, whether or not such Note
shall be overdue, and none of the Issuer, the Indenture Trustee or any agent of
the Issuer or the Indenture Trustee shall be affected by any notice to the
contrary.

 

Section 2.8.           Payments of Interest and Principal.

 

(a)           [Reserved.]

 

(b)           The
principal of each Class of Notes shall be payable in installments on each
Payment Date (unless the Notes have been declared immediately due and payable
in accordance with Section 5.2 following the occurrence of an Event of
Default) in an aggregate amount equal to the applicable Monthly Note Principal
for such Payment Date in accordance with Section 3.5 of the Sale and Allocation
Agreement.  The outstanding principal
balance of any Class of Notes shall be due and payable on the Final Note
Payment Date relating to such Class of Notes. 
On each Payment Date (unless the Notes have been declared immediately
due and payable in accordance with Section 5.2 following the occurrence
of an Event of Default), upon receipt of

 

13

 

instructions from the Servicer pursuant to Section
3.5(d) and (e) of the Sale and Allocation Agreement, the Indenture Trustee
shall:

 

(i)            apply or cause to be applied the
amount on deposit in the Class A Note Payment Account on such Payment Date to
make the following payments in the following order of priority:

 

(A)          to each Class of Class A Notes, pro
rata, based on the respective amounts then due to each Class of Class A
Notes in respect of interest, the Total Note Interest payable for such Payment
Date;

 

(B)           to the Class A-1 Noteholders (i) the
Class A Monthly Note Principal for that Payment Date until the principal amount
of the Class A-1 Notes has been paid in full and (ii) any Excess Prefunding
Amount payable to the Class A-1 Noteholders in accordance with Section 3.7(d)
of the Sale and Allocation Agreement;

 

(C)           to the Class A-2 Noteholders (i)
after the Class A-1 Noteholders have been paid in full, the remaining Class A
Monthly Note Principal for that Payment Date, until the principal amount of the
Class A-2 Notes has been paid in full and (ii) any Excess Prefunding Amount
payable to the Class A-2 Noteholders in accordance with Section 3.7(d) of the Sale
and Allocation Agreement;

 

(D)          to the Class A-3 Noteholders (i) after
the Class A-2 Noteholders have been paid in full, the remaining Class A Monthly
Note Principal for that Payment Date, until the principal amount of the Class
A-3 Notes has been paid in full and (ii) any Excess Prefunding Amount payable
to the Class A-3 Noteholders in accordance with Section 3.7(d) of the Sale and
Allocation Agreement; and

 

(E)           to the Class A-4 Noteholders (i)
after the Class A-3 Noteholders have been paid in full, the remaining Class A
Monthly Note Principal for that Payment Date, until the principal amount of the
Class A-4 Notes has been paid in full and (ii) any Excess Prefunding Amount
payable to the Class A-4 Noteholders in accordance with Section 3.7(d) of the
Sale and Allocation Agreement;

 

(ii)           apply or cause to be applied the
amount on deposit in the Class B Note Payment Account on such Payment Date to
the Class B Noteholders, for the payment of any Excess Prefunding Amount
payable to the Class B Noteholders in accordance with Section 3.7(d) of the
Sale and Allocation Agreement and the Class B Monthly Note Principal for that
Payment Date until the principal amount of the Class B Notes has been paid in
full.

 

(c)           The
outstanding principal balance of each Class of Class A Notes, to the extent not
previously paid, shall be due and payable on the Final Note Payment Date for
such Class of Class A Notes.

 

(d)           The
Class A-1 Notes shall accrue interest at 4.5685% per annum, the Class A-2 Notes
shall accrue interest at 4.87% per annum, the Class A-3 Notes shall accrue
interest at

 

14

 

4.93% per annum and the Class A-4 Notes shall accrue
interest at 5.00% per annum and such interest shall be due and payable on each
Payment Date.  The Class B Notes shall
not accrue interest.  Interest on the
Class A-1 Notes shall be calculated on the basis of the actual number of days
that have elapsed from and including the prior Payment Date to but excluding
the current Payment Date and a 360-day year. 
Interest on the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes
shall be calculated on the basis a 360-day year consisting of twelve 30-day
months.  Subject to Section 3.1,
any installment of interest or principal, if any, payable on any Class A Note
that is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall be paid to the Person in whose name such Note (or one or
more Predecessor Notes) is registered on the related Record Date by check
mailed first-class postage prepaid to such Person’s address as it appears on
the Note Register on such Record Date; provided, however, that,
unless Definitive Notes have been issued pursuant to Section 2.13, with
respect to Class A Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payment shall be made by wire transfer in immediately available funds to the
account designated by such nominee, and except for the final installment of
principal payable with respect to such Class A Note on a Payment Date or on the
related Final Note Payment Date (and except for the Redemption Price for any
Note called for redemption in whole pursuant to Section 10.1), which
shall be payable as provided below.  The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.3.  The
Indenture Trustee shall pay all Total Note Interest for any Payment Date to the
Noteholders as of the related Record Date even if a portion of such Total Note
Interest relates to an earlier Payment Date.

 

(e)           All
payments of principal on each Class of Notes and, with respect to each Class of
Class A Notes, interest payments, shall be made pro  rata to the
Noteholders of each Class of Notes.  The
Indenture Trustee shall, before the Payment Date on which the Issuer expects to
pay the final installment of principal of each Class of Notes and, with respect
to each Class of Class A Notes, interest on any Note, notify the Holder of such
Note as of the related Record Date of such final installment.  Such notice shall be mailed or transmitted by
facsimile and shall specify that such final installment shall be payable only
upon presentation and surrender of such Note and shall specify the place where
such Note may be presented and surrendered for payment of such
installment.  Notices in connection with
redemption of Notes shall be mailed to Noteholders as provided in Section
10.2.

 

(f)            Notwithstanding
the foregoing, the entire unpaid principal amount of the Notes shall be due and
payable, if not previously paid, on the date on which the Notes have been
declared or have automatically become immediately due and payable in accordance
with Section 5.2 following the occurrence of an Event of Default.  On each Payment Date following acceleration
of the Notes and with respect to amounts withdrawn from the Reserve Account
pursuant to Section 3.5(f) and Section 3.5(g) of the Sale and Allocation
Agreement upon receipt of instructions from the Servicer, the Indenture Trustee
shall:

 

(i)            Apply or cause to be applied the
amount on deposit in the Class A Note Payment Account (including amounts
deposited therein from the Reserve Account in accordance with Section 3.5(f) of
the Sale and Allocation Agreement) on such Payment Date to make the following
payments in the following order of priority:

 

15

 

(A)          to each Class of Class A Notes, pro
rata, without priority or preference of any kind, according to the
amounts due and payable on the Class A Notes in respect of interest, the Total
Note Interest payable for such Payment Date; and

 

(B)           to the Class A Noteholders, first to
the holders of the Class A-1 Notes any amounts due and unpaid for the payment
of principal thereon until the Class A-1 Notes have been paid in full, and then
to the holders of the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes, any amounts due and unpaid for the payment of principal on such Classes
of Class A Notes, pro rata, based on the respective current outstanding
principal balance of each such Class of Class A Notes.

 

(ii)           Following the payment in full of the
entire Class A Note Balance, the Total Note Interest and all amounts due to the
Insurer, to pay or cause to be paid the amount on deposit in the Class B Note
Payment Account (including amounts deposited therein from the Reserve Account
in accordance with Section 3.5(g) of the Sale and Allocation Agreement) on such
Payment Date to the Class B Noteholders, up to the Class B Note Balance.

 

Section 2.9.           Cancellation.

 

All Notes surrendered for payment, registration of
transfer, exchange or redemption in whole pursuant to Section 10.1
shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall be promptly canceled by the
Indenture Trustee.  The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly canceled by the
Indenture Trustee.  No Notes shall be
authenticated in lieu of or in exchange for any Notes canceled as provided in
this Section 2.9, except as expressly permitted by this Indenture.  All canceled Notes may be held or disposed of
by the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it, provided that such Issuer Order
is timely and the Notes have not been previously disposed of by the Indenture
Trustee.

 

Section 2.10.        Release of Collateral.

 

Subject to Section 11.1 and the terms of the
Transaction Documents, the Indenture Trustee shall release property from the
lien of this Indenture at any time before the Notes have been paid in full only
upon receipt of an Issuer Request accompanied by an Issuer’s Certificate and an
Opinion of Counsel.

 

Section 2.11.        Book-Entry.

 

The Class A Notes, upon original issuance, shall be
issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Clearing Agency, by,
or on behalf of, the Issuer.  The Class A
Notes representing the Book-Entry Notes shall be registered initially on the
Note Register in the name of Cede & Co.,

 

16

 

the nominee of the
initial Clearing Agency, and no Note Owner thereof shall receive a Definitive
Note representing such Note Owner’s interest in such Note, except as provided
in Section 2.13. Unless and until definitive, fully registered Class A
Notes (the “Definitive Notes”)
have been issued to such Note Owners pursuant to Section 2.13:

 

(a)           the
provisions of this Section 2.11 shall be in full force and effect;

 

(b)           the
Note Registrar and the Indenture Trustee shall be entitled to deal with the
Clearing Agency for all purposes of this Indenture (including the payment of
principal of and interest on the Class A Notes and the giving of instructions
or directions hereunder) as the sole Holder of the Class A Notes, and shall
have no obligation to the Note Owners;

 

(c)           to
the extent that the provisions of this Section 2.11 conflict with any
other provisions of this Indenture, the provisions of this Section shall
control;

 

(d)           the
rights of Note Owners shall be exercised only through the Clearing Agency and
shall be limited to those established by law and agreements between such Note
Owners and the Clearing Agency and/or the Clearing Agency Participants pursuant
to the Note Depository Agreement; unless and until Definitive Notes are issued
pursuant to Section 2.13, the initial Clearing Agency shall make
book-entry transfers among the Clearing Agency Participants and receive and
transmit payments of principal of and interest on the Notes to such Clearing
Agency Participants; and

 

(e)           whenever
this Indenture requires or permits actions to be taken based upon instructions
or directions of Noteholders evidencing a specified percentage of the Class A
Note Balance, the Clearing Agency shall be deemed to represent such percentage
only to the extent that it has received instructions to such effect from Note
Owners and/or Clearing Agency Participants owning or representing,
respectively, such required percentage of the beneficial interest in the Class
A Notes and has delivered such instructions to the Indenture Trustee.

 

Section 2.12.        Notices to Clearing Agency.

 

Whenever a notice or other communication to the Class
A Noteholders is required under this Indenture, unless and until Definitive
Notes shall have been issued to such Note Owners pursuant to Section 2.13,
the Indenture Trustee shall give all such notices and communications specified
herein to be given to Class A Noteholders to the Clearing Agency, and shall
have no obligation to such Note Owners.

 

Section 2.13.        Definitive Notes.

 

If (a) the Issuer, the Administrator or the Servicer
advises the Indenture Trustee in writing that the Clearing Agency is no longer
willing or able to properly discharge its responsibilities with respect to the
Book-Entry Notes and the Indenture Trustee or the Administrator is unable to
locate a qualified successor, (b) the Administrator, at its option, advises the
Indenture Trustee in writing that it elects to terminate the book-entry system
through the Clearing Agency, (c) at any time the Clearing Agency shall no
longer be registered under the Exchange Act, or other applicable statute or
regulation and, in either case, the Administrator or the Indenture Trustee, as
applicable, is unable to appoint a qualified successor or (d) after the

 

17

 

occurrence of an
Event of Default or an Event of Servicing Termination, Note Owners of the
Book-Entry Notes representing beneficial interests aggregating not less than
51% of the principal amount of such Notes advise the Indenture Trustee and the
Clearing Agency in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the best interests of such Note Owners,
then the Clearing Agency shall notify all Note Owners and the Indenture Trustee
of the occurrence of such event and of the availability of Definitive Notes to
Note Owners requesting the same.  Upon
surrender to the Indenture Trustee of the typewritten Note representing the
Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency.  None of the Issuer, the
Note Registrar or the Indenture Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. 
Upon the issuance of Definitive Notes, the Indenture Trustee shall
recognize the Holders of the Definitive Notes as Noteholders.

 

Section 2.14.        Authenticating Agents.

 

The Indenture Trustee may appoint one or more Persons
(each, an “Authenticating Agent”)
with power to act on its behalf and subject to its direction in the
authentication of Notes in connection with issuance, transfers and exchanges
under Sections  2.2, 2.3, 2.5, 2.6 and 2.13,
as fully to all intents and purposes as though each such Authenticating Agent
had been expressly authorized by those Sections to authenticate such
Notes.  For all purposes of this
Indenture, the authentication of Notes by an Authenticating Agent pursuant to
this Section 2.14 shall be deemed to be the authentication of Notes “by
the Indenture Trustee.”

 

Any corporation into which any Authenticating Agent
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, consolidation or conversion to which any
Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of any Authenticating Agent,
shall be the successor of such Authenticating Agent hereunder, without the
execution or filing of any further act on the part of the parties hereto or
such Authenticating Agent or such successor corporation.

 

Any Authenticating Agent may at any time resign by
giving written notice of resignation to the Indenture Trustee and the Owner
Trustee.  The Indenture Trustee may at
any time terminate the agency of any Authenticating Agent by giving written
notice of termination to such Authenticating Agent and the Owner Trustee.  Upon receiving such notice of resignation or
upon such a termination, the Indenture Trustee shall appoint a successor Authenticating
Agent and shall give written notice of any such appointment to the Owner
Trustee.

 

The Administrator agrees to pay to each Authenticating
Agent from time to time reasonable compensation for its services.  The provisions of Sections 2.9 and 6.4
shall be applicable to any Authenticating Agent.

 

Section 2.15.        Restrictions on Transfers of Class A Notes.

 

(a)           The
Class A Notes have not been and will not be registered under the Securities Act
and no Class A Note or any interest therein may be reoffered, resold, pledged
or otherwise

 

18

 

transferred except as contemplated by the legend set
forth in paragraph (d) below.  Any
resale or other transfer, or attempted resale or other transfer which is not
made in compliance with the restrictions set forth in such legend shall not be
recognized by the Issuer.  Authorization
of the Issuer of a purchase, resale or transfer of a Class A Note will be
granted only if made to a qualified institutional buyer and, in each case, in
accordance with the other requirements applicable to a sale of Class A
Notes.  Each purchaser acknowledges and
is deemed to acknowledge that no representation is made by the Issuer as to the
availability of any exemption under the Securities Act or any state securities
laws for resale of the Class A Notes and that such purchaser may be required to
bear the financial risks of this investment for an indefinite period of time.

 

(b)           Each
purchaser and any account for which such purchaser is acquiring the Class A
Notes are “Qualified Institutional Buyers” (as defined in Rule 144A under the
Securities Act).  Each purchaser has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of its investment in the Class A Notes, and
each purchaser and any account for which such purchaser is acting are each able
to bear the economic risk of such investment.

 

(c)           Each
purchaser, by its acceptance of its Class A Note, acknowledges that the Class A
Notes are being sold to it pursuant to an exemption from the registration
requirements of the Securities Act.  No
purchaser is purchasing its Class A Notes with a view to resale, distribute or
dispose of in any other manner thereof in violation of the Securities Act.  Each purchaser has had access to such
financial and other information concerning the Issuer and the Class A Notes as
it deemed necessary or appropriate in order to make an informed investment
decision with respect to such purchase of the Class A Notes, including an
opportunity to ask questions of and request information from the Issuer.

 

(d)           Each
Class A Note evidencing Book-Entry Notes and Definitive Notes (and all Class A
Notes issued in exchange therefor or substitution thereof) shall bear a legend
in substantially the following form:

 

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. 
ACCORDINGLY, TRANSFER OF THIS CLASS A NOTE IS SUBJECT TO CERTAIN
RESTRICTIONS SET FORTH IN SECTION 2.15 OF THE INDENTURE.  BY ITS ACCEPTANCE OF THIS CLASS A NOTE, THE
HOLDER OF THIS CLASS A NOTE IS DEEMED TO REPRESENT TO THE TRUST AND THE
INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS CLASS A NOTE FOR ITS
OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

 

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS A NOTE
SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER TRANSFER IS (A) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR SO LONG AS
THE CLASS A NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO

 

19

 

RULE 144A UNDER
THE SECURITIES ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED AND ANY APPLICABLE STATE SECURITIES AND BLUE SKY LAWS OR IS MADE IN
ACCORDANCE WITH EACH SUCH ACT AND STATE LAWS. THE INDENTURE TRUSTEE MAY REQUIRE
AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY SALE, PLEDGE
OR OTHER TRANSFER OF THIS CLASS A NOTE PURSUANT TO CLAUSES (A) OR (C)
ABOVE.  ALL OPINIONS OF COUNSEL REQUIRED
IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO
THE INDENTURE TRUSTEE.

 

EACH INVESTOR IN THIS CLASS A NOTE OR ANY INTEREST
HEREIN WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) IT IS
NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CLASS A NOTE FOR, ON
BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION AND HOLDING OF SUCH CLASS A
NOTE OR ANY INTEREST THEREIN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE, OR A VIOLATION
OF SIMILAR LAW.

 

(e)           The
purchaser of a Class A Note or any interest therein understands and agrees and
is deemed to understand and agree by its acceptance of its Class A Note that
the Class A Notes and related documentation may be amended or supplemented from
time to time to modify the restrictions on and procedures for resales and other
transfers of the Class A Notes to reflect any change in applicable law or
regulation (or interpretation thereof) or in practice relating to the resale or
transfer of restricted securities generally.

 

(f)            The
Holders of the Class A Notes and all Note Owners of Class A Notes are bound by,
and are deemed to have notice of, all provisions contained in the Indenture.

 

(g)           The
purchaser of a Class A Note or any interest therein acknowledges and is deemed
to acknowledge by its acceptance of such purchase that the Issuer and others
will rely upon the truth and accuracy of the foregoing acknowledgments,
representations and agreements.  If the
purchaser is acquiring any Class A Notes as a fiduciary or agent for one or
more investor accounts, it represents that it has sole investment discretion
with respect to each such account

 

20

 

and that it has full power to make the foregoing
acknowledgments, representations and agreements on behalf of each such account.

 

Section 2.16.        Restrictions on Transfers of Class B Notes.

 

(a)           The
Class B Notes have not been and will not be registered under the Securities Act
and no Class B Note or any interest therein may be reoffered, resold, pledged
or otherwise transferred except as contemplated by the legend set forth in paragraph
(b) below.  Every Class B Note
presented or surrendered for registration of transfer or exchange shall be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee, duly executed by such Class B Noteholder
or its attorney duly authorized in writing.

 

(b)           Each
Class B Note shall bear a legend substantially to the following effect:

 

THIS CLASS B NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES OR “BLUE SKY” LAWS.  THE
HOLDER HEREOF, BY PURCHASING THIS CLASS B NOTE, AGREES THAT THIS NOTE MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO AN AFFILIATE OF THE
ISSUER, (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR (3) IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SUBJECT TO THE ISSUER’S AND THE
INDENTURE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM.  ANY
NOTEHOLDER WILL, AND EACH SUBSEQUENT NOTEHOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO
ABOVE.  THE ISSUER IS NOT OBLIGATED TO
REGISTER THIS CLASS B NOTE UNDER THE SECURITIES ACT OR ANY STATE SECURITIES OR BLUE
SKY LAWS.  NO TRANSFER OF THIS CLASS B
NOTE SHALL BE PERMITTED TO THE EXTENT THAT SUCH TRANSFER WOULD RESULT IN MORE
THAN 80 HOLDERS (WITHIN THE MEANING OF TREASURY REGULATION SECTION 1.7704-1(H))
OF CLASS B NOTES AND BENEFICIAL INTERESTS IN THE ISSUER IN THE AGGREGATE.  NO TRANSFER OF THIS CLASS B NOTE MAY BE MADE
TO ANY PERSON (A “PASS-THROUGH ENTITY”) THAT IS A PARTNERSHIP (INCLUDING ANY
OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX PURPOSES), S CORPORATION
OR GRANTOR TRUST UNLESS SUCH PASS-THROUGH ENTITY IS ABLE TO REPRESENT THAT THIS
CLASS B NOTE REPRESENTS LESS THAN 50% OF THE FAIR MARKET VALUE OF ALL ASSETS OF
SUCH ENTITY.  NOTWITHSTANDING THE
FOREGOING, NO TRANSFER OF THIS CLASS B NOTE SHALL BE MADE EXCEPT IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE AND IN THIS CLASS B NOTE.  TRANSFER OF THIS CLASS B NOTE IS SUBJECT TO
ADDITIONAL TRANSFER RESTRICTIONS CONTAINED IN SECTION 2.16 OF THE
INDENTURE.  EACH HOLDER OF THIS CLASS B
NOTE AGREES THAT THIS CLASS B NOTE IS SUBJECT TO THE

 

21

 

PROVISIONS OF ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE
AS IN EFFECT IN ALL APPLICABLE JURISDICTIONS.

 

(c)           No
Class B Note (or any interest therein) may be transferred (including, without
limitation, by pledge or hypothecation) unless such transferee executes and
delivers to the Issuer, the Insurer and the Indenture Trustee a transfer
certificate certifying as to the items set forth in this Section 2.16; provided,
however, that no such transferee may be, or may be directly or
indirectly acquiring the Class B Notes for, on behalf of or with any assets of,
an employee benefit plan or other arrangement subject to Title I of ERISA, a
plan subject to Section 4975 of the Code, or a plan or other arrangement subject
to any provisions under any federal, state, local, non-U.S. or other laws or
regulations that are substantively similar to the foregoing provisions of ERISA
or the Code.

 

Upon the transfer of any such Class B Note, the Issuer
shall issue and the Indenture Trustee shall authenticate in the name of the
transferee a new Class B Note of the same aggregate principal amount as the
surrendered Class B Note.

 

(d)           No
transfer of a Class B Note shall be permitted to the extent that such transfer
would result in more than 80 Holders (within the meaning of Treasury Regulation
Section 1.7704-1(h)) of Class B Notes and beneficial interests in the Issuer in
the aggregate.  No transfer of a Class B
Note may be made to any Person (a “Pass-Through
Entity”) that is a partnership (including any other entity
treated as a partnership for income tax purposes), S corporation or grantor
trust unless such Pass-Through Entity is able to represent that the Class B
Note represents less than 50% of the fair market value of all assets of such
entity.  Notwithstanding the foregoing,
no transfer of a Class B Note shall be made except in accordance with the
restrictions set forth in the Indenture and in the form of Class B Note.

 

Section 2.17.        Regarding Owner Trustee.

 

The parties to this Indenture and each holder of a
Note by its acceptance thereof expressly acknowledge and consent to Wells Fargo
Delaware Trust Company, an affiliate of the Indenture Trustee, acting as Owner
Trustee pursuant to the Trust Agreement. 
The Indenture Trustee may discharge its functions hereunder and under
the other Transaction Documents fully, without hindrance or regard to conflict
of interest principles, duty of loyalty principles or other breach of fiduciary
duties to the extent that any such conflict or breach arises from the
performance by it of its express duties set forth in this Indenture, all of
which defenses, claims or assertions are hereby expressly waived by the other
parties hereto and each holder of a Note.

 

Article III

Covenants

 

Section 3.1.           Payment Covenant.

 

The Issuer shall duly and punctually pay the principal
of and interest, if any, on the Notes in accordance with the terms of the Notes
and this Indenture, which shall be paid pursuant to Section 3.5 of the Sale and
Allocation Agreement.  Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest (with respect to the Class A Notes)

 

22

 

and/or principal
shall be considered as having been paid by the Issuer to such Noteholder for
all purposes of this Indenture.

 

Section 3.2.           Maintenance of Office or Agency.

 

The Issuer shall maintain in Minneapolis, Minnesota,
an office or agency or appoint an agent located in Minneapolis, Minnesota where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served.  The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes and the Indenture Trustee hereby accepts such
appointment.  The Issuer shall give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency.  If, at any time, the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Indenture
Trustee with the address thereof, such surrenders, notices and demands may be
made or served at the Corporate Trust Office, and the Issuer hereby appoints
the Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

 

Section 3.3.           Money for Payments to be Held in Trust.

 

(a)           As
provided in Section 8.2, all payments of amounts due and payable with
respect to the Notes that are to be made from amounts withdrawn from the Trust
Accounts shall be made on behalf of the Issuer by the Indenture Trustee or by
another Paying Agent, and no amounts so withdrawn from the Trust Accounts shall
be paid over to the Issuer, except as provided in this Section 3.3.

 

(b)           On
or before each Payment Date and Redemption Date, the Issuer shall deposit or
cause to be deposited in the applicable Note Payment Account an aggregate sum
sufficient to pay the amounts then becoming due under the Notes, such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless the
Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of its action or failure to so act.

 

(c)           The
Issuer shall cause each Paying Agent other than the Indenture Trustee to
execute and deliver to the Indenture Trustee an instrument in which such Paying
Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts
as Paying Agent, it hereby so agrees), subject to the provisions of this Section
3.3, that such Paying Agent shall:

 

(i)            hold all sums held by it for the
payment of amounts due with respect to the Notes in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such Persons as
herein provided;

 

(ii)           give the Indenture Trustee notice of
any default by the Issuer (or any other obligor upon the Notes) of which it has
actual knowledge in the making of any payment required to be made with respect
to the Notes;

 

(iii)          at any time during the continuance of
any such default, upon the written request of the Indenture Trustee, forthwith
pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

 

23

 

(iv)          immediately resign as a Paying Agent
and forthwith pay to the Indenture Trustee all sums held by it in trust for
payment of the Notes if at any time it ceases to meet the standards required to
be met by a Paying Agent at the time of its appointment; and

 

(v)           comply with all requirements of the
Code and any state or local tax law with respect to the withholding from any
payments made by it on the Notes of any applicable withholding taxes imposed
thereon and with respect to any applicable reporting requirements in connection
therewith.

 

(d)           The
Issuer may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Indenture Trustee all sums held in trust by such
Paying Agent, such sums to be held by the Indenture Trustee upon the same
trusts as those upon which such sums were held by such Paying Agent, and upon
such payment by any Paying Agent to the Indenture Trustee, such Paying Agent
shall be released from all further liability with respect to such sums.

 

(e)           Subject
to applicable laws with respect to escheat of funds, any money held by the
Indenture Trustee or any Paying Agent in trust for the payment of any amount
due with respect to any Note and remaining unclaimed for two (2) years after
such amount has become due and payable shall be discharged from such trust and
be paid to the Issuer on Issuer Request, and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that
the Indenture Trustee or such Paying Agent, before being required to make any
such repayment, shall at the expense and direction of the Issuer cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New
York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than thirty (30) days from the date of such
publication, any unclaimed balance of such money then remaining shall be repaid
to the Issuer.  The Indenture Trustee
shall also adopt and employ, at the expense and direction of the Issuer, any
other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Holders whose Notes have been
called but have not been surrendered for redemption in whole pursuant to Section
10.1 or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent at the last address of record for each such Holder).

 

Section 3.4.           Existence.

 

The Issuer shall keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer shall keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and shall 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

 

24

 

enforceability of
this Indenture, the Notes, the Collateral and each other instrument or
agreement included in the Trust Estate.

 

Section 3.5.           Protection of Trust Estate.

 

The Issuer shall from time to time execute, if
applicable, and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, and shall take such other action necessary or advisable
to:

 

(a)           maintain
or preserve the lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof including, without
limitation, the filing of any financing statement or any amendment to any
existing financing statement necessitated by Section 3.8(d)(iv);

 

(b)           perfect,
publish notice of or protect the validity of any Grant made or to be made by
this Indenture;

 

(c)           enforce
any of the Collateral; or

 

(d)           preserve
and defend title to the Trust Estate and the rights of the Indenture Trustee,
the Insurer and the Noteholders in the Trust Estate against the claims of all
Persons.

 

The Issuer hereby designates the Indenture Trustee its
agent and attorney-in-fact to execute upon a written instruction from the
Issuer, the Insurer or Servicer any financing statement, continuation statement
or other instrument required to be executed pursuant to this Section 3.5.

 

Section 3.6.           Opinions as to Trust Estate.

 

(a)           On
the Closing Date, the Issuer shall deliver to the Indenture Trustee and the
Insurer an Opinion of Counsel reasonably acceptable to such parties either
stating that, in the opinion of such counsel, such action has been taken with
respect to this Indenture and other requisite documents and with respect to the
execution and filing of any financing statements and continuation statements,
as are necessary to perfect and make effective the first priority lien and
security interest in favor of the Indenture Trustee, created by this Indenture
and reciting the details of such action, or stating that, in the opinion of
such counsel, no such action is necessary to make such lien and security
interest effective.

 

(b)           On
or before March 31 of each year (commencing with the year 2006), the Issuer
shall deliver to the Indenture Trustee and the Insurer an Opinion of Counsel acceptable
to such parties either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain
the lien and security interest created by this Indenture and reciting the
details of such action or stating that, in the opinion of such counsel, no such
action is necessary to maintain such lien and security interest.  Such Opinion of Counsel shall also describe
the recording, filing, re-recording and refiling of

 

25

 

this Indenture, any indentures supplemental hereto and
any other requisite documents and the execution and filing of any financing
statements and continuation statements that shall, in the opinion of such
counsel, be required to maintain the lien and security interest of this
Indenture until March 31 in the following year.

 

Section 3.7.           Performance of Obligations.

 

(a)           The
Issuer shall not take any action and shall use its best efforts not to permit
any action to be taken by others that would release any Person from any of such
Person’s material covenants or obligations under any instrument or agreement
included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture and the other Transaction Documents.

 

(b)           The
Issuer may contract with other Persons to assist it in performing its duties
under this Indenture, and any performance of such duties by a Person identified
to the Indenture Trustee in an Issuer’s Certificate shall be deemed to be
action taken by the Issuer.  Initially,
the Issuer has contracted with the Servicer and the Administrator to assist the
Issuer in performing its duties under this Indenture as set forth in the
Servicing Agreement and the Administration Agreement.

 

(c)           The
Issuer shall punctually perform and observe all of its obligations and
agreements contained in this Indenture, the other Transaction Documents to which
it is a party and the instruments and agreements included in the Trust Estate,
including, but not limited to, filing or causing to be filed all financing
statements and continuation statements required to be filed under the Relevant
UCC by the terms of this Indenture and the Servicing Agreement in accordance
with and within the time periods provided for herein and therein.  Except as otherwise expressly provided
therein, the Issuer shall not waive, amend, modify, supplement or terminate any
Transaction Document or any provision thereof without the consent of the
Indenture Trustee, the Insurer or the Noteholders evidencing not less than 51%
of the Note Balance.

 

(d)           If
the Issuer shall have knowledge of the occurrence of an Event of Servicing
Termination under the Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee, the Insurer and the Rating Agencies thereof and shall
specify in such notice the action, if any, the Issuer is taking in respect of
such default.  If an Event of Servicing
Termination shall arise from the failure of the Servicer to perform any of its
duties or obligations under the Servicing Agreement with respect to the
Contracts, the Issuer shall take all reasonable steps available to it to remedy
such failure.

 

(e)           [Reserved.]

 

(f)            Upon
any termination of the Servicer’s rights and powers pursuant to Section 5.02 of
the Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee
and the Insurer of such termination. 
Upon any appointment of a Successor Servicer by the Issuer, the Issuer
shall promptly notify the Indenture Trustee and the Insurer of such
appointment, specifying in such notice the name and address of such Successor
Servicer.

 

26

 

(g)           Without
derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
the Issuer shall not, without the prior written consent of the Insurer (if no
Insurer Default shall have occurred and be continuing), the Indenture Trustee
and the Holders of not less than 51% of the Class A Note Balance, amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment,
modification, waiver, supplement, termination or surrender of, the terms of any
Collateral (except to the extent otherwise permitted in the Servicing Agreement
or the other Transaction Documents).

 

Section 3.8.           Negative Covenants.

 

If any Notes are Outstanding or the Insurer has not
been paid all amounts owed to it, the Issuer shall not:

 

(a)           except
as expressly permitted by this Indenture, the Trust Agreement, the Servicing
Agreement, the Contribution Agreement or the Sale and Allocation Agreement,
sell, transfer, exchange or otherwise dispose of any of the properties or
assets of the Issuer, including those included in the Trust Estate, unless
directed to do so by the Indenture Trustee with the prior written consent of
the Insurer;

 

(b)           claim
any credit on, or make any deduction from the principal or interest payable in
respect of, the Notes (other than amounts properly withheld from such payments
under the Code or applicable state law) or assert any claim against any present
or former Noteholder by reason of the payment of taxes levied or assessed upon the
Issuer;

 

(c)           dissolve
or liquidate in whole or in part;

 

(d)          
(i) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien of this Indenture to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any
covenants or obligations with respect to the Notes under this Indenture except
as may be expressly permitted hereby, (ii) permit any lien, charge, excise,
claim, security interest, mortgage or other encumbrance (other than the lien of
this Indenture) to be created on or extend to or otherwise arise upon or
encumber the Trust Estate or any part thereof or any interest therein or the
proceeds thereof (other than tax liens, mechanics’ liens and other liens that
arise by operation of law, in each case on any of the Financed Vehicles and
arising solely as a result of an action or omission of the related Obligor),
(iii) permit the lien of this Indenture not to constitute a valid first
priority (other than as set forth in clause (ii)) security interest in
the Trust Estate, or (iv) change its name, identity or state of organization in
any manner that would make any financing statement or continuation statement
filed with respect to it seriously misleading within the meaning of Section
9-507 of the Relevant UCC, or cause any financing statement or continuation
statement filed with respect to it to be amended, without prior written notice
to the Insurer and the Indenture Trustee;

 

(e)           engage
in any activities other than issuing the Notes, financing, acquiring, owning,
pledging and managing the Contracts as contemplated by the Servicing Agreement,
the Trust Agreement, the Sale and Allocation Agreement, the Contribution
Agreement and this Indenture and activities incidental to such activities; or

 

27

 

(f)            incur,
assume or guarantee any indebtedness other than the indebtedness evidenced by
the Notes or indebtedness otherwise permitted by the Servicing Agreement, the
Trust Agreement, the Sale and Allocation Agreement, the Contribution Agreement
and this Indenture.

 

Section 3.9.           Annual Statement as to Compliance.

 

On or before July 31 of each year (commencing with the
year 2007), the Issuer shall deliver to the Indenture Trustee and the Insurer an
Issuer’s Certificate stating, as to the Authorized Officer signing such
Issuer’s Certificate, that:

 

(a)           a
review of the activities of the Issuer during the preceding Fiscal Year (or, in
the case of the Issuer’s Certificate to be delivered in the year 2007, during
the period beginning on the Closing Date and ending on April 30, 2007) and of
its performance under this Indenture has been made under such Authorized
Officer’s supervision; and

 

(b)           to
the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has complied with all conditions and covenants under this Indenture
throughout such preceding Fiscal Year (or, in the case of the Issuer’s
Certificate to be delivered in the year 2007, during the period beginning on
the Closing Date and ending on April 30, 2007) or, if there has been a default
in its compliance with any such condition or covenant, specifying each such
default known to such Authorized Officer and the nature and status thereof.

 

Section 3.10.        Issuer May Not Merge.

 

(a)           The
Issuer shall not consolidate or merge with or into any other Person unless:

 

(i)            the Person (if other than the
Issuer) formed by or surviving such consolidation or merger shall be a Person
organized and existing under the laws of the United States of America or any
state thereof and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Indenture Trustee, in form satisfactory to the
Indenture Trustee, and prior to the later of (A) the Final Note Payment Date of
the Class A-4 Notes, and (B) the date on which all amounts due to the Insurer
under all of the Transaction Documents have been paid in full and the due and
punctual payment of the principal of and interest on all Class A Notes have
been paid in full, in form satisfactory to the Insurer;

 

(ii)           immediately after giving effect to
such transaction, no Default or Event of Default shall have occurred and be
continuing;

 

(iii)          the Rating Agency Condition shall have
been satisfied with respect to such transaction;

 

(iv)          the Issuer shall have received an
Opinion of Counsel (and shall have delivered copies thereof to the Indenture
Trustee and the Insurer) to the effect that such transaction will not have any
material adverse tax consequence to the Trust, any Noteholder or any
Certificateholder;

 

28

 

(v)           any action as is necessary to
maintain the lien and security interest created by this Indenture, and the
priority thereof, shall have been taken;

 

(vi)          if, prior to the later of (A) the
Final Note Payment Date of the Class A-4 Notes and (B) the date on which all
amounts due to the Insurer under all of the Transaction Document have been paid
in full, the Insurer has given its prior written consent; and

 

(vii)         the Issuer shall have delivered to the
Indenture Trustee and the Insurer an Issuer’s Certificate and an Opinion of
Counsel each stating that such consolidation or merger and such supplemental
indenture comply with this Section 3.10(a) and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

(b)           Prior
to the Final Note Payment Date of the Class A-4 Notes, the Issuer shall not
convey or transfer all or substantially all of its properties or assets.

 

Section 3.11.        [Reserved].

 

Section 3.12.        Successor.

 

Upon any consolidation or merger of the Issuer in
accordance with Section 3.10(a), the Person formed by or surviving such
consolidation or merger (if other than the Issuer) shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer under
this Indenture and the other Transaction Documents with the same effect as if
such Person had been named as the Issuer herein.

 

Section 3.13.        Servicer’s Obligation.

 

The Issuer shall cause the Servicer to comply with its
obligations under the Sale and Allocation Agreement and the Servicing
Agreement.

 

Section 3.14.        Guarantees, Loans, Advances and Other Liabilities.

 

Except as contemplated by the Notes, this Indenture
and the other Transaction Documents, the Issuer shall not make any loan or
advance or credit to, or guarantee (directly or indirectly or by an instrument
having the effect of assuring another’s payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree contingently to do so) any stock, obligations, assets or securities
of, or any other interest in, or make any capital contribution to, any other
Person.

 

Section 3.15.        Capital Expenditures.

 

The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or
personalty) except as may be expressly permitted by the Transaction Documents.

 

29

 

Section 3.16.        Restricted Payments.

 

The Issuer shall not, directly or indirectly, (a) make
any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any
owner of a beneficial interest in the Issuer or otherwise with respect to any
ownership or equity interest or security in or of the Issuer or to the
Servicer, (b) redeem, purchase, retire or otherwise acquire for value any such
ownership or equity interest or security or (c) set aside or otherwise
segregate any amounts for any such purpose; provided, however,
that the Issuer may make, or cause to be made, (i) payments to the Servicer,
the Indenture Trustee and the Owner Trustee as contemplated by, and to the
extent funds are available for such purpose under, the Sale and Allocation
Agreement, and (ii) payments to the Depositor Account with respect to the
Certificate issued in accordance with the terms of the Trust Agreement, to the
extent funds are available for such purpose pursuant to Section 3.5(d)(xi) of
the Sale and Allocation Agreement.  The
Issuer shall not, directly or indirectly, make payments to or distributions
from the Collection Account except in accordance with the Sale and Allocation
Agreement and the other Transaction Documents.

 

Section 3.17.        Notice of Events of Default.

 

The Issuer shall give the Indenture Trustee, the
Insurer and the Rating Agencies prompt written notice of each Event of Default
hereunder and each default on the part of the Seller or the Servicer of its
obligations under the Sale and Allocation Agreement.

 

Section 3.18.        Removal of Administrator.

 

For so long as any Notes are Outstanding, the Issuer shall
not remove the Administrator without cause unless the Rating Agency Condition
shall have been satisfied in connection therewith and the Insurer has
previously consented in writing.

 

Section 3.19.        Further Instruments and Acts.

 

Upon request of the Indenture Trustee or the Insurer,
the Issuer shall execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

Section 3.20.        Rule 144A Information.

 

At any time when the Issuer is not subject to Section
13 or 15(d) of the Exchange Act and is not exempt from reporting pursuant to
Rule 12g3-2(b) under the Exchange Act, upon the request of any Class A
Noteholder or Note Owner of a Class A Note, the Issuer shall promptly furnish
or cause to be furnished Rule 144A Information to such Noteholder or Note Owner
or to a prospective purchaser of a Class A Note designated by such Class A
Noteholder or Note Owner, in order to permit compliance by such Noteholder or
Note Owner with Rule 144A in connection with the resale of such Class A Note.

 

30

 

Section 3.21.        Perfection Representations, Warranties and Covenants.

 

The perfection representation, warranties and covenants
made by the Issuer and set forth on Schedule A hereto shall be part of this
Indenture for all purposes.

 

Article
IV

Satisfaction and Discharge

 

Section 4.1.           Satisfaction and Discharge of Indenture.

 

This Indenture shall cease to be of further effect with
respect to the Notes except as to (a) rights of registration of transfer and
exchange, (b) substitution of mutilated, destroyed, lost or stolen Notes, (c)
rights of Noteholders to receive payments of principal thereof and interest
thereon, (d) Sections 3.3, 3.4, 3.5, 3.8, 3.10,
3.12, 3.13, 3.15 and 3.16 and, (e) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.7 and the obligations of
the Indenture Trustee under Section 4.3), and (f) the rights of
Noteholders as beneficiaries hereof with respect to the property so deposited
with the Indenture Trustee payable to all or any of them, and the Indenture
Trustee, on demand of and at the expense of the Issuer, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to the Collateral securing the Notes and the Notes, when:

 

(i)            either

 

(A)          all Notes theretofore authenticated
and delivered (other than (1) Notes that have been destroyed, lost or stolen
and that have been replaced or paid as provided in Section 2.6 and (2)
Notes for whose payment money has theretofore been irrevocably deposited in
trust or segregated and held in trust by the Issuer and thereafter repaid to
the Issuer or discharged from such trust, as provided in Section 3.3)
have been delivered to the Indenture Trustee for cancellation and the Policy
has expired and has been returned to the Insurer for cancellation; or

 

(B)           all Notes not theretofore delivered
to the Indenture Trustee for cancellation have become due and payable and the
Issuer has irrevocably deposited or caused to be irrevocably deposited with the
Indenture Trustee, in trust, cash or direct obligations of or obligations
guaranteed by the United States of America (which will mature prior to the date
needed), in an amount sufficient to pay and discharge the entire indebtedness
on each Class of Class A Notes when due its respective Final Note Payment Date
or Redemption Date (if the Notes shall have been called for redemption pursuant
to Section 10.1), as the case may be;

 

(ii)           the Issuer has paid or caused to be
paid all other sums payable by the Issuer hereunder and under the Trust
Agreement, the Servicing Agreement and the Sale and Allocation Agreement;

 

31

 

(iii)          the Issuer has delivered to the
Indenture Trustee and the Insurer an Issuer’s Certificate, an Opinion of
Counsel and (if required by the Indenture Trustee) an Independent Certificate
from a firm of certified public accountants, each meeting the applicable
requirements of Section 11.1(a) and, subject to Section 11.2,
each stating that all conditions precedent provided for in this Indenture
relating to the satisfaction and discharge of this Indenture have been complied
with; and

 

(iv)          the Issuer or the Servicer has
delivered to the Indenture Trustee an Opinion of Counsel to the effect that the
satisfaction and discharge of this Indenture pursuant to this Section 4.1
will not cause any Noteholder to be treated as having sold or exchanged any of
its Notes for purposes of Section 1001 of the Code.

 

Section 4.2.           Satisfaction, Discharge and Defeasance of the Notes.

 

(a)           Upon
satisfaction of the conditions set forth in subsection (b) below, the
Issuer shall be deemed to have paid and discharged the entire indebtedness on
all the Notes Outstanding, and the provisions of this Indenture, as it relates
to such Notes, shall no longer be in effect (and the Indenture Trustee, at the
expense of the Issuer, shall execute proper instruments acknowledging the
same), except as to:

 

(i)            the rights of the Noteholders to
receive, from the trust funds described in subsection (b)(i) hereof,
payment of the principal of and interest on the Notes Outstanding at maturity
of such principal or interest;

 

(ii)           the obligations of the Issuer with
respect to the Notes under Sections 2.5, 2.6, 3.2 and 3.3;

 

(iii)          the obligations of the Issuer to the
Indenture Trustee under Section 6.7; and

 

(iv)          the rights, powers, trusts and
immunities of the Indenture Trustee hereunder and the duties of the Indenture
Trustee hereunder.

 

(b)           The
satisfaction, discharge and defeasance of the Notes pursuant to subsection
(a) of this Section 4.2 is subject to the satisfaction of all of the
following conditions:

 

(i)            the Issuer has deposited or caused
to be deposited irrevocably (except as provided in Section 4.4) with the
Indenture Trustee as trust funds in trust, specifically pledged as security
for, and dedicated solely to, the benefit of the Noteholders, which, through
the payment of interest and principal in respect thereof in accordance with
their terms will provide, not later than one day prior to the due date of any
payment referred to below, money in an amount sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Indenture
Trustee, to pay and discharge the entire indebtedness on the Notes Outstanding,
for principal thereof and interest thereon to the date of such deposit (in the
case of Notes that have become due and payable) or to the maturity of such
principal and interest, as the case may be;

 

32

 

(ii)           such deposit will not result in a
breach or violation of, or constitute an event of default under, any
Transaction Document or other agreement or instrument to which the Issuer is
bound;

 

(iii)          no Event of Default has occurred and
is continuing on the date of such deposit or on the ninety-first (91st) day
after such date;

 

(iv)          the Issuer has delivered to the
Indenture Trustee and the Insurer an Opinion of Counsel to the effect that the
satisfaction, discharge and defeasance of the Notes pursuant to this Section
4.2 will not cause any Noteholder to be treated as having sold or exchanged
any of its Notes for purposes of Section 1001 of the Code;

 

(v)           the Issuer has delivered to the
Indenture Trustee an Issuer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent provided for in this Indenture relating
to the defeasance contemplated by this Section 4.2 have been complied with; and

 

(vi)          all amounts then owing to the Insurer
have been paid.

 

Section 4.3.           Application of Trust Money.

 

All monies deposited with the Indenture Trustee
pursuant to Section 4.1 shall be held in trust and applied by the
Indenture Trustee, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Noteholders for the payment or
redemption of which such monies have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest, but such
monies need not be segregated from other funds except to the extent required
herein or in the Sale and Allocation Agreement or required by law.

 

Section 4.4.           Repayment of Monies Held by Paying Agent.

 

In connection with the satisfaction and discharge of
this Indenture with respect to the Notes, all monies then held by any Paying
Agent other than the Indenture Trustee under the provisions of this Indenture
with respect to such Notes shall, upon demand of the Issuer, be paid to the
Indenture Trustee to be held and applied according to Section 3.3, and
thereupon such Paying Agent shall be released from all further liability with
respect to such monies.

 

Section 4.5.           Continuing Obligations of Indenture Trustee.

 

It is understood that the Indenture Trustee shall
remain obligated to perform its duties to make payments pursuant to Section
3.5(d) and Section 3.5(e) of the Sale and Allocation Agreement and Section
2.8 and Section 5.4(b) of this Indenture, notwithstanding anything
to the contrary in this Article IV or elsewhere in this Indenture, until such
time as all outstanding amounts have been paid pursuant to such sections.

 

33

 

Article
V

Remedies

 

Section 5.1.           Events of Default.

 

“Event of
Default” means the occurrence of any one of the following events
(whatever the reason for such event and whether such event shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

(a)           default
in the payment of any interest on any Class A Note when the same becomes due
and payable;

 

(b)           default
in the payment of any principal due and payable on any Class of the Class A
Notes when the same becomes due and payable on the Final Note Payment Date for
such Class;

 

(c)           default
in the observance or performance of any material covenant or agreement of the
Issuer, the Depositor or the Seller made in the Transaction Documents (other
than a covenant or agreement a default in the observance or performance of
which is specifically dealt with elsewhere in this Section 5.1), and
such default shall continue or not be cured for a period of thirty (30) days
after there shall have been given, by registered or certified mail, to the
Issuer by the Indenture Trustee or to the Issuer and the Indenture Trustee by
the Noteholders evidencing not less than 25% of the Class A Note Balance or the
Insurer (provided that no Insurer Default shall have occurred and be
continuing), a written notice specifying such default and requiring it to be
remedied and stating that such notice is a notice of Default hereunder;

 

(d)           any
representation or warranty of the Issuer, the Depositor or the Seller made in
the Transaction Documents or in any certificate delivered pursuant hereto or in
connection herewith proving to have been incorrect in any material respect as
of the time when the same shall have been made, and the circumstance or
condition in respect of which such representation or warranty was incorrect
shall not have been eliminated or otherwise cured for a period of thirty (30)
days after there shall have been given, by registered or certified mail, to the
Issuer by the Indenture Trustee or to the Issuer and the Indenture Trustee by
the Noteholders evidencing not less than 25% of the Class A Note Balance or the
Insurer (provided that no Insurer Default shall have occurred and be
continuing), a written notice specifying such incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a
notice of Default hereunder;

 

(e)           the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Seller, the Issuer, the Depositor or any substantial
part of the Trust Estate in an involuntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect,
or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer or for any substantial part of
the Trust Estate, or ordering the winding-up or liquidation of the Issuer’s
affairs, and such decree or order shall remain unstayed and in effect for a
period of sixty (60) consecutive days;

 

34

 

(f)            the
cessation of a valid perfected first priority security interest in the
Contracts in favor of the Indenture Trustee which is not cured within the
applicable cure period;

 

(g)           the
merger or consolidation (including any conveyance transaction) of the Issuer
with or into any Person regardless of the surviving entity, except as expressly
permitted hereunder;

 

(h)           [Reserved];

 

(i)            the
commencement by the Seller, the Depositor or the Issuer of a voluntary case
under any applicable federal or state bankruptcy, insolvency or other similar law
now or hereafter in effect, or the consent by the Seller, the Depositor or the
Issuer to the entry of an order for relief in an involuntary case under any
such law, or the consent by the Seller, the Depositor or the Issuer to the
appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Seller, the
Depositor or the Issuer or for any substantial part of the Trust Estate, or the
making by the Seller, the Depositor or the Issuer of any general assignment for
the benefit of creditors, or the failure by the Seller, the Depositor or the
Issuer generally to pay its debts as such debts become due, or the taking of
any action by the Seller, the Depositor or the Issuer in furtherance of any of the
foregoing;

 

(j)            an
Event of Servicing Termination shall have occurred under the Servicing
Agreement;

 

(k)           the
Seller shall have defaulted on any payment required to be made by it under any
material credit agreement or other loan agreement pursuant to which it has
borrowed money;

 

(l)            a
draw shall be made under the Policy;

 

(m)          the
Insurer shall have given notice that an Event of Default (as defined in the
Insurance Agreement) has occurred and is continuing under the Insurance
Agreement;

 

(n)           the
average Delinquency Ratio for any three Collection Periods: (i) exceeds 5.20%
during the period from January 2006 through August 2006; (ii) exceeds 6.25%
during the period from September 2006 through January 2008; and (iii) exceeds
7.25% thereafter; and

 

(o)           the
Cumulative Net Loss Rate for any Collection Period indicated in the following
table shall exceed the percentage corresponding thereto:

 

	
  Collection Period

  	
   

  	
  Cumulative Net Loss

  Rate

  	
   

  
	
  January 2006

  	
   

  	
  0.275

  	
  %

  
	
  February 2006

  	
   

  	
  0.45

  	
  %

  
	
  March 2006

  	
   

  	
  0.65

  	
  %

  
	
  April 2006

  	
   

  	
  0.85

  	
  %

  
	
  May 2006

  	
   

  	
  1.00

  	
  %

  
	
  June 2006

  	
   

  	
  1.15

  	
  %

  
	
  July 2006

  	
   

  	
  1.50

  	
  %

  

 

35

 

	
  Collection Period

  	
   

  	
  Cumulative Net Loss

  Rate

  	
   

  
	
  August 2006

  	
   

  	
  1.65

  	
  %

  
	
  September 2006

  	
   

  	
  1.90

  	
  %

  
	
  October 2006

  	
   

  	
  2.00

  	
  %

  
	
  November 2006

  	
   

  	
  2.25

  	
  %

  
	
  December 2006

  	
   

  	
  2.40

  	
  %

  
	
  January 2007

  	
   

  	
  2.50

  	
  %

  
	
  February 2007

  	
   

  	
  2.85

  	
  %

  
	
  March 2007

  	
   

  	
  3.10

  	
  %

  
	
  April 2007

  	
   

  	
  3.25

  	
  %

  
	
  May 2007

  	
   

  	
  3.70

  	
  %

  
	
  June 2007

  	
   

  	
  3.90

  	
  %

  
	
  July 2007

  	
   

  	
  4.05

  	
  %

  
	
  August 2007

  	
   

  	
  4.38

  	
  %

  
	
  September 2007

  	
   

  	
  4.70

  	
  %

  
	
  October 2007

  	
   

  	
  4.95

  	
  %

  
	
  November 2007

  	
   

  	
  5.30

  	
  %

  
	
  December 2007

  	
   

  	
  5.65

  	
  %

  
	
  January 2008

  	
   

  	
  5.75

  	
  %

  
	
  February 2008

  	
   

  	
  6.10

  	
  %

  
	
  March 2008

  	
   

  	
  6.35

  	
  %

  
	
  April 2008

  	
   

  	
  6.50

  	
  %

  
	
  May 2008

  	
   

  	
  6.75

  	
  %

  
	
  June 2008

  	
   

  	
  6.90

  	
  %

  
	
  July 2008

  	
   

  	
  7.10

  	
  %

  
	
  August 2008

  	
   

  	
  7.25

  	
  %

  
	
  September 2008

  	
   

  	
  7.35

  	
  %

  
	
  October 2008

  	
   

  	
  7.40

  	
  %

  
	
  November 2008

  	
   

  	
  7.50

  	
  %

  
	
  December 2008

  	
   

  	
  7.65

  	
  %

  
	
  January 2009

  	
   

  	
  7.75

  	
  %

  
	
  February 2009

  	
   

  	
  7.90

  	
  %

  
	
  March 2009

  	
   

  	
  8.00

  	
  %

  
	
  April 2009

  	
   

  	
  8.10

  	
  %

  
	
  May 2009

  	
   

  	
  8.20

  	
  %

  
	
  June 2009

  	
   

  	
  8.30

  	
  %

  
	
  July 2009

  	
   

  	
  8.40

  	
  %

  
	
  August 2009

  	
   

  	
  8.50

  	
  %

  
	
  September 2009

  	
   

  	
  8.50

  	
  %

  
	
  October 2009

  	
   

  	
  8.50

  	
  %

  
	
  November 2009

  	
   

  	
  8.50

  	
  %

  
	
  December 2009 and
  thereafter

  	
   

  	
  8.50

  	
  %

  

 

36

 

provided,
however, that,
unless an Insurer Default shall have occurred and be continuing, neither the
Indenture Trustee nor the Noteholders may declare an Event of Default under
this Indenture.

 

The Issuer shall deliver to the Indenture Trustee,
within five (5) days after the occurrence of any event that, with notice or the
lapse of time or both, would become an Event of Default under clause (c)
or (d), written notice of such Default in the form of an Issuer’s
Certificate, the status of such Default and what action the Issuer is taking or
proposes to take with respect to such Default.

 

Section 5.2.           Acceleration of Maturity; Rescission and Annulment.

 

(a)           If
no Insurer Default shall have occurred and be continuing and if an Event of
Default shall have occurred and be continuing, then the Insurer shall have the
right, but not the obligation, upon prior written notice to each Rating Agency,
to declare the Notes to be immediately due and payable by written notice to the
Issuer, the Servicer and the Indenture Trustee, and upon any such declaration
the unpaid principal amount of the Notes, together with accrued and unpaid
interest on each Class of Class A Notes through the date of acceleration, shall
become immediately due and payable and may direct the Indenture Trustee to
exercise remedies provided under Section 5.4(a)(iv).  The Indenture Trustee shall have no
discretion with respect to the acceleration of the Notes under the foregoing
circumstances.  In the event of any such
acceleration of the Notes, the Indenture Trustee shall continue to make claims
under the Policy with respect to the Class A Notes in accordance with the terms
thereof.

 

(b)           If
an Insurer Default has occurred and is continuing and an Event of Default has
occurred and is continuing, then and in every such case the Indenture Trustee
or the Noteholders evidencing not less than 66 2/3% of the Class A Note Balance
may, upon prior written notice to each Rating Agency, declare the Notes to be
immediately due and payable by written notice to the Issuer (and to the
Indenture Trustee if given by Class A Noteholders), and upon any such
declaration the unpaid principal amount of the Notes, together with accrued and
unpaid interest on each Class of Class A Notes through the date of
acceleration, shall become immediately due and payable.

 

Notwithstanding the foregoing, upon the occurrence of
an Event of Default specified in Section 5.1(i) with respect to the
Issuer, the Notes shall become immediately due and payable, without
declaration, notice or demand by or to any Person.

 

(c)           At
any time after a declaration of acceleration of maturity has been made but
before a judgment or decree for payment of the amount due has been obtained by
the Indenture Trustee as hereinafter provided in this Article V, either
(i) if the Class A Noteholders accelerated, the Class A Noteholders evidencing
not less than 66 2/3% of the Class A Note Balance (with the prior written
consent of the Insurer if the Insurer Default referred to in clause (b) above
has been cured) or (ii) if the Insurer accelerated, the Insurer, by written
notice to the Issuer and the Indenture Trustee, may rescind and annul such
declaration and its consequences if:

 

(A)          the Issuer has deposited with the
Indenture Trustee a sum sufficient to pay all principal of and interest on the
Notes and all other amounts that would

 

37

 

be due hereunder as if the Event of Default giving
rise to the declaration of the 
acceleration had not occurred; and

 

(B)           all Events of Default, other than the
nonpayment of the principal of the Class A Notes that has become due solely by
such acceleration, have been cured or waived as provided in Section 5.12.

 

No such rescission
shall affect any subsequent default or impair any right consequent thereto.

 

(d)           If
an Event of Default has occurred and is continuing, the Insurer may (i) if the
Notes have been accelerated in accordance with Section 5.2(a) or 5.2(b)
and not rescinded pursuant to Section 5.2(c), elect to prepay all or any
portion of the Class A Note Balance, plus accrued but unpaid interest thereon
to the date of payment and (ii) terminate FISC as the servicer under the
Servicing Agreement; provided, however, that the Insurer shall
fulfill its obligations under the Policy.

 

Section 5.3.           Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

 

(a)           If
(i) default is made in the payment of any interest on any Class of Class A
Notes when the same becomes due and payable, and such default continues for a
period of five (5) Business Days, or (ii) default is made in the payment of the
principal of any Class of Class A Notes when the same becomes due and payable,
the Issuer shall pay to the Indenture Trustee, for the benefit of the
applicable Noteholders, the amount then due and payable on such Class of Class
A Notes for principal and, if applicable, interest, with interest upon the
overdue principal at the applicable Note Rate and, to the extent payment at
such rate of interest shall be legally enforceable, upon overdue installments
of interest at the applicable Note Rate and in addition thereto such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Indenture Trustee and its agents and counsel and other amounts due and
owing to the Indenture Trustee pursuant to Section 6.7.

 

(b)           If
the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, may with
the written consent of the Insurer (provided that no Insurer Default shall have
occurred and be continuing), and shall, at the direction of the Insurer (provided
that no Insurer Default shall have occurred and be continuing), institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute
such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or any other obligor upon the Notes and collect in the manner
provided by law out of the property of the Issuer or such other obligor,
wherever situated, the monies adjudged or decreed to be payable.

 

(c)           If
an Event of Default occurs and is continuing, the Indenture Trustee may, as
more particularly provided in Section 5.4, in its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders and the
Insurer by such appropriate Proceedings as the Indenture Trustee shall deem
most effective to protect and enforce such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of

 

38

 

any power granted herein or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

 

(d)           If
there shall be pending, relative to the Issuer or any other obligor upon the
Notes or any Person having or claiming an ownership interest in the Trust
Estate, Proceedings under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or other similar law, or if
a receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Issuer or its property or such other obligor or Person, or if
there shall be pending any other comparable judicial Proceedings relative to
the Issuer or any other obligor upon the Notes, or to the creditors or property
of the Issuer or such other obligor, the Indenture Trustee, irrespective of
whether the principal of any Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand pursuant to the provisions of this
Section 5.3, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:

 

(i)            to file and prove a claim or claims
for the whole amount of principal and interest, if any, owing and unpaid in
respect of the Notes and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee
(including any claim for reasonable compensation to the Indenture Trustee and
each predecessor Indenture Trustee, and their respective agents, attorneys and
counsel, and all other amounts due and owing to the Indenture Trustee pursuant
to Section 6.7) and of the Noteholders allowed in such Proceedings;

 

(ii)           unless prohibited by applicable law
and regulations, to vote on behalf of the Noteholders in any election of a
trustee, a standby trustee or Person performing similar functions in any such
Proceedings;

 

(iii)          to collect and receive any monies or
other property payable or deliverable on any such claims and to pay all amounts
received with respect to the claims of the Noteholders and of the Indenture
Trustee on their behalf; and

 

(iv)          to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Indenture Trustee or the Noteholders allowed in any judicial
proceedings relative to the Issuer, its creditors and its property;

 

and any trustee,
receiver, liquidator, custodian or other similar official in any such Proceeding
is hereby authorized by each of the Noteholders to make payments to the
Indenture Trustee and, in the event that the Indenture Trustee shall consent to
the making of payments directly to the Noteholders, to pay to the Indenture
Trustee such amounts as shall be sufficient to cover reasonable compensation to
the Indenture Trustee and each predecessor Indenture Trustee, and their
respective agents, attorneys and counsel, and all other amounts due and owing
to the Indenture Trustee pursuant to Section 6.7.

 

(e)           Nothing
herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Noteholder any plan of

 

39

 

reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Indenture Trustee to vote in respect of the claim of any Noteholder in any such
proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

 

(f)            All
rights of action and of asserting claims under this Indenture, or under any of
the Notes, may be enforced by the Indenture Trustee without the possession of
any of the Notes or the production thereof in any trial or other Proceedings
relative thereto, and any such action or Proceedings instituted by the
Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee
and their respective agents and attorneys, shall be for the ratable benefit of
the Noteholders.

 

(g)           In
any Proceedings brought by the Indenture Trustee (and also any Proceedings
involving the interpretation of any provision of this Indenture to which the
Indenture Trustee shall be a party), the Indenture Trustee shall be held to
represent all the Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceedings.

 

Section 5.4.           Remedies.

 

(a)           If
an Event of Default has occurred and is continuing, the Indenture Trustee
shall, at the direction of the Insurer (if no Insurer Default has occurred and
is continuing), or at the direction of the Class A Noteholders evidencing not
less than 66 2/3% of the Class A Note Balance (if an Insurer Default has
occurred and is continuing), take one or more of the following actions as so
directed (subject to Section 5.5):

 

(i)            institute Proceedings in its own name
and as trustee of an express trust for the collection of all amounts then
payable on the Class A Notes or under this Indenture with respect thereto,
whether by declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon the Notes monies adjudged due;

 

(ii)           institute Proceedings from time to
time for the complete or partial foreclosure of this Indenture with respect to
the Trust Estate;

 

(iii)          exercise any remedies of a secured
party under the Relevant UCC and take any other appropriate action under
applicable law to protect and enforce the rights and remedies of the Indenture
Trustee and the Class A Noteholders; or

 

(iv)          sell the Trust Estate or any portion
thereof or rights or interest therein at one or more public or private sales
called and conducted in any manner permitted by law;

 

provided, however, that the Indenture
Trustee may not sell or otherwise liquidate the Trust Estate following an Event
of Default unless: (A) if no Insurer Default has occurred and is continuing,
the Insurer so directs or consents thereto; or if an Insurer Default has
occurred, 100% of the Holders of the Class A Notes (excluding Class A Notes
held by the Depositor, the Seller, the Servicer or any of their respective
Affiliates) consent thereto; (B) the proceeds of such sale or liquidation are
sufficient to pay in full the Class A Note Balance and all accrued but unpaid
interest on the outstanding Class A Notes and all amounts due to the Insurer
under the Insurance

 

40

 

Agreement and the
Policy; (C) if an Insurer Default has occurred and is continuing, the Indenture
Trustee determines that the Trust Estate will not continue to provide
sufficient funds for the payment of principal of and interest on each Class of
Class A Notes as they would have become due if the Class A Notes had not been
declared due and payable, and the Indenture Trustee obtains the consent of the
Class A Noteholders evidencing not less than 66 2/3% of the Class A Note
Balance (excluding Class A Notes held by the Depositor, the Seller, the
Servicer or any of their respective Affiliates), or (D) if no Insurer Default
has occurred or is continuing, the Insurer makes the determination specified in
clause (C) and consents.  In determining
such sufficiency or insufficiency with respect to clauses (B) and (C)
above, the Indenture Trustee may, but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national reputation
as to the feasibility of such proposed action and as to the sufficiency of the
Trust Estate for such purpose.

 

(b)           (X)
If the Indenture Trustee collects any money or property pursuant to this Section
5.4 or (Y) if the Notes have been accelerated in accordance with Section
5.2, the Indenture Trustee shall, in the case of clause (X) from
such money or property, or in the case of clause (Y) from all funds available
to it, pay such amounts in the following order of priority:

 

(i)            to the Back-up Servicer, the Indenture
Trustee, the Custodian and the Owner Trustee, in its individual capacity,
respectively, any unpaid or unreimbursed fees and any out-of-pocket expenses
(including, but not limited to, attorneys’ fees and transition expenses); provided
that such expenses shall not exceed $50,000 in the aggregate per year and
$100,000 in the total aggregate;

 

(ii)           to the Servicer, all amounts due to
the Servicer as compensation pursuant to Sections 2.08 and 2.11 of the
Servicing Agreement;

 

(iii)          to the Class A Note Payment Account,
all accrued but unpaid interest on each Class of Class A Notes, to be paid in
accordance with Section 2.8(f)(i);

 

(iv)          to the Insurer, any insurance premiums
due and payable to the Insurer;

 

(v)           to the Class A Note Payment Account,
the aggregate outstanding principal balance of the Class A Notes, to be paid in
accordance with Section 2.8(f)(i);

 

(vi)          to the Insurer, any unreimbursed
payments under the Policy plus accrued interest on any such payments at the
rate set forth in the Insurance Agreement and any other amounts due the Insurer
under the Insurance Agreement and the Policy;

 

(vii)         to the Servicer (so long as First
Investors Servicing Corporation is not the Servicer), any and all unpaid
expenses incurred in connection with the re-titling of the Financed Vehicles;

 

(viii)        to the Class B Note Payment Account, the
outstanding principal balance of the Class B Notes, to be paid in accordance
with Section 2.8(f)(ii);

 

(ix)           to the Back-up Servicer, the
Servicer, the Insurer, the Indenture Trustee, the Custodian and the Owner
Trustee, in its individual capacity, respectively, any other

 

41

 

amounts due and unpaid to such party under this
Indenture and the other Transaction Documents; and

 

(x)            to the Depositor Account any
remaining amounts for distribution in accordance with Section 5.2 of the Trust
Agreement.

 

The Indenture
Trustee may fix a record date and payment date for any payment to Noteholders
pursuant to this Section 5.4.  At
least fifteen (15) days before such record date, the Issuer shall mail to each
Noteholder and the Indenture Trustee a notice that states the record date, the
payment date and the amount to be paid.

 

(c)           When
the Class A Notes have been paid in full, including all accrued and unpaid
interest owing thereon, all amounts owing the Insurer have been paid in full
and the Policy has been returned for cancellation, the rights of the Class A
Noteholders under this Indenture and any other Transaction Document, including,
without limitation, with rights with respect to the Trust Estate, shall
automatically vest in the Class B Noteholders.

 

Section 5.5.           Optional Preservation of the Contracts.

 

If the Notes have been declared to be due and payable
under Section 5.2 following an Event of Default, and such declaration
and its consequences have not been rescinded and annulled, the Indenture
Trustee shall, at the direction of the Insurer (if no Insurer Default has
occurred and is continuing), or at the direction of the Class A Noteholders
evidencing not less than 66 2/3% of the Class A Note Balance (if an Insurer
Default has occurred and is continuing), maintain possession of the Trust
Estate and apply proceeds as if there had been no declaration of acceleration;
provided, however, that the Total Available Funds shall be applied in
accordance with such declaration of acceleration in the manner specified in
Sections 3.5(d), (e), (f) and (g) of the Sale and Allocation Agreement.  It is the desire of the parties hereto and
the Noteholders that there be at all times sufficient funds for the payment of
principal of and, if applicable, interest on the Notes, and the Indenture
Trustee shall take such desire into account when determining whether or not to
maintain possession of the Trust Estate. 
In determining whether to maintain possession of the Trust Estate, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

 

Section 5.6.           Limitation of Suits.

 

No Holder of any Note shall have any right to
institute any Proceeding with respect to this Indenture or for the appointment
of a receiver or trustee, or for any other remedy hereunder, unless:

 

(a)           such
Holder has previously given written notice to the Indenture Trustee of a
continuing Event of Default;

 

(b)           the
Noteholders evidencing not less than 25% of the Class A Note Balance have made
written request to the Indenture Trustee to institute such Proceeding in
respect of such Event of Default in its own name as Indenture Trustee
hereunder;

 

42

 

(c)           such
Holder or Holders have offered to the Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in complying with
such request;

 

(d)           the
Indenture Trustee for sixty (60) days after its receipt of such notice, request
and offer of indemnity has failed to institute such Proceedings;

 

(e)           no
direction inconsistent with such written request has been given to the
Indenture Trustee during such 60-day period by the Noteholders evidencing not
less than 51% of the Class A Note Balance; and

 

(f)            an
Insurer Default has occurred and is continuing.

 

It is understood and intended that no one or more
Noteholders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other Noteholders or to obtain or to seek to obtain priority
or preference over any other Noteholders or to enforce any right under this
Indenture, except in the manner herein provided.

 

In the event the Indenture Trustee shall receive
conflicting or inconsistent requests and indemnity from two or more groups of
Noteholders, each evidencing less than 51% of the Class A Note Balance, the
Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

 

Section 5.7.           Unconditional Rights of Noteholders to Receive
Principal and Interest.

 

Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and, with respect to the
Class A Notes, interest, if any, on such Note on or after the respective due
dates thereof expressed in such Note or in this Indenture (or, in the case of
redemption, on or after the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without
the consent of such Holder.

 

Section 5.8.           Restoration of Rights and Remedies.

 

If the Indenture Trustee, the Insurer or any
Noteholder has instituted any Proceeding to enforce any right or remedy under
this Indenture and such Proceeding has been discontinued or abandoned for any
reason or has been determined adversely to the Indenture Trustee, the Insurer
or such Noteholder, then and in every such case the Issuer, the Indenture
Trustee, the Insurer and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had
been instituted.

 

43

 

Section 5.9.           Rights and Remedies Cumulative Rights.

 

No right or remedy herein conferred upon or reserved
to the Indenture Trustee, the Insurer or the Noteholders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

Section 5.10.        Delay or Omission Not a Waiver.

 

No delay or omission of the Indenture Trustee, the
Insurer or any Holder of any Note to exercise any right or remedy accruing upon
any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Default or Event of Default or any acquiescence
therein.  Every right and remedy given by
this Article V or by law to the Indenture Trustee, the Insurer or the
Noteholders may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee, the Insurer or the Noteholders, as the
case may be.

 

Section 5.11.        Control by Noteholders.

 

The Class A Noteholders evidencing not less than 51%
of the Class A Note Balance shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided, however, that:

 

(a)           such
direction shall not be in conflict with any rule of law or with this Indenture;

 

(b)           subject
to the express terms of Section 5.4, any direction to the Indenture
Trustee to sell or liquidate the Trust Estate shall be by the Class A
Noteholders evidencing not less than 100% of the Class A Note Balance;

 

(c)           if
the conditions set forth in Section 5.5 have been satisfied and the
Indenture Trustee elects to retain the Trust Estate pursuant to such section,
then any direction to the Indenture Trustee by the Noteholders evidencing less
than 100% of the Class A Note Balance to sell or liquidate the Trust Estate
shall be of no force and effect;

 

(d)           the
Indenture Trustee may take any other action deemed proper by the Indenture
Trustee that is not inconsistent with such direction; and

 

(e)           an
Insurer Default shall have occurred and is continuing.

 

Notwithstanding the rights of Noteholders set forth in
this Section 5.11, subject to Section 6.1, the Indenture Trustee
need not take any action that it reasonably believes might involve it in costs,
expenses and liabilities for which it will not be adequately indemnified or
might materially and adversely affect the rights of any Class A Noteholders not
consenting to such action.

 

44

 

Section 5.12.        Waiver of Past Defaults.

 

Prior to the declaration of the acceleration of the
maturity of the Class A Notes as provided in Section 5.2, the Insurer
(if no Insurer Default shall have occurred and be continuing) or the
Noteholders evidencing not less than 51% of the Class A Note Balance, with the
consent of the Insurer (if no Insurer Default shall have occurred and be
continuing), may waive any past Default or Event of Default and its
consequences except a Default or Event of Default (a) in the payment of
principal of or interest on any Class of Class A Notes or (b) in respect of a
covenant or provision hereof that cannot be amended, supplemented or modified
without the consent of all the Holders. 
Upon any such waiver, the Issuer, the Indenture Trustee, the Insurer and
the Holders shall be restored to their former positions and rights hereunder,
respectively, but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.  Upon any such waiver, such Default or Event
of Default shall cease to exist and be deemed to have been cured and not to
have occurred, and any Event of Default arising therefrom shall be deemed to
have been cured and not to have occurred, for every purpose of this Indenture,
but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any right consequent thereto.

 

Section 5.13.        Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder
of any Note by such Holder’s acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement
of any right or remedy under this Indenture, or in any suit against the
Indenture Trustee for any action taken, suffered or omitted by it as Indenture
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; provided, however,
that the provisions of this Section 5.13 shall not apply to (a) any suit
instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder
or group of Noteholders, in each case holding Notes evidencing in the aggregate
more than 10% of the Class A Note Balance or (c) any suit instituted by any
Noteholder for the enforcement of the payment of principal of or, with respect
to the Class A Notes, interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption, on
or after the Redemption Date).

 

Section 5.14.        Waiver of Stay or Extension Laws.

 

The Issuer covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, or plead or in any
manner whatsoever, claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture, and the Issuer (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not hinder, delay or
impede the execution of any power herein granted to the Indenture Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

45

 

Section 5.15.        Action on Notes.

 

The Indenture Trustee’s right to seek and recover judgment
on the Notes or under this Indenture shall not be affected by the seeking,
obtaining or application of any other relief under or with respect to this
Indenture.  Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the
Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Trust Estate or upon any of the assets of the Issuer.  Any money or property collected by the
Indenture Trustee shall be applied in accordance with Section 5.4(b).

 

Section 5.16.        Performance and Enforcement of Certain Obligations.

 

(a)           Promptly
following a request from the Indenture Trustee to do so, and at the Administrator’s
expense, the Issuer shall take all such lawful action as the Indenture Trustee
may request to compel or secure the performance and observance by the Servicer
of its obligations to the Issuer under or in connection with the Sale and
Allocation Agreement or by the Seller and the Issuer of each of its obligations
under or in connection with the Servicing Agreement, and to exercise any and
all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Allocation Agreement to the extent and
in the manner directed by the Indenture Trustee, including the transmission of
notices of default on the part of the Seller or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their obligations
under the Sale and Allocation Agreement.

 

(b)           If
an Event of Default has occurred and is continuing, the Indenture Trustee may
with prior written consent of the Insurer (provided that no Insurer Default has
occurred and is continuing), and at the direction (which direction shall be in
writing or by telephone (confirmed in writing promptly thereafter)) of the
Class A Noteholders evidencing not less than 66 2/3% of the Class A Note
Balance (with the prior written consent of the Insurer, or, at the direction of
the Insurer, in each case provided that no Insurer Default has occurred and is
continuing) shall, exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Servicer under or in connection with the Sale and
Allocation Agreement or against the Servicer under or in connection with the
Servicing Agreement, including the right or power to take any action to compel
or secure performance or observance by the Seller or the Servicer, as the case
may be, of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the
Sale and Allocation Agreement or the Servicing Agreement, as the case may be,
and any right of the Issuer to take such action shall be suspended.

 

Article
VI

The Indenture Trustee

 

Section 6.1.           Duties of Indenture Trustee.

 

(a)           If
an Event of Default has occurred and is continuing, the Indenture Trustee shall
exercise the rights and powers vested in it by this Indenture and use the same
degree of care and

 

46

 

skill in its exercise of those rights and powers as a
prudent person would exercise or use under the circumstances in the conduct of
such Person’s own affairs.

 

(b)           Except
upon the occurrence and during the continuation of an Event of Default:

 

(i)            the Indenture Trustee undertakes to
perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this
Indenture against the Indenture Trustee; and

 

(ii)           in the absence of bad faith on its
part, the Indenture Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and, if required by
the terms of this Indenture, conforming to the requirements of this Indenture; provided,
however, that the Indenture Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture.

 

(c)           The
Indenture Trustee may not be relieved from liability for its own negligent
action, its own gross negligent failure to act or its own willful misconduct,
except that:

 

(i)            this paragraph does not limit the
effect of paragraph (b) of this Section 6.1;

 

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

 

(iii)          the Indenture Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 5.11.

 

(d)           Every
provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b), (c) and (g) of this
Section 6.1.

 

(e)           The
Indenture Trustee shall not be liable for interest on any money received by it
except as the Indenture Trustee may agree in writing with the Issuer.

 

(f)            Money
held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture or the Sale
and Allocation Agreement.

 

(g)           No
provision of this Indenture shall require the Indenture Trustee to expend or
risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder or in the exercise of any of its rights or powers
hereunder if the Indenture Trustee shall have reasonable grounds to believe
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured or provided to it.

 

(h)           Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Indenture Trustee shall be subject to the
provisions of this Section 6.1.

 

47

 

(i)            The
Indenture Trustee shall not be charged with knowledge of any Event of Default
unless either (i) a Responsible Officer shall have actual knowledge of such
Event of Default or (ii) written notice of such Event of Default shall have
been given to the Indenture Trustee in accordance with the provisions of this
Indenture.

 

Section 6.2.           Rights of Indenture Trustee.

 

(a)           The
Indenture Trustee may rely on any document believed by it to be genuine and to
have been signed or presented by the proper Person.

 

(b)           Before
the Indenture Trustee acts or refrains from acting, it may require an Issuer’s
Certificate or an Opinion of Counsel. 
The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on an Issuer’s Certificate or Opinion
of Counsel unless it is proved that the Indenture Trustee was negligent in such
reliance.

 

(c)           The
Indenture Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents or attorneys or a
custodian or nominee, and the Indenture Trustee shall not be responsible for
any misconduct or negligence on the part of, or for the supervision of, any
such agent, attorney, custodian or nominee appointed with due care by it
hereunder.

 

(d)           The
Indenture Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or
powers; provided, however, that such action or omission by the Indenture
Trustee does not constitute willful misconduct, negligence or bad faith.

 

(e)           The
Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.

 

(f)            The
Indenture Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the
Noteholders pursuant to this Indenture, unless such Noteholders shall have
offered to the Indenture Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

 

(g)           The
Indenture Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture or
other paper or document, but the Indenture Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see
fit, and, if the Indenture Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Issuer, personally or by agent or attorney.

 

(h)           Except
where the Transaction Documents specifically state otherwise, the Indenture
Trustee, provided it has sent out notices in accordance with the applicable
Transaction

 

48

 

Document and is otherwise acting in accordance with
the Transaction Documents, may act as directed by the majority of the outstanding
Noteholders responding in writing to such request for amendment or written
direction; provided, however, that the Noteholders representing
at least 51% of the Class A Note Balance as of the time such voting response is
due back to the Indenture Trustee must have responded in writing to the
Indenture Trustee’s notice to amend or for written direction.  In addition, the Indenture Trustee shall not
have any liability to any Noteholder or Note Owner with respect to any action
taken pursuant to such notice if the Noteholder or Note Owner does not respond
to such notice within the time period set forth in such notice.  By acceptance of a Note, each Noteholder and
Note Owner is deemed to agree to the foregoing provisions.

 

Section 6.3.           Individual Rights of Indenture Trustee.

 

The Indenture Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
the Issuer or its Affiliates with the same rights it would have if it were not
Indenture Trustee.  Any Paying Agent,
Note Registrar, co-registrar or co-paying agent hereunder may do the same with
like rights.

 

Section 6.4.           Indenture Trustee’s Disclaimer.

 

The Indenture Trustee (a) shall not be responsible
for, and makes no representation as to, the validity or adequacy of this
Indenture or the Notes and (b) shall not be accountable for the Issuer’s use of
the proceeds from the Notes or responsible for any statement of the Issuer in
this Indenture or in any document issued in connection with the sale of the
Notes or in the Notes other than the Indenture Trustee’s certificate of
authentication.

 

Section 6.5.           Notice of Default.

 

If a Default occurs and is continuing and if it is
known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee
shall mail to each Noteholder notice of such Default within ninety (90) days
after it occurs.  Except in the case of a
Default in payment of principal of or interest, as applicable, on any Note
(including payments pursuant to the mandatory redemption provisions of such
Note), the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Noteholders.

 

Section 6.6.           Reports by Indenture Trustee to Holders.

 

(a)           The
Indenture Trustee shall deliver, within a reasonable period of time after the
end of each calendar year, to each Person who at any time during such calendar
year was a Noteholder, such information as may be required to enable such
Person to prepare its federal and state income tax returns.

 

(b)           The
Indenture Trustee shall deliver, within a reasonable period of time after the
end of each calendar year, to all Noteholders and the Insurer a brief report
relating to (i) its eligibility and qualification to continue as Indenture
Trustee pursuant to the terms of this Indenture, (ii) any amounts advanced by
it under this Indenture, (iii) the amount, interest rate and maturity date of
any material indebtedness owing by the Issuer to the Indenture Trustee in its

 

49

 

individual capacity, (iv) the property and funds
physically held by the Indenture Trustee and (v) any action taken by the
Indenture Trustee that materially affects the Notes which has not been
previously reported.

 

Section 6.7.           Compensation and Indemnity.

 

(a)           The
Issuer shall pay to the Indenture Trustee from time to time reasonable
compensation for its services in accordance with Section 3.5(d) of the Sale and
Allocation Agreement and the Indenture Trustee Fee Letter and, to the extent
such amounts are not promptly paid by the Issuer, the Issuer shall cause the
Administrator to pay such amounts in accordance with the Administration
Agreement.  The Indenture Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Issuer shall, or
shall cause the Administrator to, reimburse the Indenture Trustee for all
expenses reasonably incurred or made by it, including costs of collection, in
addition to the compensation for its services; provided, however,
that neither the Issuer nor the Administrator need reimburse the Indenture
Trustee for any expense incurred through the Indenture Trustee’s willful
misconduct, negligence, or bad faith. 
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee’s agents, counsel,
accountants and experts.  The Issuer
shall, or shall cause the Administrator to, indemnify the Indenture Trustee and
the Custodian against any and all loss, liability or expense (including attorneys’
fees) (collectively, together with the amounts specified as “Losses” in Section
6A.3(d), the “Losses”)
incurred by it in connection with the administration of this trust and the
performance of its duties hereunder; provided, however, that
neither the Issuer nor the Administrator need indemnify the Indenture Trustee
or the Custodian for any such loss, liability or expense incurred through the
Indenture Trustee’s or Custodian’s willful misconduct, negligence, or bad
faith, as applicable.  The Indenture Trustee
or Custodian shall notify the Issuer and the Administrator promptly of any
claim for which it may seek indemnity. 
Any failure by the Indenture Trustee or the Custodian to so notify the
Issuer and the Administrator shall not, however, relieve the Issuer or the
Administrator of its obligations hereunder. 
The Issuer shall, or shall cause the Servicer to, defend any such claim,
and the Indenture Trustee or the Custodian, as applicable, may have separate
counsel and the Issuer shall, or shall cause the Servicer to, pay the fees and
expenses of such counsel. 
Notwithstanding the foregoing, Losses shall be paid pursuant to this Section
6.7 by the Issuer solely from amounts in excess of funds necessary to pay
all outstanding interest and principal due to the Noteholders and all other
amounts payable in accordance with the priorities set forth in Section 3.5(d)
of the Sale and Allocation Agreement and shall in any case be nonrecourse as to
the Issuer and, to the extent funds are not so available to pay any Losses when
due and owing, the claims relating thereto shall not constitute a claim (as
defined in Section 101 of Title 11 of the United States Bankruptcy Code)
against the Issuer but shall continue to accrue.  Each party hereto agrees that the payment of
any claim of any such party in respect of Losses payable by the Issuer shall be
subordinated to the payment in full of all outstanding interest and principal
due to each Class of Class A Noteholders.

 

(b)           Notwithstanding
the foregoing, the Indenture Trustee and the Custodian will not be liable:

 

50

 

(i)            for any error of judgment made by it
in good faith unless it is proved that the Indenture Trustee or the Custodian,
as applicable, was negligent in ascertaining the pertinent facts;

 

(ii)           for any action it takes or omits to
take in good faith in accordance with directions received by it from the
requisite percentage of Noteholders in accordance with the terms herein or in
the other applicable Transaction Documents; or

 

(iii)          for interest on any money received by
the Indenture Trustee except as the Indenture Trustee and the Issuer may agree
in writing.

 

(c)           The
Issuer’s payment obligations to the Indenture Trustee pursuant to this Section
6.7 shall survive the resignation or removal of the Indenture Trustee and
the discharge of this Indenture.  When
the Indenture Trustee incurs expenses after the occurrence of a Default
specified in Section 5.1(e) or (i) with respect to the Issuer,
the expenses are intended to constitute expenses of administration under Title
11 of the United States Code or any other applicable federal or state
bankruptcy, insolvency or similar law.

 

Section 6.8.           Replacement of Indenture Trustee.

 

(a)           No
resignation or removal of the Indenture Trustee, and no appointment of a
successor Indenture Trustee, shall become effective until either (i) the
acceptance of appointment by the successor Indenture Trustee acceptable to the
Insurer and payment of fees and expenses owed to the outgoing Indenture Trustee
pursuant to this Section 6.8 and Section 6.7 or (ii) the Notes
have been paid and discharged in full in accordance with Section 4.2 of
this Indenture and all amounts received, if any, in connection with the payment
and discharge of the Notes have been distributed to the Noteholders.  The Indenture Trustee may resign at any time
by so notifying the Issuer and the Insurer. 
The Insurer, provided an Insurer Default shall not have occurred and be
continuing, or the Noteholders evidencing not less than 51% of the Class A Note
Balance (with the prior written consent of the Insurer (provided that no
Insurer Default has occurred and is continuing)) may remove the Indenture
Trustee without cause by so notifying the Indenture Trustee and the Issuer and
shall appoint a successor Indenture Trustee. 
The Issuer shall remove the Indenture Trustee if:

 

(A)          the Indenture Trustee fails to comply
with Section 6.10;

 

(B)           an Insolvency Event occurs with
respect to the Indenture Trustee;

 

(C)           a receiver or other public officer
takes charge of the Indenture Trustee or its property; or

 

(D)          the Indenture Trustee otherwise
becomes incapable of acting.

 

If (a) the Indenture Trustee resigns or is removed,
(b) the Class A Noteholders fail to appoint a successor Indenture Trustee acceptable
to the Insurer (provided that no Insurer Default has occurred and is
continuing) following the removal of the Indenture Trustee without cause or (c)
if a vacancy exists in the office of Indenture Trustee for any reason (the
Indenture Trustee in such event being referred to herein as the retiring
Indenture Trustee), the Issuer shall promptly

 

51

 

appoint a
successor Indenture Trustee acceptable to the Insurer (provided that no Insurer
Default has occurred and is continuing).

 

(b)           Any
successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Insurer and the Issuer.  Upon delivery of such written acceptance, the
resignation or removal of the retiring Indenture Trustee shall become effective
and the successor Indenture Trustee shall have all the rights, powers and
duties of the Indenture Trustee under this Indenture.  The successor Indenture Trustee shall mail a
notice of its succession to the Noteholders. 
The retiring Indenture Trustee shall promptly transfer all property held
by it as Indenture Trustee to the successor Indenture Trustee.

 

(c)           If
a successor Indenture Trustee does not take office within sixty (60) days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Noteholders evidencing not less than 51% of the
Class A Note Balance may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee. 
If the Indenture Trustee fails to comply with Section 6.10, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

 

(d)           Notwithstanding
the replacement of the Indenture Trustee pursuant to this Section 6.8, the
Issuer’s and the Administrator’s obligations under Section 6.7 shall
continue for the benefit of the retiring Indenture Trustee.

 

Section 6.9.           Successor Indenture Trustee.

 

(a)           If
the Indenture Trustee consolidates with, merges or converts into, or transfers
all or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation or banking association without any further act shall be the
successor Indenture Trustee; provided, however, that such
corporation or banking association must be otherwise qualified and eligible
under Section 6.10.  The Indenture
Trustee shall provide the Rating Agencies and the Insurer with prior written
notice of any such transaction.

 

(b)           If
at the time such successor or successors by consolidation, merger or conversion
to the Indenture Trustee shall succeed to the trusts created by this Indenture,
any of the Notes shall have been authenticated but not delivered, any such
successor to the Indenture Trustee may adopt the certificate of authentication
of any predecessor trustee and deliver such Notes so authenticated, and in case
at that time any of the Notes shall not have been authenticated, any such
successor to the Indenture Trustee may authenticate such Notes either in the
name of any predecessor trustee or in the name of the successor to the
Indenture Trustee.  In all such cases
such certificates shall have the full force which the Notes or this Indenture
provide that the certificate of the Indenture Trustee shall have.

 

Section 6.10.        Eligibility; Disqualification.

 

(a)           Notwithstanding
any other provisions of this Indenture, at any time, for the purpose of meeting
any legal requirement of any jurisdiction in which any part of the Trust Estate
may at the time be located, the Indenture Trustee shall have the power and may
execute

 

52

 

and deliver an instrument to appoint one or more Persons
to act as a co-trustee or co-trustees, jointly with the Indenture Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Estate,
and to vest in such Person or Persons, in such capacity and for the benefit of
the Noteholders, such title to the Trust Estate, or any part hereof, and,
subject to the other provisions of this Section 6.10, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable.  No co-trustee or
separate trustee under this Indenture shall be required to meet the terms of
eligibility as a successor trustee under this Section 6.10 and no notice
of the appointment of any co-trustee or separate trustee shall be required
under Section 6.8.

 

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

 

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

 

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

 

(iii)          the Indenture Trustee may at any time
accept the resignation of or remove any separate trustee or co-trustee.

 

(c)           Any
notice, request or other writing given to the Indenture Trustee shall be deemed
to have been given to each of the then separate trustees and co-trustees as
effectively as if given to each of them. 
Every instrument appointing any separate trustee or co-trustee shall
refer to this Indenture and the conditions of this Article VI.  Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. 
Each such instrument shall be filed with the Indenture Trustee.

 

(d)           Any
separate trustee or co-trustee may at any time constitute the Indenture Trustee
its agent or attorney-in-fact with full power and authority, to the extent
permitted by law, to do any lawful act under or in respect of this Indenture on
its behalf and in its name.  If any
separate trustee or co-trustee shall die, become incapable of acting, resign or
be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

 

53

 

(e)           The
Indenture Trustee or its parent shall have a combined capital, surplus and
undivided profits of at least $50,000,000 as set forth in its most recent
published annual report of condition and shall have a long-term debt rating of
investment grade by each of the Rating Agencies or shall otherwise be
acceptable to each of the Rating Agencies and the Insurer (provided that no
Insurer Default has occurred and is continuing).

 

Article VI-A

 

Section 6A.1         Possession of Contract Files by the Custodian.

 

(a)           The
Issuer hereby covenants and agrees with the Indenture Trustee to deliver or
cause to be delivered to the Custodian all Contract Files (i) related to
Contracts sold to the Issuer on the Closing Date no later than the Closing Date
and (ii) related to Contracts sold to the Issuer on an Additional Contract
Purchase Date, no later than such Additional Contract Purchase Date.  The Custodian shall continuously hold the
Contract Files (i) in trust for, and as bailee of, the Indenture Trustee and as
bailee for the Issuer for purposes of establishing the Issuer’s ownership
thereof, (ii) for purposes of perfecting the Indenture Trustee’s security
interest therein, to the extent available under applicable law, for the benefit
of the Noteholders and the Insurer, and establishing the Issuer’s ownership thereof
subject to such security interest, (iii) to restrict the possession thereof by
any other person except as permitted in accordance with the terms of this Article
VI-A, and (iv) subject to and in accordance with the terms and provisions
of this Article VI-A.

 

(b)           Subject
to the terms and conditions hereof, the Indenture Trustee and the Issuer hereby
appoint Wells Fargo Bank, National Association, as Custodian, and Wells Fargo
Bank, National Association hereby accepts such appointment, to act as custodian
and bailee of the Issuer and the Indenture Trustee, for the benefit of the
Noteholders and the Insurer, for purposes of Article 9 of the Relevant UCC, to
maintain custody of the Contract Files until the Servicer shall have delivered
a release with respect to any such Contract Files in accordance with the terms
of the Servicing Agreement.

 

(c)           The
Custodian will promptly report to the Indenture Trustee and the Insurer any
failure on its part to hold the Contract Files as herein provided and promptly
take appropriate action to remedy any such failure.

 

(d)           The
Custodian shall (i) maintain in effect a fidelity bond and errors and omissions
insurance, affording coverage to such employees, directors, officers and other
Persons acting on the Custodian’s behalf and in an amount customary for
custodians of automobile loans similar to the Contracts or (ii) self-insure at
levels and in a manner acceptable to the Insurer.

 

(e)           All
Contract Files held by the Custodian under this Indenture shall be placed by
the Issuer in a separate file for each Contract File, properly fastened or
secured.

 

(f)            At
the time of delivery by or on behalf of the Issuer to the Custodian of any
Contract File or other documents related to a Contract, the Issuer shall also
deliver a list in an electronic format acceptable to the Custodian (the “File Number List”) of Contract File
numbers (the “File Numbers”).  The Custodian shall check the File Numbers of
the Contract Files delivered pursuant to this Indenture and certify to the
Seller, the Insurer, the Issuer and the

 

54

 

Indenture Trustee
in writing within 48 hours after delivery of the File Number List, that it has
received all the Contract Files corresponding to the File Number List.  If upon examination of the Contract Files,
the Custodian determines that it does not have all the Contract Files on the
File Number List, the Custodian shall promptly give written notice of the same
to the Indenture Trustee, the Insurer, the Issuer and the Seller.

 

(g)           Without
any limitation of Section 6A.1(a) or (b) hereof, following the
Custodian’s receipt of each Contract File, the Custodian shall retain
possession and custody thereof, subject to the terms of this Indenture, for the
exclusive benefit of, in trust for, and as bailee of, the Indenture Trustee and
for purposes (i) of perfecting the Indenture Trustee’s security interest
therein, to the extent available under applicable law, for the benefit of the
Noteholders and the Insurer and as bailee of the Issuer for purposes of
establishing the Issuer’s ownership thereof and (ii) of restricting the
possession thereof by any person except as permitted in accordance with the
terms of this Article, until and unless such security interest in any Contract
File is released pursuant to the terms of Section 6A.2 hereof.  Upon such receipt the Custodian shall also
make appropriate notations in the Custodian’s books and records reflecting that
the Contract File has been pledged to the Indenture Trustee for the benefit of
the Noteholders and the Insurer and that the Indenture Trustee has acquired and
holds a security interest therein. 
Notwithstanding any other provisions of this Indenture, the Custodian
shall not at any time exercise or seek to enforce any claim, right or remedy,
including any statutory or common law rights of set-off, that it might
otherwise have against all or any of the Contract Files or related documents or
the proceeds thereof.

 

Section 6A.2         Release of Contract Files by the Custodian.

 

(a)           The
Custodian shall promptly release any Contract File then held by it to the
Servicer upon receipt of (i) a written request for release of such Contract
File signed by an Authorized Representative of the Servicer in the form
attached hereto as Exhibit D or (ii) an email request by an Authorized
Representative of the Servicer containing the information described in Exhibit
D, followed by a signed copy of such Exhibit D; provided, however,
that the Custodian shall be deemed to have received proper instructions with
respect to the Contract Files upon its receipt of such a written or emailed
request from an Authorized Representative of the Servicer.  “Authorized Representative of the Servicer”
shall mean an individual certified by the Secretary of the Servicer as an
individual who is authorized to give instructions to the Custodian as set forth
on a certificate delivered to the Custodian, the Issuer, the Insurer and the
Indenture Trustee on the Closing Date or on any such subsequent certificate
delivered to the Custodian, the Issuer, the Insurer and the Indenture Trustee.

 

(b)           The
Custodian shall promptly deliver to the Indenture Trustee or its designee any
or all Contract Files in the Custodian’s custody upon the written request of an
Authorized Officer of the Indenture Trustee. 
The Indenture Trustee shall provide the Issuer, the Insurer and the
Servicer with a copy of any such request delivered to the Custodian.  Written instructions as to the method of
shipment and shipper(s) the Custodian is directed to utilize in connection with
the delivery of Contract Files in the performance of the Custodian’s duties
hereunder shall be delivered by the Indenture Trustee to the Custodian prior to
any shipment of Contract Files pursuant to the request of Indenture Trustee
hereunder.  The Indenture Trustee will
arrange for the provision of such services at the cost and expense of the
Issuer (or, at the Custodian’s option

 

55

 

the Custodian
shall be reimbursed by the Issuer for all costs and expenses incurred by the
Custodian consistent with such instructions (it being understood that any such
reimbursement shall be paid in accordance with the priorities set forth in
Section 3.5(d) of the Sale and Allocation Agreement)) and will maintain such insurance
against loss or damage to the Contract Files as the Indenture Trustee and the
Servicer reasonably deem appropriate. 
“Authorized Officer of the Indenture Trustee” shall mean an officer
certified by the Secretary of the Indenture Trustee as an officer who is
authorized to give instructions to the Custodian as set forth on a certificate
delivered to the Custodian, the Issuer and the Insurer on the Closing Date or
on any such subsequent certificate delivered to the Custodian, the Issuer and
the Insurer.

 

Section 6A.3         Regarding the Custodian.

 

(a)           The
Custodian undertakes to perform only such duties as are expressly set forth
herein.

 

(b)           The
Custodian may rely and shall be protected in acting or refraining from acting
upon any written notice, instruction or request furnished to it hereunder and
believed by it to be genuine and to have been signed or presented by the proper
party or parties.  The Custodian shall be
under no duty to inquire into or investigate the validity, accuracy or content
of any such document.  The Custodian
shall have no duty to verify the authenticity, genuineness or conformity to the
requirements of this Indenture of any Contract Files or related documents
delivered to it hereunder, or to determine whether the materials included in any
Contract File conform to the requirements hereof.

 

(c)           The
Custodian shall not be liable for any action taken or omitted by it in good
faith unless a court of competent jurisdiction determines that the Custodian’s
willful misconduct, gross negligence or bad faith was the primary cause of any
loss to the Issuer, the Insurer or the Indenture Trustee.  In the administration of the custodial
account hereunder, the Custodian may execute any of its powers and perform its
duties hereunder directly or through agents or attorneys and may consult with
counsel, accountants and other skilled persons to be selected and retained by
it.  The Custodian shall not be liable
for anything done, suffered or omitted in good faith by it in accordance with
the advice of counsel.

 

(d)           The
Issuer agrees to indemnify and hold the Custodian and its directors, officers,
agents and employees (collectively the “Indemnitees”)
harmless from and against any and all claims, liabilities, losses, damages,
fines, penalties, and expenses, including out-of-pocket and incidental expenses
and legal fees and expenses (collectively, together with the amounts specified
as “Losses” pursuant to Section 6.7(a), the “Losses”) that may be imposed on,
incurred by, or asserted against, the Indemnitees or any of them for following
any instructions or other directions upon which the Custodian is authorized to
rely pursuant to the terms of this Indenture (it being understood that such
Losses shall be paid pursuant to Section 3.5(d) of the Sale and Allocation Agreement).

 

(e)           In
addition to and not in limitation of paragraph (d) immediately above,
the Issuer also agrees to indemnify and hold the Indemnitees and each of them
harmless from and against any and all Losses that may be imposed on, incurred
by, or asserted against, the Indemnitees or any of them in connection with or
arising out of the Custodian’s performance under this

 

56

 

Indenture,
provided the Indemnitees have not acted with gross negligence or bad faith or
engaged in willful misconduct or breach of contract (it being understood that
such Losses shall be paid pursuant to Section 3.5(d) of the Sale and Allocation
Agreement).

 

(f)            The
duties and responsibilities of the Custodian hereunder shall be determined
solely by the express provisions of this Indenture, and no other or further
duties or responsibilities shall be implied. 
The Custodian shall not have any liability under, nor duty to inquire
into the terms and provisions of, any agreement or instructions, other than as
specifically required by this Indenture.

 

(g)           The
Custodian shall not incur any liability for following the instructions herein
contained or expressly provided for, or written instructions given by the
parties hereto in accordance with the express provisions hereof.

 

(h)           In
the event that the Custodian shall be uncertain as to its duties or rights
hereunder or shall receive instructions, claims or demands from any party
hereto which, in its opinion, conflict with any of the provisions of this
Indenture, it shall be entitled to refrain from taking any action and its sole
obligation shall be to request definitive instructions from the other parties
hereto and to keep safely all property held in custody until it shall be
directed otherwise in writing by all of the other parties hereto or by a final
order or judgment of a court of competent jurisdiction.

 

(i)            Any
corporation or association into which the Custodian in its individual capacity
may be merged or converted or with which it may be consolidated, or any
corporation or association resulting from any merger, conversion or
consolidation to which the Custodian in its individual capacity shall be a
party, or any corporation or association to which all or substantially all of
the corporate trust business of the Custodian in its individual capacity may be
sold or otherwise transferred, shall be the Custodian under this Indenture
without further act.

 

(j)            Anything
in this Indenture to the contrary notwithstanding, in no event shall the
Custodian be liable for special, indirect or consequential loss or damage of
any kind whatsoever (including but not limited to lost profits), even if the
Custodian has been advised of the likelihood of such loss or damage and
regardless of the form of action.

 

(k)           The
Custodian agrees to maintain the Contract Files which are delivered to it at
the offices of the Custodian located at: ABS Custody Vault, 751 Kasota Avenue,
MAC N9328-011, Minneapolis, Minnesota 
55414, Attn: Corporate Trust Services — Asset Backed Securities Vault,
and the Custodian shall notify the Indenture Trustee, the Issuer and the
Insurer by written notice of any change in the location of the Contract
Files.  Subject to the foregoing, the
Custodian may temporarily move individual Contract Files or any portion thereof
without notice as necessary to allow the Servicer to conduct collection and
other servicing activities in accordance with its customary practices and
procedures.

 

(l)            The
Custodian shall hold the Contract Files in its fire-resistant storage vault
under its exclusive custody and control in accordance with customary standards
for such custody and shall maintain a fidelity bond plus document hazard
insurance in such amounts and against such risks as customarily are maintained
by custodians acting in a similar capacity to the Custodian

 

57

 

hereunder with
respect to receivables similar to the Contracts.  If the Indenture Trustee or the Issuer
suffers losses or damages as a result of the destruction or loss of any of the
Contract Files or any item therein, the Custodian shall:  (i) at the request of the Indenture Trustee
or the Issuer, make any appropriate claim under such bond or insurance; and
(ii) to the extent of the Indenture Trustee’s or the Issuer’s losses or
damages, pay the proceeds thereof to the Indenture Trustee, or if all of the
Issuer’s obligations under this Indenture and the Notes and the Insurance
Agreement have been paid in full, to the Issuer, unless the Custodian has
replaced the lost or destroyed items or has otherwise reimbursed the Indenture
Trustee or the Issuer, as applicable, for such losses or damages.  The Custodian shall maintain the Contract
Files segregated from and not commingled with any other files of the Custodian.

 

(m)          The
Custodian shall not deliver physical possession of, or otherwise transfer,
assign, pledge, mortgage, convey or dispose of any Contract Files in its
possession to any Person except (i) as provided in this Article VI-A and
the Servicing Agreement, and (ii) upon termination of this Indenture.

 

(n)           The
Custodian hereby waives any and all rights of offset with respect to any and
all Contract Files in the Custodian’s possession, whether such right of offset
arises by contract, operation of law or otherwise.

 

(o)           The
Custodian specifically acknowledges and agrees that so long as Wells Fargo
Bank, National Association, is acting as Custodian under this Indenture in the
event that Wells Fargo Bank, National Association shall either be terminated or
resign as Indenture Trustee pursuant to this Indenture, then the Custodian
shall similarly either be terminated or resign and the Custodian shall deliver
the Contract Files to the successor Indenture Trustee, acting as successor
Custodian, appointed pursuant to the terms of this Indenture at such place as
the successor Custodian may reasonably designate.  Any entity acting as Custodian hereunder may
not resign as such unless such entity also resigns its capacity as Indenture Trustee.

 

(p)           Except
for actions expressly authorized by this Article, the Custodian shall take no
action which would or would be likely to impair the security interests created
or existing under any Contract or Financed Vehicle or to impair the value of
any Contract or Financed Vehicle.

 

(q)           The
Custodian hereby agrees not to assert (in its individual capacity or otherwise)
any liens of any kind with respect to the Contract Files (except in its role as
Indenture Trustee and secured party with respect to the liens created pursuant
to this Indenture and secured party assignee with respect to the liens created
pursuant to the Contribution Agreement and the Sale and Allocation Agreement)
held by it or the related Contracts and hereby releases and waives any such
liens.

 

(r)            The
Custodian shall permit inspection at all reasonable times upon at least two (2)
Business Days prior notice during regular business hours by the Issuer, the
Indenture Trustee or the Insurer (or by its auditors when requested by the
Issuer, the Insurer or the Indenture Trustee, as applicable) of the Contract
Files and the records of the Custodian relating to this Article (or its
auditors when requested by the Issuer, the Insurer or the Indenture Trustee, as
applicable) to make copies of the Contract Files and the records of the Custodian
relating to this Indenture.

 

58

 

Article
VII

Noteholders’ Lists and Reports

 

Section 7.1.           Issuer to Furnish Indenture Trustee Names and Addresses
of Noteholders.

 

The Issuer shall furnish or cause to be furnished to
the Indenture Trustee (i) within five (5) days after each Record Date, a list,
in such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Class A Noteholders as of such Record Date and (ii) at such other
times as the Indenture Trustee may request in writing, within thirty (30) days
after receipt by the Issuer of any such request, a list of similar form and
content as of a date not more than ten (10) days prior to the time such list is
furnished; provided, however, that so long as the Indenture Trustee is the Note
Registrar or the Class A Notes are issued as Book-Entry Notes, no such list
shall be required to be furnished.

 

Section 7.2.           Preservation of Information; Communications to
Noteholders.

 

The Indenture Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of the Noteholders
contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.1 and the names and addresses of the Noteholders
received by the Indenture Trustee in its capacity as Note Registrar.  The Indenture Trustee may destroy any list
furnished to it as provided in Section 7.1 upon receipt of a new list so
furnished.

 

Section 7.3.           Fiscal Year.

 

Unless the Issuer otherwise determines, the Fiscal
Year of the Issuer shall end on April 30 of each year.

 

Article
VIII

Accounts, Disbursements and Releases

 

Section 8.1.           Collection of Money Collection.

 

Except as otherwise expressly provided herein, the
Indenture Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by
the Indenture Trustee pursuant to this Indenture and the Sale and Allocation
Agreement.  The Indenture Trustee shall
apply all such money received by it as provided in this Indenture and the Sale
and Allocation Agreement.  Except as
otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under any agreement or instrument that is
part of the Trust Estate, the Indenture Trustee may take such action as may be
appropriate to enforce such payment or performance, including the institution
and prosecution of appropriate Proceedings. 
Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

 

59

 

Section 8.2.           Trust Accounts.

 

(a)           On
or before the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the benefit of the
Insurer and the Noteholders, the Collection Account as provided in Section 3.1
of the Sale and Allocation Agreement.

 

(b)           On
or before the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the benefit of the
Class A Noteholders and the Insurer, the Reserve Account as provided in Section
3.6(a) of the Sale and Allocation Agreement.

 

(c)           On
each Payment Date, the Indenture Trustee shall apply or cause to be applied the
amount on deposit in the Collection Account on such Payment Date in accordance
with Section 3.5(d) of the Sale and Allocation Agreement or Section 5.4(b),
as applicable.

 

(d)           On
or before the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the exclusive benefit
of the Class A Noteholders, the Class A Note Payment Account as provided in
Section 3.1(b) of the Sale and Allocation Agreement and, for the exclusive
benefit of the Class B Noteholders, the Class B Note Payment Account.  On each Payment Date, the Indenture Trustee
shall apply or cause to be applied the amount on deposit in the Class A Note
Payment Account and the Class B Note Payment Account on such Payment Date in
accordance with Section 2.8(b) or (f), as applicable.

 

(e)           On
or before the Closing Date, the Issuer shall cause the Servicer to establish
and maintain, in the name of the Indenture Trustee, for the exclusive benefit
of the Class A Noteholders, the Class B Noteholders and the Insurer, the
Prefunding Account as provided in Section 3.7(a) of the Sale and Allocation
Agreement.

 

Section 8.3.           General Provisions Regarding Accounts.

 

(a)           So
long as no Default or Event of Default shall have occurred and be continuing,
all or a portion of the funds in the Trust Accounts shall be invested by the
Indenture Trustee at the direction of the Servicer in Eligible Investments as
provided in Sections 3.1 and 3.6(b) of the Sale and Allocation Agreement.  All income or other gain (net of losses and
investment expenses) from investments of monies deposited in the Trust Accounts
shall be withdrawn by the Indenture Trustee from such accounts and deposited to
the Collection Account and shall constitute Available Funds.  The Servicer shall not direct the Indenture
Trustee to make any investment of any funds or to sell any investment held in
any of the Trust Accounts unless the security interest Granted and perfected in
such account will continue to be perfected in such investment or the proceeds
of such sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Issuer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

 

(b)           Subject
to Section 6.1(c), the Indenture Trustee shall not in any way be held
liable by reason of any insufficiency in any of the Trust Accounts resulting
from any loss on any Permitted Investment included therein, except for losses
attributable to the Indenture Trustee’s

 

60

 

failure to make payments on such Eligible Investments
issued by the Indenture Trustee, in its commercial capacity as principal
obligor and not as trustee, in accordance with their terms.

 

(c)           If
(i) the Servicer shall have failed to give investment directions for any funds
on deposit in the Trust Accounts to the Indenture Trustee by 11:00 A.M. (New
York City time) (or such other time as may be agreed upon by the Issuer and
Indenture Trustee), on the Business Day preceding each Payment Date, (ii) a
Default or Event of Default shall have occurred and be continuing with respect
to the Notes but the Notes shall not have been declared due and payable
pursuant to Section 5.2 or (iii) if the Notes shall have been declared
due and payable following an Event of Default, amounts collected or receivable
from the Trust Estate are being applied in accordance with Section 5.4
as if there had not been such a declaration, then the Indenture Trustee shall,
to the fullest extent practicable, invest and reinvest funds in the Trust
Accounts in Eligible Investments described in clause (vii) of the definition
thereof.

 

Section 8.4.           Release of Trust Estate.

 

(a)           Subject
to the payment of its fees and expenses pursuant to Section 6.7, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, or
convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this
Indenture.  No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article
VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire
into the satisfaction of any conditions precedent or see to the application of
any monies.

 

(b)           The
Indenture Trustee shall, at such time as there are no Notes Outstanding, the
Policy has been terminated in accordance with its terms and has been returned
to the Insurer for cancellation and all sums due the Indenture Trustee and the
Insurer pursuant to Section 6.7 have been paid in full, release any
remaining portion of the Trust Estate that secured the Notes from the lien of
this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property
from the lien of this Indenture pursuant to this Section 8.4(b) only
upon receipt of an Issuer Request accompanied by an Issuer’s Certificate and an
Opinion of Counsel.

 

Section 8.5.           Opinion of Counsel

 

The Indenture Trustee shall receive at least seven (7)
days notice when requested by the Issuer to take any action pursuant to Section
8.4(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require, except in connection with any action
contemplated by Section 8.4(b), as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to
complete such action, and concluding that all conditions precedent to the
taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of the
Noteholders or the Insurer in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall
not be required to express an opinion as to the fair value of the Trust
Estate.  Counsel rendering any such
opinion may rely, without independent investigation, on the

 

61

 

accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

 

Article IX

Supplemental Indentures

 

Section 9.1.           Supplemental Indentures Without Consent of Noteholders.

 

The Issuer and the Indenture Trustee, when authorized
by an Issuer Order, may, without the consent of the Holders of any Notes but
with prior notice to the Rating Agencies and the Insurer and with the consent
of the Insurer (if no Insurer Default shall have occurred and be continuing),
at any time and from time to time, enter into one or more indentures
supplemental hereto, in form satisfactory to the Indenture Trustee, for any of
the following purposes:

 

(a)           to
correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the
Indenture Trustee any property subject or required to be subjected to the lien
of this Indenture, or to subject to the lien of this Indenture additional
property;

 

(b)           to
evidence the succession, in compliance with the applicable provisions hereof,
of another Person to the Issuer, and the assumption by any such successor of
the covenants of the Issuer herein and in the Notes contained;

 

(c)           to
add to the covenants of the Issuer, for the benefit of the Noteholders and the
Insurer, or to surrender any right or power herein conferred upon the Issuer;

 

(d)           to
convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;

 

(e)           to
cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture that may be inconsistent with any other provision herein
or in any supplemental indenture or to make any other provisions with respect
to matters or questions arising under this Indenture which will not be
inconsistent with other provisions of this Indenture;

 

(f)            to
evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Notes and to add to or change any of the
provisions of this Indenture as shall be necessary to facilitate the
administration of the trusts hereunder by more than one trustee, pursuant to
the requirements of Article VI; or

 

(g)           to
modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under any
federal statute hereafter enacted.

 

provided, however, that (i) such action shall
not, as evidenced by an Opinion of Counsel which may be based on an officer’s
certificate of the Issuer, adversely affect in any material respect the
interests of any Noteholder or the Insurer, (ii) the Rating Agency Condition
shall have been

 

62

 

satisfied with
respect to such action and (iii) such action shall not, as evidenced by an
Opinion of Counsel, cause the Issuer to be characterized for federal income tax
purposes as an association or publicly traded partnership taxable as a
corporation or otherwise have any material adverse impact on the federal income
taxation of any Notes Outstanding or any Noteholder.  The Indenture Trustee is hereby authorized to
join in the execution of any such supplemental indenture and to make any
further appropriate agreements and stipulations that may be therein contained.

 

Section 9.2.           Supplemental Indentures with Consent of Noteholders.

 

The Issuer and the Indenture Trustee, when authorized
by an Issuer Order, may, with the consent of the Insurer (if no Insurer Default
shall have occurred and be continuing) and the Noteholders evidencing not less
than 51% of the Class A Note Balance and with prior notice to the Rating Agencies
and the Insurer, by Act of such Holders delivered to the Issuer and the
Indenture Trustee, at any time and from time to time, enter into one or more
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or modifying in any manner the rights of the Noteholders under this Indenture; provided,
however, that (a) such action shall not, as evidenced by an Opinion of
Counsel, which may be based on a certificate of the Issuer, adversely affect in
any material respect the interests of any Noteholder or the Insurer, (b) the
Rating Agency Condition shall have been satisfied with respect to such action
and (c) such action shall not, as evidenced by an Opinion of Counsel, cause the
Issuer to be characterized for federal income tax purposes as an association or
publicly traded partnership taxable as a corporation or otherwise have any
material adverse impact on the federal income taxation of any Notes Outstanding
or any Noteholder; and, provided further, that no such supplemental indenture
shall, without the consent of the Insurer and the Holder of each Outstanding
Note affected thereby:

 

(i)            change the Final Note Payment Date
for any Class of Notes or the date of payment of any installment of principal
of or interest, if applicable, on any Class of Notes, or reduce the principal
amount thereof, the interest rate thereon or the Redemption Price with respect
thereto, change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Trust Estate to payment of
principal of or interest, if applicable on any Class of Notes, or change any
place of payment where, or the coin or currency in which, any Note or the interest
thereon is payable;

 

(ii)           impair the right to institute suit
for the enforcement of the provisions of this Indenture requiring the
application of available funds, as provided in Article V, to the payment
of any amount due on any Class of Notes on or after the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);

 

(iii)          reduce the percentage of the Notes the
consent of the Holders of which is required for any such supplemental indenture
or for any waiver of compliance with certain provisions of this Indenture or of
certain defaults hereunder and their consequences as provided in this
Indenture;

 

63

 

(iv)          modify or alter the provisions of the
proviso to the definition of the term “Outstanding”;

 

(v)           reduce the percentage of the
principal balance of the Notes the consent of the Holders of which is required
to direct the Indenture Trustee to sell or liquidate the Trust Estate pursuant
to Section 5.4 if the proceeds of such sale would be insufficient to pay
in full the principal amount of and accrued but unpaid interest, if applicable,
on any Class of Notes;

 

(vi)          modify any provision of this Indenture
specifying a percentage of the principal amount of the Notes necessary to amend
this Indenture or the other Transaction Documents except to increase any
percentage specified herein or to provide that certain additional provisions of
this Indenture or the other Transaction Documents cannot be modified or waived
without the consent of the Holders of each Outstanding Note affected thereby;

 

(vii)         modify any of the provisions of this
Indenture in such a manner as to affect the calculation of the amount of any
payment of interest, if applicable, or principal due on any Class of Notes on
any Payment Date (including the calculation of any of the individual components
of such calculation) or to affect the rights of the Noteholders to the benefit
of any provisions for the mandatory redemption of the Notes contained herein;
or

 

(viii)        permit the creation of any lien ranking
prior to or on a parity with the lien of this Indenture with respect to any
part of the Trust Estate or, except as otherwise permitted or contemplated
herein, terminate the lien of this Indenture on any such collateral at any time
subject hereto or deprive the Holder of any Note of the security provided by
the lien of this Indenture.

 

The Indenture Trustee may in its discretion determine
whether or not any Notes would be affected by any supplemental indenture and
any such determination shall be conclusive upon the Holders of all Notes,
whether theretofore or thereafter authenticated and delivered hereunder.  The Indenture Trustee shall not be liable for
any such determination made in good faith.

 

It shall not be necessary for any Act of Noteholders
under this Section 9.2 to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.  Promptly after
the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section 9.2, the Indenture Trustee shall mail
to the Noteholders to which such amendment or supplemental indenture relates a
notice setting forth in general terms the substance of such supplemental
indenture.  Any failure of the Indenture
Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.

 

Section 9.3.           Execution of Supplemental Indentures.

 

In executing, or permitting the additional trusts
created by, any supplemental indenture permitted by this Article IX or
the modification thereby of the trusts created by this Indenture, the Indenture
Trustee shall be entitled to receive and, subject to Sections 6.1 and 6.2,
shall be

 

64

 

fully protected in
relying upon an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture and that
all conditions precedent in this Indenture to the execution and delivery of
such supplemental indenture have been satisfied.  The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee’s own rights, duties, liabilities or immunities under this
Indenture or otherwise.

 

Section 9.4.           Effect of Supplemental Indenture.

 

Upon the execution of any supplemental indenture
pursuant to the provisions hereof, this Indenture shall be and shall be deemed
to be modified and amended in accordance therewith with respect to the Notes
affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Indenture Trustee, the Issuer and the Noteholders shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions
of this Indenture for any and all purposes.

 

Section 9.5.           Reference in Notes to Supplemental Indentures.

 

Any Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article IX may,
and if required by the Indenture Trustee shall, bear a notation in form
approved by the Indenture Trustee as to any matter provided for in such
supplemental indenture.  If the Issuer or
the Indenture Trustee shall so determine, new Notes so modified as to conform,
in the opinion of the Indenture Trustee and the Issuer, to any such
supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes.

 

Article
X

Redemption of Notes

 

Section 10.1.        Redemption.

 

The Notes are subject to redemption in whole, but not
in part, at the direction of the Issuer on any Payment Date on which the
Depositor exercises its option to purchase the assets of the Issuer pursuant to
Section 5.16 of the Sale and Allocation Agreement.  The amount paid by the Depositor pursuant to
such Section 5.16 shall be treated as collections in respect of the Contracts,
constitute Available Funds and be applied to pay the unpaid principal amount of
the Outstanding Notes and accrued and unpaid interest thereon plus all amounts
owed to the Insurer, the Owner Trustee, the Indenture Trustee, the Servicer and
the Back-up Servicer under the Transaction Documents.  The Issuer shall furnish or shall cause the
Depositor to furnish notice of such redemption to the Insurer, the Seller, the
Indenture Trustee, the Rating Agencies and the Noteholders.  The Issuer shall cause the Depositor to
deposit the Redemption Price in the Collection Account by 10:00 A.M. (New York
City time) on the Business Day prior to the Redemption Date, whereupon all
Notes shall be due and payable on the Redemption Date.

 

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Section 10.2.        Form of Redemption Notice.

 

Notice of redemption of the Notes under Section
10.1 shall be given by the Indenture Trustee by first-class mail, postage
prepaid, or by facsimile mailed or transmitted promptly following receipt of
notice from the Issuer or the Servicer pursuant to Section 10.1, but not
later than ten (10) days prior to the applicable Redemption Date, to each
Holder of the Notes as of the close of business on the Record Date preceding
the applicable Redemption Date, at such Holder’s address or facsimile number
appearing in the Note Register.

 

All notices of redemption shall state:

 

(a)           the
Redemption Date;

 

(b)           the
Redemption Price; and

 

(c)           the
place where the Notes are to be surrendered for payment of the applicable
Redemption Price (which shall be the office or agency of the Issuer to be
maintained as provided in Section 3.2).

 

Notice of redemption of the Notes shall be given by
the Indenture Trustee in the name and at the expense of the Issuer.  Any failure to give notice of redemption, or
any defect therein, to any Holder of any Note shall not, however, impair or
affect the validity of the redemption of any other Note.

 

Section 10.3.        Notes Payable on Redemption Date.

 

The Notes to be redeemed shall, following notice of
redemption as required by Section 10.2 (in the case of redemption
pursuant to Section 10.1), become due and payable on the Redemption Date
at the Redemption Price and (unless the Issuer shall default in the payment of
the Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

 

Article
XI

Miscellaneous

 

Section 11.1.        Compliance Certificates and Opinions, etc.

 

(a)           Upon
any application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the
Indenture Trustee (i) an Issuer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that, in the
opinion of such counsel, all such conditions precedent, if any, have been
complied with.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

66

 

(A)          a statement that each signatory of
such certificate or opinion has read or has caused to be read such covenant or
condition and the definitions herein relating thereto;

 

(B)           a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based;

 

(C)           a statement that, in the opinion of
each such signatory, such signatory has made such examination or investigation
as is necessary to enable such signatory to express an informed opinion as to
whether or not such covenant or condition has been complied with; and

 

(D)          a statement as to whether, in the
opinion of each such signatory, such condition or covenant has been complied
with.

 

(b)           Prior
to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property
or securities subject to the lien of this Indenture, the Issuer shall, in
addition to any obligation imposed in Section 11.1(a) or elsewhere in
this Indenture, deliver to the Indenture Trustee an Issuer’s Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within ninety (90) days of such deposit) to the Issuer of the
Collateral or other property or securities to be so deposited.

 

(c)           Whenever
the Issuer is required to furnish to the Indenture Trustee an Issuer’s
Certificate certifying or stating the opinion of any signer thereof as to the
matters described in Section 11.1(b), the Issuer shall also furnish to
the Indenture Trustee an Independent Certificate as to the same matters if the
fair value to the Issuer of the property or securities to be so deposited and
of all other such property or securities made the basis of any such withdrawal
or release since the commencement of the then-current Fiscal Year of the
Issuer, as set forth in the certificates furnished pursuant to Section
11.1(b) and this Section 11.1(c), is ten percent (10%) or more of
the Class A Note Balance, but such a certificate need not be furnished with
respect to any property or securities so deposited if the fair value thereof to
the Issuer as set forth in the related Issuer’s Certificate is less than
$25,000 or less than one percent (1%) of the Class A Note Balance.

 

(d)           Whenever
any property or securities are to be released from the lien of this Indenture,
the Issuer shall also furnish to the Indenture Trustee an Issuer’s Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within ninety (90) days of such release) of the property or
securities proposed to be released and stating that in the opinion of such
person the proposed release will not impair the security under this Indenture
in contravention of the provisions hereof.

 

(e)           Whenever
the Issuer is required to furnish to the Indenture Trustee an Issuer’s
Certificate certifying or stating the opinion of any signer thereof as to the
matters described in Section 11.1(d), the Issuer shall also furnish to
the Indenture Trustee an Independent Certificate as to the same matters if the
fair value of the property or securities and of all other property,

 

67

 

other than property as contemplated by Section
11.1(f) or securities released from the lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the
certificates required by Section 11.1(d) and this Section 11.1(e), is
ten percent (10%) or more of the Class A Note Balance, but such a certificate
need not be furnished in the case of any release of property or securities if
the fair value thereof as set forth in the related Issuer’s Certificate is less
than $25,000 or less than one percent (1%) of the Class A Note Balance.

 

(f)            Notwithstanding
Section 2.10 or any other provisions of this Section 11.1, the
Issuer may, without compliance with the requirements of the other provisions of
this Section 11.1, (i) collect, liquidate, sell or otherwise dispose of
Contracts and Financed Vehicles as and to the extent permitted or required by
the Transaction Documents and (ii) make cash payments out of the Trust Accounts
as and to the extent permitted or required by the Transaction Documents.

 

Section 11.2.        Form of Documents Delivered to Indenture Trustee.

 

(a)           In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

 

(b)           Any
certificate or opinion of an Authorized Officer of the Issuer may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such Issuer’s Certificate or opinion is
based are erroneous.  Any such
certificate of an Authorized Officer or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, one or more officers of the Servicer, the Seller, the
Administrator or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Seller, the
Administrator or the Issuer, unless such Authorized Officer or counsel knows,
or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters are erroneous.

 

(c)           Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument.

 

(d)           Whenever
in this Indenture, in connection with any application or certificate or report
to the Indenture Trustee, it is provided that the Issuer shall deliver any
document as a condition of the granting of such application, or as evidence of
the Issuer’s compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to
the right of the Issuer to have such application granted or to the sufficiency
of such certificate or report.  The
foregoing shall not, however, be construed to affect the Indenture Trustee’s
right to rely upon the

 

68

 

truth and accuracy of any statement or opinion
contained in any such document as provided in Article VI.

 

Section 11.3.        Acts of Noteholders.

 

(a)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by the Noteholders may
be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by the Noteholders in person or by agents duly appointed
in writing, and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee and, where it is hereby expressly required, to the
Issuer.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Noteholders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.1)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section 11.3.

 

(b)           The
fact and date of the execution by any Person of any such instrument or writing
may be proved in any manner that the Indenture Trustee deems sufficient.

 

(c)           The
ownership of Notes shall be proved by the Note Register.

 

(d)           Any
request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Notes shall bind the Holder of every Note issued
upon the registration thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Indenture
Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

 

Section 11.4.        Notices, etc. to Indenture Trustee.

 

Any request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders or other documents provided or permitted
by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver, Act of Noteholders is to be
made upon, given or furnished to or filed with:

 

(a)           the
Indenture Trustee by any Noteholder or by the Issuer, shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or
with the Indenture Trustee at its Corporate Trust Office;

 

(b)           the
Issuer by the Indenture Trustee or by any Noteholder, shall be sufficient for
every purpose hereunder if in writing and mailed first-class, postage prepaid
to the Issuer addressed to: First Investors Auto Owner Trust 2006-A, c/o Wells
Fargo Delaware Trust Company, 919 North Market Street, Suite 700, Wilmington,
DE 19801, Attention: Corporate Trust Administration, or at any other address
previously furnished in writing to the Indenture Trustee by the Issuer or the
Administrator.  The Issuer shall promptly
transmit any notice received by it from the Noteholders to the Indenture
Trustee; or

 

69

 

(c)           the
Insurer by the Indenture Trustee, the Servicer or any Noteholder, shall be
sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Insurer addressed to MBIA Insurance Corporation, 113
King Street, Armonk, New York 10504, Attention: Insured Portfolio Management,
Structured Finance.

 

Notices required to be given to the Rating Agencies by
the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered, telecopied or mailed by certified mail, return receipt
requested, to (i) in the case of Moody’s, at the following address: Moody’s
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007,
ServicerReports@moodys.com, Attn: Yan Yan, with an additional copy to Moody’s
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007,
Attn: ABS Monitoring Department, and (ii) in case of S&P, if available
electronically, at Servicer_reports@sandp.com, and if not available
electronically, at the following address: Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, 43rd
Floor, New York, New York 10041, Attention: ABS Surveillance Group.

 

Section 11.5.        Notices to Noteholders; Waiver Notices to Noteholders.

 

(a)           Where
this Indenture provides for notice to Noteholders of any event, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class, postage prepaid to each Noteholder affected by
such event, at its address as it appears on the Note Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice.  In any case where
notice to Noteholders is given by mail, neither the failure to mail such notice
nor any defect in any notice so mailed to any particular Noteholder shall
affect the sufficiency of such notice with respect to other Noteholders, and
any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

 

(b)           Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by any Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Noteholders shall be
filed with the Indenture Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such a waiver.

 

(c)           If,
by reason of the suspension of regular mail service as a result of a strike,
work stoppage or similar activity, it shall be impractical to mail notice of
any event to Noteholders when such notice is required to be given pursuant to
any provision of this Indenture, then any manner of giving such notice as shall
be satisfactory to the Indenture Trustee shall be deemed to be a sufficient
giving of such notice.

 

(d)           Where
this Indenture provides for notice to the Rating Agencies, failure to give such
notice shall not affect any other rights or obligations created hereunder, and
shall not under any circumstance constitute a Default or Event of Default.

 

Section 11.6.        Alternate Payment and Notice Provisions.

 

Notwithstanding any provision of this Indenture or any
of the Notes to the contrary, the Issuer may enter into any agreement with any
Holder of a Note providing for a method of

 

70

 

payment, or notice
by the Indenture Trustee or any Paying Agent to such Holder, that is different
from the methods provided for in this Indenture for such payments or
notices.  The Issuer shall furnish to the
Indenture Trustee a copy of each such agreement and the Indenture Trustee shall
cause payments to be made and notices to be given in accordance with such
agreements.

 

Section 11.7.        Effect of Headings and Table of Contents.

 

The Article and Section headings herein and the Table
of Contents are for convenience of reference only and shall not define or limit
any of the terms or provisions hereof.

 

Section 11.8.        Successors and Assigns.

 

All covenants and agreements in this Indenture and the
Notes by the Issuer shall bind its successors and assigns, whether so expressed
or not.  All agreements of the Indenture
Trustee in this Indenture shall bind its successors, co-trustees and agents.

 

Section 11.9.        Severability.

 

If any provision of this Indenture or the Notes shall
be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions of this Indenture and the Notes
shall not in any way be affected or impaired thereby.

 

Section 11.10.      Benefits of Indenture.

 

Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the Insurer, the Noteholders, any other party secured
hereunder, and any other Person with an ownership interest in any part of the
Trust Estate, any benefit or any legal or equitable right, remedy or claim
under this Indenture.

 

Section 11.11.      Legal Holiday.

 

If the date on which any payment is due shall not be a
Business Day, then (notwithstanding any other provision of the Notes or this
Indenture) payment need not be made on such date but may be made on the next
succeeding Business Day with the same force and effect as if made on the date
on which nominally due, and no interest shall accrue for the period from and
after any such nominal date.

 

Section 11.12.      Governing Law.

 

This Indenture shall be construed in accordance with
the laws of the State of New York without reference to its conflict of law
provisions and the obligations, rights and remedies of the parties under this
Indenture shall be determined in accordance with such laws.

 

Section 11.13.      Counterparts.

 

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

 

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Section 11.14.      Recording of Indenture.

 

If this Indenture is subject to recording in any
appropriate public recording office, such recording shall be effected by the
Issuer at its expense and shall be accompanied by an Opinion of Counsel (which
may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

 

Section 11.15.      Trust Obligation.

 

No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under this Indenture or any certificate or other
writing delivered in connection herewith or therewith against (a) the Indenture
Trustee or the Owner Trustee in its individual capacity, (b) any holder of a
beneficial interest in the Issuer or (c) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the
Owner Trustee in its individual capacity, of any holder of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacities), and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital contribution
or failure to pay any installment or call owing to such entity.  For all purposes of this Indenture the Owner
Trustee (as such and in its individual capacity) shall be subject to, and
entitled to the benefits of, the terms and provisions of the Trust Agreement.

 

Section 11.16.      No Petition.

 

The Indenture Trustee, by entering into this
Indenture, and each Noteholder or Note Owner, by accepting a Note or beneficial
interest in a Note, as the case may be, hereby covenant and agree that they
will not at any time institute against, join in any institution against, or
knowingly or intentionally cooperate or encourage any other Person in
instituting against, the Depositor or the Issuer, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the other Transaction Documents.

 

Section 11.17.      Inspection.

 

The Issuer shall, with reasonable prior notice, permit
any representative of the Indenture Trustee or the Insurer, during the Issuer’s
normal business hours, to examine the books of account, records, reports and
other papers of the Issuer, to make copies and extracts therefrom, to cause
such books to be audited by Independent certified public accountants, and to
discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers,
employees, and Independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause
its representatives to hold in confidence

 

72

 

all such
information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing) and except
to the extent that the Indenture Trustee may reasonably determine that such
disclosure is consistent with its obligations hereunder.

 

Section 11.18.      Certain Matters Regarding the Insurer.

 

If no Insurer Default shall have occurred and be
continuing, the Insurer shall have the right to exercise all rights, including
voting rights, which the Class A Noteholders are entitled to exercise pursuant
to this Indenture, without any consent of such Class A Noteholders except for
amendments which require the consent of both Class A Noteholders and the
Insurer, in accordance with Section 9.2; provided, however,
that, without the consent of each Class A Noteholder affected thereby, the
Insurer shall not exercise such rights to amend this Indenture in any manner
that would (a) reduce the amount of, or delay the timing of, collections of
payments on the Contracts or distributions which are required to be made on any
Class of Class A Notes, (b) adversely affect in any material respect the
interests of the Holders of any Class of Class A Notes or (c) alter the rights
of any Class A Holder to consent to such amendment.

 

Notwithstanding any provision of this Indenture to the
contrary, if an Insurer Default has occurred and is continuing, the Insurer
shall not have the right to take any action under this Indenture or to control
or direct the actions of the Issuer, the Indenture Trustee or the Owner Trustee
pursuant to the terms of this Indenture, nor shall the consent of the Insurer
be required with respect to any action (or waiver of a right to take action) to
be taken by the Issuer, the Indenture Trustee, the Owner Trustee, or the Class
A Noteholders; provided, however, that (i) the consent of the
Insurer shall be required at all times with respect to any amendment of this
Indenture and (ii) the Insurer shall be entitled to receive notices hereunder
at all times whether or not an Insurer Default has occurred.

 

Section 11.19.      Acknowledgment of Multiple Roles.

 

The parties expressly acknowledge and consent to Wells
Fargo Bank, National Association (“Wells
Fargo”) acting in the possible dual capacity of Back-up Servicer
or successor Servicer and in the capacity as Indenture Trustee and Custodian.  Wells Fargo may, in such dual capacity,
discharge its separate functions fully, without hindrance or regard to conflict
of interest principles, duty of loyalty principles or other breach of fiduciary
duties to the extent that any such conflict or breach arises from the
performance by Wells Fargo of express duties set forth in this Indenture in any
of such capacities, all of which defenses, claims or assertions are hereby
expressly waived by the other parties hereto except in the case of negligence
(other than errors in judgment) and willful misconduct by Wells Fargo.

 

73

 

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

 

	
   

  	
  FIRST INVESTORS
  AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO
  DELAWARE TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but as Indenture Trustee and

  Custodian

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

SCHEDULE A

to Indenture

 

Perfection Representations,
Warranties And Covenants

 

In addition to the representations, warranties and
covenants contained in the Indenture, the Issuer hereby represents, warrants,
and covenants to the Indenture Trustee as follows on the Closing Date, and on
each Additional Contract Purchase Date, in each case only with respect to the
Collateral pledged to the Indenture Trustee on the Closing Date, or the
relevant Additional Contract Purchase Date, as applicable:

 

General

 

1.             The Indenture creates a valid and
continuing security interest (as defined in the Relevant UCC Section 9-102) in
the Collateral in favor of the Indenture Trustee, which security interest is
prior to all other Liens, except as set forth below, and is enforceable as such
as against creditors of and purchasers from and assignees of the Issuer.

 

2.             Each Contract constitutes “tangible
chattel paper” and not “electronic chattel paper”, within the meaning of the
Relevant UCC Section 9-102.

 

3.             The Issuer has taken or will take
all steps necessary actions with respect to the Contracts to perfect the
security interest of the Indenture Trustee in the Contracts.

 

Creation

 

1.             The Issuer owns and has good and
marketable title to the Collateral, free and clear of any Lien, claim or
encumbrance of any Person, excepting only tax liens, mechanics’ liens and other
liens that arise by the operation of law, in each case on any of the Financed
Vehicles and arising solely as a result of an action or omission of the related
Obligor.

 

Perfection

 

1.             The Issuer has caused 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 in the Collateral granted to the Indenture Trustee under the
Indenture.

 

2.             With respect to Collateral that
constitutes tangible chattel paper, such tangible chattel paper is in the
possession of the Custodian, and the Issuer has received a written
acknowledgment from the Custodian that it is holding such tangible chattel
paper for the benefit of the Indenture Trustee and the Issuer.  All financing statements filed or to be filed
against the Issuer in favor of the Indenture Trustee in connection with this
Indenture describing the Collateral contain a statement to the following
effect: “A purchase of or security interest in any collateral described in this
financing statement will violate the rights of the Secured Party.”

 

 

Priority

 

1.             Other than the security interest
granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not
pledged, assigned, sold, granted a security interest in, or otherwise conveyed
any of the Collateral.  The Issuer has
not authorized the filing of, or is aware of any financing statements against
either the Seller, the Depositor or the Issuer that includes a description of
the Collateral and proceeds related thereto other than any financing
statement:  (i) relating to the sale of
the Contributed Property by the Seller to the Depositor under the Contribution Agreement;
(ii) relating to the sale of the Trust Property by the Depositor to the Issuer
under the Sale and Allocation Agreement; (iii) relating to the security
interest granted to the Indenture Trustee by the Issuer under the Indenture; or
(iv) that has been terminated or amended to reflect a release of the
Collateral.

 

2.             The Issuer is not aware of any
judgment, ERISA or tax lien filings against either the Seller, the Depositor or
the Issuer.

 

3.             None of the tangible chattel paper
that constitutes or evidences the Contracts has any marks or notations
indicating that it has been pledged, assigned or otherwise conveyed to any
Person other than the Seller, the Depositor, the Issuer or the Indenture
Trustee.

 

Survival of Perfection
Representations

 

1.             Notwithstanding any other provision
of this Indenture, the Contribution Agreement, the Sale and Allocation
Agreement or any other Transaction Document, the Perfection Representations,
Warranties and Covenants contained in this Schedule shall be continuing, and remain
in full force and effect until such time as all obligations under the Sale and
Allocation Agreement, Contribution Agreement and the Indenture have been
finally and fully paid and performed.

 

No Waiver

 

1.             The parties hereto: (i) shall not,
without obtaining a confirmation of the then-current rating of the Class A
Notes (without giving effect to the Policy), waive any of the Perfection
Representations, Warranties or Covenants; (ii) shall provide the Rating
Agencies with prompt written notice of any breach of the Perfection
Representations, Warranties or Covenants, and shall not, without obtaining a
confirmation of the then-current rating of the Class A Notes (without giving
effect to the Policy) as determined after any adjustment or withdrawal of the ratings
following notice of such breach) waive a breach of any of the Perfection
Representations, Warranties or Covenants.

 

A-2

 

Exhibit A-1

$32,000,000

 

UNLESS THIS CLASS A-1 NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS CLASS A-1 NOTE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. 
ACCORDINGLY, TRANSFER OF THIS CLASS A-1 NOTE IS SUBJECT TO CERTAIN
RESTRICTIONS SET FORTH IN SECTION 2.15 OF THE INDENTURE.  BY ITS ACCEPTANCE OF THIS CLASS A-1 NOTE, THE
HOLDER OF THIS CLASS A-1 NOTE IS DEEMED TO REPRESENT TO THE TRUST AND THE
INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

 

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS A-1
NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER TRANSFER IS (A) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR SO
LONG AS THE CLASS A-1 NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED AND ANY APPLICABLE STATE SECURITIES AND BLUE SKY LAWS OR IS MADE IN
ACCORDANCE WITH EACH SUCH ACT AND STATE LAWS. THE INDENTURE TRUSTEE MAY REQUIRE
AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY SALE, PLEDGE
OR OTHER TRANSFER OF THIS CLASS A-1 NOTE PURSUANT TO CLAUSES (A) OR (C)
ABOVE.  ALL OPINIONS OF COUNSEL REQUIRED
IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO
THE INDENTURE TRUSTEE.

 

 

EACH INVESTOR IN THIS CLASS A-1 NOTE OR ANY INTEREST
HEREIN WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) IT IS
NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CLASS A-1 NOTE FOR, ON
BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION AND HOLDING OF SUCH CLASS
A-1 NOTE OR ANY INTEREST THEREIN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE, OR A VIOLATION
OF SIMILAR LAW.

 

A-1-2

 

	
  REGISTERED

  	
   

  	
   

  
	
  No. A-1

  	
   

  	
  CUSIP NO. 32057TAG6

  

 

FIRST INVESTORS AUTO OWNER TRUST 2006-A

 

FORM OF 4.5685% CLASS A-1 ASSET-BACKED NOTES

 

First Investors Auto Owner Trust 2006-A, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”),
for value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of $32,000,000 (THIRTY TWO MILLION DOLLARS) payable
on each Payment Date in the aggregate amount, if any, payable from the Class A
Note Payment Account in respect of principal on the Class A Notes pursuant to and
in accordance with Section 2.8 of the Indenture, dated as of January 26, 2006
(as amended, supplemented or otherwise modified and in effect from time to
time, the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, a national banking
association, as Indenture Trustee and Custodian (in such capacities the
“Indenture Trustee” and the “Custodian”)
and Section 3.5 of the Sale and Allocation Agreement; provided, however, that
if not paid prior to such date, the entire unpaid principal amount of this Note
shall be due and payable on the earlier of January 16, 2007 (the “Final Note Payment Date”) and the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

The Issuer shall pay interest on this Class A-1 Note
at the rate per annum shown above on each Payment Date until the principal of
this Class A-1 Note is paid or made available for payment, on the principal
amount of this Class A-1 Note outstanding on the preceding Payment Date (after
giving effect to all payments of principal made on the preceding Payment Date),
subject to certain limitations contained in Section 3.1 of the Indenture.  Interest on this Class A-1 Note will accrue
for each Payment Date from and including the previous Payment Date (or, in the
case of the initial Payment Date or if no interest has been paid, from the
Closing Date) to but excluding such Payment Date.  Interest will be computed on the basis of the
actual number of days that have elapsed from and including the prior Payment
Date to but excluding the current Payment Date and a 360-day year.  Such principal of and interest on this Class
A-1 Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class A-1 Note
are payable in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect
to this Class A-1 Note shall be applied first to interest due and payable on
this Class A-1 Note as provided above and then to the unpaid principal of this
Class A-1 Note.

 

Reference is made to the further provisions of this
Class A-1 Note set forth on the reverse hereof, which shall have the same
effect as though fully set forth on the face of this Class A-1 Note.

 

A-1-3

 

Unless the certificate of authentication hereon has
been executed by the Indenture Trustee whose name appears below by manual
signature, this Class A-1 Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

This Class A-1 Note is one of a duly authorized issue
of Class A-1 Notes of the Issuer, designated as its Class A-1 Asset-Backed
Notes, are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Class A-1 Notes.  The
Class A-1 Notes are subject to all terms of the Indenture.

 

This Class A-1 Note is and will be secured by the
Collateral pledged as security therefor as provided in the Indenture.

 

Principal of this Class A-1 Note is payable on each
Payment Date as described on the face hereof. 
“Payment Date”
means the fifteenth day of each month or, if any such day is not a Business
Day, the next succeeding Business Day, commencing February 15, 2006.

 

The entire unpaid principal amount of this Class A-1
Note shall be due and payable on the earlier of the Final Note Payment Date and
the Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of this Note shall be due and payable on the date on
which an Event of Default shall have occurred and the Notes have to be
immediately due and payable in the manner provided in Section 5.2 of the
Indenture.  Notwithstanding the foregoing
sentence, this Class A-1 Note shall become immediately due and payable without
declaration, notice or demand by or to any Person upon the occurrence of an
Event of Default specified in Section 5.1(i) of the Indenture with respect to
the Issuer.  All principal payments on
the Class A-1 Notes shall be made pro rata to the Class A-1 Holders entitled
thereto.

 

Payments of interest on this Class A-1 Note due and
payable on each Payment Date, together with the installment of principal, if
any, to the extent not in full payment of this Note, shall be made by check
mailed to the Person in whose name this Class A-1 Note is registered appears as
the Registered Holder of this Class A-1 Note (or one or more Predecessor Notes)
on the related Record Date by check mailed first-class postage prepaid to such
Person’s address as it appears on the Note Register on such Record Date;
provided, however, that, unless Definitive Notes have been issued pursuant to
Section 2.13 of the Indenture, if this Class A-1 Note is registered in the name
of the nominee of the Clearing Agency (initially, such nominee to be Cede &
Co.), payments will be made by wire transfer in immediately available funds to the
account designated by such nominee.  Any
reduction in the principal amount of this Class A-1 Note effected by any
payments made on any Payment Date shall be binding upon all future Holders of
this Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Class A-1 Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable only
upon

 

A-1-4

 

presentation and
surrender of this Class A-1 Note at the Indenture Trustee’s Corporate Trust
Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located at Sixth Street and Marquette Avenue MAC N9311-161,
Minneapolis, Minnesota  55479,
Attention:  Corporate Trust Services
Asset-Backed Administration or such other address as the Indenture Trustee may
designate from time to time as its Corporate Trust Offices in accordance with
the Indenture.

 

The Issuer shall pay interest on overdue installments
of interest at the Note Rate applicable to the Class A-1 Notes to the extent
permitted by law.

 

The Class A-1 Notes are entitled to the benefits of
the Policy issued by the Insurer.  The
Insurer is obligated to pay, in accordance with the terms of the Policy as
described in the “Statement of Insurance” attached hereto.

 

As provided in the Indenture, the Notes may be
redeemed in the manner and to the extent described in Section 10.1 of the
Indenture.

 

As provided in the Indenture, and subject to certain
limitations set forth therein, the transfer of this Class A-1 Note may be
registered on the Note Register upon surrender of this Class A-1 Note for
registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in
writing, and thereupon one or more new Class A-1 Notes of authorized
denominations and in the same aggregate principal amount will be issued to the
designated transferee or transferees.  No
service charge will be charged for any registration of transfer or exchange of
this Class A-1 Note, but the transferor may be required to pay a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

 

Each Noteholder or Note Owner, by its acceptance of
this Class A-1 Note or, in the case of a Note Owner, a beneficial interest in
this Class A-1 Note, covenants and agrees that no recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the
Owner Trustee or the Indenture Trustee on this Class A-1 Note or under the
Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee, each in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee, each in its individual capacity,
any holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacities) and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution for stock, unpaid capital contribution or failure
to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, by accepting this Class
A-1 Note or a beneficial interest in this Class A-1 Note, as the case may be,
hereby covenants and agrees that it will not at any

 

A-1-5

 

time institute
against, join in any institution against, or knowingly or intentionally
cooperate or encourage any other Person in instituting against, the Depositor
or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, the Indenture or any of the other Transaction Documents.

 

The Issuer has entered into the Indenture and this
Class A-1 Note is issued with the intention that, for federal, state and local
income, and franchise tax purposes, the Class A-1 Notes will qualify as
indebtedness of the Issuer secured by the Trust Estate.  The Issuer, by entering into the Indenture
and this Class A-1 Note, and each Noteholder, by its acceptance of this Class
A-1 Note (and each Note Owner by its acceptance of a beneficial interest in
this Class A-1 Note), agree to treat this Class A-1 Note as indebtedness of the
Issuer for federal, state and local income and franchise tax purposes.

 

Prior to the due presentment for registration of
transfer of this Class A-1 Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
this Class A-1 Note (as of the day of determination or as of such other date as
may be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Class A-1 Note be overdue, and none of the
Issuer, the Indenture Trustee or any such agent shall be affected by notice to
the contrary.

 

The Indenture allows, with certain exceptions as
therein provided, the Issuer and the Indenture Trustee to enter into one or
more indentures that are supplemental to the Indenture and which effect a
modification of the rights and obligations of the Issuer and the rights of the
Holders of the Class A Notes under the Indenture at any time by the Issuer with
the consent of the Noteholders evidencing not less than 51% of the Class A Note
Balance (subject to the right of the Insurer to exercise such consent provided
that no Insurer Default shall have occurred and be continuing).  The Indenture also permits the Indenture
Trustee and the Issuer to enter into supplemental indentures with respect to
certain terms and conditions set forth in the Indenture without the consent of
Holders of the Class A Notes issued thereunder.

 

The term “Issuer,” as used in this Class A-1 Note,
includes any successor to the Issuer under the Indenture.

 

The Class A-1 Notes are issuable only in registered
form in denominations as provided in the Indenture, subject to certain
limitations therein set forth.

 

This Class A-1 Note and the Indenture shall be
governed by, and construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference herein to the Indenture, and no provision
of this Class A-1 Note or of the Indenture, shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class A-1 Note at the times, place and rate,
and in the coin or currency herein prescribed.

 

A-1-6

 

Anything herein to the contrary notwithstanding,
except as expressly provided in the Transaction Documents, none of Wells Fargo
Bank, National Association, in its individual capacity, Wells Fargo Delaware
Trust Company, in its individual capacity, any owner of a beneficial interest
in the Issuer, or any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal or of interest on this Class A-1 Note or performance of, or omission
to perform, any of the covenants, obligations or indemnifications contained in
the Indenture.  The Holder of this Class
A-1 Note, by its acceptance hereof (and each Note Owner, by its acceptance of a
beneficial interest herein), agrees that, except as expressly provided in the
Transaction Documents, in the case of an Event of Default under the Indenture,
the Holder shall have no claim against any of the foregoing for any deficiency,
loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-1 Note.

 

A-1-7

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed as of the date set forth below.

 

	
  Date: January
  26, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST INVESTORS
  AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO DELAWARE
  TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
					

 

A-1-8

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Class A-1 Notes designated above and referred to in the within-mentioned
Indenture.

 

	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

A-1-9

 

ASSIGNMENT

 

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

 

 

 

 

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

 

 

(name and address of assignee)

 

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

 

Dated:
                                   

 

	
   

  	
   

  	
  */

  
	
   

  	
  Signature of Assignor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guaranteed

  	
  */

  

 

*/                                     NOTICE: 
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class A-1 Note in
every particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note
Registrar.

 

A-1-10

 

STATEMENT OF INSURANCE

 

A-1-11

 

Exhibit A-2

$47,000,000

 

UNLESS THIS CLASS A-2 NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS CLASS A-2 NOTE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. 
ACCORDINGLY, TRANSFER OF THIS CLASS A-2 NOTE IS SUBJECT TO CERTAIN
RESTRICTIONS SET FORTH IN SECTION 2.15 OF THE INDENTURE.  BY ITS ACCEPTANCE OF THIS CLASS A-2 NOTE, THE
HOLDER OF THIS CLASS A-2 NOTE IS DEEMED TO REPRESENT TO THE TRUST AND THE
INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

 

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS A-2
NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER TRANSFER IS (A) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR SO
LONG AS THE CLASS A-2 NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED AND ANY APPLICABLE STATE SECURITIES AND BLUE SKY LAWS OR IS MADE IN
ACCORDANCE WITH EACH SUCH ACT AND STATE LAWS. THE INDENTURE TRUSTEE MAY REQUIRE
AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY SALE, PLEDGE
OR OTHER TRANSFER OF THIS CLASS A-2 NOTE PURSUANT TO CLAUSES (A) OR (C)
ABOVE.  ALL OPINIONS OF COUNSEL REQUIRED
IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO
THE INDENTURE TRUSTEE.

 

 

EACH INVESTOR IN THIS CLASS A-2 NOTE OR ANY INTEREST
HEREIN WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) IT IS
NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CLASS A-2 NOTE FOR, ON
BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED (THE “CODE”), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE (“SIMILAR LAW”) OR (II) ITS ACQUISITION AND HOLDING OF SUCH CLASS
A-2 NOTE OR ANY INTEREST THEREIN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 THE CODE, OR A VIOLATION OF
SIMILAR LAW.

 

A-2-2

 

	
  REGISTERED

  	
   

  	
   

  
	
  No. A-2

  	
   

  	
  CUSIP NO. 32057TAH4

  

 

FIRST INVESTORS AUTO OWNER TRUST 2006-A

FORM OF 4.87% CLASS A-2 ASSET-BACKED NOTES

 

First Investors Auto Owner Trust 2006-A, a statutory
trust organized and existing under the laws of the State of Delaware (herein
referred to as the “Issuer”),
for value received, hereby promises to pay to Cede & Co., or its registered
assigns, the principal sum of $47,000,000 (FORTY SEVEN MILLION DOLLARS) payable
on each Payment Date in the aggregate amount, if any, payable from the Class A
Note Payment Account in respect of principal on the Class A Notes pursuant to
and in accordance with Section 2.8 of the Indenture, dated as of January 26,
2006 (as amended, supplemented or otherwise modified and in effect from time to
time, the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, a national
banking association, as Indenture Trustee and Custodian (in such capacities the
“Indenture Trustee” and the
“Custodian”) and Section
3.5 of the Sale and Allocation Agreement; provided, however, that
if not paid prior to such date, the entire unpaid principal amount of this Note
shall be due and payable on the earlier of March 16, 2009 (the “Final Note Payment Date”) and the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

The Issuer shall pay interest on this Class A-2 Note
at the rate per annum shown above on each Payment Date until the principal of
this Class A-2 Note is paid or made available for payment, on the principal
amount of this Class A-2 Note outstanding on the preceding Payment Date (after
giving effect to all payments of principal made on the preceding Payment Date),
subject to certain limitations contained in Section 3.1 of the Indenture.
Interest on this Class A-2 Note will accrue for each Payment Date from and including
the previous Payment Date (or, in the case of the initial Payment Date or if no
interest has been paid, from the Closing Date) to but excluding such Payment
Date.  Interest will be computed on the
basis of a 360-day year of twelve 30 day months.  Such principal of and interest on this Class
A-2 Note shall be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class A-2 Note
are payable in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect
to this Class A-2 Note shall be applied first to interest due and payable on
this Class A-2 Note as provided above and then to the unpaid principal of this
Class A-2 Note.

 

Reference is made to the further provisions of this
Class A-2 Note set forth on the reverse hereof, which shall have the same
effect as though fully set forth on the face of this Class A-2 Note.

 

Unless the certificate of authentication hereon has
been executed by the Indenture Trustee whose name appears below by manual
signature, this Class A-2 Note shall not be entitled to any

 

A-2-3

 

benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

This Class A-2 Note is one of a duly authorized issue
of Class A-2 Notes of the Issuer, designated as its Class A-2 Asset-Backed
Notes, are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Class A-2 Notes.  The
Class A-2 Notes are subject to all terms of the Indenture.

 

This Class A-2 Note is and will be secured by the
Collateral pledged as security therefor as provided in the Indenture.

 

Principal of this Class A-2 Note is payable on each
Payment Date as described on the face hereof. 
“Payment Date”
means the fifteenth day of each month or, if any such day is not a Business
Day, the next succeeding Business Day, commencing February 15, 2006.

 

The entire unpaid principal amount of this Class A-2
Note shall be due and payable on the earlier of the Final Note Payment Date and
the Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Notwithstanding the foregoing, the entire
unpaid principal amount of this Note shall be due and payable on the date on
which an Event of Default shall have occurred and the Notes have to be
immediately due and payable in the manner provided in Section 5.2 of the
Indenture.  Notwithstanding the foregoing
sentence, this Class A-2 Note shall become immediately due and payable without
declaration, notice or demand by or to any Person upon the occurrence of an
Event of Default specified in Section 5.1(i) of the Indenture with respect to
the Issuer.  All principal payments on
the Class A-2 Notes shall be made pro rata to the Class A-2 Holders entitled
thereto.

 

Payments of interest on this Class A-2 Note due and
payable on each Payment Date, together with the installment of principal, if
any, to the extent not in full payment of this Note, shall be made by check
mailed to the Person in whose name this Class A-2 Note is registered appears as
the Registered Holder of this Class A-2 Note (or one or more Predecessor Notes)
on the related Record Date by check mailed first-class postage prepaid to such
Person’s address as it appears on the Note Register on such Record Date;
provided, however, that, unless Definitive Notes have been issued pursuant to
Section 2.13 of the Indenture, if this Class A-2 Note is registered in the name
of the nominee of the Clearing Agency (initially, such nominee to be Cede &
Co.), payments will be made by wire transfer in immediately available funds to
the account designated by such nominee. 
Any reduction in the principal amount of this Class A-2 Note effected by
any payments made on any Payment Date shall be binding upon all future Holders
of this Class A-2 Note and of any Class A-2 Note issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not
noted hereon.  If funds are expected to
be available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Class A-2 Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the registered Holder hereof as of the Record Date
preceding such Payment Date by notice mailed or transmitted by facsimile prior
to such Payment Date, and the amount then due and payable shall be payable only
upon presentation and surrender of this Class A-2 Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s
agent appointed for such purposes located at

 

A-2-4

 

Sixth Street and
Marquette Avenue MAC N9311-161, Minneapolis, Minnesota  55479, Attention:  Corporate Trust Services Asset-Backed Administration
or such other address as the Indenture Trustee may designate from time to time
as its Corporate Trust Offices in accordance with the Indenture.

 

The Issuer shall pay interest on overdue installments
of interest at the Note Rate applicable to the Class A-2 Notes to the extent
permitted by law.

 

The Class A-2 Notes are entitled to the benefits of
the Policy issued by the Insurer.  The
Insurer is obligated to pay, in accordance with the terms of the Policy as
described in the “Statement of Insurance” attached hereto.

 

As provided in the Indenture, the Notes may be
redeemed in the manner and to the extent described in Section 10.1 of the
Indenture.

 

As provided in the Indenture, and subject to certain
limitations set forth therein, the transfer of this Class A-2 Note may be
registered on the Note Register upon surrender of this Class A-2 Note for
registration of transfer at the office or agency designated by the Issuer
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in
writing, and thereupon one or more new Class A-2 Notes of authorized
denominations and in the same aggregate principal amount will be issued to the
designated transferee or transferees.  No
service charge will be charged for any registration of transfer or exchange of
this Class A-2 Note, but the transferor may be required to pay a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

 

Each Noteholder or Note Owner, by its acceptance of
this Class A-2 Note or, in the case of a Note Owner, a beneficial interest in
this Class A-2 Note, covenants and agrees that no recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the
Owner Trustee or the Indenture Trustee on this Class A-2 Note or under the
Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee, each in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee, each in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacities) and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution for stock, unpaid capital contribution or failure
to pay any installment or call owing to such entity.

 

Each Noteholder or Note Owner, by accepting this Class
A-2 Note or a beneficial interest in this Class A-2 Note, as the case may be,
hereby covenants and agrees that it will not at any time institute against,
join in any institution against, or knowingly or intentionally cooperate or
encourage any other Person in instituting against, the Depositor or the Issuer,
any bankruptcy,

 

A-2-5

 

reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Notes, the Indenture or any of the other
Transaction Documents.

 

The Issuer has entered into the Indenture and this
Class A-2 Note is issued with the intention that, for federal, state and local
income, and franchise tax purposes, the Class A-2 Notes will qualify as
indebtedness of the Issuer secured by the Trust Estate.  The Issuer, by entering into the Indenture
and this Class A-2 Note, and each Noteholder, by its acceptance of this Class
A-2 Note (and each Note Owner by its acceptance of a beneficial interest in
this Class A-2 Note), agree to treat this Class A-2 Note as indebtedness of the
Issuer for federal, state and local income and franchise tax purposes.

 

Prior to the due presentment for registration of
transfer of this Class A-2 Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
this Class A-2 Note (as of the day of determination or as of such other date as
may be specified in the Indenture) is registered as the owner hereof for all
purposes, whether or not this Class A-2 Note be overdue, and none of the
Issuer, the Indenture Trustee or any such agent shall be affected by notice to
the contrary.

 

The Indenture allows, with certain exceptions as
therein provided, the Issuer and the Indenture Trustee to enter into one or
more indentures that are supplemental to the Indenture and which effect a
modification of the rights and obligations of the Issuer and the rights of the
Holders of the Class A Notes under the Indenture at any time by the Issuer with
the consent of the Noteholders evidencing not less than 51% of the Class A Note
Balance (subject to the right of the Insurer to exercise such consent provided
that no Insurer Default shall have occurred and be continuing).  The Indenture also permits the Indenture
Trustee and the Issuer to enter into supplemental indentures with respect to
certain terms and conditions set forth in the Indenture without the consent of
Holders of the Class A Notes issued thereunder.

 

The term “Issuer,” as used in this Class A-2 Note,
includes any successor to the Issuer under the Indenture.

 

The Class A-2 Notes are issuable only in registered
form in denominations as provided in the Indenture, subject to certain
limitations therein set forth.

 

This Class A-2 Note and the Indenture shall be
governed by, and construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference herein to the Indenture, and no provision
of this Class A-2 Note or of the Indenture, shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class A-2 Note at the times, place and rate,
and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding,
except as expressly provided in the Transaction Documents, none of Wells Fargo
Bank, National Association, in its individual capacity, Wells Fargo Delaware
Trust Company, in its individual capacity, any owner of a

 

A-2-6

 

beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Class A-2 Note or performance of,
or omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture.  The Holder
of this Class A-2 Note, by its acceptance hereof (and each Note Owner, by its
acceptance of a beneficial interest herein), agrees that, except as expressly
provided in the Transaction Documents, in the case of an Event of Default under
the Indenture, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A-2 Note.

 

A-2-7

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed as of the date set forth below.

 

	
  Date: January
  26, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST INVESTORS
  AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO
  DELAWARE TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

A-2-8

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Class A-2 Notes designated above and referred to in the within-mentioned
Indenture.

 

	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-9

 

ASSIGNMENT

 

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

 

 

 

 

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

 

 

(name and address of assignee)

 

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

 

Dated:
                                 

 

	
   

  	
   

  	
  */

  
	
   

  	
  Signature of Assignor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
  Signature Guaranteed

  	
   

  

 

*/                                     NOTICE: 
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class A-2 Note in
every particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note
Registrar.

 

A-2-10

 

STATEMENT OF INSURANCE

 

A-2-11

 

Exhibit A-3

$74,000,000

 

UNLESS THIS CLASS A-3 NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE
& CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS CLASS A-3 NOTE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. 
ACCORDINGLY, TRANSFER OF THIS CLASS A-3 NOTE IS SUBJECT TO CERTAIN
RESTRICTIONS SET FORTH IN SECTION 2.15 OF THE INDENTURE.  BY ITS ACCEPTANCE OF THIS CLASS A-3 NOTE, THE
HOLDER OF THIS CLASS A-3 NOTE IS DEEMED TO REPRESENT TO THE TRUST AND THE
INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

 

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS A-3
NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER TRANSFER IS (A) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR SO
LONG AS THE CLASS A-3 NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR (C) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, THE INVESTMENT COMPANY ACT OF 1940, AS
AMENDED AND ANY APPLICABLE STATE SECURITIES AND BLUE SKY LAWS OR IS MADE IN
ACCORDANCE WITH EACH SUCH ACT AND STATE LAWS. THE INDENTURE TRUSTEE MAY REQUIRE
AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY SALE, PLEDGE
OR OTHER TRANSFER OF THIS CLASS A-3 NOTE PURSUANT TO CLAUSES (A) OR (C) ABOVE.  ALL OPINIONS OF COUNSEL REQUIRED IN
CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO THE
INDENTURE TRUSTEE.

 

 

EACH INVESTOR IN THIS CLASS
A-3 NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (I) IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CLASS A-3 NOTE FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR
A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY PROVISIONS UNDER ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”) OR (II) ITS
ACQUISITION AND HOLDING OF SUCH CLASS A-3 NOTE OR ANY INTEREST THEREIN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
SECTION 4975 OF THE CODE, OR A VIOLATION OF SIMILAR LAW.

 

A-2-2

 

	
  REGISTERED

  	
   

  	
   

  
	
  No. A-3

  	
   

  	
  CUSIP NO. 32057TAJ0

  

 

FIRST INVESTORS AUTO OWNER
TRUST 2006-A

FORM OF 4.93% CLASS A-3 ASSET-BACKED NOTES

 

First Investors Auto Owner
Trust 2006-A, a statutory trust organized and existing under the laws of the
State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to
Cede & Co., or its registered assigns, the principal sum of $74,000,000
(SEVENTY FOUR MILLION DOLLARS) payable on each Payment Date in the aggregate
amount, if any, payable from the Class A Note Payment Account in respect of
principal on the Class A Notes pursuant to and in accordance with Section 2.8
of the Indenture, dated as of January 26, 2006 (as amended, supplemented or
otherwise modified and in effect from time to time, the “Indenture”), between the Issuer and
Wells Fargo Bank, National Association, a national banking association, as
Indenture Trustee and Custodian (in such capacities the “Indenture Trustee” and the “Custodian”) and Section 3.5 of the
Sale and Allocation Agreement; provided, however, that if not
paid prior to such date, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of February 15, 2011 (the “Final Note Payment Date”) and the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

The Issuer shall pay
interest on this Class A-3 Note at the rate per annum shown above on each Payment
Date until the principal of this Class A-3 Note is paid or made available for
payment, on the principal amount of this Class A-3 Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made
on the preceding Payment Date), subject to certain limitations contained in
Section 3.1 of the Indenture. Interest on this Class A-3 Note will accrue for
each Payment Date from and including the previous Payment Date (or, in the case
of the initial Payment Date or if no interest has been paid, from the Closing
Date) to but excluding such Payment Date. 
Interest will be computed on the basis of a 360-day year of twelve 30
day months.  Such principal of and
interest on this Class A-3 Note shall be paid in the manner specified on the
reverse hereof.

 

The principal of and
interest on this Class A-3 Note are payable in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.  All payments
made by the Issuer with respect to this Class A-3 Note shall be applied first
to interest due and payable on this Class A-3 Note as provided above and then
to the unpaid principal of this Class A-3 Note.

 

Reference is made to the
further provisions of this Class A-3 Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this
Class A-3 Note.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee whose name
appears below by manual signature, this Class A-3 Note shall not be entitled to
any

 

A-2-3

 

benefit under the Indenture referred to on the reverse hereof, or be
valid or obligatory for any purpose.

 

This Class A-3 Note is one
of a duly authorized issue of Class A-3 Notes of the Issuer, designated as its
Class A-3 Asset-Backed Notes, are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Class A-3 Notes.  The Class A-3 Notes are subject to all terms
of the Indenture.

 

This Class A-3 Note is and
will be secured by the Collateral pledged as security therefor as provided in
the Indenture.

 

Principal of this Class A-3
Note is payable on each Payment Date as described on the face hereof.  “Payment
Date” means the fifteenth day of each month or, if any such day
is not a Business Day, the next succeeding Business Day, commencing February
15, 2006.

 

The entire unpaid principal
amount of this Class A-3 Note shall be due and payable on the earlier of the
Final Note Payment Date and the Redemption Date, if any, pursuant to Section
10.1 of the Indenture.  Notwithstanding
the foregoing, the entire unpaid principal amount of this Note shall be due and
payable on the date on which an Event of Default shall have occurred and the
Notes have to be immediately due and payable in the manner provided in Section
5.2 of the Indenture.  Notwithstanding
the foregoing sentence, this Class A-3 Note shall become immediately due and
payable without declaration, notice or demand by or to any Person upon the
occurrence of an Event of Default specified in Section 5.1(i) of the Indenture
with respect to the Issuer.  All
principal payments on the Class A-3 Notes shall be made pro rata to the Class
A-3 Holders entitled thereto.

 

Payments of interest on this
Class A-3 Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made by check mailed to the Person in whose name this Class A-3
Note is registered appears as the Registered Holder of this Class A-3 Note (or
one or more Predecessor Notes) on the related Record Date by check mailed
first-class postage prepaid to such Person’s address as it appears on the Note
Register on such Record Date; provided, however, that, unless Definitive Notes
have been issued pursuant to Section 2.13 of the Indenture, if this Class A-3
Note is registered in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payments will be made by wire
transfer in immediately available funds to the account designated by such
nominee.  Any reduction in the principal
amount of this Class A-3 Note effected by any payments made on any Payment Date
shall be binding upon all future Holders of this Class A-3 Note and of any
Class A-3 Note issued upon the registration of transfer hereof or in exchange hereof
or in lieu hereof, whether or not noted hereon. 
If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Class A-3
Note on a Payment Date, then the Indenture Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the registered Holder
hereof as of the Record Date preceding such Payment Date by notice mailed or
transmitted by facsimile prior to such Payment Date, and the amount then due and
payable shall be payable only upon presentation and surrender of this Class A-3
Note at the Indenture Trustee’s Corporate Trust Office or at the office of the
Indenture Trustee’s agent appointed for such purposes located at

 

A-2-4

 

Sixth Street and Marquette Avenue MAC N9311-161, Minneapolis,
Minnesota  55479, Attention:  Corporate Trust Services Asset-Backed
Administration or such other address as the Indenture Trustee may designate
from time to time as its Corporate Trust Offices in accordance with the
Indenture.

 

The Issuer shall pay
interest on overdue installments of interest at the Note Rate applicable to the
Class A-3 Notes to the extent permitted by law.

 

The Class A-3 Notes are
entitled to the benefits of the Policy issued by the Insurer.  The Insurer is obligated to pay, in
accordance with the terms of the Policy as described in the “Statement of
Insurance” attached hereto.

 

As provided in the
Indenture, the Notes may be redeemed in the manner and to the extent described
in Section 10.1 of the Indenture.

 

As provided in the
Indenture, and subject to certain limitations set forth therein, the transfer
of this Class A-3 Note may be registered on the Note Register upon surrender of
this Class A-3 Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Class A-3 Notes of
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Class A-3 Note, but the transferor
may be required to pay a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any such registration of transfer
or exchange.

 

Each Noteholder or Note
Owner, by its acceptance of this Class A-3 Note or, in the case of a Note
Owner, a beneficial interest in this Class A-3 Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on this
Class A-3 Note or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee or the
Owner Trustee, each in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee,
each in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee, each in its individual
capacity, except as any such Person may have expressly agreed (it being understood
that the Indenture Trustee and the Owner Trustee have no such obligations in
their individual capacities) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

 

Each Noteholder or Note
Owner, by accepting this Class A-3 Note or a beneficial interest in this Class
A-3 Note, as the case may be, hereby covenants and agrees that it will not at
any time institute against, join in any institution against, or knowingly or
intentionally cooperate or encourage any other Person in instituting against,
the Depositor or the Issuer, any bankruptcy,

 

A-2-5

 

reorganization, arrangement, insolvency or liquidation proceedings or
other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or any of the other Transaction Documents.

 

The Issuer has entered into
the Indenture and this Class A-3 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Class A-3
Notes will qualify as indebtedness of the Issuer secured by the Trust
Estate.  The Issuer, by entering into the
Indenture and this Class A-3 Note, and each Noteholder, by its acceptance of
this Class A-3 Note (and each Note Owner by its acceptance of a beneficial
interest in this Class A-3 Note), agree to treat this Class A-3 Note as
indebtedness of the Issuer for federal, state and local income and franchise
tax purposes.

 

Prior to the due presentment
for registration of transfer of this Class A-3 Note, the Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name this Class A-3 Note (as of the day of determination or as
of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Class A-3 Note be overdue,
and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

 

The Indenture allows, with
certain exceptions as therein provided, the Issuer and the Indenture Trustee to
enter into one or more indentures that are supplemental to the Indenture and
which effect a modification of the rights and obligations of the Issuer and the
rights of the Holders of the Class A Notes under the Indenture at any time by
the Issuer with the consent of the Noteholders evidencing not less than 51% of
the Class A Note Balance (subject to the right of the Insurer to exercise such
consent provided that no Insurer Default shall have occurred and be continuing).  The Indenture also permits the Indenture
Trustee and the Issuer to enter into supplemental indentures with respect to
certain terms and conditions set forth in the Indenture without the consent of
Holders of the Class A Notes issued thereunder.

 

The term “Issuer,” as used
in this Class A-3 Note, includes any successor to the Issuer under the
Indenture.

 

The Class A-3 Notes are
issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

 

This Class A-3 Note and the
Indenture shall be governed by, and construed in accordance with the laws of
the State of New York, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the
Indenture, and no provision of this Class A-3 Note or of the Indenture, shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Class A-3 Note at
the times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the
contrary notwithstanding, except as expressly provided in the Transaction
Documents, none of Wells Fargo Bank, National Association, in its individual
capacity, Wells Fargo Delaware Trust Company, in its individual capacity, any
owner of a

 

A-2-6

 

beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal or of interest on this Class A-3 Note or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. 
The Holder of this Class A-3 Note, by its acceptance hereof (and each
Note Owner, by its acceptance of a beneficial interest herein), agrees that,
except as expressly provided in the Transaction Documents, in the case of an
Event of Default under the Indenture, the Holder shall have no claim against
any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Class A-3 Note.

 

A-2-7

 

IN WITNESS WHEREOF, the
Issuer has caused this instrument to be signed as of the date set forth below.

 

	
  Date:  January 26, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST INVESTORS AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO DELAWARE TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-8

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A-3 Notes designated above and referred to in
the within-mentioned Indenture.

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-9

 

ASSIGNMENT

 

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

 

 

 

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

 

 

(name and address of
assignee)

 

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

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
   

  	
  Signature of Assignor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
   

  	
  Signature Guaranteed

  
							

 

*/                                     NOTICE: 
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class A-3 Note in
every particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note
Registrar.

 

A-2-10

 

STATEMENT OF INSURANCE

 

A-2-11

 

Exhibit A-4

$36,060,000

 

UNLESS THIS CLASS A-4 NOTE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

 

THIS CLASS A-4 NOTE HAS NOT
BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE.  ACCORDINGLY, TRANSFER OF THIS CLASS A-4 NOTE
IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN SECTION 2.15 OF THE INDENTURE.  BY ITS ACCEPTANCE OF THIS CLASS A-4 NOTE, THE
HOLDER OF THIS CLASS A-4 NOTE IS DEEMED TO REPRESENT TO THE TRUST AND THE
INDENTURE TRUSTEE THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

 

NO SALE, PLEDGE OR OTHER
TRANSFER OF THIS CLASS A-4 NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER
TRANSFER IS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, (B) FOR SO LONG AS THE CLASS A-4 NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO A PERSON THE TRANSFEROR
REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, OR (C) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, THE
INVESTMENT COMPANY ACT OF 1940, AS AMENDED AND ANY APPLICABLE STATE SECURITIES
AND BLUE SKY LAWS OR IS MADE IN ACCORDANCE WITH EACH SUCH ACT AND STATE LAWS.
THE INDENTURE TRUSTEE MAY REQUIRE AN OPINION OF COUNSEL TO BE DELIVERED TO IT
IN CONNECTION WITH ANY SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS A-4 NOTE
PURSUANT TO CLAUSES (A) OR (C) ABOVE. 
ALL OPINIONS OF COUNSEL REQUIRED IN CONNECTION WITH ANY TRANSFER SHALL
BE BY COUNSEL REASONABLY ACCEPTABLE TO THE INDENTURE TRUSTEE.

 

 

EACH INVESTOR IN THIS CLASS
A-4 NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (I) IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THIS CLASS A-4 NOTE FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), A PLAN SUBJECT TO
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR
A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY PROVISIONS UNDER ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAW”) OR (II) ITS
ACQUISITION AND HOLDING OF SUCH CLASS A-4 NOTE OR ANY INTEREST THEREIN WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
SECTION 4975 OF THE CODE, OR A VIOLATION OF SIMILAR LAW.

 

A-2-2

 

	
  REGISTERED

  	
   

  	
   

  
	
  No. A-4

  	
   

  	
  CUSIP NO. 32057TAK7

  

 

FIRST INVESTORS AUTO OWNER
TRUST 2006-A

FORM OF 5.00% CLASS A-4 ASSET-BACKED NOTES

 

First Investors Auto Owner
Trust 2006-A, a statutory trust organized and existing under the laws of the
State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to
Cede & Co., or its registered assigns, the principal sum of $36,060,000
(THIRTY SIX MILLION SIXTY THOUSAND DOLLARS) payable on each Payment Date in the
aggregate amount, if any, payable from the Class A Note Payment Account in
respect of principal on the Class A Notes pursuant to and in accordance with
Section 2.8 of the Indenture, dated as of January 26, 2006 (as amended,
supplemented or otherwise modified and in effect from time to time, the “Indenture”), between the Issuer and
Wells Fargo Bank, National Association, a national banking association, as
Indenture Trustee and Custodian (in such capacities the “Indenture Trustee” and the “Custodian”) and Section 3.5 of the
Sale and Allocation Agreement; provided, however, that if not
paid prior to such date, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of April 15, 2013 (the “Final Note Payment Date”) and the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

The Issuer shall pay
interest on this Class A-4 Note at the rate per annum shown above on each
Payment Date until the principal of this Class A-4 Note is paid or made
available for payment, on the principal amount of this Class A-4 Note
outstanding on the preceding Payment Date (after giving effect to all payments
of principal made on the preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this Class
A-4 Note will accrue for each Payment Date from and including the previous
Payment Date (or, in the case of the initial Payment Date or if no interest has
been paid, from the Closing Date) to but excluding such Payment Date.  Interest will be computed on the basis of a
360-day year of twelve 30 day months. 
Such principal of and interest on this Class A-4 Note shall be paid in
the manner specified on the reverse hereof.

 

The principal of and
interest on this Class A-4 Note are payable in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.  All
payments made by the Issuer with respect to this Class A-4 Note shall be
applied first to interest due and payable on this Class A-4 Note as provided
above and then to the unpaid principal of this Class A-4 Note.

 

Reference is made to the
further provisions of this Class A-4 Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this
Class A-4 Note.

 

Unless the certificate of
authentication hereon has been executed by the Indenture Trustee whose name
appears below by manual signature, this Class A-4 Note shall not be entitled to
any

 

A-2-3

 

benefit under the Indenture referred to on the reverse hereof, or be
valid or obligatory for any purpose.

 

This Class A-4 Note is one
of a duly authorized issue of Class A-4 Notes of the Issuer, designated as its
Class A-4 Asset-Backed Notes, are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Class A-4 Notes.  The Class A-4 Notes are subject to all terms
of the Indenture.

 

This Class A-4 Note is and
will be secured by the Collateral pledged as security therefor as provided in
the Indenture.

 

Principal of this Class A-4
Note is payable on each Payment Date as described on the face hereof.  “Payment
Date” means the fifteenth day of each month or, if any such day
is not a Business Day, the next succeeding Business Day, commencing February
15, 2006.

 

The entire unpaid principal
amount of this Class A-4 Note shall be due and payable on the earlier of the
Final Note Payment Date and the Redemption Date, if any, pursuant to Section
10.1 of the Indenture.  Notwithstanding
the foregoing, the entire unpaid principal amount of this Note shall be due and
payable on the date on which an Event of Default shall have occurred and the
Notes have to be immediately due and payable in the manner provided in Section
5.2 of the Indenture.  Notwithstanding
the foregoing sentence, this Class A-4 Note shall become immediately due and
payable without declaration, notice or demand by or to any Person upon the
occurrence of an Event of Default specified in Section 5.1(i) of the Indenture
with respect to the Issuer.  All
principal payments on the Class A-4 Notes shall be made pro rata to the Class
A-4 Holders entitled thereto.

 

Payments of interest on this
Class A-4 Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this
Note, shall be made by check mailed to the Person in whose name this Class A-4
Note is registered appears as the Registered Holder of this Class A-4 Note (or
one or more Predecessor Notes) on the related Record Date by check mailed
first-class postage prepaid to such Person’s address as it appears on the Note
Register on such Record Date; provided, however, that, unless Definitive Notes
have been issued pursuant to Section 2.13 of the Indenture, if this Class A-4
Note is registered in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payments will be made by wire
transfer in immediately available funds to the account designated by such
nominee.  Any reduction in the principal
amount of this Class A-4 Note effected by any payments made on any Payment Date
shall be binding upon all future Holders of this Class A-4 Note and of any
Class A-4 Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon.  If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Class A-4 Note on a Payment Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person who
was the registered Holder hereof as of the Record Date preceding such Payment
Date by notice mailed or transmitted by facsimile prior to such Payment Date, and
the amount then due and payable shall be payable only upon presentation and
surrender of this Class A-4 Note at the Indenture Trustee’s Corporate Trust
Office or at the office of the Indenture Trustee’s agent appointed for such
purposes located at

 

A-2-4

 

Sixth Street and Marquette Avenue MAC N9311-161, Minneapolis,
Minnesota  55479, Attention:  Corporate Trust Services Asset-Backed
Administration or such other address as the Indenture Trustee may designate
from time to time as its Corporate Trust Offices in accordance with the
Indenture.

 

The Issuer shall pay
interest on overdue installments of interest at the Note Rate applicable to the
Class A-4 Notes to the extent permitted by law.

 

The Class A-4 Notes are
entitled to the benefits of the Policy issued by the Insurer.  The Insurer is obligated to pay, in
accordance with the terms of the Policy as described in the “Statement of
Insurance” attached hereto.

 

As provided in the
Indenture, the Notes may be redeemed in the manner and to the extent described
in Section 10.1 of the Indenture.

 

As provided in the
Indenture, and subject to certain limitations set forth therein, the transfer
of this Class A-4 Note may be registered on the Note Register upon surrender of
this Class A-4 Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Class A-4 Notes of
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees.  No service charge will be charged for any
registration of transfer or exchange of this Class A-4 Note, but the transferor
may be required to pay a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any such registration of transfer
or exchange.

 

Each Noteholder or Note
Owner, by its acceptance of this Class A-4 Note or, in the case of a Note
Owner, a beneficial interest in this Class A-4 Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on this
Class A-4 Note or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee or the
Owner Trustee, each in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee,
each in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee, each in its individual
capacity, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

 

Each Noteholder or Note
Owner, by accepting this Class A-4 Note or a beneficial interest in this Class
A-4 Note, as the case may be, hereby covenants and agrees that it will not at
any time institute against, join in any institution against, or knowingly or
intentionally cooperate or encourage any other Person in instituting against,
the Depositor or the Issuer, any bankruptcy,

 

A-2-5

 

reorganization, arrangement, insolvency or liquidation proceedings or
other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or any of the other Transaction Documents.

 

The Issuer has entered into
the Indenture and this Class A-4 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Class A-4
Notes will qualify as indebtedness of the Issuer secured by the Trust
Estate.  The Issuer, by entering into the
Indenture and this Class A-4 Note, and each Noteholder, by its acceptance of
this Class A-4 Note (and each Note Owner by its acceptance of a beneficial
interest in this Class A-4 Note), agree to treat this Class A-4 Note as
indebtedness of the Issuer for federal, state and local income and franchise
tax purposes.

 

Prior to the due presentment
for registration of transfer of this Class A-4 Note, the Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name this Class A-4 Note (as of the day of determination or as
of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Class A-4 Note be overdue,
and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

 

The Indenture allows, with
certain exceptions as therein provided, the Issuer and the Indenture Trustee to
enter into one or more indentures that are supplemental to the Indenture and
which effect a modification of the rights and obligations of the Issuer and the
rights of the Holders of the Class A Notes under the Indenture at any time by
the Issuer with the consent of the Noteholders evidencing not less than 51% of
the Class A Note Balance (subject to the right of the Insurer to exercise such
consent provided that no Insurer Default shall have occurred and be
continuing).  The Indenture also permits
the Indenture Trustee and the Issuer to enter into supplemental indentures with
respect to certain terms and conditions set forth in the Indenture without the
consent of Holders of the Class A Notes issued thereunder.

 

The term “Issuer,” as used
in this Class A-4 Note, includes any successor to the Issuer under the
Indenture.

 

The Class A-4 Notes are
issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

 

This Class A-4 Note and the
Indenture shall be governed by, and construed in accordance with the laws of
the State of New York, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the
Indenture, and no provision of this Class A-4 Note or of the Indenture, shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Class A-4 Note at
the times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the
contrary notwithstanding, except as expressly provided in the Transaction
Documents, none of Wells Fargo Bank, National Association, in its individual
capacity, Wells Fargo Delaware Trust Company, in its individual capacity, any
owner of a

 

A-2-6

 

beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal or of interest on this Class A-4 Note or performance
of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. 
The Holder of this Class A-4 Note, by its acceptance hereof (and each
Note Owner, by its acceptance of a beneficial interest herein), agrees that,
except as expressly provided in the Transaction Documents, in the case of an
Event of Default under the Indenture, the Holder shall have no claim against
any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Class A-4 Note.

 

A-2-7

 

IN WITNESS WHEREOF, the
Issuer has caused this instrument to be signed as of the date set forth below.

 

	
  Date: January 26, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST INVESTORS AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO DELAWARE TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

A-2-8

 

INDENTURE TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This is one of the Class A-4 Notes designated above and referred to in
the within-mentioned Indenture.

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-2-9

 

ASSIGNMENT

 

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

 

 

 

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

 

 

(name and address of
assignee)

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
  Signature of Assignor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guaranteed

  	
  */

  
						

 

*/                                     NOTICE: 
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class A-4 Note in
every particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note
Registrar.

 

A-2-10

 

STATEMENT OF INSURANCE

 

A-2-11

 

Exhibit B

$2,879,112.45

 

THIS CLASS B NOTE HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES OR “BLUE SKY” LAWS.  THE HOLDER HEREOF, BY PURCHASING THIS CLASS B
NOTE, AGREES THAT THIS NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY (1) TO AN AFFILIATE OF THE DEPOSITOR, (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (3) IN RELIANCE ON AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUBJECT
TO THE ISSUER’S AND THE INDENTURE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE
OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  ANY NOTEHOLDER WILL, AND EACH SUBSEQUENT
NOTEHOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE. 
THE ISSUER IS NOT OBLIGATED TO REGISTER THIS CLASS B NOTE UNDER THE
SECURITIES ACT OR ANY STATE SECURITIES OR BLUE SKY LAWS.  NO TRANSFER OF THIS CLASS B NOTE SHALL BE
PERMITTED TO THE EXTENT THAT SUCH TRANSFER WOULD RESULT IN MORE THAN 80 HOLDERS
(WITHIN THE MEANING OF TREASURY REGULATION SECTION 1.7704-1(H)) OF CLASS B
NOTES AND BENEFICIAL INTERESTS IN THE ISSUER IN THE AGGREGATE.  NO TRANSFER OF THIS CLASS B NOTE MAY BE MADE
TO ANY PERSON (A “PASS-THROUGH ENTITY”) THAT IS A PARTNERSHIP (INCLUDING ANY
OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX PURPOSES), S CORPORATION
OR GRANTOR TRUST UNLESS SUCH PASS-THROUGH ENTITY IS ABLE TO REPRESENT THAT THIS
CLASS B NOTE REPRESENTS LESS THAN 50% OF THE FAIR MARKET VALUE OF ALL ASSETS OF
SUCH ENTITY.  NOTWITHSTANDING THE
FOREGOING, NO TRANSFER OF THIS CLASS B NOTE SHALL BE MADE EXCEPT IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE AND IN THIS CLASS B NOTE.  TRANSFER OF THIS CLASS B NOTE IS SUBJECT TO
ADDITIONAL TRANSFER RESTRICTIONS CONTAINED IN SECTION 2.16 OF THE
INDENTURE.  EACH HOLDER OF THIS CLASS B
NOTE AGREES THAT THIS CLASS B NOTE IS SUBJECT TO THE PROVISIONS OF ARTICLE 8 OF
THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ALL APPLICABLE JURISDICTIONS.

 

 

No. B-1

 

FIRST INVESTORS AUTO OWNER
TRUST 2006-A

FORM OF CLASS B ASSET-BACKED NOTES

 

First Investors Auto Owner
Trust 2006-A, a statutory trust organized and existing under the laws of the
State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to First Investors Auto Funding Corporation or
its registered assigns, the principal sum of $2,879,112.45 (TWO MILLION EIGHT
HUNDRED SEVENTY NINE THOUSAND ONE HUNDRED TWELVE DOLLARS AND FORTY FIVE CENTS)
payable on each Payment Date in the aggregate amount, if any, payable from the
Class B Note Payment Account in respect of principal on the Class B Notes
pursuant to and in accordance with Section 2.8 of the Indenture, dated as of
January 26, 2006 (as amended, supplemented or otherwise modified and in effect
from time to time, the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, a national banking
association, as Indenture Trustee and Custodian (in such capacities the “Indenture Trustee” and the “Custodian”) and Section 3.5 of the
Sale and Allocation Agreement; provided, however, that if not
paid prior to such date, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of April 15, 2013 (the “Final Note Payment Date”) and the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture.  Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

 

Principal of this Class B
Note shall be paid in the manner specified on the reverse hereof.

 

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

 

This Class B Note shall not
accrue interest.

 

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

 

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

 

[REMAINDER OF THIS PAGE LEFT
INTENTIONALLY BLANK.]

 

B-2

 

This Class B Note is one of
a duly authorized issue of Class B Notes of the Issuer, designated as its Class
B Asset-Backed Notes, are issued under the Indenture, to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. 
The Class B Notes are subject to all terms of the Indenture.

 

This Class Note is and will
be equally and ratably secured by the Collateral pledged as security therefor
as provided in the Indenture.

 

Principal of this Class B
Note is due and payable on each Payment Date as described on the face
hereof.  “Payment Date” means the fifteenth day of each month or,
if any such day is not a Business Day, the next succeeding Business Day,
commencing February 15, 2006.

 

As described above, the
entire unpaid principal amount of this Class B Note shall be due and payable on
the earlier of the Final Note Payment Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. 
Notwithstanding the foregoing, the entire unpaid principal amount of
this Note shall be due and payable on the date on which an Event of Default
shall have occurred and the Notes have been declared to be immediately due and
payable in the manner provided in Section 5.2 of the Indenture.  Notwithstanding the foregoing sentence, this
Class B Note shall become immediately due and payable without declaration,
notice or demand by or to any Person upon the occurrence of an Event of Default
specified in Section 5.1(i) of the Indenture with respect to the Issuer.  All principal payments on the Class B Notes
shall be made pro rata to the Class B Holders entitled thereto.

 

Installments of principal,
if any, to the extent not in full payment of this Note, shall be made by check
mailed to the Person in whose name this Class B Note is registered appears as
the Registered Holder of this Class B Note (or one or more Predecessor Notes)
on the related Record Date by wire transfer in immediately available funds to
the account designated by such Holder. 
Any reduction in the principal amount of this Class B Note effected by
any payments made on any Payment Date shall be binding upon all future Holders of
this Class B Note and of any Class B Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon.  If funds are expected to be
available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Class B Note on a Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed or transmitted by facsimile prior to such
Payment Date, and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Indenture Trustee’s Corporate
Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes located at Sixth Street and Marquette Avenue MAC N9311-161,
Minneapolis, Minnesota 55479, Attention: Corporate Trust Services Asset-Backed
Administration or such other address as the Indenture Trustee may designate
from time to time as its Corporate Trust Offices in accordance with the
Indenture.

 

As provided in the
Indenture, the Notes may be redeemed in the manner and to the extent described
in Section 10.1 of the Indenture.

 

B-3

 

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

 

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

 

Each Noteholder, by
accepting this Class B Note hereby covenants and agrees that it will not at any
time institute against, join in any institution against, or knowingly or
intentionally cooperate or encourage any other Person in instituting against,
the Depositor or the Issuer, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or any of the other Transaction
Documents.

 

The Issuer has entered into
the Indenture and this Class B Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Class B Notes
will qualify as indebtedness of the Issuer secured by the Trust Estate.  The Issuer, by entering into the Indenture
and this Class B Note, and each Noteholder, by its acceptance of this Class B
Note, agree to treat this Class B Note as indebtedness of the Issuer for federal,
state and local income and franchise tax purposes.

 

Prior to the due presentment
for registration of transfer of this Class B Note, the Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name this Class B Note (as of the day of determination or as of
such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this

 

B-4

 

Class B Note be overdue, and none of the Issuer, the Indenture Trustee
or any such agent shall be affected by notice to the contrary.

 

As provided in the
Indenture, this Class B Note may not be transferred to a person that is, or
that is directly or indirectly acquiring this Class B Note for, on behalf of or
with any assets of, an employee benefit plan or other arrangement subject to
Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), a plan subject to Section 4975 of the Code, or a plan or other
arrangement subject to any provisions under any federal, state, local, non-U.S.
or other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code.

 

The Indenture allows, with
certain exceptions as therein provided, the Issuer and the Indenture Trustee to
enter into one or more indentures that are supplemental to the Indenture and
which effect a modification of the rights and obligations of the Issuer and the
rights of the Holders of the Notes under the Indenture at any time by the
Issuer with the consent of the Noteholders evidencing not less than 51% of the
Class A Note Balance (subject to the right of the Insurer to exercise such
consent provided that no Insurer Default shall have occurred and be
continuing).  The Indenture also permits
the Indenture Trustee and the Issuer to enter into supplemental indentures with
respect to certain terms and conditions set forth in the Indenture without the
consent of Holders of the Notes issued thereunder.

 

The term “Issuer,” as used
in this Class B Note, includes any successor to the Issuer under the Indenture.

 

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

 

This Class B Note and the
Indenture shall be governed by, and construed in accordance with the laws of
the State of New York without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

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

 

Anything herein to the
contrary notwithstanding, except as expressly provided in the Transaction
Documents, none of Wells Fargo Bank, National Association, in its individual
capacity, Wells Fargo Delaware Trust Company in its individual capacity, any
owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors
or assigns shall be personally liable for, nor shall recourse be had to any of
them for, the payment of principal or of interest on this Class B Note or
performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. 
The Holder of this Class B Note, by its acceptance hereof, agrees that,
except as expressly provided in the Transaction Documents, in the case of an
Event of Default under the Indenture, the Holder shall have no claim against
any of the foregoing for any

 

B-5

 

deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class B Note.

 

B-6

 

WITNESS WHEREOF, the Issuer
has caused this instrument to be signed as of the date set forth below.

 

	
  Date: January 26, 2006

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST INVESTORS AUTO OWNER TRUST 2006-A

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WELLS FARGO DELAWARE TRUST

  COMPANY, not in its individual capacity but

  solely as Owner Trustee under the Trust Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

B-7

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

B-8

 

ASSIGNMENT

 

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

 

 

 

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

 

 

(name and address of
assignee)

 

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

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
  Signature of Assignor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  */

  
	
   

  	
  Signature Guaranteed

  	
   

  

 

*/                                     NOTICE: 
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class B Note in every
particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
“eligible guarantor institution” meeting the requirements of the Note
Registrar.

 

B-9

 

Exhibit C

 

[RESERVED]

 

 

Exhibit D

 

REQUEST FOR RELEASE OF
CONTRACT

 

[Date]

 

TO:                            Wells Fargo Bank, National Association

as Custodian

ABS Custody Vault

751 Kasota Avenue

MAC N9328-011

Minneapolis, Minnesota  55414

Attention:                                         Corporate Trust Services —Asset-Backed
Administration

 

In connection with the
Contract Files which are owned by First Investors Auto Owner Trust 2006-A (the
“Issuer”) and are pledged
by the Issuer to Wells Fargo Bank, National Association, as Indenture Trustee
(the “Indenture Trustee”),
the undersigned, as [Indenture
Trustee][Servicer], requests the release of the Contract File
related to the Contract identified below by its number.  The undersigned shall return the documents to
you when the undersigned’s need therefor no longer exists, except where the
Contract is paid in full or otherwise disposed of.  Capitalized terms used but not otherwise
defined herein shall have the respective meanings assigned to such terms in the
Indenture, dated as of January 26, 2006, between Wells Fargo Bank, National
Association, as Indenture Trustee and Custodian, and the Issuer.

 

	
  Reason for Document Request: (check one)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Code

  	
   

  	
   

  	
   

  	
  Reason

  	
   

  	
   

  
	
  5

  	
   

  	
  o

  	
   

  	
  Liquidation

  	
   

  	
   

  
	
  1

  	
   

  	
  o

  	
   

  	
  Paid Off

  	
   

  	
   

  
	
  4

  	
   

  	
  o

  	
   

  	
  Repurchase

  	
   

  	
   

  
	
  19

  	
   

  	
  o

  	
   

  	
  Servicing

  	
   

  	
   

  
	
  3

  	
   

  	
  o

  	
   

  	
  Substitution

  	
   

  	
   

  
											

 

	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CONTRACT NUMBER

  	
   

  
	
   

  	
  CUSTOMER

  	
   

  
	
  Address where files are to be shipped:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Shipping Number:

  	
   

  	
   

  	
   

  
	
  Carrier:

  	
   

  	
   

  	
   

  
								

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.2.

  	
   

  	
  Rules of Construction

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  THE NOTES

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Form

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.2.

  	
   

  	
  Execution, Authentication and Delivery

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.3.

  	
   

  	
  Temporary Class A Notes

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.4.

  	
   

  	
  Tax Treatment

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.5.

  	
   

  	
  Registration; Registration of Transfer and Exchange

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.6.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Notes

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.7.

  	
   

  	
  Persons Deemed Owners

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.8.

  	
   

  	
  Payments of Interest and Principal

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.9.

  	
   

  	
  Cancellation

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.10.

  	
   

  	
  Release of Collateral

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.11.

  	
   

  	
  Book-Entry

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.12.

  	
   

  	
  Notices to Clearing Agency

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.13.

  	
   

  	
  Definitive Notes

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.14.

  	
   

  	
  Authenticating Agents

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.15.

  	
   

  	
  Restrictions on Transfers of Class A Notes

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.16.

  	
   

  	
  Restrictions on Transfers of Class B Notes

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.17.

  	
   

  	
  Regarding Owner Trustee

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  COVENANTS

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  3.1.

  	
   

  	
  Payment Covenant

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  Maintenance of Office or Agency

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Money for Payments to be Held in Trust

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Existence

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.5.

  	
   

  	
  Protection of Trust Estate

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.6.

  	
   

  	
  Opinions as to Trust Estate

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.7.

  	
   

  	
  Performance of Obligations

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.8.

  	
   

  	
  Negative Covenants

  	
  27

  
					

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.9.

  	
   

  	
  Annual Statement as to Compliance

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.10.

  	
   

  	
  Issuer May Not Merge

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.11.

  	
   

  	
  [Reserved]

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.12.

  	
   

  	
  Successor

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.13.

  	
   

  	
  Servicer’s Obligation

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.14.

  	
   

  	
  Guarantees, Loans, Advances and Other Liabilities

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.15.

  	
   

  	
  Capital Expenditures

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.16.

  	
   

  	
  Restricted Payments

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.17.

  	
   

  	
  Notice of Events of Default

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.18.

  	
   

  	
  Removal of Administrator

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.19.

  	
   

  	
  Further Instruments and Acts

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.20.

  	
   

  	
  Rule 144A Information

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.21.

  	
   

  	
  Perfection Representations, Warranties and Covenants

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  SATISFACTION AND DISCHARGE

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.2.

  	
   

  	
  Satisfaction, Discharge and Defeasance of the Notes

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.3.

  	
   

  	
  Application of Trust Money

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.4.

  	
   

  	
  Repayment of Monies Held by Paying Agent

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.5.

  	
   

  	
  Continuing Obligations of Indenture Trustee

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REMEDIES

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Events of Default

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.2.

  	
   

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.3.

  	
   

  	
  Collection of Indebtedness and Suits for Enforcement by Indenture
  Trustee

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.4.

  	
   

  	
  Remedies

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.5.

  	
   

  	
  Optional Preservation of the Contracts

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.6.

  	
   

  	
  Limitation of Suits

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.7.

  	
   

  	
  Unconditional Rights of Noteholders to Receive Principal and Interest

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.8.

  	
   

  	
  Restoration of Rights and Remedies

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.9.

  	
   

  	
  Rights and Remedies Cumulative Rights

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.10.

  	
   

  	
  Delay or Omission Not a Waiver

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.11.

  	
   

  	
  Control by Noteholders

  	
  44

  
					

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.12.

  	
   

  	
  Waiver of Past Defaults

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.13.

  	
   

  	
  Undertaking for Costs

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.14.

  	
   

  	
  Waiver of Stay or Extension Laws

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.15.

  	
   

  	
  Action on Notes

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.16.

  	
   

  	
  Performance and Enforcement of Certain Obligations

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  THE INDENTURE TRUSTEE

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Duties of Indenture Trustee

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.2.

  	
   

  	
  Rights of Indenture Trustee

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.3.

  	
   

  	
  Individual Rights of Indenture Trustee

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.4.

  	
   

  	
  Indenture Trustee’s Disclaimer

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.5.

  	
   

  	
  Notice of Default

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.6.

  	
   

  	
  Reports by Indenture Trustee to Holders

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.7.

  	
   

  	
  Compensation and Indemnity

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.8.

  	
   

  	
  Replacement of Indenture Trustee

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.9.

  	
   

  	
  Successor Indenture Trustee

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.10.

  	
   

  	
  Eligibility; Disqualification

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  NOTEHOLDERS’ LISTS AND REPORTS

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Issuer to Furnish Indenture Trustee Names and Addresses of
  Noteholders

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.2.

  	
   

  	
  Preservation of Information; Communications to Noteholders

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.3.

  	
   

  	
  Fiscal Year

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  ACCOUNTS, DISBURSEMENTS AND RELEASES

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Collection of Money Collection

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.2.

  	
   

  	
  Trust Accounts

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.3.

  	
   

  	
  General Provisions Regarding Accounts

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.4.

  	
   

  	
  Release of Trust Estate

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.5.

  	
   

  	
  Opinion of Counsel

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
  SUPPLEMENTAL INDENTURES

  	
  62

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Supplemental Indentures Without Consent of Noteholders

  	
  62

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.2.

  	
   

  	
  Supplemental Indentures with Consent of Noteholders

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.3.

  	
   

  	
  Execution of Supplemental Indentures

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.4.

  	
   

  	
  Effect of Supplemental Indenture

  	
  65

  
					

 

iii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.5.

  	
   

  	
  Reference in Notes to Supplemental Indentures

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  REDEMPTION OF NOTES

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Redemption

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.2.

  	
   

  	
  Form of Redemption Notice

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.3.

  	
   

  	
  Notes Payable on Redemption Date

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  MISCELLANEOUS

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
   

  	
  Compliance Certificates and Opinions, etc

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.2.

  	
   

  	
  Form of Documents Delivered to Indenture Trustee

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.3.

  	
   

  	
  Acts of Noteholders

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.4.

  	
   

  	
  Notices, etc. to Indenture Trustee

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.5.

  	
   

  	
  Notices to Noteholders; Waiver Notices to Noteholders

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.6.

  	
   

  	
  Alternate Payment and Notice Provisions

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.7.

  	
   

  	
  Effect of Headings and Table of Contents

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.8.

  	
   

  	
  Successors and Assigns

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.9.

  	
   

  	
  Severability

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.10.

  	
   

  	
  Benefits of Indenture

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.11.

  	
   

  	
  Legal Holiday

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.12.

  	
   

  	
  Governing Law

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.13.

  	
   

  	
  Counterparts

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.14.

  	
   

  	
  Recording of Indenture

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.15.

  	
   

  	
  Trust Obligation

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.16.

  	
   

  	
  No Petition

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.17.

  	
   

  	
  Inspection

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.18.

  	
   

  	
  Certain Matters Regarding the Insurer

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.19.

  	
   

  	
  Acknowledgment of Multiple Roles

  	
  73

  
					

 

iv

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]