Document:

Exhibit 4.3

 

Exhibit 4.3

NOTE GUARANTY INSURANCE POLICY

POLICY NUMBER: 501381

			
	OBLIGATIONS:	 	Santander Drive Auto Receivables Trust 2007-2

$600,000,000 Class A Asset Backed Notes

$103,000,000 Class A-1 5.8014% Asset Backed Notes

$128,000,000 Class A-2 LIBOR + .35% Asset Backed Notes

$369,000,000 Class A-3 LIBOR + .80% Asset Backed Notes

     MBIA Insurance Corporation (the “Insurer”), in consideration of the payment of the premium and
subject to the terms of this Note Guaranty Insurance Policy (this “Policy”), hereby unconditionally
and irrevocably guarantees to any Owner that an amount equal to each full and complete Insured
Payment will be received from the Insurer by Wells Fargo Bank, National Association or its
successors, as trustee for the Owners (the “Indenture Trustee”), on behalf of the Owners, for
distribution by the Indenture Trustee to each Owner of each Owner’s proportionate share of the
Insured Payment. The Insurer’s obligations hereunder with respect to a particular Insured Payment
shall be discharged to the extent funds equal to the applicable Insured Payment are received by the
Indenture Trustee, whether or not such funds are properly applied by the Indenture Trustee.
Insured Payments shall be made only at the time set forth in this Policy and no accelerated Insured
Payments shall be made regardless of any acceleration of the Obligations, unless such acceleration
is at the sole option of the Insurer.

     Notwithstanding the foregoing paragraph, this Policy does not cover shortfalls, if any,
attributable to the liability of the Trust or the Indenture Trustee for withholding taxes, if any
(including interest and penalties in respect of any such liability).

     The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day
following receipt on a Business Day by the Fiscal Agent (as described below) of (i) a certified
copy of the order requiring the return of a preference payment, (ii) an opinion of counsel
satisfactory to the Insurer that such order is final and not subject to appeal, (iii) an assignment
in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations against the debtor
which made such preference payment or otherwise with respect to such preference payment and (iv)
appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any
legal proceeding related to such preference payment, such instruments being in a form satisfactory
to the Insurer, provided that if such documents are received after 12:00 noon New York City time on
such Business Day, they will be deemed to be received on the following Business Day. Such payments
shall be disbursed to the receiver or trustee in bankruptcy named in the final order of the court
exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such Owner has
returned principal or interest paid on the Obligations to such receiver or trustee in bankruptcy,
in which case such payment shall be disbursed to such Owner.

 

 

     The Insurer will pay any other amount payable hereunder no later than 12:00 noon New York City
time on the later of the Payment Date on which the related Deficiency Amount is due or the third
Business Day following receipt in New York, New York on a Business Day by U.S. Bank Trust, National
Association, as Fiscal Agent for the Insurer or any successor fiscal agent appointed by the Insurer
(the “Fiscal Agent”) of a Notice (as described below); provided that if such Notice is received
after 12:00 noon New York City time on such Business Day, it will be deemed to be received on the
following Business Day. If any such Notice received by the Fiscal Agent is not in proper form or
is otherwise insufficient for the purpose of making a claim hereunder it shall be deemed not to
have been received by the Fiscal Agent for purposes of the paragraph, and the Insurer or the Fiscal
Agent, as the case may be, shall promptly so advise the Indenture Trustee and the Indenture Trustee
may submit an amended Notice.

     Insured Payments due hereunder unless otherwise stated herein will be disbursed by the Fiscal
Agent to the Indenture Trustee on behalf of the Owners by wire transfer of immediately available
funds in the amount of the Insured Payment less, in respect of Insured Payments related to
Preference Amounts, any amount held by the Indenture Trustee for the payment of such Insured
Payment and legally available therefor.

     The Fiscal Agent is the agent of the Insurer only and the Fiscal Agent shall in no event be
liable to Owners for any acts of the Fiscal Agent or any failure of the Insurer to deposit or cause
to be deposited sufficient funds to make payments due under this Policy.

     Subject to the terms of the Agreement, the Insurer shall be subrogated to the rights of each
Owner to receive payments under the Obligations to the extent of any payment by the Insurer
hereunder.

     As used herein, the following terms shall have the following meanings:

     “Agreement” means the Sale and Servicing Agreement dated as of September 5, 2007 among
Santander Drive Auto Receivables Trust 2007-2, as Issuer, Santander Consumer USA Inc., as Servicer,
Santander Drive Auto Receivables LLC, as Seller, Wells Fargo Bank, National Association, as
Indenture Trustee and as Backup Servicer, without regard to any amendment or supplement thereto
unless such amendment or supplement has been approved in writing by the Insurer.

     “Business Day” means any day other than (a) a Saturday or a Sunday or (b) a day on which
banking institutions or trust companies located in the states of California, Delaware, Minnesota,
Texas or New York are authorized or obligated by law, executive order, or governmental decree to be
closed.

     “Deficiency Amount” means, with respect to any Payment Date, the sum of (i) the amount by
which Accrued Note Interest exceeds the sum of (x) the Available Funds remaining on deposit with
the Indenture Trustee after the payment of clauses (i), (ii) and (iii) of Section 4.4 (a) of the
Agreement and, (y) without duplication, the Reserve Amount remaining on such Payment Date after
taking into account any prior reduction of the Reserve Amount, plus (ii) the sum of (A) the amount
by which the Note Balance for all Classes of Notes (after taking into
account all distributions of principal to be made on such Payment Date) exceeds the sum of the

2

 

Pool Balance plus the amount, if any, on deposit in the Pre-Funding Account, and (B) without
duplication, if such Payment Date is also the Final Scheduled Payment Date for any Class of Notes,
the amount by which the Note Balance for the applicable Class of Notes (after taking into account
all distributions of principal to be made with respect to such Class of Notes on such Payment Date)
exceeds the sum of (x) the Available Funds remaining in the Collection Account after the payment of
clauses (i) through (v) under Section 4.4(a) of the Agreement and (y), without duplication, the
Reserve Amount, remaining on such Payment Date, after taking into account any prior reduction of
the Reserve Amount.

     “Insured Payment” means (i) as of any Payment Date any Deficiency Amount and (ii) any
Preference Amount.

     “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is
subsequently delivered by registered or certified mail, from the Indenture Trustee specifying the
Insured Payment which shall be due and owing on the applicable Payment Date.

     “Owner” means each Holder (as defined in the Agreement) who, on the applicable Payment Date,
is entitled under the terms of the applicable Notes to payment thereunder.

     “Preference Amount” means any amount previously distributed to an Owner on the Obligations
that is recoverable and sought to be recovered as an avoidable preference by a trustee in
bankruptcy pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time,
in accordance with a final nonappealable order of a court having competent jurisdiction.

     Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings set forth in the Agreement as of the date of execution of this Policy, without giving
effect to any subsequent amendment to or modification of the Agreement unless such amendment or
modification has been approved in writing by the Insurer.

     No defenses, set-offs and counterclaims of any kind available to the Insurer as a basis to
deny payment of any amount due in respect of this Policy will be valid and the Insurer waives and
agrees not to assert any and all such defenses (including fraud in inducement or fact or any other
circumstances that would have the effect of discharging a surety at law or in equity), set-offs and
counterclaims that could otherwise provide a basis to deny payment of any amount due in respect of
this Policy, including without limitation, any such rights acquired by subrogation, assignment or
otherwise.

     Any notice hereunder or service of process on the Fiscal Agent may be made at the address
listed below for the Fiscal Agent or such other address as the Insurer shall specify in writing to
the Indenture Trustee.

     The notice address of the Fiscal Agent is 61 Broadway, 15th Floor, New York, New York 10006
Attention: Municipal Registrar and Paying Agency, or such other address as the Fiscal Agent shall
specify to the Indenture Trustee in writing.

3

 

     This Policy is being issued under and pursuant to, and shall be construed under, the laws of
the State of New York, without giving effect to the conflict of laws principles thereof.

     The insurance provided by this Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York Insurance Law.

     This Policy is not cancelable for any reason. The premium on this Policy is not refundable
for any reason including payment, or provision being made for payment, prior to maturity of the
Obligations.

     IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed and attested the
5th day of September, 2007.

	 	 	 	 	 
	 	 	MBIA INSURANCE CORPORATION
	 
	 	 	 	 
	 

	 	By	 	/s/ Gary C. Dunton 
	 

	 	 	 	 
	 	 	Title: President
	 
	 	 	 	 
	 

	 	Attest:
	 
	 	 	 	 
	 

	 	By	 	/s/ Amy R. Gonch 
	 

	 	 	 	 
	 	 	Title: Assistant Secretary

4

 

Exhibit 4.3

EXHIBIT A

TO NOTE GUARANTY INSURANCE POLICY

NUMBER: 501381

NOTICE UNDER NOTE GUARANTY

INSURANCE POLICY NUMBER: 501381

U.S. Bank Trust National Association, as Fiscal Agent

  for MBIA Insurance Corporation

61 Broadway, 15th Floor

New York, NY 10006

Attention: Municipal Registrar and

               Paying Agency

MBIA Insurance Corporation

113 King Street

Armonk, NY 10504

The undersigned, a duly authorized officer of Wells Fargo Bank, National Association as trustee
(the “Indenture Trustee”), hereby certifies to U.S. Bank Trust, National Association (the “Fiscal
Agent”) and MBIA Insurance Corporation (the “Insurer”), with reference to Note Guaranty Insurance
Policy Number: 501381 (the “Policy”) issued by the Insurer in respect of the Santander Drive Auto
Receivables 2007-2, $600,000,000 Class A Asset Backed Notes, $103,000,000 Class A-1 5.8014% Asset
Backed Notes, $128,000,000 Class A-2 LIBOR + .35% Asset Backed Notes, and $369,000,000 Class A-3
LIBOR + .80% Asset Backed Notes (the “Obligations”), that:

     (i) the Indenture Trustee is the trust collateral agent under the Sale and Servicing
Agreement dated as of September 5, 2007, among Santander Drive Auto Receivables Trust
2007-2, as Issuer, Santander Consumer USA Inc., as Master Servicer, Santander Drive Auto
Receivables LLC, as Seller, Wells Fargo Bank, National Association, as Indenture Trustee and
as Backup Servicer;

     (ii) the amount due under clause (i) of the definition of Deficiency Amount for the
Payment Date occurring on ___(the “Applicable Payment Date”) is $___;

     (iii) the amount due under clause (ii) of the definition of Deficiency Amount for the
Applicable Payment Date is $___;

     (iv) the sum of the amounts listed in paragraphs (ii) and (iii) above is $___(the
“Deficiency Amount”);

 

 

     (v) the amount of previously distributed payments on the Obligations that is
recoverable and sought to be recovered as an avoidable preference by a trustee in
bankruptcy pursuant to the Bankruptcy Code in accordance with a final nonappealable
order of a court having competent jurisdiction is $___(the “Preference Amount”);

     (vi) the total Insured Payment due is $___, which amount equals the sum of the
Deficiency Amount and the Preference Amount;

     (vii) the Indenture Trustee is making a claim under and pursuant to the terms of this
Policy for the dollar amount of the Insured Payment set forth in (iv) above to be applied to
the payment of the Deficiency Amount for the Applicable Payment Date in accordance with the
Agreement and for the dollar amount of the Insured Payment set forth in (vi) above to be
applied to the payment of any Preference Amount; and

     (viii) the Indenture Trustee directs that payment of the Insured Payment be made to the
following account by bank wire transfer of federal or other immediately available funds in
accordance with the terms of this Policy: [INDENTURE TRUSTEE’S ACCOUNT NUMBER].

     Any capitalized term used in the Notice and not otherwise defined herein shall have the
meaning assigned thereto in this Policy.

     Any Person Who Knowingly And With Intent To Defraud Any Insurance Company Or Other Person
Files An Application For Insurance Or Statement Of Claim Containing Any Materially False
Information, Or Conceals For The Purpose Of Misleading, Information Concerning Any Fact Material
Thereto, Commits A Fraudulent Insurance Act, Which Is A Crime, And Shall Also Be Subject To A Civil
Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of The Claim For Each Such
Violation.

     IN WITNESS WHEREOF, the Trustee has executed and delivered the Notice under this Policy as of
the       day of                .

	 	 	 	 	 
	 	 	Wells Fargo Bank, National Association,

as Indenture Trustee
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title	 	 
	 

	 	 	 	 

2Exhibit 4.4

 

Exhibit 4.4

Wells Fargo Bank, National Association, as indenture trustee

   under the Indenture referred to below

MAC N9311-161

Sixth Street and Marquette Avenue

Minneapolis, MN 55479

Attn: Corporate Trust Services / Asset-Backed Administration

          Santander Drive Auto Receivables Trust 2007-2

Tel: 612-667-8058

Fax: 612-667-3464

IRREVOCABLE LETTER OF CREDIT

September 5, 2007

No. S027739

     Ladies and Gentlemen:

     The undersigned (the “Letter of Credit Issuer”) hereby establishes in your favor, as indenture
trustee (the “Indenture Trustee”), under the Indenture, dated as of September 5, 2007 (as such
agreement may be amended, supplemented, restated or otherwise modified from time to time in
accordance with its terms, the “Indenture”), between Santander Drive Auto Receivables Trust 2007-2,
a Delaware statutory trust, as issuer (the “Issuer”) and the Indenture Trustee, this Irrevocable
Letter of Credit No. S027739, in the amount set forth on Schedule A hereto (such amount, or as the
same may be increased or reduced as provided herein, the “Letter of Credit Amount”), effective
immediately and expiring at the close of business on September 3, 2008 (the “Letter of Credit
Expiration Date”), at our office at 45 East 53rd Street., New York, New York, 10022,
Attention Magda Mesegue, Telephone (212) 350-3671, Telecopier (212) 350-0630 (such office or any
other office which may be designated by the Letter of Credit Issuer by written notice delivered to
you, being the “Letter of Credit Issuer’s Office”).

     If so authorized by the Indenture Trustee, acting at the direction of the Servicer pursuant to
Section 4.3(d) of the Sale and Servicing Agreement, dated as of September 5, 2007 (as such
agreement may be amended, supplemented, restated or otherwise modified from time to time in
accordance with its terms, the “Sale and Servicing Agreement”), among the Issuer, Santander Drive
Auto Receivables LLC, as seller, Santander Consumer USA Inc., as servicer and the Indenture Trustee
(with respect to decreases) or by the Seller pursuant to Section 4.3(g) of the Sale and Servicing
Agreement (with respect to increases), and agreed to by the Letter of Credit Issuer, the Letter of
Credit Amount may be increased or decreased from time to time by the Letter of Credit Issuer
delivering a revised Schedule A to the Indenture Trustee. The amount set forth in such revised
Schedule A shall thereafter, upon the acknowledgement of such revised Schedule A by the Indenture
Trustee by its signature thereto, in accordance with Section 4.3(d) or 4.3(g), as applicable, of the Sale and Servicing Agreement and otherwise subject to the
terms hereof, be the Letter of Credit Amount.

 

 

     As used in this Letter of Credit and unless the context requires a different meaning,
capitalized terms defined in the text hereof shall have their defined meanings when used herein,
and capitalized terms not otherwise defined herein shall have the meanings assigned to such terms
in the Indenture or in the Sale and Servicing Agreement, as the case may be.

     In accordance with the terms and conditions contained herein and subject to the reductions in
amount as hereinafter set forth, the Letter of Credit Issuer irrevocably authorizes you to draw:

     (i) in one or more drawings by one or more of your drafts, each drawn on the Letter of
Credit Issuer, payable at sight on any day other than a Saturday, Sunday or other day on
which banks are authorized by law to close in The City of New York (each a “Business Day”),
and accompanied by your written and completed certificate signed by you in substantially the
form of Annex A attached hereto (any such draft accompanied by such certificate being your
“Credit Demand”), an amount equal to the face amount of each such draft but in the aggregate
amount not exceeding the Letter of Credit Amount as in effect on such Business Day; and

     (ii) in a single drawing by your draft, drawn on the Letter of Credit Issuer, payable
at sight on any Business Day, and accompanied by your written and completed certificate
signed by you in substantially the form of Annex B attached hereto (such draft accompanied
by such certificate being your “Termination Demand”), an amount equal to the face amount of
such draft but not exceeding the Letter of Credit Amount as in effect on such Business Day.

     Upon the Letter of Credit Issuer honoring any Credit Demand presented by you to it hereunder,
the Letter of Credit Amount shall automatically be decreased by an amount equal to the amount of
such Credit Demand. In addition to the foregoing reduction, upon the Letter of Credit Issuer
honoring any Termination Demand presented by you to it hereunder, the amount available to be drawn
under this Letter of Credit shall automatically be reduced to zero and this Letter of Credit shall
be terminated.

     Each Credit Demand and Termination Demand shall be dated the date of its presentation, and
shall be presented to the Letter of Credit Issuer at the Letter of Credit Issuer’s Office. If the
Letter of Credit Issuer receives any Credit Demand or Termination Demand at such office, all in
strict conformity with the terms and conditions of this Letter of Credit, not later than 12:00 noon
(New York City time) on a Business Day prior to the termination hereof, the Letter of Credit Issuer
will make such funds available to you on the same day in accordance with your payment instructions.
If the Letter of Credit Issuer receives any Credit Demand or Termination Demand at such office,
all in strict conformity with the terms and conditions of this Letter of Credit, after 12:00 noon
(New York City time) on a Business Day prior to the termination hereof, the Letter of Credit Issuer
will make the funds available to you on the next succeeding Business Day in accordance with your
payment instructions. If you so request the Letter of Credit Issuer, payment under this Letter of
Credit may be made by wire transfer of immediately available funds to your account in a bank on the Federal Reserve wire system or by deposit of same day funds
into a designated account.

2

 

     Presentation of drawings may be made by a telecopy transmission of the documents described in
paragraph (i) or (ii) above, as applicable, to telecopier no. (212) 350-0630, with transmission
confirmed by call to telephone no. (212) 350-3671 or such other telecopier and telephone numbers
that we hereafter designate by written notice delivered to you.

     Upon the earliest of (i) the date on which the Letter of Credit Issuer honors your Termination
Demand presented hereunder to the extent of the Letter of Credit Amount as in effect on such date,
(ii) the date on which the Letter of Credit Issuer receives written notice from you that an
alternate letter of credit or other credit facility has been substituted for this Letter of Credit
or that the Reserve Account has been fully funded in cash, (iii) the date on which the Letter of
Credit Issuer receives written notice from you that there are no longer any Notes outstanding and
no amounts are owed to the Insurer and (iv) the Letter of Credit Expiration Date, this Letter of
Credit shall automatically terminate and you shall surrender this Letter of Credit to the
undersigned Letter of Credit Issuer on such day.

     This Letter of Credit is transferable in its entirety to any transferee who you certify to the
Letter of Credit Issuer has succeeded you as Indenture Trustee under the Indenture, and may be
successively transferred. Transfer of this Letter of Credit to such transferee shall be effected
by the presentation to the Letter of Credit Issuer of this Letter of Credit accompanied by a
certificate in substantially the form of Annex C attached hereto. Upon such presentation, the
Letter of Credit Issuer shall forthwith transfer this Letter of Credit to your transferee.

     This Letter of Credit sets forth in full the undertaking of the Letter of Credit Issuer, and
such undertaking shall not in any way be modified, amended, amplified or limited by reference to
any document, instrument or agreement referred to herein, except only the certificates and the
drafts referred to herein; and any such reference shall not be deemed to incorporate herein by
reference any document, instrument or agreement except for such certificates and such drafts.

     This Letter of Credit is subject to the International Standby Practices ISP98, ICC Publication
No. 590 (the “Uniform Customs”), which is incorporated into the text of this Letter of Credit by
reference, and shall be governed by the laws of the State of New York including the Uniform
Commercial Code as in effect in the State of New York as to matters not covered by the Uniform
Customs. Communications with respect to this Letter of Credit shall be in writing and shall be
addressed to the Letter of Credit Issuer at the Letter of Credit Issuer’s Office, specifically
referring to the number of this Letter of Credit.

	 	 	 	 	 
	 	Very truly yours,

BANCO SANTANDER, S.A., ACTING THROUGH ITS NEW YORK
BRANCH

 	 
	 	By:  	/s/ Rodolfo E. Icasa
 	 
	 	 	Name:  	Rodolfo E. Icasa 	 
	 	 	Title:  	General Manager & Chief Operating Officer 	 
	 
	 	 	 
	 	By:  	                                              /s/ Miguel Gonzalo
 	 
	 	 	Name:  	Miguel Gonzalo  	 
	 	 	Title:  	Vice-President 	 

3

 

	 	 	 	 	 

Schedule A

Letter of Credit No. S027739

	 	 	 
	Effective Date	 	Letter of Credit Amount
	 
	September 5, 2007
	 	$60,000,000

	 	 	 	 	 
	 	BANCO SANTANDER, S.A., ACTING THROUGH ITS NEW YORK
BRANCH, as Letter of Credit Issuer

 	 
	 	By:  	/s/
Rodolfo E. Icaza
 	 
	 	 	Name:  	Rodolfo E. Icaza 	 
	 	 	Title:  	General Manager & Chief Operating Officer 	 
	 
	 	 	 
	 	By:  	                                              /s/ Miguel Gonzalo
 	 
	 	 	Name:  	Miguel Gonzalo  	 
	 	 	Title:  	Vice-President 	 
	 

Acknowledged:

	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as
Indenture Trustee

 	 	 
	By:  	
/s/ Marianna C. Stershic 	 	 
	 	Name:  	Marianna C. Stershic 	 	 
	 	Title:  	Vice President 	 	 

SA-1

 

	 	 	 	 	 

Annex A

CERTIFICATE OF CREDIT DEMAND

     This Certificate of Credit Demand (this “Certificate”) is presented under the Irrevocable
Letter of Credit No. S027739 (the “Letter of Credit”) issued by the Letter of Credit Issuer in
favor of the Indenture Trustee. Capitalized terms used in this Certificate without definition
shall have the respective meanings referenced or given to such terms in the Letter of Credit or in
the Sale and Servicing Agreement, dated as of September 5, 2007, among Santander Drive Auto
Receivables Trust 2007-2, as issuer, Santander Drive Auto Receivables LLC, as seller, Santander
Consumer USA Inc., as servicer, the Indenture Trustee.

     The undersigned, a duly authorized officer of the Indenture Trustee, hereby certifies to the
Letter of Credit Issuer as follows:

     1. The Indenture Trustee is the Indenture Trustee under the Indenture.

     [[IF DRAWN PURSUANT TO THE LAST SENTENCE OF SECTION 4.3(b) OF THE SALE AND SERVICING
AGREEMENT:]

     2. As of the date of this certificate, there exists a Trigger Event.

     3. The Insurer has instructed the Indenture Trustee to make, and the Indenture Trustee is
making, a drawing under the Letter of Credit as required by the Indenture for an amount equal to
the lesser of (a) the excess, if any, of (i) the sum of, without duplication, (A) the Note Balance
of the Class A Notes plus accrued interest thereon and (B) an amount equal to the deficiency of the
amounts on deposit in the Collection Account over the payments described in clause (i) of Section
4.3(b) of the Sale and Servicing Agreement required to be made on the
___________ ___, 20___ Payment
Date (without giving effect to the LOC Credit Disbursement (as defined below)) over (ii) the amount
of cash, if any, on deposit in the Reserve Account and (b) the Letter of Credit Amount as in effect
on the date of this certificate (such lesser amount being the “LOC Credit Disbursement”).]

     [[IF DRAWN PURSUANT TO SECTION 4.3(b) (OTHER THAN THE LAST SENTENCE THEREOF) OF THE SALE AND
SERVICING AGREEMENT:]

     2. As of the date of this certificate there are insufficient funds on deposit in the
Collection Account and the Reserve Account to make any of the applicable payments described in
clauses (i), (ii) and/or (iii) of Section 4.3(b) (other than the last sentence thereof) of the Sale
and Servicing Agreement (collectively, as applicable, the
“Required Payments”) on the
____________ ___,
20___ Payment Date (without giving effect to the LOC Credit Disbursement (as defined below));

     3. (a) The Indenture Trustee is making a drawing under the Letter of Credit as required by the
Indenture for an amount equal to the lesser of (i) the excess of the Required Payments over the
amount of cash on deposit in the Reserve Account and (ii) the Letter of Credit Amount as in effect
on the date of this certificate (such lesser amount being the “LOC Credit Disbursement”) and (b)
Available Funds (without taking into account the LOC Credit

A-1

 

Disbursement) are otherwise insufficient to make the Required Payments on such Payment Date.]

     4. The amount of the draft accompanying this certificate is $________
which is equal to the
LOC Credit Disbursement. The LOC Credit Disbursement does not exceed the amount that is available
to be drawn by the Indenture Trustee under the Letter of Credit on the date of this certificate.

     5. The amount of the draft shall be delivered pursuant to the following instructions:

[insert payment instructions]

     6. The Indenture Trustee acknowledges that, pursuant to the terms of the Letter of Credit,
upon the Letter of Credit Issuer honoring the draft accompanying this certificate, the Letter of
Credit Amount shall be automatically decreased by an amount equal to such draft, regardless of
whether a revised Schedule A has been delivered to the Indenture Trustee.

A-2

 

     IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered this certificate on this
____ day of
___________ 20__.

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture
Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-3

 

	 	 	 	 	 

Annex B

CERTIFICATE OF TERMINATION DEMAND

     This Certificate of Termination Demand (this “Certificate”) is presented under the Irrevocable
Letter of Credit No. S027739 (the “Letter of Credit”) issued by the Letter of Credit Issuer in
favor of the Indenture Trustee. Capitalized terms used in this Certificate without definition
shall have the respective meanings referenced or given to such terms in the Letter of Credit.

     The undersigned, a duly authorized officer of the Indenture Trustee, hereby certifies to the
Letter of Credit Issuer as follows:

     1. The Indenture Trustee is the Indenture Trustee under the Indenture.

     2. Pursuant to Section 4.5 of the Sale and Servicing Agreement, the Indenture Trustee is
making a drawing in the amount of the Letter of Credit Amount as in effect on the date of this
certificate (such amount being the “LOC Termination Disbursement”).

     3. The amount of the draft accompanying this certificate is $________
which is equal to the
LOC Termination Disbursement. The LOC Termination Disbursement does not exceed the Letter of
Credit Amount on the date of this Certificate.

     4. The amount of the draft shall be delivered pursuant to the following instructions:

[Insert Payment Instructions]

     Upon receipt by the Indenture Trustee of such amount, the Indenture Trustee shall deposit such
amount into the Reserve Account in accordance with the terms of Section 4.5 of the Sale and
Servicing Agreement.

     5. The Indenture Trustee acknowledges that, pursuant to the terms of the Letter of Credit,
upon the Letter of Credit Issuer honoring the draft accompanying this certificate, the Letter of
Credit Amount shall be automatically reduced to zero and the Letter of Credit shall terminate and
be returned to the Letter of Credit Issuer.

B-1

 

     IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered this
certificate on this
____ day of __________ 20__.

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture
Trustee
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-2

 

	 	 	 	 	 

Annex C

INSTRUCTION TO TRANSFER

__________,
___ 20___

Banco Santander, S.A.,

   acting through its New York Branch

45 East 53rd Street

New York, New York 10022

Attention: Magda Mesegue

	 	 	 	Re: Irrevocable Letter of Credit No. S027739

Ladies and Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably transfers to:

 

[Name of Transferee]

 

[Address]

all rights of the undersigned beneficiary to draw under the above-captioned Irrevocable Letter of
Credit (the “Letter of Credit”) issued by the Letter of Credit Issuer named therein in favor of the
undersigned. The transferee has succeeded the undersigned as Indenture Trustee under the
Indenture.

     By this transfer, all rights of the undersigned beneficiary in the Letter of Credit are
transferred to the transferee and the transferee shall hereafter have the sole rights as
beneficiary thereof; provided, however, that no rights shall be deemed to have been transferred to
the transferee until such transfer complies with the requirements of the Letter of Credit
pertaining to transfers.

     Capitalized terms used in this Instruction to Transfer without definition shall have the
respective meanings referenced or given to such terms in the Letter of Credit.

C-1

 

     IN WITNESS WHEREOF, the Indenture Trustee has executed and delivered this certificate on this
____ day of __________ 20__.

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture

Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]