Document:

indenture.htm

Exhibit 4.1

 

 

INDENTURE

 

among

 

SLM STUDENT LOAN TRUST 2012-6,

as the Issuer,

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

not in its individual capacity but

solely as the Eligible Lender Trustee

 

and

 

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but

solely as the Indenture Trustee

 

Dated as of September 20, 2012

  

  

  

TABLE OF CONTENTS

 

 

	 	 	 Page
	
 

ARTICLE I

Definitions and Usage

 

	
SECTION 1.1  

	
Definitions and Usage

	
2

	
SECTION 1.2  

	
Incorporation by Reference of Trust Indenture Act

	
2

	
 

ARTICLE II

The Notes

 

	
SECTION 2.1  

	
Form

	
3

	
SECTION 2.2  

	
Execution, Authentication and Delivery

	
3

	
SECTION 2.3  

	
Temporary Notes

	
4

	
SECTION 2.4  

	
Registration; Registration of Transfer and Exchange

	
4

	
SECTION 2.5  

	
Mutilated, Destroyed, Lost or Stolen Notes

	
6

	
SECTION 2.6  

	
Persons Deemed Owner

	
6

	
SECTION 2.7  

	
Payment of Principal and Interest; Note Interest Shortfall

	
7

	
SECTION 2.8  

	
Cancellation

	
7

	
SECTION 2.9  

	
Release of Collateral

	
8

	
SECTION 2.10  

	
Book-Entry Notes

	
8

	
SECTION 2.11  

	
Notices to Clearing Agency

	
9

	
SECTION 2.12  

	
Definitive Notes

	
9

	
 

ARTICLE III

Covenants, Representations and Warranties

 

	
SECTION 3.1  

	
Payments to Noteholders

	
10

	
SECTION 3.2  

	
Maintenance of Office or Agency

	
10

	
SECTION 3.3  

	
Money for Payments to be Held in Trust

	
10

	
SECTION 3.4  

	
Existence

	
12

	
SECTION 3.5  

	
Protection of Indenture Trust Estate

	
12

	
SECTION 3.6  

	
Opinions as to Indenture Trust Estate

	
13

	
SECTION 3.7  

	
Performance of Obligations; Servicing of Trust Student Loans.

	
13

	
SECTION 3.8  

	
Negative Covenants

	
16

	
SECTION 3.9  

	
Annual Statement as to Compliance

	
16

	
SECTION 3.10  

	
Issuer May Consolidate, etc., Only on Certain Terms.

	
17

	
SECTION 3.11  

	
Successor or Transferee

	
18

	
SECTION 3.12  

	
No Other Business

	
18

	
SECTION 3.13  

	
No Borrowing

	
18

	
SECTION 3.14  

	
Obligations of Servicer and Administrator

	
18

	
SECTION 3.15  

	
Guarantees, Loans, Advances and Other Liabilities

	
19

	
SECTION 3.16  

	
Capital Expenditures

	
19

	
SECTION 3.17  

	
Restricted Payments

	
19

 

  

i

  

	
SECTION 3.18  

	
Notice of Events of Default

	
19

	
SECTION 3.19  

	
Further Instruments and Acts

	
19

	
SECTION 3.20  

	
Representations and Warranties

	
20

	
 

ARTICLE IV

Satisfaction and Discharge

 

	
SECTION 4.1  

	
Satisfaction and Discharge of Indenture

	
20

	
SECTION 4.2  

	
Application of Trust Money

	
21

	
SECTION 4.3  

	
Repayment of Moneys Held by Paying Agent

	
21

	
SECTION 4.4  

	
Auction of Trust Student Loans

	
22

	
 

ARTICLE V

Remedies

 

	
SECTION 5.1  

	
Events of Default

	
23

	
SECTION 5.2  

	
Acceleration of Maturity; Rescission and Annulment

	
24

	
SECTION 5.3  

	
Collection of Indebtedness and Suits for Enforcement by Indenture Trustee

	
24

	
SECTION 5.4  

	
Remedies; Priorities

	
26

	
SECTION 5.5  

	
Optional Preservation of the Trust Student Loans

	
28

	
SECTION 5.6  

	
Limitation of Suits

	
28

	
SECTION 5.7  

	
Unconditional Rights of Noteholders to Receive Principal and Interest

	
29

	
SECTION 5.8  

	
Restoration of Rights and Remedies

	
29

	
SECTION 5.9  

	
Rights and Remedies Cumulative

	
29

	
SECTION 5.10  

	
Delay or Omission Not a Waiver

	
30

	
SECTION 5.11  

	
Control by Noteholders

	
30

	
SECTION 5.12  

	
Waiver of Past Defaults

	
30

	
SECTION 5.13  

	
Undertaking for Costs

	
31

	
SECTION 5.14  

	
Waiver of Stay or Extension Laws

	
31

	
SECTION 5.15  

	
Action on Notes

	
31

	
SECTION 5.16  

	
Performance and Enforcement of Certain Obligations.

	
31

	
 

ARTICLE VI

The Indenture Trustee

 

	
SECTION 6.1  

	
Duties of Indenture Trustee

	
32

	
SECTION 6.2  

	
Rights of Indenture Trustee

	
34

	
SECTION 6.3  

	
Individual Rights of Indenture Trustee

	
35

	
SECTION 6.4  

	
Indenture Trustee’s Disclaimer

	
35

	
SECTION 6.5  

	
Notice of Defaults

	
35

	
SECTION 6.6  

	
Reports by Indenture Trustee to Noteholders

	
35

	
SECTION 6.7  

	
Compensation and Indemnity

	
35

	
SECTION 6.8  

	
Replacement of Indenture Trustee

	
36

	
SECTION 6.9  

	
Successor Indenture Trustee by Merger

	
37

	
SECTION 6.10  

	
Appointment of Co-Trustee or Separate Trustee.

	
38

	
SECTION 6.11  

	
Eligibility; Disqualification

	
39

	
SECTION 6.12  

	
Preferential Collection of Claims Against the Issuer

	
39

 

  

ii

  

	
SECTION 6.13  

	
Rule 15Ga-1 Information

	
39

	  	  	  
	
 

ARTICLE VII

Noteholders’ Lists and Reports

	
SECTION 7.1  

	
Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders

	
40

	
SECTION 7.2  

	
Preservation of Information; Communications to Noteholders

	
40

	
SECTION 7.3  

	
Reports by Issuer.

	
41

	
 

ARTICLE VIII

Accounts, Disbursements and Releases

 

	
SECTION 8.1  

	
Collection of Money

	
41

	
SECTION 8.2  

	
Trust Accounts

	
42

	
SECTION 8.3  

	
General Provisions Regarding Accounts

	
43

	
SECTION 8.4  

	
Release of Indenture Trust Estate

	
43

	
SECTION 8.5  

	
Opinion of Counsel

	
44

	
 

ARTICLE IX

Supplemental Indentures

 

	
SECTION 9.1  

	
Supplemental Indentures Without Consent of Noteholders.

	
45

	
SECTION 9.2  

	
Supplemental Indentures With Consent of Noteholders

	
46

	
SECTION 9.3  

	
Execution of Supplemental Indentures

	
47

	
SECTION 9.4  

	
Effect of Supplemental Indenture

	
47

	
SECTION 9.5  

	
Conformity with Trust Indenture Act

	
48

	
SECTION 9.6  

	
Reference in Notes to Supplemental Indentures

	
48

	
 

ARTICLE X

Redemption of Notes

 

	
SECTION 10.1  

	
Redemption

	
48

	
SECTION 10.2  

	
Form of Redemption Notice

	
48

	
SECTION 10.3  

	
Notes Payable on Redemption Date

	
49

	
 

ARTICLE XI

Miscellaneous

 

	
SECTION 11.1  

	
Compliance Certificates and Opinions, etc

	
49

	
SECTION 11.2  

	
Form of Documents Delivered to Indenture Trustee

	
51

	
SECTION 11.3  

	
Acts of Noteholders

	
51

	
SECTION 11.4  

	
Notices, etc., to Indenture Trustee, Issuer and Rating Agencies

	
52

	
SECTION 11.5  

	
Notices to Noteholders; Waiver

	
52

	
SECTION 11.6  

	
Alternate Payment and Notice Provisions

	
53

	
SECTION 11.7  

	
Conflict with Trust Indenture Act

	
53

	
SECTION 11.8  

	
Effect of Headings and Table of Contents

	
53

	
SECTION 11.9  

	
Successors and Assigns

	
53

 

  

iii

  

	
SECTION 11.10  

	
Separability

	
54

	
SECTION 11.11  

	
Benefits of Indenture

	
54

	
SECTION 11.12  

	
Legal Holidays

	
54

	
SECTION 11.13  

	
Governing Law

	
54

	
SECTION 11.14  

	
Counterparts

	
54

	
SECTION 11.15  

	
Recording of Indenture

	
54

	
SECTION 11.16  

	
Trust Obligations

	
55

	
SECTION 11.17  

	
No Petition

	
55

	
SECTION 11.18  

	
Inspection

	
55

	
SECTION 11.19  

	
Waiver of Jury Trial

	
55

	
SECTION 11.20  

	Limited Recourse	56
	
SECTION 11.21  

	Force Majeure	56
	
SECTION 11.22  

	Compliance with Applicable Law	56
	
 

ARTICLE XII

Compliance with Regulation AB

 

	
SECTION 12.1  

	
Intent of the Parties; Reasonableness

	
56

	
 

ARTICLE XIII

Tax Considerations

 

	
SECTION 13.1  

	
Acknowledgement of Parties

	
57

	  	  	  

  

iv

  

APPENDICES, SCHEDULES AND EXHIBITS

 

	
APPENDIX A

	
Definitions and Usage

	
SCHEDULE A

	
Schedule of Trust Student Loans

	
SCHEDULE B

	
Location of Trust Student Loan Files

	
EXHIBIT A

	
Forms of Notes

	
EXHIBIT B

	
Form of Note Depository Agreement

	
EXHIBIT C

	
Servicing Criteria to be Addressed in Assessment of Compliance

  

v

  

INDENTURE, dated as of September 20, 2012, among SLM STUDENT LOAN TRUST 2012-6, a Delaware statutory trust (the “Issuer”), DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, not in its individual capacity but solely as eligible lender trustee on behalf of the Issuer (in such capacity, the “Eligible Lender Trustee”), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, not in its individual capacity but solely as indenture trustee (in such capacity, the “Indenture Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the holders of the Issuer’s Student Loan-Backed Notes (the “Notes”):

 

GRANTING CLAUSE

 

The Issuer and, with respect to the Trust Student Loans, the Eligible Lender Trustee hereby Grant to the Indenture Trustee, as trustee for the benefit of the Noteholders, effective as of the Closing Date all of their right, title and interest, whether now owned or hereafter acquired, in and to the following:

 

(a)             the Trust Student Loans, and all obligations of the Obligors thereunder including all moneys accrued and paid thereunder on or after the applicable Cutoff Date and all guaranties and other rights relating to the Trust Student Loans;

 

(b)             the Servicing Agreement, including the right of the Issuer to cause the Servicer to purchase Trust Student Loans from the Issuer under circumstances described therein;

 

(c)             the related Sale Agreement, including the right of the Issuer to cause the Depositor to repurchase Trust Student Loans from the Issuer under the circumstances described therein and including the rights of the Depositor under the Purchase Agreements;

 

(d)             the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement and the VL Funding Purchase Agreement, to the extent that the rights of the Depositor thereunder have been assigned to the Issuer pursuant to the Sale Agreement, including the right of the Depositor to cause SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding or VL Funding, as the case may be, to repurchase Trust Student Loans from the Depositor under the circumstances described in the applicable Purchase Agreement;

 

(e)             the Administration Agreement and any agreement representing Eligible Repurchase Obligations between the Trust and an Eligible Repo Counterparty to be entered into from time to time;

 

(f)             each Guarantee Agreement, including the right of the Issuer to cause the related Guarantor to make Guarantee Payments in respect of the Trust Student Loans;

 

(g)             the Trust Accounts and all funds on deposit from time to time in the Trust Accounts, including the Reserve Account Initial Deposit, the Supplemental Purchase Account Initial Deposit, the Capitalized Interest Account Initial Deposit, the Borrower Benefit Account

 

  

1

  

Initial Deposit, if any, the Floor Income Rebate Account and the Collection Account Initial Deposit, if any, and all investments and proceeds thereof (including all income thereon);

 

(h)             [Reserved];

 

(i)             all present and future claims, demands, causes 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, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, general intangibles, 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 assets described in clauses (a) through (g); and

 

(j)             all accounts, chattel paper, deposit accounts, financial assets, general intangibles, instruments, investment property, letter-of-credit rights (each as defined in the applicable Uniform Commercial Code) and other supporting obligations relating to the foregoing; and all proceeds (as defined in the applicable Uniform Commercial Code) with respect to the foregoing assets described in clauses (a) through and including (i) (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, to secure compliance with the provisions of 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 may be adequately and effectively protected.

 

ARTICLE I

 

Definitions and Usage

 

SECTION 1.1   Definitions and Usage.  Except as otherwise specified herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein are defined in Appendix A hereto, which also contains rules as to usage that shall be applicable herein.

 

SECTION 1.2   Incorporation by Reference of Trust Indenture Act.  Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the Securities and Exchange Commission.

 

“indenture securities” means the Notes.

 

  

2

  

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Indenture Trustee.

 

“obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities.

 

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule have the meaning assigned to them by such definitions.

 

ARTICLE II

 

The Notes

 

SECTION 2.1   Form.  The Notes, together with the Indenture Trustee’s certificate of authentication, shall be in substantially the forms set forth in Exhibit A, 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 the Notes, as evidenced by their execution of the Notes.  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.

 

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.

 

The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture.

 

Each class of Notes will be represented by interests in a book-entry note certificate deposited on the Closing Date with Deutsche Bank National Trust Company, as custodian for DTC (the “DTC Custodian”), and registered in the name of Cede & Co. as initial nominee for DTC.

 

SECTION 2.2   Execution, Authentication and Delivery.  The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers.  The signature of any such Authorized Officer on the Notes may be manual or facsimile.

 

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 at the date of such Notes.

 

  

3

  

The Indenture Trustee shall upon Issuer Order authenticate and deliver the Notes in an aggregate principal amount of $1,249,400,000, of which $277,000,000 shall be denominated Class A-1 Notes, $360,000,000 shall be denominated Class A-2 Notes, $575,000,000 shall be denominated Class A-3 Notes, and $37,400,000 shall be denominated Class B Notes.  The aggregate principal amount of Notes Outstanding at any time may not exceed $1,249,400,000 except as provided in Section 2.5.

 

Each Note shall be dated the date of its authentication.  The Notes shall be issuable as registered notes in minimum denominations of $100,000 and additional increments of $1,000.

 

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 Notes.  Pending the preparation of Definitive Notes, the Issuer may execute, and upon receipt of an Issuer Order, the Indenture Trustee shall authenticate and deliver, temporary Notes which 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 determined to be appropriate by an Authorized Officer of the Issuer executing the temporary Notes, as evidenced by his or her execution of such temporary Notes.

 

If temporary Notes are issued, the Issuer will cause Definitive Notes to be prepared without unreasonable delay.  After the preparation of Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of the Issuer to be maintained as provided in Section 3.2, without charge to the Noteholder.  Upon surrender for cancellation of any one or more temporary 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 Notes shall in all respects be entitled to the same benefits under this Indenture as Definitive Notes.

 

SECTION 2.4   Registration; Registration of Transfer and Exchange.  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 shall be “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.

 

If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer shall give the Indenture Trustee prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and

 

  

4

  

the Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to obtain copies thereof, and 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.

 

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(a) of the UCC are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes in any authorized denominations and a like aggregate principal amount.

 

At the option of the Noteholder, Notes may be exchanged for other Notes in any authorized denominations and 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, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive.

 

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.

 

Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee, duly executed by the Noteholder thereof or such Noteholder’s attorney and duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.

 

No service charge shall be made to a Noteholder for any registration of transfer or exchange of Notes, but the Indenture Trustee may require payment 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 9.6 not involving any transfer.

 

The preceding provisions of this Section notwithstanding, the Issuer shall not be required to make and the Note Registrar need not register transfers or exchanges of Notes selected for redemption or of any Note for a period of 15 days preceding the due date for any payment with respect to the Note.

 

Any transfer or assignment of any Note or any interest in any Note that is not effected pursuant to the provisions of this Indenture (including, without limitation, this Section 2.4), such as a transfer or assignment not reflected on the Note Register, shall be null and void and shall not be taken into account by, or be binding upon, the Indenture Trustee or any other party.

 

  

5

  

 

SECTION 2.5   Mutilated, Destroyed, Lost or Stolen Notes.  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 Issuer, the Eligible Lender Trustee and the Indenture Trustee such security or indemnity as may be required by each of them 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 bona fide purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall execute and upon its request 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 15 days shall be due and payable, or shall have been called for redemption, 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.  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 bona fide 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 it 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 bona fide 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.

 

Upon the issuance of any replacement Note under this Section, the Issuer may require the payment by the Noteholder thereof of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee) connected therewith.

 

Every replacement Note issued pursuant to this Section 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.

 

The provisions of this Section 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 2.6   Persons Deemed Owner.  Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of determination) as the owner of such Note for the purpose of receiving payments of principal of, interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

 

  

6

  

 

SECTION 2.7   Payment of Principal and Interest; Note Interest Shortfall.  a)The Notes shall accrue interest as provided in the forms of Notes set forth in Exhibit A and such interest shall be payable on each applicable Distribution Date as specified therein, subject to Section 3.1.  Any installment of interest or principal, if any, payable on any Note which is punctually paid or duly provided for by the Issuer on the applicable Distribution Date shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is registered on the applicable 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, except that, unless Definitive Notes have been issued pursuant to Section 2.12, with respect to Notes registered on the Record Date in the name of the nominee of the applicable Clearing Agency, for the Notes, 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 Note on a Distribution Date or on the Note Final Maturity Date for such Note 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.

 

(b)             The principal amount of each class of Notes shall be payable in installments on each applicable Distribution Date as provided in the related form of such Note set forth in Exhibit A.  Notwithstanding the foregoing, the Outstanding Amount of each class of Notes shall be due and payable, if not previously paid, on the Note Final Maturity Date for such class of Notes and on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Noteholders of the Notes representing at least a majority of the Outstanding Amount of the Notes have declared the Notes to be immediately due and payable in the manner provided in Section 5.2.  All principal payments on the Notes shall be made pro rata to the specific class of Noteholders entitled thereto.  The Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Distribution Date on which the Issuer expects that the final installment of principal of and interest on such Note will be paid.  Such notice shall be mailed or transmitted prior to such final Distribution Date and shall specify that such final installment will 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 redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.

 

(c)             If the Issuer defaults in a payment of interest at the applicable Note Rate on the Notes, the Issuer shall pay the resulting Note Interest Shortfall on the following Distribution Date as provided in the Administration Agreement.

 

SECTION 2.8   Cancellation.  All Notes surrendered for payment, registration of transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled 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 cancelled by the Indenture Trustee.  No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as

 

  

7

  

provided in this Section, 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 the canceled Notes be returned to it and so long as such Issuer Order is timely and the canceled Notes have not been previously disposed of by the Indenture Trustee.

 

SECTION 2.9   Release of Collateral.   Subject to Section 11.1 and the terms of the Basic Documents, the Indenture Trustee shall release property from the lien of this Indenture only upon receipt of an Issuer Request accompanied by an Officers’ Certificate of the Issuer, an Opinion of Counsel and Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such Independent Certificates to the effect that the TIA does not require any such Independent Certificates.

 

SECTION 2.10   Book-Entry Notes.  The Notes, upon original issuance, will be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to the applicable initial Clearing Agency, by the Issuer, or on behalf of the Issuer.  Such Notes shall initially be registered on the Note Register in the name of the nominee of the related initial Clearing Agency, and no Note Owner shall receive a definitive, fully registered note (a “Definitive Note”) representing such Note Owner’s interest in such Note, except as provided in Section 2.12.  Unless and until Definitive Notes have been issued to Note Owners pursuant to Section 2.12:

 

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

 

(ii)                   the Note Registrar and the Indenture Trustee, and their respective directors, officers, employees and agents, may deal with the applicable Clearing Agency for all purposes (including the payment of principal of and interest and other amounts on the Notes) as the authorized representative of the Note Owners;

 

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

 

(iv)                   the rights of Note Owners shall be exercised only through the applicable Clearing Agency and shall be limited to those established by law and agreements between such Note Owners and the applicable Clearing Agency and/or the applicable Clearing Agency Participants pursuant to the Note Depository Agreement; and unless and until Definitive Notes are issued pursuant to Section 2.12, the applicable initial Clearing Agency will make book-entry transfers among the applicable Clearing Agency Participants and receive and transmit payments of principal of and interest and other amounts on the Notes to such applicable Clearing Agency Participants;

 

(v)                   whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Noteholders of Notes evidencing a specified percentage of the Outstanding Amount of the Notes, the applicable 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 applicable Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee; and

 

  

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(vi)                   upon acquisition or transfer of a beneficial interest in any Book-Entry Note by, for or with the assets of, a Benefit Plan, such Note Owner shall be deemed to have represented that such acquisition or purchase will not constitute or otherwise result in: (i) in the case of a Benefit Plan subject to Title I of ERISA or Section 4975 of the Code, a non-exempt prohibited transaction in violation of Section 406 of ERISA or Section 4975 of the Code which is not covered by a class or other applicable exemption and (ii) in the case of a Benefit Plan subject to a substantially similar federal, state, local or foreign law, a non-exempt violation of such substantially similar law.  Any transfer found to have been made in violation of such deemed representation shall be null and void and of no effect.

 

SECTION 2.11   Notices to Clearing Agency.  Whenever a notice or other communication to the Noteholders is required under this Indenture to be given to Noteholders, unless and until Definitive Notes shall have been issued to Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all such notices and communications specified herein to the applicable Clearing Agency.

 

SECTION 2.12   Definitive Notes.  If (i) the Administrator advises the Indenture Trustee in writing that a Clearing Agency (a) is closed for business for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise), (b) announces an intention to cease business permanently (or does so and no alternative clearing system acceptable to the Indenture Trustee is then available), or (c) at any time, is unwilling or unable to continue as, or ceases to be, a clearing agency registered under all applicable laws, and a successor clearing agency which is registered as a clearing agency under all applicable laws is not appointed by the Administrator within 90 days of such event, (ii) the Administrator at its option advises the Indenture Trustee in writing that it elects to terminate the book-entry system through such Clearing Agency, or (iii) after the occurrence of an Event of Default, a Servicer Default or an Administrator Default, Note Owners representing beneficial interests aggregating at least a majority of the Outstanding Amount of the applicable Notes advise the applicable Clearing Agency (which shall then notify the Indenture Trustee) in writing that the continuation of a book-entry system through such Clearing Agency is no longer in the best interests of such Note Owners, then the Indenture Trustee shall cause such Clearing Agency to notify all Note Owners of Notes cleared through such Clearing Agency, of the occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting the same.

 

Upon surrender to the Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by a 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 such Clearing Agency, which shall include, without limitation, the identity and payment instructions for all Noteholders of the applicable Notes.  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.

 

  

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Upon acquisition or transfer of a Definitive Note by, for or with the assets of, a Benefit Plan, the related Note Owner shall be deemed to have represented that such acquisition or purchase will not constitute or otherwise result in: (i) in the case of a Benefit Plan subject to Title I of ERISA or Section 4975 of the Code, a non-exempt prohibited transaction in violation of Section 406 of ERISA or Section 4975 of the Code which is not covered by a class or other applicable exemption and (ii) in the case of a Benefit Plan subject to a substantially similar law, a non-exempt violation of such substantially similar law.  Any transfer found to have been made in violation of such deemed representation shall be null and void and of no effect.

 

ARTICLE III

 

 

Covenants, Representations and Warranties

 

SECTION 3.1   Payments to Noteholders.  The Issuer shall duly and punctually pay the principal and interest, if any, with respect to the Notes in accordance with the terms of the Notes and this Indenture.  Without limiting the foregoing, the Issuer shall cause to be distributed to Noteholders in accordance with the Administration Agreement that portion of the amounts on deposit in the Trust Accounts on a Distribution Date (other than any Eligible Investments deposited therein that will mature on the Business Day preceding a subsequent Distribution Date), which the Noteholders are entitled to receive pursuant to Sections 2.7 and 2.8 of the Administration Agreement.  Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal shall be considered as having been paid by the Issuer to such Noteholder for all purposes of this Indenture.

 

SECTION 3.1A  [Reserved].

 

SECTION 3.2   Maintenance of Office or Agency.  The Issuer shall maintain in the Borough of Manhattan, The City of New York and in such other international jurisdiction if any of the Notes are listed on a stock exchange of international standing and the rules of such exchange so require, an office or agency 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.  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.  As provided in Section 8.2(a) and (b), all payments of amounts due and payable with respect to any Notes that are to be made from amounts distributed from the Collection Account or any other Trust Account pursuant to Section 2.7, or deposited into the Collection Account from the Capitalized Interest Account, the Supplemental Purchase Account, the Borrower Benefit Account, the Floor Income Rebate Account or the Reserve Account, pursuant to Sections 2.7 and 2.8 of the Administration Agreement shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so distributed from the Collection Account or any other Trust Account for payments to Noteholders shall be paid over to the Issuer except as provided in this Section.

 

  

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On or before the Business Day next preceding each Distribution Date and Redemption Date, the Issuer shall distribute or cause to be distributed to the Indenture Trustee (or any other Paying Agent) 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 so to act.

 

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, that such Paying Agent will:

 

(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 of which it has actual knowledge (or any other obligor upon the Notes) 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;

 

(iv)                   immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payments due under 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 with respect to the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith.

 

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 the 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 money.

 

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 years after such amount has become due and

 

  

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payable shall be discharged from such trust and be paid to the Issuer on Issuer Request or if the Issuer has been terminated to the holder of the Excess Distribution Certificate at the time the Issuer was terminated upon its written request; and the Noteholder thereof 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 and in such other international jurisdiction if any of the Notes are listed on a stock exchange of international standing and the rules of such exchange so require, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.  The Indenture Trustee shall also adopt and employ, at the expense of the Issuer, any other reasonable means of notification of such repayment (including mailing notice of such repayment to Noteholders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in moneys 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 Noteholder).

 

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

 

SECTION 3.5   Protection of Indenture Trust Estate.  The Issuer will from time to time execute and deliver all such supplements and amendments hereto, all such financing statements and continuation statements and will take such other action necessary or advisable to:

 

(i)                   maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the purposes hereof;

 

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

 

(iii)                   enforce any of the Collateral; or

 

(iv)                   preserve and defend title to the Indenture Trust Estate and the rights of the Indenture Trustee and the Noteholders in such Indenture Trust Estate against the claims of all persons and parties.

 

  

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The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute any financing statement, continuation statement or other instrument required to be executed pursuant to this Section.

 

SECTION 3.6   Opinions as to Indenture Trust Estate.  (a)  On the Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this Indenture as is necessary to perfect and make effective the lien and security interest of 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 December 31 in each calendar year, beginning in 2012, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel 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 and any indentures supplemental hereto as is necessary to maintain the lien and security interest created by this Indenture and relating 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, recording and refiling of this Indenture and any indentures supplemental hereto that will, in the opinion of such counsel, be required to maintain the lien and security interest of this Indenture until December 31 in the following calendar year.

 

SECTION 3.7   Performance of Obligations; Servicing of Trust Student Loans.

 

(a)             The Issuer will not take any action and will 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 Indenture 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, any other Basic Document or such other instrument or agreement.

 

(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 Officers’ Certificate of the Issuer shall be deemed to be action taken by the Issuer; provided, however, the Issuer shall not be liable for any acts of Persons with whom the Issuer has contracted with reasonable care.  Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its duties under this Indenture.  The Issuer shall give written notice to the Indenture Trustee and each Rating Agency then rating the Notes of any such contract with any other Person.

 

(c)             The Issuer shall punctually perform and observe all of its obligations and agreements contained in this Indenture, the other Basic Documents and the instruments and agreements included in the Indenture Trust Estate, including filing or causing to be filed all UCC financing statements and continuation statements prepared by the Issuer and required to be filed by the terms of this Indenture and the Administration Agreement in accordance with and within the time periods provided for herein and therein.  Except as otherwise expressly provided therein,

 

  

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the Issuer shall not waive, amend, modify, supplement or terminate any Basic Document or any provision thereof without the consent of the Indenture Trustee or the Noteholders of at least a majority of the Outstanding Amount of the Notes.  The Issuer shall give written notice to each Rating Agency then rating the Notes of any such waiver, amendment, modification, supplement or termination that requires the consent of the Indenture Trustee or the Noteholders of at least a majority of the Outstanding Amount of the Notes.

 

(d)             If an Authorized Officer of the Issuer shall have knowledge of the occurrence of a Servicer Default or an Administrator Default under the Servicing Agreement or the Administration Agreement, respectively, the Issuer shall promptly notify the Indenture Trustee and the Rating Agencies then rating the Notes thereof, and shall specify in such notice the action, if any, the Issuer is taking with respect to such default.  If a Servicer Default shall arise from the failure of the Servicer to perform any of its duties or obligations under the Servicing Agreement, or an Administrator Default shall arise from the failure of the Administrator to perform any of its duties or obligations under the Administration Agreement, as the case may be, with respect to the Trust Student Loans, the Issuer shall take all reasonable steps available to it to enforce its rights under the Basic Documents in respect of such failure.

 

(e)             As promptly as possible after the giving of notice of termination to the Servicer of the Servicer’s rights and powers, pursuant to Section 5.1 of the Servicing Agreement, or to the Administrator of the Administrator’s rights and powers, pursuant to Section 5.1 of the Administration Agreement, the Issuer shall appoint a successor servicer (the “Successor Servicer”) or a successor administrator (the “Successor Administrator”), respectively, and such Successor Servicer or Successor Administrator, as the case may be, shall accept its appointment by a written assumption in a form acceptable to the Indenture Trustee.  In the event that a Successor Servicer or Successor Administrator has not been appointed and accepted its appointment at the time when the Servicer or Administrator, as the case may be, ceases to act as Servicer or Administrator, respectively, the Indenture Trustee without further action shall automatically be appointed the Successor Servicer or Successor Administrator, as the case may be.  The Indenture Trustee may resign as the Successor Servicer or the Successor Administrator by giving written notice of resignation to the Issuer and in such event will be released from such duties and obligations, such release not to be effective until the date a new servicer or a new administrator, as the case may be, enters into an agreement with the Issuer as provided below; provided, however, that nothing herein shall require or permit the Indenture Trustee to act as Servicer, or otherwise service the Trust Student Loans, in violation of the Higher Education Act.  Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under the Servicing Agreement or a new administrator as the Successor Administrator under the Administration Agreement, as the case may be.  Any Successor Servicer or Successor Administrator, other than the Indenture Trustee, shall (i) be an established institution (A) that satisfies any requirements of the Higher Education Act applicable to servicers and (B) whose regular business includes the servicing or administration of student loans, as the case may be, and (ii) enter into a servicing agreement or an administration agreement, respectively, with the Issuer having substantially the same provisions as the provisions of the Servicing Agreement and the Administration Agreement, as applicable.  If within 30 days after the delivery of the notice referred to above, the Issuer shall not have obtained such a new servicer or new administrator, as the case may be, the Indenture Trustee may appoint, or may petition a court of competent jurisdiction to appoint, a Successor Servicer or Successor

 

  

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Administrator, as applicable; provided, however, that such right to appoint or to petition for the appointment of any such successor shall in no event relieve the Indenture Trustee from any obligations otherwise imposed on it under the Basic Documents until such successor has in fact assumed such appointment.  In connection with any such appointment, the Indenture Trustee may make such arrangements for the compensation of such successor as it and such successor shall agree, subject to the limitations set forth below and in the Servicing Agreement or Administration Agreement, as applicable, and in accordance with Section 5.2 of the Servicing Agreement and Section 5.2 of the Administration Agreement, the Issuer shall enter into an agreement with such successor for the servicing or administration of the Trust Student Loans (such agreement to be in form and substance satisfactory to the Indenture Trustee).  If the Indenture Trustee shall succeed as provided herein to the Servicer’s duties as Servicer with respect to the Trust Student Loans, or the Administrator’s duties as Administrator with respect to the Issuer and the Trust Student Loans, as the case may be, it shall do so in its individual capacity and not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI hereof shall be inapplicable to the Indenture Trustee in its duties as the successor to the Servicer or the Administrator, as the case may be, and the servicing or administration of the Trust Student Loans.  In case the Indenture Trustee shall become successor to the Servicer or the Administrator, the Indenture Trustee shall be entitled to appoint as Servicer or as Administrator, as the case may be, any one of its Affiliates, provided that such appointment shall not affect or alter in any way the liability of the Indenture Trustee as Successor Servicer or Successor Administrator, respectively, in accordance with the terms hereof.

 

(f)             Upon any termination of the Servicer’s rights and powers pursuant to the Servicing Agreement, or any termination of the Administrator’s rights and powers pursuant to the Administration Agreement, as the case may be, the Issuer shall promptly notify the Indenture Trustee and each Rating Agency then rating the Notes.  As soon as a Successor Servicer or a Successor Administrator is appointed, the Issuer shall notify the Indenture Trustee and each Rating Agency then rating the Notes of such appointment, specifying in such notice the name and address of such Successor Servicer or such Successor Administrator.

 

(g)             [Reserved].

 

(h)             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 agrees that it will not, without the prior written consent of the Indenture Trustee or the Noteholders of at least a majority in Outstanding Amount of the Notes, amend, modify, supplement, terminate, waive or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral or the Basic Documents, except to the extent otherwise provided in the Basic Documents, or waive timely performance or observance by the Servicer, the Administrator, the Depositor, any Excess Distribution Certificateholder, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Issuer or the Eligible Lender Trustee under the Basic Documents; provided, however, that no such amendment shall (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, distributions that are required to be made for the benefit of the Noteholders, or (ii) reduce the aforesaid percentage of the Notes which are required to consent to any such amendment, without the consent of the Noteholders of all the Outstanding Notes.  If any such amendment, modification, supplement or waiver shall be so

 

  

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consented to by the Indenture Trustee or such Noteholders, the Issuer shall give written notice thereof to each Rating Agency then rating the Notes and agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and other documents as the Indenture Trustee may deem necessary or appropriate in the circumstances.

 

SECTION 3.8   Negative Covenants.  So long as any Notes are Outstanding, the Issuer shall not:

 

(i)                   except as expressly permitted by this Indenture or any other Basic Document, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Indenture Trust Estate, unless directed to do so by the Indenture Trustee;

 

(ii)                   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 the taxes levied or assessed upon any part of the Indenture Trust Estate; or

 

(iii)                   (A) 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, (B) 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 burden the Indenture Trust Estate or any part thereof or any interest therein or the proceeds thereof (other than tax liens and other liens that arise by operation of law, and other than as expressly permitted by the Basic Documents) or (C) permit the lien of this Indenture not to constitute a valid first priority (other than with respect to any such tax or other lien) security interest in the Indenture Trust Estate.

 

SECTION 3.9   Annual Statement as to Compliance.  The Issuer will deliver to the Indenture Trustee and each Rating Agency then rating the Notes, within 90 days after the end of each fiscal year of the Issuer (commencing with the fiscal year ending December 31, 2012), an Officers’ Certificate of the Issuer stating that:

 

(i)                   a review of the activities of the Issuer during such year and of performance under this Indenture has been made under such Authorized Officers’ supervision; and

 

(ii)                   to the best of such Authorized Officers’ knowledge, based on such review, the Issuer has complied with all conditions and covenants under this Indenture throughout such year, or, if there has been a default in the compliance of any such condition or covenant, specifying each such default known to such Authorized Officers and the nature and status thereof.

 

  

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SECTION 3.10   Issuer May Consolidate, etc., Only on Certain Terms.

 

(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 and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of, and interest, if any, on all Notes and the performance or observance of every agreement and covenant of this Indenture and the other Basic Documents on the part of the Issuer to be performed or observed, all as provided herein;

 

(ii)                   immediately after giving effect to such transaction, no 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) to the effect that such transaction will not have any material adverse federal or Delaware state tax consequence to the Issuer or any Noteholder;

 

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

 

(vi)                   the Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate of the Issuer and an Opinion of Counsel each stating that such consolidation or merger and such supplemental indenture comply with this Article III and that all conditions precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act).

 

(b)             The Issuer shall not convey or transfer all or substantially all of its properties or assets, including those included in the Indenture Trust Estate, to any Person, unless:

 

(i)                   the Person that acquires by conveyance or transfer the properties and assets of the Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United States citizen or a Person organized and existing under the laws of the United States of America or any State, (B) expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of, and interest, if any, on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein, (C) expressly agree by means of such supplemental indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of Noteholders, (D) unless otherwise provided in such supplemental indenture, expressly agree to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes and (E) expressly agree by means of such supplemental indenture that such Person (or if a group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes;

 

  

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(ii)                   immediately after giving effect to such transaction, no 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) to the effect that such transaction will not have any material adverse federal or Delaware state tax consequence to the Issuer or any Noteholder;

 

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

 

(vi)                   the Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate of the Issuer and an Opinion of Counsel each stating that such conveyance or transfer and such supplemental indenture comply with this Article III and that all conditions precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act).

 

SECTION 3.11   Successor or Transferee.  (a)  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 with the same effect as if such Person had been named as the Issuer herein.

 

(b)             Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.10(b), SLM Student Loan Trust 2012-6 will be released from every covenant and agreement of this Indenture to be observed or performed on the part of the Issuer with respect to the Notes immediately upon the delivery by the Issuer of written notice to the Indenture Trustee stating that SLM Student Loan Trust 2012-6 is to be so released.

 

SECTION 3.12   No Other Business.  The Issuer shall not engage in any business other than financing, purchasing, owning, selling and managing the Trust Student Loans and the other assets of the Issuer and related proceeds thereof, in the manner contemplated by this Indenture and the other Basic Documents and activities incidental thereto.

 

SECTION 3.13   No Borrowing.  The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness except for the Notes.

 

SECTION 3.14   Obligations of Servicer and Administrator.  The Issuer shall cause the Servicer to comply with Sections 3.1, 3.2 and 3.3 of the Administration Agreement and Section 3.7 of the Servicing Agreement and the Administrator to comply with Sections 2.11, 3.1, 3.2 and 3.3 of the Administration Agreement.

 

  

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SECTION 3.15   Guarantees, Loans, Advances and Other Liabilities.   Except as contemplated by this Indenture and the other Basic 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 3.16   Capital Expenditures.  The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets (either realty or personalty).

 

SECTION 3.17   Restricted Payments.  The Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Eligible Lender 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 or the Administrator, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made, distributions to the Servicer, the Eligible Lender Trustee, the Indenture Trustee, the Noteholders, the Administrator, the Depositor and the Excess Distribution Certificateholder as contemplated by, and to the extent funds are available for such purpose under, this Indenture and the other Basic Documents.  The Issuer will not, directly or indirectly, make payments to or distributions from the Collection Account or any other Trust Account except in accordance with this Indenture and the other Basic Documents.

 

SECTION 3.18   Notice of Events of Default.  The Issuer shall give the Indenture Trustee and the Rating Agencies then rating the Notes prompt written notice of each Event of Default hereunder and each default on the part of (i) the Depositor of its obligations under the Sale Agreement, (ii) SLM ECFC of its obligations under the SLM ECFC Purchase Agreement, (iii) Bluemont Funding of its obligations under the Bluemont Funding Purchase Agreement, (iv) Town Center Funding of its obligations under the Town Center Funding Purchase Agreement, (v) Town Hall Funding of its obligations under the Town Hall Funding Purchase Agreement, (vi) VL Funding of its obligations under the VL Funding Purchase Agreement, (vii) the Servicer of its obligations under the Servicing Agreement and (viii) the Administrator of its obligations under the Administration Agreement.  In addition, the Issuer shall deliver to the Indenture Trustee and each Rating Agency then rating the Notes, within five days after the occurrence thereof, written notice in the form of an Officers’ Certificate of the Issuer of any event which with the giving of notice and the lapse of time would become an Event of Default under Section 5.1(iii), its status and what action the Issuer is taking or proposes to take with respect thereto.

 

SECTION 3.19   Further Instruments and Acts.  Upon request of the Indenture Trustee, the Issuer will 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.

 

  

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SECTION 3.20   Representations and Warranties.  The Issuer and, with respect to clause (e) only, the Eligible Lender Trustee represent and warrant to the Indenture Trustee that, as of the Closing Date:

 

(a)             this Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Trust Student Loans in favor of the Indenture Trustee, which security interest is prior to all other security interests, liens, charges, claims, offsets, defenses, counterclaims or encumbrances, and is enforceable as such as against creditors of and purchasers from the Issuer and Eligible Lender Trustee;

 

(b)             the Trust Student Loans constitute “Accounts” within the meaning of the applicable UCC and are within the coverage of Section 432(m)(1)(E) and 439(d)(3) of the Higher Education Act;

 

(c)             the Issuer has caused or will have caused, within 30 days, 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 Trust Student Loans granted to the Indenture Trustee hereunder;

 

(d)             the Eligible Lender Trustee owns and has legal title to the Trust Student Loans which, except for the beneficial interest of the Issuer and any obligations created pursuant to this Indenture, are free and clear of any Lien, claim or encumbrance of any Person; and

 

(e)             other than the security interest granted to the Indenture Trustee pursuant to this Agreement, the Eligible Lender Trustee has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any interest in the Trust Student Loans. The Trust has not authorized the filing of and is not aware of any financing statements against the Eligible Lender Trustee that include a description of collateral covering the Trust Student Loans other than any financing statements relating to the beneficial interest of the Issuer and the security interest granted to the Indenture Trustee hereunder or that has been terminated.  The Trust is not aware of any judgment or tax lien filings against the Trust.

 

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 (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8, 3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including, without limitation, the rights of the Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee under Section 4.2) and (vi) 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 Notes, when:

 

  

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(a)             either

 

(1)           all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.5 and (ii) Notes for whose payment money has theretofore been 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; or

 

(2)           all Notes not theretofore delivered to the Indenture Trustee for cancellation:

 

(i)      have become due and payable,

 

(ii)      will become due and payable at their respective Note Final Maturity Date, within one year, or

 

(iii)         are to be called for redemption within one year under arrangements satisfactory to the Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer, and the Issuer, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Indenture Trustee for cancellation when due to the related Note Final Maturity Date;

 

(b)             the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer; and

 

(c)             the Issuer has delivered to the Indenture Trustee an Officers’ Certificate of the Issuer, an Opinion of Counsel and (if required by the TIA or 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 herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

SECTION 4.2   Application of Trust Money.  All moneys deposited with the Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and applied by it, 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 of the particular Notes for the payment or redemption of which such moneys have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest; but such moneys need not be segregated from other funds except to the extent required herein or in the Administration Agreement or required by law.

 

SECTION 4.3   Repayment of Moneys Held by Paying Agent.   In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys 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 moneys.

 

  

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SECTION 4.4   Auction of Trust Student Loans.  On the date (the “Trust Auction Date”) that is three Business Days prior to the Distribution Date immediately following the end of the first Collection Period when the Pool Balance is equal to 10% or less of the Initial Pool Balance, any Trust Student Loans remaining in the Trust may, and at the written direction of either the Administrator or Noteholders of at least a majority of the Outstanding Amount of all of the Notes shall, be offered for sale by the Indenture Trustee unless the Servicer has exercised its option to purchase the Trust Estate as described in Section 6.1(a) of the Administration Agreement with respect to such Distribution Date.  The Servicer will be deemed to have waived such option if it fails to notify the Eligible Lender Trustee and the Indenture Trustee of its exercise thereof in writing prior to the Indenture Trustee’s acceptance of a bid to purchase such Trust Student Loans; provided, however, that there shall be no such offer for sale if the Indenture Trustee fails to provide notice to the Servicer in accordance with this Section 4.4.  The Indenture Trustee shall provide written notice to the Servicer of any such offer for sale at least five (5) Business Days in advance of the Trust Auction Date.  The Indenture Trustee shall permit the Depositor or any of its Affiliates, including SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding and the Servicer, to offer bids only if the Pool Balance as of the applicable Trust Auction Date is equal to 10% or less of the Initial Pool Balance, and such bid does not exceed the fair market value of the Trust Student Loans as of the Trust Auction Date.  If the auction is conducted and at least two bids are received, the Indenture Trustee shall solicit and resolicit new bids from all participating bidders until only one bid remains or the remaining bidders decline to resubmit bids.  The Indenture Trustee shall accept the highest remaining bid if it is equal to or in excess of both (i) the Minimum Purchase Amount (plus any amounts owed to the Servicer for any Carryover Servicing Fees of which the Servicer has advised the Indenture Trustee in writing) and (ii) the fair market value of such Trust Student Loans as of the end of the Collection Period immediately preceding the Trust Auction Date.  If at least two bids are not received or the highest bid after the resolicitation process is completed is not equal to or in excess of the higher of (i) the Minimum Purchase Amount (plus any amounts owed to the Servicer for any Carryover Servicing Fees of which the Servicer has advised the Indenture Trustee in writing) and (ii) the fair market value of the Trust Student Loans, the Indenture Trustee shall not consummate such sale.  The Indenture Trustee may consult, and, at the direction (and at the sole cost and expense) of the Administrator, shall consult, with a financial advisor, including an Underwriter of the Notes or the Administrator, to determine if the fair market value of the Trust Student Loans has been offered.  The proceeds of any such sale will be paid at the time set forth in Section 2.6 of the Administration Agreement and applied in the order of priority set forth in Section 5.4(b).  If the sale is not consummated in accordance with the foregoing, the Indenture Trustee may, and at the written direction of either the Administrator or Noteholders of at least a majority of the Outstanding Amount of the Notes shall, solicit bids for sale of the Trust Student Loans with respect to future Distribution Dates upon terms similar to those described above, including the Servicer’s waiver of its option to purchase the Trust Estate in accordance with Section 6.1(a) of the Administration Agreement with respect to each such future Distribution Date.

 

  

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ARTICLE V

 

Remedies

 

SECTION 5.1   Events of Default.  “Event of Default,” wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it 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):

 

(i)                   default in the payment of any interest on any Note when the same becomes due and payable, and such default shall continue for a period of five Business Days; or

 

(ii)                   default in the payment of the principal of any Note when the same becomes due and payable on the related Note Final Maturity Date; or

 

(iii)                   default in the observance or performance of any covenant or agreement of the Issuer made in this Indenture (other than a covenant or agreement, a default in the observance or performance of which is elsewhere in this Section specifically dealt with), or any representation or warranty of the Issuer made in this Indenture or in any certificate or other writing having been incorrect in any material respect as of the time when made, such default or breach having a material adverse effect on the holders of the Notes, and such default or breach shall continue or not be cured, or 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 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 of at least 25% of the Outstanding Amount of the Notes, a written notice specifying such default or incorrect representation or warranty and requiring it to be remedied and stating that such notice is a notice of Default hereunder; or

 

(iv)                   the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the Indenture 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 Indenture 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 60 consecutive days; or

 

(v)                   the commencement by 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 Issuer to the entry of an order for relief in an involuntary case under any such law, or the consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the Indenture Trust Estate, or the making by the Issuer of any general assignment for the benefit of creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the taking of action by the Issuer in furtherance of any of the foregoing.

 

  

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SECTION 5.2   Acceleration of Maturity; Rescission and Annulment.  If an Event of Default should occur and be continuing, then and in every such case the Indenture Trustee or the Noteholders representing at least a majority of the Outstanding Amount of the Notes may declare all the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid principal amount of such Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable, subject, however, to Section 5.4 of this Indenture.

 

At any time after such declaration of acceleration of maturity has been made and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as hereinafter in this Article V provided, the Noteholders of Notes representing at least a majority of the Outstanding Amount of the Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if:

 

(i)                   the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

 

(a)           all payments of principal of and interest on all Notes and all other amounts that would then be due hereunder or upon such Notes if the Event of Default giving rise to such acceleration had not occurred; and

 

(b)           all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel; and

 

(ii)                   all Events of Default, other than the nonpayment of the principal of the 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.

 

SECTION 5.3   Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.  The Issuer covenants that if (i) Default is made in the payment of any interest on any Note when the same becomes due and payable, and such Default continues for a period of five days, or (ii) Default is made in the payment of the principal of any Note when the same becomes due and payable at the related Note Final Maturity Date, the Issuer shall, upon demand of the Indenture Trustee, pay to it, for the benefit of the Noteholders, the whole amount then due and payable on such Notes for principal and interest, with interest upon the overdue principal, and, to the extent payment at such rate of interest shall be legally enforceable, upon overdue installments of interest, at the rate specified in Section 2.7 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.

 

(a)             In case 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 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 other obligor upon such Notes and collect in the manner provided by law out of the property of the Issuer or other obligor upon such Notes, wherever situated, the moneys adjudged or decreed to be payable.

 

  

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(b)             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 by such appropriate Proceedings as the Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of 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.

 

(c)             In case 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 Indenture 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 in case 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 in case of any other, comparable judicial Proceedings relative to the Issuer or 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, 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 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 for reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) 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 moneys or other property payable or deliverable on any such claims and to distribute all amounts received with respect to the claims of the Noteholders and 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;

 

  

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and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by 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 such Noteholders to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith.

 

(d)             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 reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Noteholder 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.

 

(e)             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.

 

(f)             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; Priorities.  If an Event of Default shall have occurred and be continuing, the Indenture Trustee may, or, upon the written instruction of the Noteholders of 100% of the Outstanding Amount of the Notes, shall, do one or more of the following (subject to Section 5.5):

 

(a)           (i)    institute Proceedings in its own name and as trustee of an express trust for the collection of all amounts then payable on the 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 such Notes moneys adjudged due;

 

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

 

(iii)          exercise any remedies of a secured party under the UCC with respect to the Trust Estate and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Noteholders;

 

  

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(iv)          sell the Indenture 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; and/or

 

(v)           elect to have the Eligible Lender Trustee maintain ownership of the Trust Student Loans and continue to apply collections with respect to the Trust Student Loans as if there had been no declaration of acceleration;

 

provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Indenture Trust Estate following an Event of Default, other than an Event of Default described in Section 5.1(i) or (ii) with respect to the Class A Notes, unless (A) the Noteholders of 100% of the Outstanding Amount of the Class A Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the Class A Noteholders are sufficient to discharge in full all amounts then due and unpaid upon such Class A Notes for principal and interest or (C) the Indenture Trustee determines that the Indenture Trust Estate will not continue to provide sufficient funds for the payment of principal of and interest on the Class A Notes as would have become due if the Class A Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of Noteholders of 66 2/3% of the Outstanding Amount of the Class A Notes; provided, further, that the Indenture Trustee may not sell or otherwise liquidate the Indenture Trust Estate following an Event of Default, other than an Event of Default described in Section 5.1(i) or (ii) with respect to the Class A Notes, unless (D) the proceeds of such sale or liquidation distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust Estate distributable to the Class B Noteholders are sufficient to pay to the Class B Noteholders the Outstanding Amount of the Class B Notes plus accrued and unpaid interest thereon or (E) if the proceeds of such sale or liquidation distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust Estate distributable to the Class B Noteholders would not be sufficient to pay to the Class B Noteholders the Outstanding Amount plus accrued and unpaid interest thereon, the Class B Noteholders of at least a majority of the Outstanding Amount of the Class B Notes consent thereto.  In determining such sufficiency or insufficiency with respect to clauses (B), (C), (D) and (E), 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 Indenture Trust Estate and/or Trust Estate, as applicable, for such purpose.

 

(b)             Notwithstanding the provisions of Section 2.8 of the Administration Agreement, following the occurrence and during the continuation of an Event of Default which has resulted in an acceleration of the Notes, if the Indenture Trustee collects any money or property, it shall pay out, on each Distribution Date, the money or property (and other amounts including amounts, if any, held on deposit in each of the Trust Accounts) held as Collateral for the benefit of the Noteholders, net of liquidation costs associated with the sale of the assets of the Trust, in the following order:

 

FIRST:          pro rata, to the Indenture Trustee, for annual fees and any other amounts due and owing under Section 6.7, and to the Eligible Lender Trustee and Delaware Trustee, for annual fees and any other amounts due and owing under Sections 8.1 and 8.3 of the Trust Agreement (but, in each case, only to the extent not paid by the Administrator or the Depositor);

  

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SECOND:         to the Servicer for due and unpaid Primary Servicing Fees;

 

THIRD:             to the Administrator, any due and unpaid Administration Fees;

 

FOURTH:         to the Class A Noteholders, the Class A Noteholders’ Interest Distribution Amount, pro rata, based on the amounts payable as Class A Noteholders’ Interest Distribution Amount;

 

FIFTH:              to the Class A Noteholders, pro rata, an amount sufficient to reduce the Outstanding Amount of each class of the Class A Notes to zero;

 

SIXTH:             to the Class B Noteholders, the Class B Noteholders’ Interest Distribution Amount;

 

SEVENTH:       to the Class B Noteholders an amount sufficient to reduce the Outstanding Amount of the Class B Notes to zero;

 

EIGHTH:           to the Servicer, for any unpaid Carryover Servicing Fees; and

 

NINTH:             to the Excess Distribution Certificateholder, any remaining funds after application of the preceding clauses.

 

Following liquidation of the Indenture Trust Estate in accordance with Section 5.4(a) above, the Indenture Trustee may fix a record date and payment date for any payment to Noteholders pursuant to this subsection (b).  At least 15 days before such record date, the Indenture Trustee shall mail to each Noteholder and the Issuer a notice that states the record date, the payment date and the amount to be paid.

 

(c)           [Reserved].

 

SECTION 5.5   Optional Preservation of the Trust Student Loans.  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 may, but need not, elect to maintain possession of the Indenture Trust Estate.  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 interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to maintain possession of the Indenture Trust Estate.  In determining whether to maintain possession of the Indenture 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 Indenture Trust Estate for such purpose.

 

SECTION 5.6   Limitation of Suits.  No Noteholder shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

  

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

 

(ii)           the Noteholders of not less than 25% of the Outstanding Amount of the Notes 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;

 

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

 

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

 

(v)           no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Noteholders of at least a majority of the Outstanding Amount of the Notes;

 

it being 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 representing less than a majority of the Outstanding Amount of the Notes, 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, each Noteholder shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest on its 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 Noteholder.

 

SECTION 5.8   Restoration of Rights and Remedies.  If the Indenture Trustee 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 or to such Noteholder, then and in every such case the Issuer, the Indenture Trustee 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.

 

  

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SECTION 5.9   Rights and Remedies Cumulative.  No right or remedy herein conferred upon or reserved to the Indenture Trustee or to 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 or any Noteholder to exercise any right or remedy accruing upon any Default shall impair any such right or remedy or constitute a waiver of any such Default or an acquiescence therein.  Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

 

SECTION 5.11   Control by Noteholders.  The Noteholders of at least a majority of the Outstanding Amount of the Notes 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 that

 

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

 

(ii)           subject to the express terms of Section 5.4, any direction to the Indenture Trustee to sell or liquidate the Indenture Trust Estate shall be by the Noteholders of not less than 100% of the Outstanding Amount of the Notes;

 

(iii)          if the conditions set forth in Section 5.5 have been satisfied and the Indenture Trustee elects to retain the Indenture Trust Estate pursuant to such Section, then any direction to the Indenture Trustee by Noteholders of less than 100% of the Outstanding Amount of the Notes to sell or liquidate the Indenture Trust Estate shall be of no force and effect; and

 

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

 

provided, however, that, subject to Section 6.1, the Indenture Trustee need not take any action that it determines might involve it in liability or might materially adversely affect the rights of any Noteholders not consenting to such action.

 

SECTION 5.12   Waiver of Past Defaults.  Prior to the time a judgment or decree for payment of money due has been obtained, as described in Section 5.2, the Noteholders of at least a majority of the Outstanding Amount of the Notes may waive any past Default and its consequences except a Default (a) in payment when due of principal of or interest on any of the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of each Noteholder.  In the case of any such waiver, the Issuer, the Indenture Trustee and the Noteholders shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.

 

  

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Upon any such waiver, such Default shall cease to exist and 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 impair any right consequent thereto.

 

SECTION 5.13   Undertaking for Costs.  All parties to this Indenture agree, and each Noteholder by such Noteholder’s acceptance of any Note 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; but the provisions of this Section 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 in the aggregate more than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or 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 will 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 will 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.

 

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 Indenture 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 Depositor, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Administrator and the Servicer, as applicable, of each of their respective obligations to the Issuer, whether directly or by assignment, under or in connection with the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase

 

  

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Agreement, the Administration Agreement and the Servicing Agreement, as the case may be, in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase Agreement, the Administration Agreement and the Servicing Agreement, as the case may be, to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Depositor, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Administrator or the Servicer thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Depositor, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Administrator or the Servicer of each of their obligations under the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase Agreement, the Administration Agreement and the Servicing Agreement, as the case may be.

 

(b)             If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at the written direction of the Noteholders of 66 2/3% of the Outstanding Amount of the Notes shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Depositor, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Administrator or the Servicer under or in connection with the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase Agreement, the Administration Agreement and the Servicing Agreement, as the case may be, including the right or power to take any action to compel or secure performance or observance by the Depositor, SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Administrator or the Servicer of each of their obligations to the Issuer thereunder, whether directly or by assignment, and to give any consent, request, notice, direction, approval, extension or waiver under the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase Agreement, the Administration Agreement and 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 skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b)             Except during the continuance of an Event of Default:

 

  

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(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 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 negligent failure to act or its own willful misconduct, except that:

 

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

 

(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 of the Noteholders received by it pursuant to Section 5.11.

 

(d)             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.

 

(e)             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 other Basic Documents.

 

(f)             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, if it shall have reasonable grounds to believe that repayments of such funds or adequate indemnity satisfactory to it against any loss, liability or expense is not reasonably assured to it.

 

(g)             Except as expressly provided in the Basic Documents, the Indenture Trustee shall have no obligation to administer, service or collect the Trust Student Loans or to maintain, monitor or otherwise supervise the administration, servicing or collection of the Trust Student Loans.

 

(h)             In the event that the Indenture Trustee is the Paying Agent or the Note Registrar, the rights and protections afforded to the Indenture Trustee pursuant to this Indenture shall also be afforded to the Indenture Trustee in its capacity as Paying Agent or Note Registrar.

 

  

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(i)             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 and to the provisions of the TIA.

 

(j)             For so long as reports are required to be filed with the Commission under the Exchange Act with respect to the Issuer, on or before March 1 of each calendar year, commencing in 2013, the Indenture Trustee shall deliver to the Issuer and the Administrator a report (in form and substance reasonably satisfactory to the Administrator, acting on behalf of the Issuer) regarding the Indenture Trustee’s assessment of compliance with the Applicable Servicing Criteria during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  Such report shall be addressed to the Issuer and signed by a Responsible Officer of the Indenture Trustee, and shall address the Applicable Servicing Criteria specified on a certification substantially in the form of Exhibit C attached hereto.

 

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.  The Indenture Trustee need not investigate any fact or matter stated in such document.

 

(b)             Before the Indenture Trustee acts or refrains from acting, it may require and shall be entitled to receive an Officers’ Certificate of the Issuer and/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 such Officers’ Certificate or Opinion of Counsel.

 

(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 (each, an “Agent Party”), provided that the Indenture Trustee shall be responsible for any misconduct or negligence on the part of, or for the supervision of, any such Agent Party appointed with due care by it hereunder and shall remain so responsible until such time as (i) the Indenture Trustee shall have received the written consent of each Rating Agency then rating the Notes with respect to the appointment of any such Agent Party prior to the occurrence of an Event of Default under Section 5.1, or (ii) the occurrence of an Event of Default (other than the occurrence of an Event of Default under Section 5.1(iii) which has not resulted in an acceleration of the maturity of the Notes), at which time the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, any such Agent Party appointed with due care by it hereunder.  The Indenture Trustee shall provide prompt notice to the Rating Agencies of the appointment of any Agent Party pursuant to this Section 6.2(c) after the occurrence of any Event of Default under Section 5.1.

 

(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 the Indenture Trustee’s conduct 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.

 

  

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(f)             Notwithstanding anything in this Indenture or any related documents to the contrary, in no event shall the Indenture Trustee or any of its directors, officers, agents or employees be liable under this Indenture or any related documents for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Indenture Trustee or any of its directors, officers, agents or employees has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

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 may do the same with like rights.  However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

 

SECTION 6.4   Indenture Trustee’s Disclaimer.  The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Issuer in the 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 Defaults.  If a Default occurs and is continuing and if it is either actually known or written notice of the existence thereof has been delivered to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail notice of the Default to each Noteholder within 90 days and to each Rating Agency then rating the Notes as soon as practicable within 30 days after it occurs.  Except in the case of a Default in payment of principal of or interest 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 the Noteholders.  Except as provided in the first sentence of this Section 6.5, in no event shall the Indenture Trustee be deemed to have knowledge of a Default or an Event of Default.

 

SECTION 6.6   Reports by Indenture Trustee to Noteholders.  The Indenture Trustee shall deliver to each Noteholder (and to each Person who was a Noteholder at any time during the applicable calendar year) such information as may be required to enable such holder to prepare its federal and state income tax returns.  Within 60 days after each December 31 beginning with the December 31 following the date of this Indenture, the Indenture Trustee shall mail to each Noteholder a brief report as of such December 31 that complies with TIA § 313(a) if required by said section.  The Indenture Trustee shall also comply with TIA § 313(b).  A copy of each such report required pursuant to TIA § 313(a) or (b) shall, at the time of such transaction to Noteholders, be filed by the Indenture Trustee with the Commission and with each securities exchange, if any, upon which the Notes are listed, provided that the Issuer has previously notified the Indenture Trustee of such listing.

 

  

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SECTION 6.7   Compensation and Indemnity.  The Issuer shall cause the Depositor to pay to the Indenture Trustee reasonable compensation for its services in accordance with a separate agreement between the Depositor and the Indenture Trustee and shall cause the Depositor to reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it as provided in such separate 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 cause the Administrator to indemnify the Indenture Trustee and its directors, officers, employees and agents against any and all loss, liability or expense (including attorneys’ fees) incurred by it in connection with the administration of this trust and the performance of its duties hereunder and under the other Basic Documents.  The Indenture Trustee shall notify the Issuer and the Administrator promptly of any claim for which it may seek indemnity.  Failure by the Indenture Trustee to so notify the Issuer and the Administrator shall not relieve the Issuer or the Administrator of its obligations hereunder and under the other Basic Documents.  The Issuer shall cause the Administrator to defend the claim and the Administrator shall not be liable for the legal fees and expenses of the Indenture Trustee after it has assumed such defense; provided, however, that, in the event that there may be a conflict between the positions of the Indenture Trustee and the Administrator in conducting the defense of such claim, the Indenture Trustee shall be entitled to separate counsel acceptable to it in its sole discretion the reasonable fees and expenses of which shall be paid by the Administrator on behalf of the Issuer.  Neither the Issuer nor the Administrator need reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad faith.

 

The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall survive the discharge of this Indenture.  When the Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(iv) or (v) 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.  No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.8.  The Indenture Trustee may resign at any time by so notifying the Issuer.  The Noteholders of at least a majority in Outstanding Amount of the Notes may remove the Indenture Trustee by so notifying the Indenture Trustee and may appoint a successor Indenture Trustee.  The Issuer shall remove the Indenture Trustee if:

 

(i)                   the Indenture Trustee fails to comply with Section 6.11;

 

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

 

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

 

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

 

  

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If the Indenture Trustee resigns or is removed or 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 appoint a successor Indenture Trustee.

 

A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer.  Thereupon 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 Noteholders.  The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

 

If a successor Indenture Trustee does not take office within 60 days after the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Noteholders of at least a majority in Outstanding Amount of the Notes may petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee.  The successor Indenture Trustee shall give notice of its appointment as successor Indenture Trustee to the Rating Agencies then rating the Notes.

 

If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee.

 

Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, 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 by Merger.  If the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Indenture Trustee, provided that such corporation or banking association shall be otherwise qualified and eligible under Section 6.11.  The Indenture Trustee shall provide prior written notice of any such transaction to the Rating Agencies then rating the Notes.

 

In case at the time such successor or successors by merger, conversion or consolidation 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 successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Indenture Trustee shall have.

 

 

  

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SECTION 6.10   Appointment of Co-Trustee or Separate Trustee.

 

(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 Indenture Trust Estate may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Indenture Trust Estate, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Indenture Trust Estate, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable.  No such appointment shall relieve the Indenture Trustee of its obligations hereunder.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.8 hereof.

 

(b)             Every 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 is not 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 Indenture 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 hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; 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.  Every 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 not prohibited by

 

  

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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.

 

SECTION 6.11   Eligibility; Disqualification.  (a) The Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a), the requirements of an “eligible lender” under 20 USC § 1085(d) and the requirements of Rule 3a-7(a)(4)(i) of the General Rules and Regulations under the Investment Company Act of 1940, as amended.  The Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition and it shall have a long-term senior unsecured debt rating of not less than investment grade by each of the Rating Agencies then rating the Notes.  The Indenture Trustee shall comply with TIA § 310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

 

(b)           Within ninety (90) days after ascertaining the occurrence of an event under Section 6.8 of this Indenture that would result in the removal of the Indenture Trustee which shall not have been cured or waived, unless authorized by the TIA or the Commission, the Indenture Trustee shall resign with respect to the Notes in accordance with Section 6.8 of this Indenture, and the Issuer shall appoint a successor Indenture Trustee for the Notes.

 

SECTION 6.12   Preferential Collection of Claims Against the Issuer.  The Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  An Indenture Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

 

SECTION 6.13   Rule 15Ga-1 Information.  The Indenture Trustee shall provide prompt notice to the Depositor and the Administrator (each, an “SLM Party,” and together, the “SLM Parties”) of all demands or requests received by the Indenture Trustee for the repurchase or replacement of any Trust Student Loan for breach of the representations and warranties concerning such Trust Student Loan.  If any such demand or request is made in non-written form, the Indenture Trustee shall request that such demand be put into writing; provided, however, the Indenture Trustee shall notify the SLM Parties regardless of whether any such demand or request is made in writing.  The obligations of the Indenture Trustee under the first two sentences of this Section 6.13 to notify the SLM Parties of any such demand or request made in non-written form shall not be applicable during such time as the interpretations of the requirements of the Repurchase Rules and Regulations (as defined below) require reporting by the SLM Parties of only demands or requests in written form.  The Indenture Trustee shall, upon written request of either SLM Party, provide notification to the SLM Parties regarding any actions taken by the Indenture Trustee with respect to any such demand or request received by the Indenture Trustee in respect of any Trust Student Loan, such notifications to be provided by the Indenture Trustee as soon as practicable and in any event within five Business Days of receipt by the Indenture Trustee of such written request or demand from an SLM Party or such other time frame as may be mutually agreed to by the Indenture Trustee and the applicable SLM

 

  

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Party.  The Indenture Trustee and the Issuer acknowledge and agree that the purpose of this Section 6.13 is to facilitate compliance by the SLM Parties with Rule 15Ga-1 under the Exchange Act, and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase Rules and Regulations”).  The Indenture Trustee acknowledges that interpretations of the requirements of the Repurchase Rules and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with reasonable written requests made by the SLM Parties in good faith for delivery of information under these provisions on the basis of evolving interpretations of the Repurchase Rules and Regulations.  The Indenture Trustee shall cooperate with reasonable written requests received from the SLM Parties to deliver any and all records and any other information necessary in the good faith determination of the SLM Parties to permit the SLM Parties to comply with the provisions of the Repurchase Rules and Regulations.  Subject to duties explicitly set forth in the Basic Documents, if any, the Indenture Trustee shall not have any responsibility or liability in connection with the compliance of any SLM Party or securitizer (as defined in the Exchange Act) with the Exchange Act or Regulation AB or any filing required to be made by an SLM Party or securitizer (as defined in the Exchange Act) under the Exchange Act or Regulation AB.

 

ARTICLE VII

 

Noteholders’ Lists and Reports

 

SECTION 7.1   Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Noteholders as of such Record Date, and (b) at such other times as the Indenture Trustee may request in writing, within 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 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, 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 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 such Section 7.1 upon receipt of a new list so furnished.

 

(a)             Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect to their rights under this Indenture or under the Notes.  Upon receipt by the Indenture Trustee of any request by three or more Noteholders or by one or more holders of Notes evidencing not less than 25% of the Outstanding Amount of the Notes to receive a copy of the current list of Noteholders (whether or not made pursuant to TIA § 312(b)), the Indenture Trustee shall promptly notify the Administrator thereof by providing to the Administrator a copy of such request and a copy of the list of Noteholders produced in response thereto.

 

  

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(b)             The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA § 312(c).

 

(c)             On each Distribution Date the Indenture Trustee shall provide to each Noteholder of record as of the related Record Date the information provided by the Administrator to the Indenture Trustee on the related Determination Date pursuant to Section 2.11 of the Administration Agreement.

 

(d)             The Indenture Trustee shall furnish to the Noteholders 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 Indenture Trustee under the Basic Documents.  The Indenture Trustee shall furnish to the Noteholders promptly upon receipt thereof from the Eligible Lender Trustee notice of any amendment of the Administration Agreement pursuant to Section 8.5 of the Administration Agreement.

 

SECTION 7.3   Reports by Issuer.

 

(a)             The Issuer shall:

 

(i)                   file with the Indenture Trustee, within 15 days after the Issuer is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Issuer may be required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

 

(ii)                   file with the Indenture Trustee and the Commission in accordance with rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

 

(iii)                   supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required by rules and regulations prescribed from time to time by the Commission.

 

(b)             Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31 of each year.

 

ARTICLE VIII

 

Accounts, Disbursements and Releases

 

SECTION 8.1   Collection of Money.  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

 

  

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Indenture.  The Indenture Trustee shall apply all such money received by it on behalf of Noteholders or the Trust pursuant to the Administration Agreement as provided in this Indenture.  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 Indenture 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 under this Indenture and any right to proceed thereafter as provided in Article V.

 

SECTION 8.2   Trust Accounts.  (a)  On or prior to the Closing Date, the Issuer shall cause the Administrator to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders and the Trust, the Trust Accounts as provided in Section 2.3 of the Administration Agreement.

 

(b)             On or before the Business Day preceding each Distribution Date, all Available Funds and amounts set forth in paragraph (a)(2) of the definition of Available Funds with respect to the preceding Collection Period will be deposited in the Collection Account as provided in Section 2.4 of the Administration Agreement.  On or before each Distribution Date, the Indenture Trustee (or any other Paying Agent) shall make the required deposits and distributions as provided in Sections 2.7 and 2.8 of the Administration Agreement.

 

(c)             [Reserved].

 

(d)             [Reserved].

 

(e)             On or before each Distribution Date, the Indenture Trustee (or any other Paying Agent) shall make the required deposits and distributions as provided in Section 2.7 of the Administration Agreement.

 

(f)             [Reserved].

 

(g)             During the Supplemental Purchase Period, the Indenture Trustee shall withdraw funds as directed by the Administrator pursuant to Section 2.10(d) of the Administration Agreement for the purchase of Additional Trust Student Loans.

 

(h)             [Reserved].

 

(i)             On the Business Day immediately following the end of the Supplemental Purchase Period, the Indenture Trustee shall transfer any amounts remaining in the Supplemental Purchase Account into the Collection Account, as directed by the Administrator.

 

(j)             [Reserved].

 

(k)             [Reserved].

 

(l)             On or before the Business Day immediately preceding each Distribution Date, if the Issuer has not received payment in full of the amount required to offset any deficiency caused by a Borrower Benefit Yield Reduction for the related Collection Period pursuant to Section 3.12 of the Servicing Agreement, the Indenture Trustee, as directed by the Administrator, shall withdraw from the Borrower Benefit Account on that Distribution Date an amount equal to such deficiency, to the extent of funds available therein, to be included as part of Available Funds for that Distribution Date.

 

  

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(m)             Once the Department has netted all payments (in respect of Interest Subsidy Payments and/or Special Allowance Payments otherwise due to the Issuer), which currently occurs on a quarterly basis, on the next succeeding Distribution Date an amount equal to the applicable Floor Income Rebate Account Release Amount on deposit in the Floor Income Rebate Account at the end of the preceding Collection Period will be withdrawn by the Indenture Trustee, as directed by the Administrator, and be included as part of Available Funds for that Distribution Date.

 

SECTION 8.3   General Provisions Regarding Accounts.  (a)  So long as no Default shall have occurred and be continuing, all or a portion of the funds in the Trust Accounts shall be invested in Eligible Investments and reinvested by the Indenture Trustee upon Issuer Order, subject to the provisions of Section 2.3(b) of the Administration Agreement.  All income or other gain from investments of moneys deposited in the Trust Accounts shall be deposited by the Indenture Trustee in the Collection Account, and any loss resulting from such investments shall be charged to such Trust Account.  The Issuer will 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 for the selection of Eligible Investments or by reason of any insufficiency in any of the Trust Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Indenture Trustee’s 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 Issuer shall have failed to give investment directions for any funds on deposit in the Trust Accounts to the Indenture Trustee by 10:00 a.m. Eastern Time (or such other time as may be agreed by the Issuer and Indenture Trustee) on any Business Day; or (ii) a 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, if such Notes shall have been declared due and payable following an Event of Default and amounts collected or receivable from the Indenture 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 invest and reinvest funds in the Trust Accounts in the Eligible Investments described in clause (d) of the definition thereof.

 

SECTION 8.4   Release of Indenture 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

 

  

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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 moneys.

 

(b)             The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have been paid, release any remaining portion of the Indenture 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 Officers’ Certificate of the Issuer, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1.

 

(c)             Each Noteholder, by the acceptance of a Note, acknowledges that from time to time the Indenture Trustee shall release the lien of this Indenture on any Trust Student Loan to be sold (i) to the Depositor in accordance with Section 6 of the Sale Agreement, (ii) to the Servicer in accordance with Section 3.5 of the Servicing Agreement, (iii) to Bluemont Funding (or the seller from which Bluemont Funding originally purchased such Trust Student Loan), Town Center Funding (or the seller from which Town Center Funding originally purchased such Trust Student Loan), Town Hall Funding (or the seller from which Town Hall Funding originally purchased such Trust Student Loan), VL Funding (or the seller from which VL Funding originally purchased such Trust Student Loan), SLM ECFC or to another Affiliate of SLM Corporation in accordance with Section 3.11F. of the Servicing Agreement, (iv) to another eligible lender holding one or more Serial Loans with respect to such Trust Student Loan, (v) to SLM ECFC in accordance with Section 6 of the SLM ECFC Purchase Agreement, and each Noteholder, by the acceptance of a Note, consents to any such release, (vi) to Bluemont Funding in accordance with Section 6 of the Bluemont Funding Purchase Agreement, (vii) to Town Center Funding in accordance with Section 6 of the Town Center Funding Purchase Agreement, (viii) to Town Hall Funding in accordance with Section 6 of the Town Hall Funding Purchase Agreement, or (ix) to VL Funding in accordance with Section 6 of the VL Funding Purchase Agreement, and each Noteholder, by the acceptance of a Note, consents to any such release.

 

SECTION 8.5   Opinion of Counsel.  The Indenture Trustee shall receive at least seven 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(c), 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 the same, 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 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 Indenture Trust Estate.  Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action.

 

  

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ARTICLE IX

 

Supplemental Indentures

 

SECTION 9.1   Supplemental Indentures Without Consent of Noteholders.

 

(a)             Without the consent of any Noteholders but with prior notice to the Rating Agencies then rating the Notes, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes:

 

(i)                   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;

 

(ii)                   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;

 

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

 

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

 

(v)                   to cure any ambiguity, to correct or supplement any provision herein or in any supplemental indenture which 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 or in any supplemental indenture; provided that such action shall not materially adversely affect the interests of the Noteholders;

 

(vi)                   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;

 

(vii)                    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 the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the TIA; or

 

  

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(viii)                   to correct any manifest error in the terms of this Indenture as compared to the terms expressly set forth in the Prospectus.

 

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.

 

(b)             The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may enter into an indenture or indentures supplemental hereto for the purposes of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Noteholders under this Indenture, with the consent of each Noteholder whose interests would be adversely affected in any material respect by such action (if any), but without the consent of any other Noteholder, and with prior notice to the Rating Agencies then rating the Notes; provided, however, that the Indenture Trustee shall be entitled to an Opinion of Counsel that such action will not adversely affect in any material respect the interests of any Noteholder whose written consent has not been obtained.

 

SECTION 9.2   Supplemental Indentures With Consent of Noteholders.   The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to the Rating Agencies then rating the Notes and with the consent of the Noteholders of at least a majority of the Outstanding Amount of all of the Notes, by Act of such Noteholders delivered to the Issuer and the Indenture Trustee, enter into an indenture or 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 of modifying in any manner the rights of the Noteholders under this Indenture;  provided, however, that no such supplemental indenture shall, without the consent of the Noteholder of each Outstanding Note affected thereby:

 

(i)                   change the date of payment of any installment of principal of or interest on any Note, 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 Indenture Trust Estate to payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date);

 

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

 

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

 

  

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(iv)                   reduce the percentage of the Outstanding Amount of the Notes required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the Indenture Trust Estate pursuant to Section 5.4;

 

(v)                   modify any provision of this Section except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture or the other Basic Documents cannot be modified or waived without the consent of the Noteholder of each Outstanding Note affected thereby;

 

(vi)                   modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Distribution 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

 

(vii)                    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 Indenture Trust Estate or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive any Noteholder of any Note of the security provided by the lien of this Indenture.

 

It shall not be necessary for any Act of Noteholders under this Section 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, the Indenture Trustee shall mail to the Noteholders of the Notes 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 modifications 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 fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture.  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 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.

 

  

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SECTION 9.5   Conformity with Trust Indenture Act.  Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be qualified under the Trust Indenture Act.

 

SECTION 9.6   Reference in Notes to Supplemental Indentures.  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 Indenture Trustee shall, upon receipt of written notice from the Administrator pursuant to Section 6.1(b) of the Administration Agreement, give prompt written notice to the Noteholders of the occurrence of such event.  In the event that the assets of the Trust are sold pursuant to Section 6.1(a) of the Administration Agreement, that portion of the amounts on deposit in the Trust Accounts to be distributed to the Noteholders shall be paid to the Noteholders as provided in Sections 2.7 and 2.8 of the Administration Agreement.  If amounts are to be paid to Noteholders pursuant to this Section 10.1, the notice of such event from the Indenture Trustee to the Noteholders shall include notice of the redemption of Notes by application of such amounts on the next Distribution Date which is not sooner than 15 days after the date of such notice (the “Redemption Date”), whereupon all such amounts shall be payable on the Redemption Date.

 

SECTION 10.2   Form of Redemption Notice.  Notice of redemption under Section 10.1 shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile, mailed or transmitted on or prior to the applicable Redemption Date to each Noteholder, as of the close of business on the Record Date preceding the applicable Redemption Date, at such Noteholder’s address or facsimile number appearing in the Note Register.

 

All notices of redemption shall state:

 

(i)                   the Redemption Date;

 

(ii)                   the Redemption Price; and

 

  

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(iii)                   the place where such Notes are to be surrendered for payment of the 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.  Failure to give notice of redemption, or any defect therein, to any Noteholder of any Note shall not impair or affect the validity of the redemption of any other Note.

 

SECTION 10.3   Notes Payable on Redemption Date.  The Notes or portions thereof to be redeemed shall on the Redemption Date become due and payable 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 and the Rating Agencies then rating the Notes (i) an Officers’ Certificate of the Issuer 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 and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished.

 

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

 

(i)                   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;

 

(ii)                   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;

 

(iii)                    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

 

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

 

  

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(b)                   (i)      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, furnish to the Indenture Trustee and the Rating Agencies then rating the Notes an Officers’ Certificate of the Issuer certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited.

 

(ii)                   Whenever the Issuer is required to furnish to the Indenture Trustee and the Rating Agencies then rating the Notes an Officers’ Certificate of the Issuer certifying or stating the opinion of any signer thereof as to the matters described in clause (i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the Issuer of the securities to be so deposited and of all other such 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 delivered pursuant to clause (i) above and this clause (ii), is 10% or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the fair value thereof to the Issuer as set forth in the related Officers’ Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the Notes.

 

(iii)                   Other than any property released as contemplated by clause (v) below, 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 Officers’ Certificate of the Issuer certifying or stating the opinion of each person signing such certificate as to the fair value (within 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.

 

(iv)                   Whenever the Issuer is required to furnish to the Indenture Trustee an Officers’ Certificate of the Issuer certifying or stating the opinion of any signer thereof as to the matters described in clause (iii) above, 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, other than property as contemplated by clause (v) below, 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 clause (iii) above and this clause (iv), equals 10% or more of the Outstanding Amount of the Notes, but such 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 Officers’ Certificate is less than $25,000 or less than one percent of the then Outstanding Amount of the Notes.

 

(v)                   Notwithstanding Section 2.9 or any other provision of this Section, the Issuer may, without compliance with the requirements of the other provisions of this Section, (A) collect, liquidate, sell or otherwise dispose of the Trust Student Loans, as and to the extent permitted or required by the Basic Documents, (B) make cash payments out of the Trust Accounts as and to the extent permitted or required by the Basic Documents and (C) convey to the Depositor, the Servicer or another eligible lender those specified Trust Student Loans as and to the extent permitted or required by and in accordance with Section 8.4(c) hereof and Section 6

 

  

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of the Sale Agreement, Section 3.5 of the Servicing Agreement or Section 3.11E of the Servicing Agreement, respectively, so long as the Issuer shall deliver to the Indenture Trustee every six months, commencing December 31, 2012, an Officers’ Certificate of the Issuer stating that all the dispositions of Collateral described in clauses (A), (B) or (C) above that occurred during the immediately preceding six calendar months were in the ordinary course of the Issuer’s business and that the proceeds thereof were applied in accordance with the Basic Documents.

 

SECTION 11.2   Form of Documents Delivered to Indenture Trustee.   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.

 

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 his 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, an officer or officers of the Servicer, the Depositor, the Issuer or the Administrator, stating that the information with respect to such factual matters is in the possession of the Servicer, the Depositor, the Issuer or the Administrator, unless such 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.

 

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.

 

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 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 Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and

 

  

51

  

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.

 

(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 any Noteholder shall bind the Noteholder of every Note issued upon registration of transfer 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, Issuer and Rating Agencies.   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 or Act of Noteholders is to be made upon, given or furnished to or filed with:

 

(a)             The Indenture Trustee by any Noteholder, the Servicer, the Administrator 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 with a copy to the Eligible Lender 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: SLM Student Loan Trust 2012-6, in care of Deutsche Bank Trust Company Americas, 60 Wall Street, 27th Floor, New York, New York 10005, Attention: Structured Finance Services/Asset Backed Securities; and the Administrator, 2001 Edmund Halley Drive, Reston, Virginia  20191, Attention: ABS Trust Administration, or 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.

 

Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or the Eligible Lender Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to (i) in the case of Moody’s, at the following addresses: (A) ABS Monitoring Department, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, and (B) servicereports@moodys.com; and (ii) in the case of Fitch, at the following addresses: (A) One State Street Plaza, New York 10004, Attention: Asset Backed Surveillance Group, and (B) notifications.abs@fitchratings.com; or as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

  

52

  

 

SECTION 11.5   Notices to Noteholders; Waiver.  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 his 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.

 

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.

 

In case, 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.

 

Where this Indenture provides for notice to the Rating Agencies then rating the Notes, failure to give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute a 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 Noteholder providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Noteholder, that is different from the methods provided for in this Indenture for such payments or notices.  The Issuer will furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee will cause payments to be made and notices to be given in accordance with such agreements.

 

SECTION 11.7   Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall control.

 

The provisions of TIA §§ 310 through 317 that impose duties on any Person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein.

 

  

53

  

SECTION 11.8   Effect of Headings and Table of Contents.  The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 11.9   Successors and Assigns.  All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successor and assigns, whether so expressed or not.  All agreements of the Indenture Trustee in this Indenture shall bind the successors, co-trustees and agents (excluding any legal representatives or accountants) of the Indenture Trustee.

 

SECTION 11.10   Separability.  In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

SECTION 11.11   Benefits of Indenture.  (a)  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 Noteholders, any other party secured hereunder, and any other Person with an ownership interest in any part of the Indenture Trust Estate, any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

(b)             [Reserved].

 

SECTION 11.12   Legal Holidays.  In any case where 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 11.13   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 (OTHER THAN §5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 11.14   Counterparts.  This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 11.15   Recording of Indenture.  If this Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense 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.

 

 

  

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SECTION 11.16   Trust Obligations.  No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Depositor, the Administrator, the Servicer, the Eligible Lender 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 (i) the Indenture Trustee or the Eligible Lender Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee or the Eligible Lender Trustee in its individual capacity, any holder or owner of a beneficial interest in the Issuer, the Eligible Lender Trustee or the Indenture Trustee or of any successor or assign thereof in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Eligible Lender Trustee have no such obligations in their individual capacity) 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, in the performance of any duties or obligations of the Issuer hereunder, the Eligible Lender Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement.

 

SECTION 11.17   No Petition.  The Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree that they shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency, receivership 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 Basic Documents.  The foregoing shall not limit the rights of the Indenture Trustee to file any claim in, or otherwise take any action with respect to, any insolvency proceeding that was instituted against the Issuer by any Person other than the Indenture Trustee.

 

SECTION 11.18   Inspection.  The Issuer agrees that, on reasonable prior notice, it shall permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all 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 all such information obtained from such examination or inspection 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 11.19   Waiver of Jury Trial.  EACH OF THE PARTIES TO THIS INDENTURE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

 

  

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SECTION 11.20   Limited Recourse.  The obligations of the Issuer under this Indenture are limited recourse obligations payable solely from the Collateral and, following realization of the Collateral and its application in accordance with the terms hereof, any outstanding obligations of the Issuer hereunder shall be extinguished and shall not thereafter revive.  In addition, no recourse shall be had for any amounts payable or any other obligations arising under this Indenture against any officer, member, director, employee, partner or security holder of the Issuer or any of its successors or assigns.  To the extent a Noteholder is deemed to have a claim to the assets of the Issuer other than the Collateral, the Noteholder hereby releases any such claim.  In the event that a Noteholder is deemed to have a claim against the assets of the Issuer other than the Collateral and the release is not given effect, each Noteholder hereby agrees to fully subordinate all claims it may have against such assets and that such agreement constitutes a subordination agreement for purposes of Section 510(a) of Title 11 of the U.S. Bankruptcy Code.  The provisions of this Section 11.20 shall survive the termination of this Indenture.

 

SECTION 11.21   Force Majeure.  In no event shall the Indenture Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes, acts of God, or unavailability of the Federal Reserve Bank wire or telex facility; it being understood that the Indenture Trustee shall use reasonable efforts to resume performance of its obligations as soon as practicable under the circumstances.

 

SECTION 11.22   Compliance with Applicable Law.  In order to comply with laws, rules, regulations and executive orders in effect from time to time including but not limited to those relating to the funding of terrorist activities and money laundering (“Applicable Laws”), the Indenture Trustee may be required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with the Indenture Trustee.  Accordingly, each of the parties hereto agrees to provide the Indenture Trustee upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Indenture Trustee to comply with Applicable Laws.

 

ARTICLE XII

 

Compliance with Regulation AB

 

SECTION 12.1   Intent of the Parties; Reasonableness.  The Issuer, the Eligible Lender Trustee and the Indenture Trustee acknowledge and agree that the purpose of Article XII of this Agreement is to facilitate compliance by the Issuer with the provisions of Regulation AB and related rules and regulations of the Commission.

 

The Eligible Lender Trustee and the Administrator, on behalf of the Issuer, shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Act).  The Indenture Trustee acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to

 

  

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comply with requests made by the Administrator, on behalf of the Issuer, in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB.  In connection therewith, the Indenture Trustee shall cooperate fully with the Administrator, on behalf of the Issuer, to deliver to the Administrator, on behalf of the Issuer (including any of its assignees or designees), any and all statements, reports, certifications, records, attestation, and any other information necessary in the good faith determination of the Administrator, on behalf of the Issuer, to permit the Administrator, on behalf of the Issuer, to comply with the provisions of Regulation AB, together with such disclosures relating to the Indenture Trustee or the servicing of the Trust Student Loans, reasonably believed by the Administrator, on behalf of the Issuer, to be necessary in order to effect such compliance.

 

ARTICLE XIII

 

Tax Considerations

 

SECTION 13.1   Acknowledgement of Parties.  The parties hereto acknowledge and agree that, for all tax purposes, financial accounting and other purposes (a) the Notes (excluding any Retained Notes, as defined below) will constitute indebtedness and not an ownership interest in the Issuer and (b) the Excess Distribution Certificateholder will be treated as owning all of the assets, and as assuming all of the liabilities (including the Notes), of the Issuer, and the parties hereto shall in all events take positions consistent with, and in no event take a position inconsistent with, the positions described in clauses (a) and (b) in the preparation of any returns and reports, and with respect to any audit or controversy, as to which either of the positions described in clauses (a) or (b) above would be relevant.  For purposes of the foregoing, the term “Retained Notes” means any Notes held by the Depositor or any of its Affiliates immediately after the Closing Date.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

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IN WITNESS WHEREOF, the Issuer, the Eligible Lender Trustee and the Indenture Trustee 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.

 

	 	
SLM STUDENT LOAN TRUST 2012-6

 

By: DEUTSCHE BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as Eligible Lender Trustee

 

By: /s/ Michele H.Y. Voon                                                                          

       Name:   Michele H.Y. Voon

       Title:      Vice President

 

By: /s/ Mark DiGiacomo                                                               

       Name:   Mark DiGiacomo

       Title:      Assistant Vice President

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as Eligible Lender Trustee

 

By: /s/ Michele H.Y. Voon                                                                          

       Name:   Michele H.Y. Voon

       Title:      Vice President

 

By: /s/ Mark DiGiacomo                                                               

       Name:   Mark DiGiacomo

       Title:      Assistant Vice President

 

 

 

  

58

  

 

	 	

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but solely

as Indenture Trustee

 

By: /s/ Michele H.Y. Voon                                                                          

       Name:   Michele H.Y. Voon

       Title:      Vice President

 

By: /s/ Mark DiGiacomo                                                               

       Name:   Mark DiGiacomo

       Title:      Assistant Vice President

 

 

 

  

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APPENDIX A

TO THE INDENTURE

DEFINITIONS AND USAGE

SLM Student Loan Trust 2012-6

 

 

Usage

 

The following rules of construction and usage shall be applicable to any instrument that is governed by this appendix (this “Appendix A”):

 

(a)           All terms defined in this Appendix A shall have the defined meanings when used in any instrument governed hereby and in any certificate or other document made or delivered pursuant thereto unless otherwise defined therein.

 

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

 

(c)           The words “hereof,” “herein,” “hereunder” and words of similar import when used in an instrument refer to such instrument as a whole and not to any particular provision or subdivision thereof; references in an instrument to “Article,” “Section” or another subdivision or to an attachment are, unless the context otherwise requires, to an article, section or subdivision of or an attachment to such instrument; and the term “including” means “including without limitation.”

 

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

 

(e)           Any agreement, instrument or statute defined or referred to below or any agreement or instrument that is governed by this Appendix A means such agreement or instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by assignment, assumption, waiver or consent and (in the case of statutes) by succession of comparable successor statutes 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.

 

(f)           All dollar amounts calculated hereunder shall be rounded to the nearest penny with one half of one cent being rounded up to the next penny.

 

  

Appendix A-1

  

Definitions

 

“Accrual Period” means, with respect to a Distribution Date, the period from and including the immediately preceding Distribution Date for the Notes to, but excluding, the then current Distribution Date, or in the case of the initial accrual period, the period from and including the Closing Date to, and including, November 25, 2012.

 

“Act” means the Securities Act of 1933, as amended.

 

“Act of Noteholders” has the meaning specified in Section 11.3 of the Indenture.

 

“Actual/360” means that interest is calculated on the basis of the actual number of days elapsed in a year of 360 days.

 

“Additional Bill of Sale” has the meaning specified in each of the Purchase Agreements or the Sale Agreement, as applicable.

 

“Additional Purchase Agreement” has the meaning specified in each of the Purchase Agreements, as applicable.

 

“Additional Sale Agreement” has the meaning specified in the Sale Agreement.

 

“Additional Trust Student Loan” means each Eligible Loan purchased by the Trust during the Supplemental Purchase Period from the Depositor pursuant to Section 3.2 of the Sale Agreement and each related Additional Sale Agreement.

 

“Adjusted Pool Balance” means, for any Distribution Date,

 

	
  

	
(a) if the Pool Balance as of the last day of the related Collection Period is greater than 40% of the Initial Pool Balance, then the Adjusted Pool Balance will be the sum of that Pool Balance, Capitalized Interest and the Specified Reserve Account Balance for that Distribution Date, or

 

	
  

	
(b) if the Pool Balance as of the last day of the related Collection Period is less than or equal to 40% of the Initial Pool Balance, then the Adjusted Pool Balance will be the sum of that Pool Balance and Capitalized Interest.

 

“Administration Agreement” means the Administration Agreement dated as of September 20, 2012 among the Administrator, the Servicer, the Depositor, the Trust, the Indenture Trustee and the Eligible Lender Trustee.

 

“Administration Fees” has the meaning specified in Section 2.14 of the Administration Agreement.

 

“Administrator” means Sallie Mae, Inc., in its capacity as administrator of the Trust in accordance with the Administration Agreement.

 

  

Appendix A-2

  

“Administrator Default” has the meaning specified in Section 5.1 of the Administration Agreement.

 

“Administrator’s Certificate” means an Officers’ Certificate of the Administrator delivered pursuant to Section 3.1(c) of the Administration Agreement.

 

“Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person.  For the purposes of this definition, “control” when used with respect to any specified Person means 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; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Authenticating Agent” means Deutsche Bank Trust Company Americas, in respect of the Excess Distribution Certificate.

 

“Authorized Officer” means (i) with respect to the Trust, any officer of the Eligible Lender Trustee who is authorized to act for the Eligible Lender Trustee in matters relating to the Trust pursuant to the Basic Documents and who is identified on the list of Authorized Officers delivered by the Eligible Lender Trustee to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter), (ii) with respect to the Administrator, any officer of the Administrator or any of its Affiliates who is authorized to act for the Administrator in matters relating to itself or to the Trust and to be acted upon by the Administrator pursuant to the Basic Documents and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter), (iii) with respect to the Depositor, any officer of the Depositor or any of its Affiliates who is authorized to act for the Depositor in matters relating to or to be acted upon by the Depositor pursuant to the Basic Documents and who is identified on the list of Authorized Officers delivered by the Depositor to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter) and (iv) with respect to the Servicer, any officer of the Servicer who is authorized to act for the Servicer in matters relating to or to be acted upon by the Servicer pursuant to the Basic Documents and who is identified on the list of Authorized Officers delivered by the Servicer to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter).

 

“Available Funds” means, as to a Distribution Date, the sum of the following amounts received with respect to the related Collection Period(s):

 

	
  

	
(a)

	
all collections received by the Servicer on the Trust Student Loans, including any Guarantee Payments received on the Trust Student Loans, but net of:

 

	
  

	
(1)

	
any collections in respect of principal on the Trust Student Loans applied by the Trust to repurchase guaranteed loans from the Guarantors under the Guarantee Agreements; and

 

	
  

	
(2)

	
amounts required by the Higher Education Act to be paid to the Department or to be repaid to Obligors, whether or not in the form of a principal reduction of the applicable Trust Student Loan, on the Trust Student Loans for that Collection Period; and

 

  

Appendix A-3

  

 

	
  

	
(3)

	
amounts deposited into the Floor Income Rebate Account during the related Collection Period;

 

	
  

	
(b)

	
any Interest Subsidy Payments and Special Allowance Payments with respect to the Trust Student Loans during that Collection Period;

 

	
  

	
(c)

	
all Liquidation Proceeds from any Trust Student Loans which became Liquidated Student Loans during that Collection Period in accordance with the Servicer’s customary servicing procedures, net of expenses incurred by the Servicer related to their liquidation and any amounts required by law to be remitted to the Obligors on the Liquidated Student Loans, and all Recoveries on Liquidated Student Loans which were written off in prior Collection Periods or during that Collection Period;

 

	
  

	
(d)

	
the aggregate Purchase Amounts received during that Collection Period for those Trust Student Loans repurchased by the Depositor or purchased by the Servicer, as the case may be, or for Trust Student Loans sold to another eligible lender pursuant to Section 3.11E of the Servicing Agreement;

 

	
  

	
(e)

	
the aggregate Purchase Amounts received during that Collection Period for those Trust Student Loans repurchased by SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding or VL Funding;

 

	
  

	
(f)

	
[Reserved];

 

	
  

	
(g)

	
the aggregate amounts, if any, received from any of SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding, the Depositor or the Servicer, as the case may be, as reimbursement of non-guaranteed interest amounts, or lost Interest Subsidy Payments and Special Allowance Payments, on the Trust Student Loans pursuant to the Sale Agreement, a Purchase Agreement or Section 3.5 of the Servicing Agreement, respectively;

 

	
  

	
(h)

	
amounts received by the Trust pursuant to Sections 3.1 and 3.12 of the Servicing Agreement during that Collection Period as to yield or principal adjustments (other than prepayments to the Borrower Benefit Account);

 

	
  

	
(i)

	
any interest remitted by the Administrator to the Collection Account prior to such Distribution Date;

 

	
  

	
(j)

	
Investment Earnings for that Distribution Date earned on amounts on deposit in each Trust Account (other than the Borrower Benefit Account);

 

	
  

	
(k)

	
amounts transferred from the Reserve Account in excess of the Specified Reserve Account Balance for that Distribution Date;

 

  

Appendix A-4

  

	
  

	
(l)

	
once the Department of Education has netted all payments, any amounts on deposit in the Floor Income Rebate Account that were deposited into such account during the related Collection Periods;

 

	
  

	
(m)

	
[Reserved];

 

	
  

	
(n)

	
on the initial Distribution Date, the Collection Account Initial Deposit and any amounts transferred into the Collection Account from the Supplemental Purchase Account following the end of the Supplemental Purchase Period;

 

	
  

	
(o)

	
[Reserved];

 

	
  

	
(p)

	
on the October 2013 Distribution Date, all funds remaining on deposit in the Capitalized Interest Account;

 

	
  

	
(q)

	
[Reserved];

 

	
  

	
(r)

	
on each Distribution Date, any amounts transferred into the Collection Account from the Borrower Benefit Account pursuant to Section 2.10(f) of the Administration Agreement; and

 

	
  

	
(s)

	
amounts required to be transferred from the Borrower Benefit Account for such Distribution Date, to the extent funds are on deposit therein.

 

provided that if on any Distribution Date there would not be sufficient funds, after application of Available Funds, as defined above, and application of amounts available from the Capitalized Interest Account and the Reserve Account to pay any of the items specified in clauses (a), (b), (c) and (d) of Section 2.8 of the Administration Agreement (but excluding clause (d), and including clause (f) thereof, in the event that a condition exists as described in either sub-clause (i) or (ii) of clause (x) of Section 2.8 of the Administration Agreement), as set forth in Section 2.9 of the Administration Agreement, relating to such distributions, then Available Funds for that Distribution Date will include, in addition to the Available Funds as defined above, amounts on deposit in the Collection Account, or amounts held by the Administrator, or which the Administrator reasonably estimates to be held by the Administrator, for deposit into the Collection Account on the related Determination Date which would have constituted Available Funds for the Distribution Date succeeding that Distribution Date, up to the amount necessary to pay such items, and the Available Funds for the succeeding Distribution Date will be adjusted accordingly.

 

“Basic Documents” means the Trust Agreement, the Indenture, the Servicing Agreement, the Administration Agreement, the Sale Agreement, the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement, the VL Funding Purchase Agreement, the Guarantee Agreements, the Note Depository Agreement and other documents and certificates delivered in connection with any such documents.

 

“Benefit Plan” means (i) an employee benefit plan (as defined in Section 3(3) of ERISA), whether or not subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code or (iii) any entity whose underlying assets include plan assets by reason of a plan’s investment in the entity.

 

  

Appendix A-5

  

“Bill of Sale” has the meaning specified in each of the Purchase Agreements or the Sale Agreement, as applicable.

 

“Bluemont Funding” means Bluemont Funding LLC.

 

“Bluemont Funding Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, a New York banking corporation, not in its individual capacity but solely as interim eligible lender trustee for the benefit of Bluemont Funding under the Bluemont Funding Interim Trust Agreement.

 

“Bluemont Funding Interim Trust Agreement” means the Interim Trust Agreement dated as of September 20, 2012, between Bluemont Funding and the Bluemont Funding Eligible Lender Trustee.

 

“Bluemont Funding Purchase Agreement” means the Purchase Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among Bluemont Funding, the Bluemont Funding Eligible Lender Trustee, the Interim Eligible Lender Trustee, the Servicer and the Depositor, as well as each purchase agreement entered into thereunder.

 

“Book Entry Note” means a beneficial interest in the Notes, ownership and transfers of which shall be made through book entries by a Clearing Agency as described in Section 2.10 of the Indenture.

 

“Borrower Benefit Account” means the account designated as such, established and maintained pursuant to Section 2.3(m) of the Administration Agreement.

 

“Borrower Benefit Account Initial Deposit” shall mean $0.

 

“Borrower Benefit Yield Reduction” has the meaning specified in Section 3.12 of the Servicing Agreement.

 

“Business Day” means

 

(i)           with respect to calculating LIBOR of a specified maturity, any day on which banks in New York, New York and London, England are open for the transaction of international business; and

 

(ii)           for all other purposes, any day other than a Saturday, a Sunday or a day on which banking institutions or trust companies in New York, New York or Wilmington, Delaware are authorized or obligated by law, regulation or executive order to remain closed.

 

 

  

Appendix A-6

  

“Capitalized Interest” means for any Distribution Date through and including the October 2013 Distribution Date: (i) if neither of the conditions set forth in clause (x) of Section 2.8 of the Administration Agreement are in effect, the amount on deposit in the Capitalized Interest Account on the Distribution Date following distributions with respect to clauses (a), (b), (c) and (d) of Section 2.8 of the Administration Agreement, or (ii) if either of the conditions set forth in clause (x) of Section 2.8 of the Administration Agreement are in effect, the excess, if any, of (x) the amount on deposit in the Capitalized Interest Account on the Distribution Date following distributions with respect to clauses (a), (b) and (c) of Section 2.8 of the Administration Agreement over (y) the Class B Noteholders’ Interest Distribution Amount.

 

“Capitalized Interest Account” means the account designated as such, established and maintained pursuant to Section 2.3(h) of the Administration Agreement.

 

“Capitalized Interest Account Balance” means as of any date of determination, the amount on deposit in the Capitalized Interest Account (exclusive of Investment Earnings).

 

“Capitalized Interest Account Initial Deposit” means $10,000,000.

 

“Carryover Servicing Fee” has the meaning specified in Attachment A to the Servicing Agreement.

 

“Class A Maturity Date” means (i) with respect to the Class A-1 Notes, the Class A-1 Maturity Date, (ii) with respect to the Class A-2 Notes, the Class A-2 Maturity Date, and (iii) with respect to the Class A-3 Notes, the Class A-3 Maturity Date.

 

“Class A Note Interest Shortfall” means, for any Distribution Date, the excess of:

 

(i)           the Class A Noteholders’ Interest Distribution Amount on the preceding Distribution Date, over

 

(ii)           the amount of interest actually distributed to the Class A Noteholders on such preceding Distribution Date,

 

plus interest on the amount of such excess interest due to the Class A Noteholders, to the extent permitted by law, at the related Class A Rate from such preceding Distribution Date to the current Distribution Date.

 

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

 

“Class A Noteholders’ Distribution Amount” means, for any Distribution Date, the sum of the Class A Noteholders’ Interest Distribution Amount and the Class A Noteholders’ Principal Distribution Amount for that Distribution Date.

 

“Class A Noteholders’ Interest Distribution Amount” means, for any Distribution Date, the sum of:

 

 

  

Appendix A-7

  

 

(1)  the amount of interest accrued at the related Class A Rate for the related Accrual Period on the Outstanding Amount of the Class A Notes on the immediately preceding Distribution Date (or in the case of the initial Distribution Date, the Closing Date) after giving effect to all principal distributions to the Class A Noteholders on the preceding Distribution Date; and

 

(2)  the Class A Note Interest Shortfall for that Distribution Date.

 

“Class A Noteholders’ Principal Distribution Amount” means, for any Distribution Date, the Principal Distribution Amount for that Distribution Date; provided that the Class A Noteholders’ Principal Distribution Amount shall not exceed the aggregate Outstanding Amount of the Class A Notes for such Distribution Date (before giving effect to any distributions on such Distribution Date).

 

In addition, on the related Class A Maturity Date, the principal required to be distributed to the related Class A Noteholders will include the amount required to reduce the Outstanding Amount of the related Class A Notes to zero.

 

“Class A Notes” means the collective reference to the Class A-1, Class A-2, and Class A-3 Notes.

 

“Class A Rate” means (i) with respect to the Class A-1 Notes, the Class A-1 Rate, (ii) with respect to the Class A-2 Notes, the Class A-2 Rate, and (iii) with respect to the Class A-3 Notes, the Class A-3 Rate.

 

“Class A-1 Maturity Date” means the February 27, 2017 Distribution Date.

 

“Class A-1 Notes” means the $277,000,000 Floating Rate Class A-1 Student Loan-Backed Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A thereto.

 

“Class A-1 Rate” means, for any Accrual Period after the initial Accrual Period, One-Month LIBOR, as determined on the related LIBOR Determination Date, plus 0.16% based on an Actual/360 accrual method. For the initial Accrual Period, the Class A-1 Rate shall mean the Initial Accrual Rate plus 0.16%, based on an Actual/360 accrual method.

 

“Class A-2 Maturity Date” means the September 25, 2019 Distribution Date.

 

“Class A-2 Notes” means the $360,000,000 Floating Rate Class A-2 Student Loan-Backed Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A thereto.

 

“Class A-2 Rate” means, for any Accrual Period after the initial Accrual Period, One-Month LIBOR, as determined on the related LIBOR Determination Date, plus 0.28% based on an Actual/360 accrual method. For the initial Accrual Period, the Class A-2 Rate shall mean the Initial Accrual Rate plus 0.28%, based on an Actual/360 accrual method.

 

“Class A-3 Maturity Date” means the May 26, 2026 Distribution Date.

 

  

Appendix A-8

  

“Class A-3 Notes” means the $575,000,000 Floating Rate Class A-3 Student Loan-Backed Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A thereto.

 

“Class A-3 Rate” means, for any Accrual Period after the initial Accrual Period, One-Month LIBOR, as determined on the related LIBOR Determination Date, plus 0.75% based on an Actual/360 accrual method. For the initial Accrual Period, the Class A-3 Rate shall mean the Initial Accrual Rate plus 0.75%, based on an Actual/360 accrual method.

 

“Class B Maturity Date” means the April 27, 2043 Distribution Date.

 

“Class B Note Interest Shortfall” means, for any Distribution Date, the excess of:

 

(i)           the Class B Noteholders’ Interest Distribution Amount on the preceding Distribution Date, over

 

(ii)           the amount of interest actually distributed to the Class B Noteholders on such preceding Distribution Date,

 

plus interest on the amount of such excess interest due to the Class B Noteholders, to the extent permitted by law, at the Class B Rate from such preceding Distribution Date to the current Distribution Date.

 

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

 

“Class B Noteholders’ Distribution Amount” means, for any Distribution Date, the sum of the Class B Noteholders’ Interest Distribution Amount and the Class B Noteholders’ Principal Distribution Amount for that Distribution Date.

 

“Class B Noteholders’ Interest Distribution Amount” means, for any Distribution Date, the sum of:

 

(1)  the amount of interest accrued at the Class B Rate for the related Accrual Period on the Outstanding Amount of the Class B Notes on the immediately preceding Distribution Date (or, in the case of the initial Distribution Date, the Closing Date) after giving effect to all principal distributions to the Class B Noteholders on the preceding Distribution Dates; and

 

(2)  the Class B Note Interest Shortfall for that Distribution Date.

 

“Class B Noteholders’ Principal Distribution Amount” means, for any Distribution Date, the amount by which (a) the Principal Distribution Amount for such Distribution Date exceeds (b) the Class A Noteholders’ Principal Distribution Amount for such Distribution Date; provided that the Class B Noteholders’ Principal Distribution Amount will not exceed the Outstanding Amount of the Class B Notes for such Distribution Date (before giving effect to any distributions on such Distribution Date).

 

  

Appendix A-9

  

In addition, on the Class B Maturity Date, the principal required to be distributed to the Class B Noteholders will include the amount required to reduce the Outstanding Amount of the Class B Notes to zero.

 

“Class B Notes” means the $37,400,000 Floating Rate Class B Student Loan-Backed Notes issued by the Trust pursuant to the Indenture, substantially in the form of Exhibit A thereto.

 

“Class B Rate” means, for any Accrual Period after the initial Accrual Period, One-Month LIBOR, as determined on the related LIBOR Determination Date, plus 1.00%, based on an Actual/360 accrual method.  For the initial Accrual Period, the Class B Rate shall mean the Initial Accrual Rate plus 1.00%, based on an Actual/360 accrual method.

 

 “Clearing Agency” means DTC, Euroclear or Clearstream, Luxembourg, as applicable, or another organization registered as a “clearing agency” pursuant to applicable law.  The initial Clearing Agency for each class of Notes shall be DTC and the nominee for such Clearing Agency shall be Cede & Co.

 

“Clearing Agency Participant” means 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.

 

“Clearstream, Luxembourg” means Clearstream Banking, société anonyme, Luxembourg or any successor thereto.

 

“Closing Date” means September 20, 2012.

 

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

 

“Collateral” has the meaning specified in the Granting Clause of the Indenture.

 

“Collection Account” means the account designated as such, established and maintained pursuant to Section 2.3(f) of the Administration Agreement.

 

“Collection Account Initial Deposit” means (i) $7,300,000 plus (ii) $0 (representing the excess, if any, of the Pool Balance as of the Statistical Cutoff Date over the Pool Balance as of the Closing Date, to the extent such excess amount is not deposited into the Supplemental Purchase Account).

 

“Collection Period” means, with respect to the first Distribution Date, the period beginning on the Closing Date and ending on November 25, 2012, and with respect to each subsequent Distribution Date the Collection Period means the calendar month immediately preceding such Distribution Date.

 

“Commission” means the Securities and Exchange Commission.

 

 

Appendix A-10

 

“Common Depository” means DTC, Clearstream, Luxembourg and Euroclear, as applicable.

 

“Consolidation Loans” means Student Loans made in accordance with Section 428C of the Higher Education Act.

 

“Corporate Trust Office” means (i) with respect to the Indenture Trustee, the principal office of the Indenture Trustee at which at any particular time its corporate trust business shall be administered, which office at the Closing Date is located at 100 Plaza One, Jersey City, New Jersey 07311, Attention: Structured Finance Services/Asset Backed Securities (telephone: (201) 593-8420; facsimile: (212) 553-2458) or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Depositor, or the principal corporate trust office of any successor Indenture Trustee (the address of which the successor Indenture Trustee will notify the Noteholders, the Administrator and the Depositor); (ii) with respect to the Eligible Lender Trustee, the corporate trust office of the Eligible Lender Trustee located at 60 Wall Street, 27th Floor, New York, New York 10005, Attention: Attn: Structured Finance Services/Asset Backed Securities, telephone: (201) 593-8420, facsimile: (212) 553-2458 or at such other address as the Eligible Lender Trustee may designate by notice to the Depositor, or the principal corporate trust office of any successor Eligible Lender Trustee (the address of which the successor Eligible Lender Trustee will notify the Administrator and the Depositor) and (iii) with respect to the Delaware Trustee, the principal Delaware address located at 1011 Centre Road, Suite 200, Wilmington, Delaware 19805, Attention: Elizabeth Ferry, Vice President, telephone: (302) 636-3392, facsimile: (302) 636-3399 or at such other address as the Delaware Trustee may designate by notice to the Depositor, or the principal Delaware address of any successor Delaware Trustee (the address of which the successor Delaware Trustee will notify the Administrator and the Depositor).

 

“Cutoff Date” means (a) the Initial Cutoff Date with respect to the Initial Trust Student Loans and (b) the applicable Subsequent Cutoff Date with respect to the related Additional Trust Student Loan or Substituted Trust Student Loan.

 

“Default” means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default.

 

“Definitive Notes” has the meaning specified in Section 2.10 of the Indenture.

 

“Delaware Statutory Trust Act” means Chapter 38 of Title 12, Part V of the Delaware Code, entitled “Treatment of Delaware Statutory Trusts.”

 

“Delaware Trustee” means Deutsche Bank Trust Company Delaware, a Delaware banking corporation, not in its individual capacity but solely as Delaware Trustee under the Trust Agreement.  “Delaware Trustee” shall also mean each successor Delaware Trustee as of the qualification of such successor as Delaware Trustee under the Trust Agreement.

 

“Delivery” when used with respect to Trust Account Property means:

 

(a)           with respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit and other obligations that constitute “instruments” (as defined in Section 9-102(a)(47) of the UCC) and are susceptible of physical delivery, physical delivery thereof to the Indenture Trustee 

 

 

Appendix A-11

 

endorsed to the Indenture Trustee or endorsed in blank, and, with respect to a “certificated security” (as defined in Section 8-102(a)(4) of the UCC) (i) delivery of such certificated security endorsed to, or registered in the name of, the Indenture Trustee “securities  intermediary” (as defined in Section 8-102(a)(14) of the UCC), or endorsed in blank, and, in the case of delivery to a securities intermediary, the making by such securities intermediary of book-entries sufficient to cause the Indenture Trustee to become the “entitlement holder” (as defined in Section 8-102(a)(4) of the UCC with respect to such certificated security, or (ii) delivery thereof to a “clearing corporation” (as defined in Section 8-102(a)(5) of the UCC) and the making by such clearing corporation of book-entries sufficient to cause a securities intermediary become the entitlement holder with respect to such certificated security and the making by such securities intermediary of book-entries sufficient to cause the Indenture Trustee to become the entitlement holder with respect thereto (all of the foregoing, but not including Trust Student Loans, “Physical Property”); and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of ownership of any such Trust Account Property to the Indenture Trustee, consistent with changes in applicable law or regulations or the interpretation thereof;

 

(b)           with respect to any security issued or guaranteed by the U.S. Treasury, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association that is a book-entry security held at a Federal Reserve Bank pursuant to federal book-entry regulations (collectively, “Federal Book-Entry Securities”), the following procedures, all in accordance with applicable law, including applicable federal regulations and Articles 8 and 9 of the UCC: the crediting of such book-entry security to a participant’s book-entry account of the Indenture Trustee or its securities intermediary at a Federal Reserve Bank (a “Participant’s Account”), and, in the case of such Federal Book-Entry Securities credited to a Participant’s Account of a securities intermediary, the making by such securities intermediary of book-entries sufficient to cause the Indenture Trustee to become the entitlement holder with respect thereto; and

 

(c)           with respect to any item of Trust Account Property that is an “uncertificated security” (as defined in Section 8-102(a)(18) of the UCC), registration on the books and records of the issuer thereof in the name of the Indenture Trustee or a securities intermediary, and, in the case of registration in the name of a securities intermediary, the making by such securities intermediary of book-entries sufficient to cause the Indenture Trustee to become the entitlement holder with respect thereto.

 

“Department” means the United States Department of Education, an agency of the Federal government.

 

“Depositor” means SLM Funding LLC, a Delaware limited liability company, and its successors and assigns, including, for such purpose, a permitted transferee of all of SLM Funding LLC’s right, title and interest in the Excess Distribution Certificate.

 

“Depository Agreement” means the Note Depository Agreement.

 

“Determination Date” means, with respect to the Collection Period preceding any Distribution Date, the first Business Day preceding such Distribution Date.

 

 

Appendix A-12

 

“Distribution Date” means the 25th day of each calendar month, or, if such day is not a Business Day, the immediately following Business Day, commencing in November 2012.

 

“DTC” means The Depository Trust Company, or any successor thereto.

 

“DTC Custodian” means Deutsche Bank National Trust Company.

 

“Eligible Deposit Account” means either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with the corporate trust department of a depository institution organized under the laws of the United States of America or any one of the States or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited in such account, so long as any of the securities of such depository institution have a credit rating from Moody’s, S&P, and, if such institution is rated by Fitch, Fitch, in one of their generic rating categories which signifies investment grade.

 

“Eligible Institution” means a depository institution organized under the laws of the United States of America or any one of the States or the District of Columbia (or any domestic branch of a foreign bank) (i) which has (A) either a long-term senior unsecured debt rating of “AAA” or a short-term senior unsecured debt or certificate of deposit rating of “A-1+” or better by S&P and (B)(1) a long-term senior unsecured debt rating of “A1” or better and (2) a short-term senior unsecured debt rating of “P-1” or better by Moody’s, and (C) a long-term senior unsecured debt rating of “AA” or a short-term senior unsecured debt rating of “F1+” by Fitch, or any other long-term, short-term or certificate of deposit rating with respect to which the Rating Agency Condition has been satisfied; provided that clauses (A), (B) and (C) shall only apply if the applicable rating agency is then rating the Notes, and (ii) whose deposits are insured by the FDIC.  If so qualified, the Eligible Lender Trustee or the Indenture Trustee may be considered an Eligible Institution.

 

“Eligible Investments” means book-entry securities, negotiable instruments or securities represented by instruments in bearer or registered form which evidence:

 

(a)  direct obligations of, and obligations fully guaranteed as to timely payment by, the United States of America, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or any agency or instrumentality of the United States of America the obligations of which are backed by the full faith and credit of the United States of America; provided that obligations of, or guaranteed by, the Government National Mortgage Association (GNMA), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae) shall be Eligible Investments only if, at the time of investment, they meet the criteria of each of the Rating Agencies for collateral for securities having ratings equivalent to the respective ratings of the Notes in effect at the Closing Date;

 

(b)  demand deposits, time deposits or certificates of deposit of any depository institution or trust company incorporated under the laws of the United States of America or any state (or any domestic branch of a foreign bank) and subject to supervision and examination by federal or state banking or depository institution authorities (including depository receipts issued by any such institution or trust company as custodian with respect to any 

 

 

Appendix A-13

 

obligation referred to in clause (a) above or portion of such obligation for the benefit of the holders of such depository receipts); provided that at the time of the investment or contractual commitment to invest therein (which shall be deemed to be made again each time funds are reinvested following each Distribution Date), the commercial paper or other short-term senior unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) thereof shall have a credit rating from each of the Rating Agencies in the highest investment category granted thereby;

 

(c)  commercial paper having, at the time of the investment, a rating from each of the Rating Agencies in the highest investment category granted thereby;

 

(d)  investments in money market funds having a rating from each of the Rating Agencies in the highest investment category granted thereby (including funds for which the Indenture Trustee, the Administrator or the Eligible Lender Trustee or any of their respective Affiliates is investment manager or advisor);

 

(e)  bankers’ acceptances issued by any depository institution or trust company referred to in clause (b) above;

 

(f)  repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America, in either case entered into with a depository institution or trust company (acting as principal) described in clause (b) above;

 

(g) Eligible Repurchase Obligations; and

 

(h) any other investment which would not result in the downgrading or withdrawal of any rating of the Notes by any of the Rating Agencies as affirmed in writing delivered to the Indenture Trustee.

 

For purposes of the definition of “Eligible Investments” the phrase “highest investment category” means (i) in the case of Fitch, “AAA” for long-term investments (or the equivalent) and “F-1+” for short-term investments (or the equivalent), (ii) in the case of Moody’s, “Aaa” for long-term investments (or the equivalent) and “P-1” for short-term investments (or the equivalent), and (iii) in the case of S&P, “AAA” for long-term investments (or the equivalent) and “A-1+” for short-term investments (or the equivalent).  A proposed investment not rated by Fitch but rated in the highest investment category by Moody’s shall be considered to be rated by each of the Rating Agencies in the highest investment category granted thereby.

 

“Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, a New York banking corporation, not in its individual capacity but solely as Eligible Lender Trustee under the Trust Agreement.  “Eligible Lender Trustee” shall also mean each successor Eligible Lender Trustee as of the qualification of such successor as Eligible Lender Trustee under the Trust Agreement.

 

“Eligible Loans” has the meaning specified in any of the Purchase Agreements or the Sale Agreement, as applicable.

 

“Eligible Repo Counterparty” means an institution that is an eligible lender (under the Federal Family Education Loan Program) or that holds Student Loans through an eligible lender trustee and whose short-term debt ratings are not less than “P-1” by Moody’s, “A-1” by S&P and “F1” by Fitch, if rated by Fitch; provided that such short-term debt ratings shall only apply if the applicable Rating Agency is then rating the Notes.

 

 

Appendix A-14

 

“Eligible Repurchase Obligations” means repurchase obligations with respect to Student Loans serviced by the Servicer or an Affiliate thereof, entered into with an Eligible Repo Counterparty, provided that the applicable repurchase date shall occur no later than the Business Day prior to the next Distribution Date.

 

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

 

“Euroclear” means the Euroclear System, or any successor thereto.

 

“European Clearing Systems” means Euroclear or Clearstream, Luxembourg.

 

“Event of Default” has the meaning specified in Section 5.1 of the Indenture.

 

“Excess Distribution Certificate” means the certificate, substantially in the form of Exhibit A to the Trust Agreement, evidencing the right to receive payments thereon as set forth in Sections 2.8(k) and 2.9(f) of the Administration Agreement.

 

“Excess Distribution Certificate Paying Agent” means any paying agent or co-paying agent appointed pursuant to Section 3.3(g) of the Trust Agreement, which paying agent shall initially be the Indenture Trustee.

 

“Excess Distribution Certificate Register” and “Excess Distribution Certificate Registrar” mean the register mentioned and the registrar appointed pursuant to Section 3.3(c) of the Trust Agreement.

 

“Excess Distribution Certificateholder” means the person in whose name an Excess Distribution Certificate is registered in the Excess Distribution Certificate Register.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Executive Officer” means, with respect to any corporation, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, 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 thereof.

 

“Expenses” means 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 which may at any time be imposed on, incurred by, or asserted against the Eligible Lender Trustee or any of its officers, directors or agents in any way relating to or arising out of the Trust Agreement, the other Basic Documents, the Trust Estate, the administration of the Trust Estate or the action or inaction of the Eligible Lender Trustee under the Trust Agreement or the other Basic Documents.

 

“FDIC” means the Federal Deposit Insurance Corporation.

 

 

Appendix A-15

 

“Federal Funds Rate” means the rate set forth for such day opposite the caption “Federal Funds (effective)” in the weekly statistical release designated H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System.  If such rate is not published in the relevant H.15(519) for any day, the rate for such day shall be the arithmetic mean of the rates for the last transaction in overnight Federal Funds arranged prior to 9:00 a.m. New York City time on that day by each of four leading brokers in such transactions located in New York City selected by the Administrator. The Federal Funds rate for each Saturday and Sunday and for any other that is not a Business Day shall be the Federal Funds Rate for the preceding Business Day as determined above.

 

“Fitch” means Fitch, Inc., also known as Fitch Ratings or any successor Rating Agency.

 

“Floor Income Rebate Account” means the account designated as such, established and maintained pursuant to Section 2.3(n) of the Administration Agreement.

 

“Floor Income Rebate Account Release Amount” means, for each related Distribution Date as described in Section 8.2(m) of the Indenture, all amounts on deposit in the Floor Income Rebate Account at the end of the Collection Period preceding such Distribution Date.

 

“Funding Interim Trust Agreement” means the Interim Trust Agreement, dated as of September 20, 2012, between the Depositor and the Interim Eligible Lender Trustee.

 

“GLB Regulations” means the Joint Banking Agencies’ Privacy of Consumer Financial Information, Final Rule (12 CFR Parts 40, 216, 332 and 573) or the Federal Trade Commission’s Privacy of Consumer Financial Information, Final Rule (16 CFR Part 313), as applicable, implementing Title V of the Gramm-Leach-Bliley Act, Public Law 106-102, as amended.

 

“Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create and grant a lien upon and a security interest in and right of set-off against, deposit, set over and confirm pursuant to the 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 moneys 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.

 

“Guarantee Agreement” means any agreement between any Guarantor and the Eligible Lender Trustee providing for the payment by the related Guarantor of amounts authorized to be paid pursuant to the Higher Education Act to holders of qualifying Student Loans guaranteed in accordance with the Higher Education Act by such Guarantor.

 

“Guarantee Payment” means any payment made by a Guarantor pursuant to a Guarantee Agreement in respect of a Trust Student Loan.

 

 

Appendix A-16

 

“Guarantor” means any entity listed on Attachment B (as amended from time to time) to the Sale Agreement, the Purchase Agreements, any Additional Purchase Agreement or any Additional Sale Agreement, as applicable.

 

“H.15(519)” means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the United States Federal Reserve System.

 

“H.15 Daily Update” means the daily update for H.15(519), available through the world wide web site of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov/releases/h15/update, or any successor site or publications.

 

“Higher Education Act” means the Higher Education Act of 1965, as amended, together with any rules, regulations and interpretations thereunder.

 

“Indenture” means the Indenture dated as of September 20, 2012, among the Eligible Lender Trustee on behalf of the Trust, the Trust and the Indenture Trustee.

 

“Indenture Trust Estate” means all money, instruments, rights and other property that are subject or intended to be subject to the lien and security interest of the Indenture for the benefit of the Noteholders (including all Collateral Granted to the Indenture Trustee), including all proceeds thereof.

 

“Indenture Trustee” means Deutsche Bank National Trust Company, a national banking association, not in its individual capacity but solely as indenture trustee under the Indenture.

 

“Independent” means, when used with respect to any specified Person, that the Person (a) is in fact independent of the Trust, any other obligor upon the Notes, the Depositor and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Trust, any such other obligor, the Depositor or any Affiliate of any of the foregoing Persons and (c) is not connected with the Trust, any such other obligor, the Depositor or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, placement agent, trustee, partner, director or person performing similar functions.

 

“Independent Certificate” means 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 of the Indenture, 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 the Indenture and that the signer is Independent within the meaning thereof.

 

“Index Maturity” means, with respect to any Accrual Period, a period of time equal to one month and/or two months, as applicable, commencing on the first day of that Accrual Period.

 

“Initial Accrual Rate” means, for each class of the Class A Notes and the Class B Notes and any Accrual Period commencing on the Closing Date to, but excluding, the first Distribution Date for that class of Notes, the rate per annum as determined on the related Determination Date, as follows:

 

 

Appendix A-17

 

X + [ 6 / 30 *  (Y-X) ]

 

where:

 

X = Two-Month LIBOR, and

 

Y = Three-Month LIBOR.

 

“Initial Cutoff Date” means September 20, 2012.

 

“Initial Cutoff Date Pool Balance” means, as of the Initial Cutoff Date and with respect to the Initial Trust Student Loans, $1,223,601,904.25, representing the estimated Pool Balance as of the Initial Cutoff Date.

 

“Initial Pool Balance” means (1) the Initial Cutoff Date Pool Balance plus (2) the Supplemental Purchase Account Initial Deposit.

 

“Initial Trust Student Loans” means the Trust Student Loans purchased by the Trust on the Closing Date pursuant to the Sale Agreement.

 

“Insolvency Event” means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of its property 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 for such Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person’s affairs, which decree or order remains unstayed and in effect for a period of 60 consecutive days; or (b) the commencement by such Person 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 such Person to the entry of an order for relief in an involuntary case under any such law, or the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing.

 

“Interest Subsidy Payments” means payments, designated as such, consisting of interest subsidies by the Department in respect of the Trust Student Loans to the Eligible Lender Trustee on behalf of the Trust in accordance with the Higher Education Act.

 

“Interim Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, not in its individual capacity but solely as Interim Eligible Lender Trustee under the Interim Trust Agreement.  “Interim Eligible Lender Trustee” shall also mean each successor Interim Eligible Lender Trustee as of the qualification of such Interim Eligible Lender Trustee under the Interim Trust Agreement.

 

“Interim Trust Agreement” means each of the Funding Interim Trust Agreement, the Bluemont Funding Interim Trust Agreement, the Town Center Funding Interim Trust Agreement, the Town Hall Funding Interim Trust Agreement and the VL Funding Interim Trust Agreement.

 

 

Appendix A-18

 

“Interim Trust Loans” has the meaning set forth in the Interim Trust Agreement.

 

“Investment Earnings” means, with respect to any Distribution Date, the earnings derived from Eligible Investments (net of losses and investment expenses) on amounts on deposit in the Trust Accounts (other than the Borrower Benefit Account) to be deposited into the Collection Account on or prior to such Distribution Date pursuant to Section 2.3(b) of the Administration Agreement.

 

“Issuer” means the Trust and, for purposes of any provision contained in the Indenture and required by the TIA, each other obligor on the Notes.

 

“Issuer Order” and “Issuer Request” means a written order or request signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee.

 

“LIBOR” means One-Month LIBOR, Two-Month LIBOR and/or Three-Month LIBOR, as applicable.

 

“LIBOR Determination Date” means, for each Accrual Period, the second Business Day before the beginning of that Accrual Period.

 

“Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any kind, other than tax liens and any other liens, if any, which attach to the respective Trust Student Loan by operation of law as a result of any act or omission by the related Obligor.

 

“Liquidated Student Loan” means any defaulted Trust Student Loan liquidated by the Servicer (which shall not include any Trust Student Loan on which Guarantee Payments are received) or which the Servicer has, after using all reasonable efforts to realize upon such Trust Student Loan, determined to charge off.

 

“Liquidation Proceeds” means, with respect to any Liquidated Student Loan which became a Liquidated Student Loan during the current Collection Period in accordance with the Servicer’s customary servicing procedures, the moneys collected in respect of the liquidation thereof from whatever source, other than Recoveries, net of the sum of any amounts expended by the Servicer in connection with such liquidation and any amounts required by law to be remitted to the Obligor on such Liquidated Student Loan.

 

“Loan” has the meaning set forth in Section 2 of each of the Purchase Agreements, as applicable, and each Additional Purchase Agreement.

 

“Minimum Purchase Amount” means an amount that would be sufficient to (i) reduce the Outstanding Amount of each class of Notes on such Distribution Date to zero, and (ii) pay to the respective Noteholders the Class A Noteholders’ Interest Distribution Amount and the Class B Noteholders’ Interest Distribution Amount payable on such Distribution Date.

 

“Moody’s” means Moody’s Investors Service, Inc. or any successor Rating Agency.

 

 

Appendix A-19

 

“Note Depository Agreement” means the Letter of Representations, dated as of September 20, 2012 among the Trust, the Eligible Lender Trustee and the Indenture Trustee in favor of DTC.

 

“Note Final Maturity Date” means the Class A-1 Maturity Date, the Class A-2 Maturity Date, the Class A-3 Maturity Date or the Class B Maturity Date, as applicable.

 

“Note Interest Shortfall” means the Class A Note Interest Shortfall, if any, and/or the Class B Note Interest Shortfall, if any, as applicable.

 

“Note Owner” means, with respect to a Book-Entry Note, the Person who is the owner of such Book-Entry Note, as reflected on the books of the applicable 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 Pool Factor” means, as of the close of business on a Distribution Date, a seven-digit decimal figure equal to the Outstanding Amount of a class of Notes divided by the original Outstanding Amount of such class of Notes.  The Note Pool Factor for each class will be 1.0000000 as of the Closing Date; thereafter, the Note Pool Factor for each class will decline to reflect reductions in the Outstanding Amount of that class of Notes.

 

“Note Rates” means, with respect to any Accrual Period, the Class A-1 Rate, the Class A-2 Rate, the Class A-3 Rate and the Class B Rate for such Accrual Period, collectively.

 

“Note Register” and “Note Registrar” have the respective meanings specified in Section 2.4 of the Indenture.

 

“Noteholder” means the Person in whose name a Note is registered in the Note Register.

 

“Note” means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a Class B Note.

 

“Notes” means the collective reference to the Class A Notes and the Class B Notes.

 

“Obligor” on a Trust Student Loan means the borrower or co-borrowers of such Trust Student Loan and any other Person who owes payments in respect of such Trust Student Loan, including the Guarantor thereof and, with respect to any Interest Subsidy Payment or Special Allowance Payment, if any, thereon, the Department.

 

“Officers’ Certificate” means (i) in the case of the Trust, a certificate signed by any two Authorized Officers of the Eligible Lender Trustee, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, and delivered to the Indenture Trustee, and (ii) in the case of the Depositor, the Administrator or the Servicer, a certificate signed by any Authorized Officer of the Depositor, the Administrator or the Servicer, as applicable.

 

 

Appendix A-20

 

“One-Month LIBOR”, “Two-Month LIBOR” and “Three-Month LIBOR” means, with respect to any Accrual Period, the London interbank offered rate for deposits in U.S. Dollars having the Index Maturity which appears on Reuters Screen LIBOR01 Page as of 11:00 a.m. London time, on the related LIBOR Determination Date, as determined by the Administrator.  If this rate does not appear on Reuters Screen LIBOR01 Page or on such comparable service as is customarily used to quote LIBOR, the rate for that day will be determined on the basis of the rates at which deposits in U.S. Dollars, having the Index Maturity and in a principal amount of not less than U.S. $1,000,000, are offered at approximately 11:00 a.m., London time, on that LIBOR Determination Date, to prime banks in the London interbank market by the Reference Banks.  The Administrator will request the principal London office of each Reference Bank to provide a quotation of its rate.  If the Reference Banks provide at least two quotations, the rate for that day will be the arithmetic mean of the quotations.  If the Reference Banks provide fewer than two quotations, the rate for that day will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the Administrator at approximately 11:00 a.m., New York time, on that LIBOR Determination Date, for loans in U.S. Dollars to leading European banks having the Index Maturity and in a principal amount of not less than U.S. $1,000,000.  If the banks selected as described above are not providing quotations, LIBOR in effect for the applicable Accrual Period will be LIBOR for the Index Maturity in effect for the previous Accrual Period.  All percentages resulting from such calculations shall be rounded, if necessary, to the nearest 1/100,000 of 1%, or 0.0000001, with five one-millionths of a percentage point being rounded upward.

 

“Opinion of Counsel” means (i) with respect to the Trust, one or more written opinions of counsel who may, except as otherwise expressly provided in the Indenture, be employees of or counsel to the Eligible Lender Trustee, the Trust, the Depositor or an Affiliate of the Depositor and who shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be addressed to the Indenture Trustee as Indenture Trustee, shall comply with any applicable requirements of Section 11.1 of the Indenture and shall be in form and substance satisfactory to the Indenture Trustee, and (ii) with respect to the Depositor, the Administrator or the Servicer, one or more written opinions of counsel who may be an employee of or counsel to the Depositor, the Administrator or the Servicer, which counsel shall be acceptable to the Indenture Trustee and the Eligible Lender Trustee.

 

“Origination Fee” means any origination fee payable to the Department by the lender with respect to any Trust Student Loan.

 

“Outstanding” means, as of any date of determination, all Notes theretofore authenticated and delivered under the Indenture except:

 

(a)  Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation;

 

(b) Notes or portions thereof, for which payment has been made to the applicable Noteholders in reduction of the outstanding principal balance thereof or for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Noteholders thereof (provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture); and

 

 

Appendix A-21

 

(c) Notes in exchange for or in lieu of other Notes which have been authenticated and delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona fide purchaser; provided that in determining whether the Noteholders of the requisite Outstanding Amount of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any other Basic Document, Notes owned by the Trust, any other obligor upon the Notes, the Depositor 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 upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee either actually knows to be so owned or has received written notice thereof 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 Trust, any other obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons.

 

“Outstanding Amount” means, as of any date of determination, the aggregate principal balance of all the Notes or the applicable class or classes of Notes, as the case may be, Outstanding at such date of determination.

 

“Paying Agent” means, with respect to the Notes, the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Eligible Lender Trustee on behalf of the Trust to make the payments to and distributions from the Collection Account and payments of principal of and interest and any other amounts owing on the Notes on behalf of the Trust.

 

“Person” means any individual, corporation, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization, limited liability company, limited liability partnership or government or any agency or political subdivision thereof.

 

“Physical Property” has the meaning assigned to such terms in the definition of “Delivery” above.

 

“PLUS Loan” means a Loan that was made pursuant to the PLUS Program established under Section 428B of the Higher Education Act (or predecessor provisions).

 

“Pool Balance” for any date means the aggregate principal balance of the Trust Student Loans on that date (including accrued interest that is expected to be capitalized) as such balance has been reduced through such date by:

 

(a)           all payments received by the Trust through that date from Obligors, the Guarantors and the Department;

 

(b)           all amounts received by the Trust through that date from repurchases of the Trust Student Loans by SLM ECFC, Bluemont Funding, Town Center Funding, Town Hall Funding, VL Funding or the Depositor, as applicable, or purchases by the Servicer;

 

 

Appendix A-22

 

(c)           all Liquidation Proceeds and Realized Losses on the Trust Student Loans liquidated through that date;

 

(d)           the amount of any adjustments to the outstanding principal balances of the Trust Student Loans that the Servicer makes under the Servicing Agreement through that date; and

 

(e)           the amount by which Guarantor reimbursements of principal on defaulted Trust Student Loans through that date are reduced from 100% to 98%, from 99% to 97%, or from and to such other applicable percentages as are required by the risk sharing provisions of the Higher Education Act.

 

“Predecessor Note” means, 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; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.5 of the Indenture and in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“Primary Servicing Fee” for any Distribution Date has the meaning specified in Attachment A to the Servicing Agreement, and shall include any such fees from prior Distribution Dates that remain unpaid.

 

“Principal Distribution Amount” means, for any Distribution Date, the amount, not less than zero, by which (a) the aggregate Outstanding Amount of the Notes immediately prior to such Distribution Date exceeds (b) the Adjusted Pool Balance for such Distribution Date less the Specified Overcollateralization Amount.  Notwithstanding the foregoing, (i) on or after the related Note Final Maturity Date, the Principal Distribution Amount shall not be less than the amount that is necessary to reduce the Outstanding Amount of the related class of Notes to zero, and (ii) the Principal Distribution Amount shall not exceed the aggregate Outstanding Amount of the Notes as of any Distribution Date (before giving effect to any distributions on such Distribution Date).

 

“Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding.

 

“Prospectus” means the collective reference to the Base Prospectus dated September 10, 2012 and the Prospectus Supplement dated September 11, 2012.

 

“Purchase Agreement” means each of the SLM ECFC Purchase Agreement, the Bluemont Funding Purchase Agreement, the Town Center Funding Purchase Agreement, the Town Hall Funding Purchase Agreement or the VL Funding Purchase Agreement each dated as of September 20, 2012.

 

“Purchase Amount” with respect to any Trust Student Loan means the amount required to prepay in full such Trust Student Loan under the terms thereof including all accrued and unpaid interest thereon.

 

 

Appendix A-23

 

“Purchased Student Loan” means a Trust Student Loan which is, as of the close of business on the last day of a Collection Period, purchased by the Servicer pursuant to Section 3.5A or 3.5H of the Servicing Agreement or repurchased by the Depositor pursuant to Section 6 of the Sale Agreement, purchased by the Servicer pursuant to Section 6.1 of the Administration Agreement, repurchased by SLM ECFC pursuant to Section 6 of the SLM ECFC Purchase Agreement, repurchased by Bluemont Funding pursuant to Section 6 of the Bluemont Funding Purchase Agreement, repurchased by Town Center Funding pursuant to Section 6 of the Town Center Funding Purchase Agreement, repurchased by Town Hall Funding pursuant to Section 6 of the Town Hall Funding Purchase Agreement, repurchased by VL Funding pursuant to Section 6 of the VL Funding Purchase Agreement or sold to another eligible lender holding one or more Serial Loans with respect to such Trust Student Loan pursuant to Section 3.11E of the Servicing Agreement.

 

“Rating Agency” means Moody’s and Fitch, so long as such organization is then rating the Notes.  If any such organization or successor thereto is no longer in existence, “Rating Agency” with respect to such organization shall be a nationally recognized statistical rating organization or other comparable Person designated by the Administrator, written notice of which designation shall be given to the Indenture Trustee, the Eligible Lender Trustee and the Servicer.

 

“Rating Agency Condition” means, with respect to any intended action, that each Rating Agency then rating a class of Notes, other than S&P, shall have been given 10 days’ prior written notice thereof and that each such Rating Agency shall have notified the Administrator, the Servicer, the Eligible Lender Trustee and the Indenture Trustee in writing that such proposed action will not result in and of itself in the reduction or withdrawal of its then-current rating of any class of Notes.

 

“Realized Loss” means the excess of the principal balance, including any interest that had been or had been expected to be capitalized, of any Liquidated Student Loan over Liquidation Proceeds for that Liquidated Student Loan to the extent allocable to principal, including any interest that had been or had been expected to be capitalized.

 

“Record Date” means, with respect to a Distribution Date or Redemption Date and for each class of Notes, the close of business on the day preceding such Distribution Date or Redemption Date.

 

“Recoveries” means moneys collected from whatever source with respect to any Liquidated Student Loan which was written off in prior Collection Periods or during the current Collection Period, net of the sum of any amounts expended by the Servicer for the account of any Obligor and any amounts required by law to be remitted to any Obligor.

 

“Redemption Date” means in the case of a payment to Noteholders pursuant to Section 10.1 of the Indenture, the Distribution Date specified pursuant to Section 10.1 of the Indenture.

 

 

Appendix A-24

 

“Redemption Price” means an amount equal to the Outstanding Amount of the Notes, plus accrued and unpaid interest thereon at the applicable Note Rate to but excluding the Redemption Date.

 

“Reference Banks” means four major banks in the London interbank market, as selected by the Administrator.

 

“Registrar” means the Excess Distribution Certificate Registrar and/or the Note Registrar, as applicable.

 

“Regulation AB” means  Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time.

 

“Reserve Account” means the account designated as such, established and maintained pursuant to Section 2.3(g) of the Administration Agreement.

 

“Reserve Account Initial Deposit” means $3,118,972.

 

“Responsible Officer” means, with respect to the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee, including any Vice President, Assistant Vice President, Assistant Treasurer, Assistant Secretary, or any other officer of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers, with direct responsibility for the administration of the Indenture and the other Basic Documents on behalf of the Indenture Trustee and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

 

“Reuters Screen LIBOR01 Page” means the display page so designated on the Reuters Monitor Money Rates Service (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices).

 

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, or any successor.

 

“Sale Agreement” means the Sale Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among the Eligible Lender Trustee on behalf of the Trust, the Trust, the Interim Eligible Lender Trustee and the Depositor, and the sale agreement or agreements entered into thereunder.

 

“Sarbanes Certification” means the certification required by Rules 13a-14(d) and 15(d)-14(d) under the Exchange Act (pursuant to Section 302 of the Sarbanes Oxley Act of 2002).

 

 

Appendix A-25

 

“Schedule of Trust Student Loans” means the listing of the Trust Student Loans set forth in Schedule A to the Indenture and the Bill of Sale (which Schedule may be in the form of microfiche).

 

“Serial Loan” means an additional student loan which is made to a borrower who is also a borrower under at least one Trust Student Loan.

 

“Servicer” means Sallie Mae, Inc., in its capacity as servicer of the Trust Student Loans.

 

“Servicer Default” means an event specified in Section 5.1 of the Servicing Agreement.

 

“Servicer’s Report” means any report of the Servicer delivered pursuant to Section 3.1(a) of the Administration Agreement, substantially in the form acceptable to the Administrator.

 

“Servicing Agreement” means the Servicing Agreement dated as of September 20, 2012, among the Trust, the Eligible Lender Trustee, the Servicer, the Administrator and the Indenture Trustee.

 

“Servicing Criteria” means the “servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be amended from time to time.

 

“Servicing Fee” has the meaning specified in Attachment A to the Servicing Agreement.

 

“SLM ECFC” means SLM Education Credit Finance Corporation.

 

“SLM ECFC Purchase Agreement” means the Purchase Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among SLM ECFC, the Interim Eligible Lender Trustee and the Depositor, as well as each purchase agreement entered into thereunder.

 

“SLS Loan” means a Loan which was made pursuant to the Supplemental Loans for Students Program established under Section 428A of the Higher Education Act (or predecessor provisions), including Loans referred to as ALAS Loans or Student PLUS Loans.

 

“Special Allowance Payments” means payments, designated as such, consisting of effective interest subsidies by the Department in respect of the Trust Student Loans to the Eligible Lender Trustee on behalf of the Trust in accordance with the Higher Education Act.

 

“Specified Overcollateralization Amount” means for any Distribution Date, the greater of:

 

(a)           1.0% of the Adjusted Pool Balance for that Distribution Date; and

 

(b)           $1,300,000.

 

“Specified Reserve Account Balance” means, for any Distribution Date, the greater of:

 

	
  

	
(a)

	
0.25% of the Pool Balance as of the end of the related Collection Period; and

 

	
  

	
(b)

	
$1,247,589;

 

 

Appendix A-26

 

provided that in no event will that balance exceed the Outstanding Amount of the Notes.

 

“Stafford Loan” means a Trust Student Loan designated as such that is made under the Stafford Loan Program in accordance with the Higher Education Act.

 

“State” means any one of the 50 States of the United States of America or the District of Columbia.

 

“Statistical Cutoff Date” means July 31, 2012.

 

“Student Loans” means education loans to students and parents of students under the Federal Family Education Loan Program.

 

“Subcontractor” means any vendor, subcontractor or other Person that is not responsible for the overall servicing (as “servicing” is commonly understood by participants in the student loan-backed securities market) of Trust Student Loans but performs one or more of the discrete functions identified in Item 1122(d) of Regulation AB with respect to the Trust Student Loans under the direction or authority of the Administrator, Servicer or Indenture Trustee (as applicable).

 

“Subsequent Cutoff Date” with respect to each Additional Trust Student Loan or Substituted Trust Student Loan has the meaning set forth in the related Additional Purchase Agreement and Additional Sale Agreement.

 

“Subservicer” shall mean any Person that services the Trust Student Loans on behalf of the Administrator, Servicer or Indenture Trustee (as applicable) and is responsible for the performance (whether directly or through other Subservicers or Subcontractors) of a substantial portion of the material servicing functions required to be performed by the Administrator, Servicer or Indenture Trustee (as applicable) that are identified in Item 1122(d) of Regulation AB.

 

“Substituted Trust Student Loan” means each Eligible Loan substituted by the Depositor pursuant to Section 6(B) of the Sale Agreement and each related Additional Sale Agreement.

 

“Successor Administrator” has the meaning specified in Section 3.7(e) of the Indenture.

 

“Successor Servicer” has the meaning specified in Section 3.7(e) of the Indenture.

 

“Supplemental Purchase Account” means any account designated as such, established and maintained pursuant to Section 2.3(k) of the Administration Agreement.

 

“Supplemental Purchase Account Initial Deposit” means $23,986,906.75, which is equal to the excess, if any, of (x) the Pool Balance as of the Statistical Cutoff Date over (y) the Initial Cutoff Date Pool Balance; provided that such amount is not in excess of 5% of the Pool Balance as of the Statistical Cutoff Date.

“Supplemental Purchase Period” means the period beginning on the Closing Date and ending on October 5, 2012.

 

 

Appendix A-27

 

“Town Center Funding” means Town Center Funding LLC.

 

“Town Center Funding Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, a New York banking corporation, not in its individual capacity but solely as interim eligible lender trustee for the benefit of Town Center Funding under the Town Center Funding Interim Trust Agreement.

 

“Town Center Funding Interim Trust Agreement” means the Interim Trust Agreement dated as of September 20, 2012, between Town Center Funding and the Town Center Funding Eligible Lender Trustee.

 

“Town Center Funding Purchase Agreement” means the Purchase Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among Town Center Funding, the Town Center Funding Eligible Lender Trustee, the Interim Eligible Lender Trustee, the Servicer and the Depositor, as well as each purchase agreement entered into thereunder.

 

“Town Hall Funding” means Town Hall Funding LLC.

 

“Town Hall Funding Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, a New York banking corporation, not in its individual capacity but solely as interim eligible lender trustee for the benefit of Town Hall Funding under the Town Hall Funding Interim Trust Agreement.

 

“Town Hall Funding Interim Trust Agreement” means the Interim Trust Agreement dated as of September 20, 2012, between Town Hall Funding and the Town Hall Funding Eligible Lender Trustee.

 

“Town Hall Funding Purchase Agreement” means the Purchase Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among Town Hall Funding, the Town Hall Funding Eligible Lender Trustee, the Interim Eligible Lender Trustee, the Servicer and the Depositor, as well as each purchase agreement entered into thereunder.

 

“Transfer” means an offer, sale, pledge, transfer or other disposition of a Note or any interest therein.

 

“Transfer Date” has the meaning specified in Section 5.2(a) of the Administration Agreement.

 

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

 

“Trust” means SLM Student Loan Trust 2012-6, a Delaware statutory trust established pursuant to the Trust Agreement.

 

“Trust Account Property” means the Trust Accounts, all cash and investments held from time to time in any Trust Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), including the Reserve Account Initial Deposit, the Capitalized Interest Account Initial Deposit, the Supplemental Purchase Account Initial Deposit, the Collection Account Initial Deposit, the Borrower Benefit Account Initial Deposit and all earnings on and proceeds of the foregoing.

 

 

Appendix A-28

 

“Trust Accounts” has the meaning specified in Section 2.3(b) of the Administration Agreement.

 

“Trust Agreement” means the short-form trust agreement, dated as of August 15, 2012, as amended and restated pursuant to an Amended and Restated Trust Agreement, dated as of September 20, 2012 among the Depositor, the Eligible Lender Trustee, the Delaware Trustee and the Indenture Trustee.

 

“Trust Auction Date” has the meaning specified in Section 4.4 of the Indenture.

 

“Trust Estate” means all right, title and interest of the Trust (or the Eligible Lender Trustee on behalf of the Trust) in and to the property and rights sold, transferred and assigned to the Trust pursuant to the Sale Agreement and any Additional Sale Agreement, all funds on deposit from time to time in the Trust Accounts and all other property of the Trust from time to time, including any rights of the Eligible Lender Trustee and the Trust pursuant to the Trust Agreement, the Administration Agreement, the Servicing Agreement and any Eligible Repurchase Obligations.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise specifically provided.

 

“Trust Student Loan” means any student loan that is listed on the Schedule of Initial Trust Student Loans on the Closing Date, plus any Additional Trust Student Loan, plus any student loan that is permissibly substituted for a Trust Student Loan by the Depositor pursuant to Section 6 of the Sale Agreement or pursuant to Section 6 of an Additional Sale Agreement or by the Servicer pursuant to Section 3.5 of the Servicing Agreement, but shall not include any Purchased Student Loan following receipt by or on behalf of the Trust of the Purchase Amount with respect thereto or any Liquidated Student Loan following receipt by or on behalf of the Trust of Liquidation Proceeds with respect thereto or following such Liquidated Student Loan having otherwise been written off by the Servicer.

 

“Trust Student Loan Files” means the documents specified in Section 2.1 of the Servicing Agreement.

 

“UCC” means, unless the context otherwise requires, the Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time.

 

“Underwriter” means each of Barclays Capital Inc., RBC Capital Markets, LLC and RBS Securities Inc.

 

“VL Funding” means VL Funding LLC.

 

 

Appendix A-29

 

“VL Funding Eligible Lender Trustee” means Deutsche Bank Trust Company Americas, a New York banking corporation, not in its individual capacity but solely as interim eligible lender trustee for the benefit of VL Funding under the VL Funding Interim Trust Agreement.

 

“VL Funding Interim Trust Agreement” means the Interim Trust Agreement dated as of September 20, 2012, between VL Funding and the VL Funding Eligible Lender Trustee.

 

“VL Funding Purchase Agreement” means the Purchase Agreement Master Securitization Terms Number 1000, dated as of September 20, 2012, among VL Funding, the VL Funding Eligible Lender Trustee, the Interim Eligible Lender Trustee, the Servicer and the Depositor, as well as each purchase agreement entered into thereunder.

 

 

 

 

  

Appendix A-30

  

SCHEDULE A

 

 

Schedule of Trust Student Loans

 

 

[See Schedule A to the Bill of Sale

 

(Attachment B to the Sale Agreement)]

 

  

Schedule A-1

  

SCHEDULE B

 

 

	
Location of  Trust Student Loan Files

 

[See Attachment B to the Servicing Agreement)]

  

Schedule B-1

  

	
EXHIBIT A

 

 

 

[Form of Notes]

 

[See tab 15.1]

  

Exhibit A-1

  

EXHIBIT B

Form of Note Depository Agreement

  

Exhibit B-1

  

 EXHIBIT C

Servicing Criteria To Be Addressed In Assessment Of Compliance

The assessment of compliance to be delivered by Deutsche Bank National Trust Company, as Indenture Trustee, shall address, at a minimum, the criteria identified as below as “Applicable Servicing Criteria”:

	
Reference

	
Criteria

	
Applicability

	  	
 

General Servicing Considerations

 

	  
	
1122(d)(1)(i)

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

	
N/A

	
1122(d)(1)(ii)

	
If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.

	
N/A

	
1122(d)(1)(iii)

	
Any requirements in the Basic Documents to maintain a back-up servicer for the trust student loans are maintained.

	
N/A

	
1122(d)(1)(iv)

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

	
N/A

	  	
 

Cash Collection and Administration

 

	  
	
1122(d)(2)(i)

	
Payments on trust student loans are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the Basic Documents.

	
N/A

	
1122(d)(2)(ii)

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

	  
	
1122(d)(2)(iii)

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

	
N/A

	
1122(d)(2)(iv)

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

	
N/A

	
1122(d)(2)(v)

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

	
N/A

	
1122(d)(2)(vi)

	
Unissued checks are safeguarded so as to prevent unauthorized access.

	
N/A

	
1122(d)(2)(vii)

	
 Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the Basic Documents; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the Basic Documents.

	
N/A

	  	  	  

 

 

Exhibit C-1

 

 

	
Reference

	
Criteria

	
Applicability

	  	
 

Investor Remittances and Reporting

 

	  
	
1122(d)(3)(i)

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

	
N/A

	
1122(d)(3)(ii)

	
Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the Basic Documents.

	
N/A

	
1122(d)(3)(iii)

	
Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the Basic Documents.

	
N/A

	
1122(d)(3)(iv)

	
Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

	
N/A

	  	
 

Pool Asset Administration

 

	  
	
1122(d)(4)(i)

	
Collateral or security on student loans is maintained as required by the Basic Documents or related student loan documents.

	
N/A

	
1122(d)(4)(ii)

	
Student loan and related documents are safeguarded as required by the Basic Documents.

	
N/A

	
1122(d)(4)(iii)

	
Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the Basic Documents.

	
N/A

	
1122(d)(4)(iv)

	
Payments on student loans, including any payoffs, made in accordance with the related student loan documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the Basic Documents, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related student loan documents.

	
N/A

	
1122(d)(4)(v)

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

	
N/A

	
1122(d)(4)(vi)

	
Changes with respect to the terms or status of an obligor's student loans (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the Basic Documents and related pool asset documents.

	
N/A

	
1122(d)(4)(vii)

	
Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the Basic Documents.

	
N/A

	
1122(d)(4)(viii)

	
Records documenting collection efforts are maintained during the period a student loan is delinquent in accordance with the Basic Documents. Such records are maintained on at least a monthly basis, or such other period specified in the Basic Documents, and describe the entity’s activities in monitoring delinquent student loans including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).

	
N/A

	
1122(d)(4)(ix)

	
Adjustments to interest rates or rates of return for student loans with variable rates are computed based on the related student loan documents.

	
N/A

	
1122(d)(4)(x)

	
Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s student loan documents, on at least an annual basis, or such other period specified in the Basic Documents; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable student loan documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related student loans, or such other number of days specified in the Basic Documents.

	
N/A

 

 

Exhibit C-2

 

 

	
Reference

	
Criteria

	
Applicability

	
1122(d)(4)(xi)

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

	
N/A

	
1122(d)(4)(xii)

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

	
N/A

	
1122(d)(4)(xiii)

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

	
N/A

	
1122(d)(4)(xiv)

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

	
N/A

	
1122(d)(4)(xv)

	
Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the Basic Documents.

	
N/A

 

 

Exhibit C-3Exhibit 4.1

	
  

 
	

 

 
	
  

 
	
 USAA AUTO OWNER TRUST 2012-1

 
	
  

 
	
 Class A-1 0.23000% Auto Loan Asset Backed Notes

 
	
 Class A-2 0.38% Auto Loan Asset Backed Notes

 
	
 Class A-3 0.43% Auto Loan Asset Backed Notes

 
	
 Class A-4 0.57% Auto Loan Asset Backed Notes

 
	
 Class B 1.02% Auto Loan Asset Backed Notes

 
	
  

 
	

 

 
	
  

 
	
 INDENTURE

 
	
  

 
	
 Dated as of September 19, 2012

 
	
  

 
	

 

 
	
  

 
	
 THE BANK OF NEW YORK MELLON,

 
	
  

 
	
 as the Indenture Trustee

 
	
  

 
	

 

 

CROSS REFERENCE TABLE1

	
  

 	
  

 	
  

 	
  

 
	
 TIA

 Section

 	
  

 	
  

 	
 Indenture

 Section

 
	
  

 	
  

 	
  

 	
  

 
	
 310

 	
 (a) (1)

 	
  

 	
 6.11

 
	
  

 	
 (a) (2)

 	
  

 	
 6.11

 
	
  

 	
 (a) (3)

 	
  

 	
 6.10; 6.11

 
	
  

 	
 (a) (4)

 	
  

 	
 N.A.2

 
	
  

 	
 (a) (5)

 	
  

 	
 6.11

 
	
  

 	
 (b)

 	
  

 	
 6.8; 6.11

 
	
  

 	
 (c)

 	
  

 	
 N.A.

 
	
 311

 	
 (a)

 	
  

 	
 6.12

 
	
  

 	
 (b)

 	
  

 	
 6.12

 
	
  

 	
 (c)

 	
  

 	
 N.A.

 
	
 312

 	
 (a)

 	
  

 	
 7.1

 
	
  

 	
 (b)

 	
  

 	
 7.2

 
	
  

 	
 (c)

 	
  

 	
 7.2

 
	
 313

 	
 (a)

 	
  

 	
 7.3

 
	
  

 	
 (b) (1)

 	
  

 	
 7.3

 
	
  

 	
 (b) (2)

 	
  

 	
 7.3

 
	
  

 	
 (c)

 	
  

 	
 7.3

 
	
  

 	
 (d)

 	
  

 	
 7.3

 
	
 314

 	
 (a)

 	
  

 	
 3.9

 
	
  

 	
 (b)

 	
  

 	
 3.6; 11.15

 
	
  

 	
 (c) (1)

 	
  

 	
 11.15

 
	
  

 	
 (c) (2)

 	
  

 	
 11.1

 
	
  

 	
 (c) (3)

 	
  

 	
 11.1

 
	
  

 	
 (d)

 	
  

 	
 11.1

 
	
  

 	
 (e)

 	
  

 	
 11.1

 
	
  

 	
 (f)

 	
  

 	
 N.A.

 
	
 315

 	
 (a)

 	
  

 	
 6.1(b)

 
	
  

 	
 (b)

 	
  

 	
 6.5

 
	
  

 	
 (c)

 	
  

 	
 6.1(a)

 
	
  

 	
 (d)

 	
  

 	
 6.1(c)

 
	
  

 	
 (e)

 	
  

 	
 5.13

 
	
 316

 	
 (a) (1) (A)

 	
  

 	
 5.11

 
	
  

 	
 (a) (1) (B)

 	
  

 	
 5.12

 
	
  

 	
 (a) (2)

 	
  

 	
 N.A.

 
	
  

 	
 (b)

 	
  

 	
 5.7

 
	
  

 	
 (c)

 	
  

 	
 5.6(b)

 
	
 317

 	
 (a) (1)

 	
  

 	
 5.3(b)

 
	
  

 	
 (a) (2)

 	
  

 	
 5.3(d)

 
	
  

 	
 (b)

 	
  

 	
 3.3(c)

 
	
 318

 	
 (a)

 	
  

 	
 11.7

 

	
  

 	
  

 
	

 

 
	
 1

 	
 Note: This Cross Reference
 Table shall not, for any purpose, be deemed to be part of this Indenture. 

 
	
  

 	
  

 
	
 2

 	
 N.A. means Not Applicable.
 

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I 

 	
 DEFINITIONS
 AND INCORPORATION BY REFERENCE

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1.1

 	
  

 	
 Definitions

 	
  

 	
 2

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1.2

 	
  

 	
 Incorporation
 by Reference of Trust Indenture Act

 	
  

 	
 2

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1.3

 	
  

 	
 Other
 Interpretive Provisions

 	
  

 	
 2

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
 THE NOTES

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.1

 	
  

 	
 Form

 	
  

 	
 3

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.2

 	
  

 	
 Execution,
 Authentication and Delivery

 	
  

 	
 3

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.3

 	
  

 	
 Temporary
 Notes

 	
  

 	
 4

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.4

 	
  

 	
 Registration
 of Transfer and Exchange

 	
  

 	
 4

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.5

 	
  

 	
 Mutilated,
 Destroyed, Lost or Stolen Notes

 	
  

 	
 5

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.6

 	
  

 	
 Persons
 Deemed Owners

 	
  

 	
 6

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.7

 	
  

 	
 Payment of
 Principal and Interest; Defaulted Interest

 	
  

 	
 6

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.8

 	
  

 	
 Cancellation

 	
  

 	
 7

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.9

 	
  

 	
 Release of
 Collateral

 	
  

 	
 7

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.10

 	
  

 	
 Book-Entry
 Notes

 	
  

 	
 8

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.11

 	
  

 	
 Notices to
 Clearing Agency

 	
  

 	
 8

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.12

 	
  

 	
 Definitive
 Notes

 	
  

 	
 8

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.13

 	
  

 	
 Authenticating
 Agents

 	
  

 	
 9

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.14

 	
  

 	
 Tax
 Treatment

 	
  

 	
 10

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.15

 	
  

 	
 Certain
 Transfer Restrictions on the Notes

 	
  

 	
 10

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 COVENANTS

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.1

 	
  

 	
 Payment of
 Principal and Interest

 	
  

 	
 11

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.2

 	
  

 	
 Maintenance
 of Office or Agency

 	
  

 	
 11

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.3

 	
  

 	
 Money for
 Payments To Be Held in Trust

 	
  

 	
 11

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.4

 	
  

 	
 Existence

 	
  

 	
 13

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.5

 	
  

 	
 Protection
 of Collateral

 	
  

 	
 13

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.6

 	
  

 	
 Opinions as
 to Collateral

 	
  

 	
 14

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.7

 	
  

 	
 Performance
 of Obligations; Servicing of Receivables

 	
  

 	
 14

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.8

 	
  

 	
 Negative
 Covenants

 	
  

 	
 15

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.9

 	
  

 	
 Annual
 Compliance Statement

 	
  

 	
 15

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.10

 	
  

 	
 Restrictions
 on Certain Other Activities

 	
  

 	
 16

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.11

 	
  

 	
 Restricted
 Payments

 	
  

 	
 17

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.12

 	
  

 	
 Notice of
 Events of Default

 	
  

 	
 17

 	
  

 

i

TABLE OF CONTENTS 
(Continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.13

 	
  

 	
 Further
 Instruments and Acts

 	
  

 	
 17

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.14

 	
  

 	
 Compliance
 with Laws

 	
  

 	
 17

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.15

 	
  

 	
 Perfection
 Representations, Warranties and Covenants

 	
  

 	
 17

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 SATISFACTION
 AND DISCHARGE

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.1

 	
  

 	
 Satisfaction
 and Discharge of Indenture

 	
  

 	
 17

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.2

 	
  

 	
 Application
 of Trust Money

 	
  

 	
 18

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.3

 	
  

 	
 Repayment of
 Monies Held by Paying Agent

 	
  

 	
 18

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 REMEDIES

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.1

 	
  

 	
 Events of
 Default

 	
  

 	
 18

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.2

 	
  

 	
 Acceleration
 of Maturity; Waiver of Event of Default

 	
  

 	
 19

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.3

 	
  

 	
 Collection
 of Indebtedness and Suits for Enforcement by the Indenture Trustee

 	
  

 	
 20

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.4

 	
  

 	
 Remedies;
 Priorities

 	
  

 	
 22

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.5

 	
  

 	
 Optional
 Preservation of the Collateral

 	
  

 	
 24

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.6

 	
  

 	
 Limitation
 of Suits

 	
  

 	
 24

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.7

 	
  

 	
 Rights of
 Noteholders to Receive Principal and Interest

 	
  

 	
 25

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.8

 	
  

 	
 Restoration
 of Rights and Remedies

 	
  

 	
 26

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.9

 	
  

 	
 Rights and
 Remedies Cumulative

 	
  

 	
 26

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.10

 	
  

 	
 Delay or
 Omission Not a Waiver

 	
  

 	
 26

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.11

 	
  

 	
 Control by
 Noteholders

 	
  

 	
 26

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.12

 	
  

 	
 Waiver of
 Past Defaults

 	
  

 	
 27

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.13

 	
  

 	
 Undertaking
 for Costs

 	
  

 	
 27

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.14

 	
  

 	
 Waiver of
 Stay or Extension Laws

 	
  

 	
 27

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.15

 	
  

 	
 Action on
 Notes

 	
  

 	
 28

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.16

 	
  

 	
 Performance
 and Enforcement of Certain Obligations

 	
  

 	
 28

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.17

 	
  

 	
 Sale of
 Collateral

 	
  

 	
 28

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 THE
 INDENTURE TRUSTEE

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.1

 	
  

 	
 Duties of
 the Indenture Trustee

 	
  

 	
 29

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.2

 	
  

 	
 Rights of
 the Indenture Trustee

 	
  

 	
 31

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.3

 	
  

 	
 Individual
 Rights of the Indenture Trustee

 	
  

 	
 32

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.4

 	
  

 	
 The
 Indenture Trustee’s Disclaimer

 	
  

 	
 32

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.5

 	
  

 	
 Notice of
 Defaults

 	
  

 	
 32

 	
  

 

ii

TABLE OF CONTENTS 
(Continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.6

 	
  

 	
 Reports by
 the Indenture Trustee to Noteholders

 	
  

 	
 32

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.7

 	
  

 	
 Compensation
 and Indemnity

 	
  

 	
 33

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.8

 	
  

 	
 Removal,
 Resignation and Replacement of the Indenture Trustee

 	
  

 	
 33

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.9

 	
  

 	
 Successor
 Indenture Trustee by Merger

 	
  

 	
 34

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.10

 	
  

 	
 Appointment
 of Co-Indenture Trustee or Separate Indenture Trustee

 	
  

 	
 35

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.11

 	
  

 	
 Eligibility;
 Disqualification

 	
  

 	
 36

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.12

 	
  

 	
 Preferential
 Collection of Claims Against the Issuer

 	
  

 	
 36

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.13

 	
  

 	
 Representations
 and Warranties

 	
  

 	
 36

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 NOTEHOLDERS’
 LISTS AND REPORTS

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7.1

 	
  

 	
 The Issuer
 to Furnish the Indenture Trustee Names and Addresses of Noteholders

 	
  

 	
 36

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7.2

 	
  

 	
 Preservation
 of Information; Communications to Noteholders

 	
  

 	
 37

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7.3

 	
  

 	
 Reports by
 the Indenture Trustee

 	
  

 	
 37

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 ACCOUNTS,
 DISBURSEMENTS AND RELEASES

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.1

 	
  

 	
 Collection
 of Money

 	
  

 	
 37

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.2

 	
  

 	
 Trust
 Accounts

 	
  

 	
 38

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.3

 	
  

 	
 General
 Provisions Regarding Accounts

 	
  

 	
 38

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.4

 	
  

 	
 Release of
 Collateral

 	
  

 	
 39

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.5

 	
  

 	
 Opinion of
 Counsel

 	
  

 	
 40

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 SUPPLEMENTAL
 INDENTURES

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.1

 	
  

 	
 Supplemental
 Indentures Without Consent of Noteholders

 	
  

 	
 40

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.2

 	
  

 	
 Supplemental
 Indentures with Consent of Noteholders

 	
  

 	
 41

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.3

 	
  

 	
 Execution of
 Supplemental Indentures

 	
  

 	
 42

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.4

 	
  

 	
 Effect of
 Supplemental Indenture

 	
  

 	
 42

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.5

 	
  

 	
 Conformity
 With Trust Indenture Act

 	
  

 	
 42

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.6

 	
  

 	
 Reference in
 Notes to Supplemental Indentures

 	
  

 	
 43

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 REDEMPTION
 OF NOTES

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.1

 	
  

 	
 Redemption

 	
  

 	
 43

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.2

 	
  

 	
 Form of
 Redemption Notice

 	
  

 	
 43

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.3

 	
  

 	
 Notes
 Payable on Redemption Date

 	
  

 	
 44

 	
  

 

iii

TABLE OF CONTENTS 
(Continued)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 MISCELLANEOUS

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.1

 	
  

 	
 Compliance
 Certificates and Opinions, etc

 	
  

 	
 44

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.2

 	
  

 	
 Form of
 Documents Delivered to the Indenture Trustee

 	
  

 	
 45

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.3

 	
  

 	
 Acts of
 Noteholders

 	
  

 	
 46

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.4

 	
  

 	
 Notices

 	
  

 	
 47

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.5

 	
  

 	
 Notices to
 Noteholders; Waiver

 	
  

 	
 47

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.6

 	
  

 	
 Alternate
 Payment and Notice Provisions

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.7

 	
  

 	
 Conflict
 with Trust Indenture Act

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.8

 	
  

 	
 Effect of
 Headings and Table of Contents

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.9

 	
  

 	
 Successors
 and Assigns

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.10

 	
  

 	
 Severability

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.11

 	
  

 	
 Benefits of
 Indenture

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.12

 	
  

 	
 Legal
 Holidays

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.13

 	
  

 	
 Governing
 Law

 	
  

 	
 48

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.14

 	
  

 	
 Counterparts

 	
  

 	
 49

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.15

 	
  

 	
 Recording of
 Indenture

 	
  

 	
 49

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.16

 	
  

 	
 Trust
 Obligation

 	
  

 	
 49

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.17

 	
  

 	
 No Petition

 	
  

 	
 49

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.18

 	
  

 	
 Intent

 	
  

 	
 50

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.19

 	
  

 	
 Submission
 to Jurisdiction; Waiver of Jury Trial

 	
  

 	
 50

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.20

 	
  

 	
 Subordination
 of Claims

 	
  

 	
 51

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.21

 	
  

 	
 Limitation
 of Liability of Owner Trustee

 	
  

 	
 51

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.22

 	
  

 	
 Information
 Requests

 	
  

 	
 52

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.23

 	
  

 	
 Inspection

 	
  

 	
 52

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.24

 	
  

 	
 Force
 Majeure

 	
  

 	
 52

 	
  

 

iv

	
  

 	
  

 
	
 Schedule I

 	
 Perfection
 Representations, Warranties and Covenants 

 
	
 Exhibit A

 	
 Forms of
 Notes 

 

v

          This INDENTURE, dated as of September 19, 2012 (as amended, modified or
supplemented from time to time, this “Indenture”), is between USAA AUTO OWNER TRUST 2012-1, a Delaware
statutory trust (the “Issuer”), and THE BANK OF NEW YORK MELLON, a banking
corporation organized under the laws of the State of New York, solely as
trustee and not in its individual capacity (the “Indenture Trustee”).

          Each party
agrees as follows for the benefit of the other party and the equal and ratable
benefit of the Holders of the Issuer’s Class A-1 0.23000% Auto Loan Asset
Backed Notes (the “Class A-1 Notes”), Class A-2 0.38% Auto Loan Asset
Backed Notes (the “Class A-2 Notes”), Class A-3 0.43% Auto Loan Asset
Backed Notes (the “Class A-3 Notes”) and Class A-4 0.57% Auto Loan Asset
Backed Notes (the “Class A-4 Notes” and together with the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes, the “Class
A Notes”) and Class B 1.02%
Auto Loan Asset Backed Notes (the “Class B Notes” and together with the
Class A Notes, the “Notes”).

GRANTING CLAUSE

          The Issuer,
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 except as set forth herein, and to secure compliance with the
provisions of this Indenture, hereby Grants in trust to the Indenture Trustee
on the Closing Date, as trustee for the benefit of the Noteholders, all of the
Issuer’s right, title and interest, whether now owned or hereafter acquired, in
and to (i) the Trust Estate and (ii) all present and future claims, demands,
causes and choses in action in respect of any or all of the Trust Estate and
all payments on or under and all proceeds of every kind and nature whatsoever in
respect of any or all of the Trust Estate, including all proceeds of the
conversion, 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, securities, financial assets and other property
which at any time constitute all or part of or are included in the proceeds of
any of the Trust Estate (collectively, the “Collateral”).

          The
Indenture Trustee, on behalf of the Noteholders, acknowledges the foregoing
Grant, accepts the trusts under this Indenture and agrees to perform its duties
required in this Indenture in accordance with the provisions of this Indenture.

          The
foregoing Grant is made in trust to secure (i) 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 except as set forth herein
and (ii) compliance with the provisions of this Indenture, all as provided in
this Indenture.

          Without
limiting the foregoing Grant, any Receivable purchased by the Bank pursuant to Section
3.3 of the Purchase Agreement or by the Seller or the Servicer pursuant to Section
2.3 or Section 3.6, respectively, of the Sale and Servicing
Agreement shall be deemed to be automatically released from the lien of this
Indenture without any action being taken by the Indenture Trustee upon payment
by the Seller or the Servicer, as applicable, of the related Repurchase Price
for such Repurchased Receivable.

ARTICLE
I DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1
Definitions.
Except as otherwise specified herein or the context may otherwise require,
capitalized terms are used in this Indenture as defined in Appendix A
to the Sale and Servicing Agreement, dated as of September 19, 2012 (as
amended, modified or supplemented from time to time, the “Sale and Servicing
Agreement”), among USAA Acceptance, LLC, as Seller, the Issuer, USAA
Federal Savings Bank, as Servicer, and the Indenture Trustee.

          SECTION 1.2
Incorporation
by Reference of Trust Indenture Act. Whenever this Indenture refers
to a provision of the TIA, the provision is incorporated by reference in and
made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          “Commission”
means the Securities and Exchange Commission.

          “indenture
securities” means the Notes.

          “indenture
security holder” means a Noteholder.

          “indenture
to be qualified” means this Indenture.

          “indenture
trustee” or “institutional trustee”
means the Indenture Trustee.

          “obligor” on the indenture securities means the
Issuer and any other obligor on the indenture securities.

          All other
TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by Commission rule have the meaning
assigned to them by such definitions.

          SECTION 1.3
Other
Interpretive Provisions. All terms defined in this Indenture shall
have the defined meanings when used in any certificate or other document delivered
pursuant hereto unless otherwise defined therein. For purposes of this
Indenture and all such certificates and other documents, unless the context
otherwise requires: (a) accounting terms not otherwise defined in this
Indenture, and accounting terms partly defined in this Indenture to the extent
not defined, shall have the respective meanings given to them under GAAP (provided,
that, to the extent that the definitions in this Indenture and GAAP conflict,
the definitions in this Indenture shall control); (b) terms defined in Article
9 of the UCC as in effect in the relevant jurisdiction and not otherwise
defined in this Indenture are used as defined in that Article; (c) the words
“hereof,” “herein” and “hereunder” and words of similar import refer to this
Indenture as a whole and not to any particular provision of this Indenture; (d)
references to any Article, Section, Schedule, Appendix or Exhibit are
references to Articles, Sections, Schedules, Appendices and Exhibits in or to
this Indenture and references to any paragraph, subsection, clause or other
subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (e) the
term “including” and all variations thereof means “including without
limitation”; (f) except as otherwise expressly provided herein, references to
any law or regulation refer to that law or regulation as amended from time to
time 

	
  

 	
  

 	
  

 
	
  

 	
 2

 	
 Indenture (USAA 2012-1)

 

and include any successor law or regulation; (g) references to any
Person include that Person’s successors and assigns; and (h) unless the context
otherwise requires, defined terms shall be equally applicable to both the
singular and plural forms.

ARTICLE II THE NOTES

          SECTION 2.1
Form.
The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and
Class B Notes, in each case together with the Indenture Trustee’s certificate
of authentication, shall be in substantially the form set forth in Exhibit A hereto, 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 the
Notes, as evidenced by their execution of the Notes. 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.

          Each Note
shall be dated the date of its authentication. The terms of the Notes set forth
in Exhibit A hereto are part
of the terms of this Indenture.

          SECTION 2.2
Execution,
Authentication and Delivery. The Notes shall be executed on behalf
of the Issuer by any of its Authorized Officers. The signature of any such
Authorized Officer on the Notes may be manual or facsimile.

          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 at the
date of such Notes.

          The
Indenture Trustee shall, upon Issuer Order, authenticate and deliver Class A-1
Notes for original issue in an Initial Note Balance of $142,000,000, Class A-2
Notes for original issue in an Initial Note Balance of $172,000,000, Class A-3
Notes for original issue in an Initial Note Balance of $125,000,000, Class A-4
Notes for original issue in an Initial Note Balance of $52,180,000 and Class B
Notes for original issue in an Initial Note Balance of $8,820,000. The Note
Balance of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes
and Class B Notes Outstanding at any time may not exceed such amounts except as
provided in Section 2.5.

          Each Note
shall be dated the date of its authentication. The Notes shall be issuable as
registered Notes in the minimum denomination of $1,000 and in integral
multiples of $1,000 in excess thereof (except for one Note of each Class which
may be issued in a denomination other than an integral multiple of $1,000).

          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.

	
  

 	
  

 	
  

 
	
  

 	
 3

 	
 Indenture (USAA 2012-1)

 

          SECTION 2.3
Temporary
Notes. Pending the preparation of Definitive Notes, the Issuer may
execute, and upon receipt of an Issuer Order, the Indenture Trustee shall
authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or otherwise produced, substantially 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 Notes may determine, as evidenced by their execution of such Notes.

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

          SECTION 2.4
Registration
of Transfer and Exchange. 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
shall initially be “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.

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

          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 UCC and this Indenture are met, the Issuer
shall execute and upon its written request the Indenture Trustee shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, in the
name of the designated transferee or transferees, one or more new Notes, in any
authorized denominations, of the same Class and a like aggregate outstanding
principal amount.

          At the
option of the related Noteholder, Notes may be exchanged for other Notes in any
authorized denominations, of the same Class and a like aggregate outstanding
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 of the UCC are met the Issuer shall execute and, upon Issuer
Request, the Indenture Trustee shall authenticate and the related Noteholder
shall obtain from the Indenture Trustee, the Notes which the Noteholder making
the exchange is entitled to receive.

	
  

 	
  

 	
  

 
	
  

 	
 4

 	
 Indenture (USAA 2012-1)

 

          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.

          Every Note
presented or surrendered for registration of transfer or exchange shall be (i)
duly endorsed by, or be accompanied by, a written instrument of transfer in
form and substance satisfactory to the Issuer and the Indenture Trustee duly
executed by the Noteholder thereof or its attorney-in-fact duly authorized in
writing, with such signature guaranteed by an “eligible grantor institution”
meeting the requirements of the Note Registrar which requirements include
membership or participation in a Securities Transfer Agents Medallion Program
(“Stamp”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, Stamp,
all in accordance with the Exchange Act and (ii) accompanied by such other
documents as the Indenture Trustee may require.

          No service
charge shall be made to a Noteholder for any registration of transfer or exchange
of Notes, but the Issuer may require payment 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 Section 9.6 not involving any transfer.

          The
preceding provisions of this Section notwithstanding, the Issuer shall not be
required to make and the Note Registrar need not register transfers or
exchanges of any Notes selected for redemption or of any Note for a period of
15 days preceding the due date for any payment with respect to such Note.

          SECTION 2.5
Mutilated,
Destroyed, Lost or Stolen Notes. 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 written notice to the Issuer, the Note Registrar and a
Responsible Officer of the Indenture Trustee that such Note has been acquired
by a “protected purchaser” (as contemplated by Article 8 of the UCC), and
provided,
that the requirements of Section 8-405 of the UCC are met, the Issuer shall
execute and upon its written request 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, that if any such destroyed, lost
or stolen Note, but not a mutilated Note, shall have become or within seven
days shall be due and payable, or shall have been called for redemption,
instead of issuing a replacement Note, the Issuer may upon delivery of the security
or indemnity herein required pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof. 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”
(as contemplated by Article 8 of the UCC) 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 it 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” (as contemplated by Article 8 of the UCC), and shall be
entitled to recover upon the security or 

	
  

 	
  

 	
  

 
	
  

 	
 5

 	
 Indenture (USAA 2012-1)

 

indemnity provided therefor to the extent of any loss, damage, cost or
expense incurred by the Issuer or the Indenture Trustee in connection
therewith.

          Upon the
issuance of any replacement Note under this Section 2.5, the Issuer or
the Indenture Trustee may require the payment by the Noteholder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee or the Note Registrar) connected therewith.

          Every
replacement Note issued pursuant to this Section 2.5 in replacement of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all
other Notes duly issued hereunder.

          The
provisions of this Section 2.5 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 2.6 Persons Deemed Owners. Prior to due
presentment for registration of transfer of any Note, the Issuer, the Indenture
Trustee and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name any Note is registered (as of the day of determination) as
the owner of such Note for the purpose of receiving payments of principal of
and interest, if any, on such Note and for all other purposes whatsoever,
whether or not such Note be overdue, and neither the Issuer, the Indenture
Trustee nor any agent of the Issuer or the Indenture Trustee shall be affected
by notice to the contrary.

          SECTION 2.7
Payment of Principal and Interest; Defaulted
Interest. (a) Each Note shall accrue interest at its respective
Interest Rate, and such interest shall be payable on each Payment Date as
specified therein, subject to Sections 3.1 and 8.2. Any
installment of interest or principal, if any, payable on any Note which 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 Record Date. On each Payment Date,
distributions to be made with respect to interest on and principal of the
Book-Entry Notes will be paid to the registered Noteholder by wire transfer in
immediately available funds to the account designated by the nominee of the
Clearing Agency (initially, such nominee will be Cede & Co.).
Distributions to be made with respect to interest on and principal of the
Definitive Notes will be paid to the Registered Noteholder (i) if such
Noteholder has provided to the Note Register appropriate written instructions
at least five (5) Business Days prior to such Payment Date, by wire transfer in
immediately available funds to the account of such Noteholder or otherwise (ii)
by check mailed first class mail, postage prepaid, to such registered
Noteholder’s address as it appears on the Note Register on the related Record
Date. However, the final installment of principal (whether payable by wire
transfer or check) of each Note on a Payment Date, the Redemption Date or the
applicable Final Scheduled Payment Date will be payable as provided below. The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.3.

	
  

 	
  

 	
  

 
	
  

 	
 6

 	
 Indenture (USAA 2012-1)

 

          (b) The
principal of each Note shall be payable in installments on each Payment Date as
provided in Section 8.2. Notwithstanding the foregoing, the entire
unpaid Note Balance and all accrued interest thereon shall be due and payable,
if not previously paid, on the earlier of (i) the date on which an Event of
Default shall have occurred and be continuing, if the Indenture Trustee or the
Holders of a majority of the Note Balance of the Controlling Class, have
declared the Notes to be immediately due and payable in the manner provided in Section
5.2 and (ii) with respect to any Class of Notes, on the Final Scheduled
Payment Date for that Class. All principal payments on each Class of Notes
shall be made pro rata to the Noteholders of such Class entitled thereto. The
Indenture Trustee shall notify the Person in whose name a Note is registered at
the close of business on the Record Date preceding the Payment Date on which
Indenture Trustee expects that the final installment of principal of and
interest on such Note will be paid. Such notice shall be transmitted prior to
such final Payment Date and shall specify that such final installment will 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 redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.2.

          (c) If the
Issuer defaults on a payment of interest on any Class of Notes, the Issuer
shall pay defaulted interest (plus interest on such defaulted interest to the
extent lawful at the applicable Interest Rate for such Class of Notes), which
shall be due and payable on the Payment Date following such default. The Issuer
shall pay such defaulted interest to the Persons who are Noteholders on the
Record Date for such following Payment Date.

          SECTION 2.8
Cancellation.
All Notes surrendered for payment, registration of transfer, exchange or
redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled
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 cancelled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled
as provided in this Section, except as expressly permitted by this Indenture.
All cancelled 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 that such
Notes have not been previously disposed of by the Indenture Trustee. 

          SECTION 2.9
Release
of Collateral. Subject to Section 11.1, the Indenture Trustee
shall release property from the lien of this Indenture only upon receipt of an
Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel,
and, unless the Notes have been redeemed in accordance with Section 10.1,
Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) or an Opinion of Counsel in lieu of such Independent Certificates to
the effect that the TIA does not require any such Independent Certificates. If
the Commission shall issue an exemptive order under TIA Section 304(d)
modifying the Issuer’s obligations under TIA Sections 314(c) and 314(d)(1),
subject to Section 11.1 and the terms of the Transaction Documents, the
Indenture Trustee shall release property from the lien of this Indenture in accordance
with the conditions and procedures set forth in such exemptive order.

	
  

 	
  

 	
  

 
	
  

 	
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          SECTION
2.10 Book-Entry
Notes. The Notes, upon original issuance, will be issued in the form
of typewritten notes representing the Book-Entry Notes, to be delivered to the
Indenture Trustee, as agent for DTC, the initial Clearing Agency, by, or on
behalf of, the Issuer. One fully registered Note shall be issued with respect
to each $500 million in principal amount of each Class of Notes and any such
lesser amount. Such Notes shall initially be registered on the Note Register in
the name of Cede & Co., the nominee of the initial Clearing Agency, and no
Note Owner shall receive a Definitive Note representing such Note Owner’s
interest in such Note, except as provided in Section 2.12. Unless and
until definitive, fully registered Notes (the “Definitive Notes”) have
been issued to Note Owners pursuant to Section 2.12:

          (a) the
provisions of this Section 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 Notes and the giving of instructions or
directions hereunder) as the sole Noteholder, and shall have no obligation to
the Note Owners;

          (c) to the
extent that the provisions of this Section 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 or among
such Note Owners and the Clearing Agency and/or the Clearing Agency
Participants or Persons acting through Clearing Agency Participants. Pursuant
to the Note Depository Agreement, unless and until Definitive Notes are issued
pursuant to Section 2.12,
the initial Clearing Agency will 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 neither the
Indenture Trustee nor the Note Registrar shall have liability or responsibility
thereof); 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 Outstanding 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 or Persons acting
through Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Notes and has delivered
such instructions to the Indenture Trustee.

          SECTION
2.11 Notices
to Clearing Agency. Whenever a notice or other communication to the
Noteholders is required under this Indenture, unless and until Definitive Notes
shall have been issued to Note Owners pursuant to Section 2.12, the
Indenture Trustee shall give all such notices and communications specified
herein to be given to the Noteholders to the Clearing Agency, and shall have no
obligation to the Note Owners.

          SECTION
2.12 Definitive
Notes. If (a) the Administrator 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 Notes, and the Administrator
or the Indenture Trustee is unable to locate a qualified successor, (b) the
Administrator at its option advises the Indenture 

	
  

 	
  

 	
  

 
	
  

 	
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Trustee in writing that it elects to terminate the book-entry system
through the Clearing Agency or (c) after the occurrence of an Event of Default,
Note Owners representing beneficial interests aggregating at least a majority
of the Outstanding Note Balance, voting together as a single Class, advise the
Indenture Trustee through the Clearing Agency or its successor in writing that
the continuation of a book-entry system through the Clearing Agency or its
successor is no longer in the best interests of the Note Owners, then the
Indenture Trustee shall instruct the Clearing Agency to notify each Clearing
Agency Participant and request that such Clearing Agency Participant notify the
related Note Owners associated, of the occurrence of any 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 or Notes
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.

          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.

          SECTION
2.13 Authenticating Agents. (a) Upon the request of the Issuer, the Indenture Trustee
shall, and if the Indenture Trustee so chooses 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, 2.4, 2.5 and 9.6, 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 shall be deemed to be the authentication of
Notes “by the Indenture Trustee.” The Indenture Trustee shall be the
Authenticating Agent in the absence of any appointment thereof.

          (b) 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.

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

	
  

 	
  

 	
  

 
	
  

 	
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          (d) The
provisions of Section 6.4 shall be applicable to any Authenticating
Agent.

          SECTION
2.14 Tax
Treatment. The Issuer has entered into this Indenture, and the Notes
shall be issued, with the intention that, solely for federal, state and local
income, franchise and/or value added tax purposes, the Notes shall qualify as
indebtedness secured by the Collateral (except Notes owned by the Issuer or a
Person that is considered the same Person as the Issuer for U.S. federal income
tax purposes). 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, if applicable), agree to
treat such Notes for federal, state and local income, franchise and/or value
added tax purposes as indebtedness (except Notes owned by the Issuer or a
Person that is considered the same Person as the Issuer for U.S. federal income
tax purposes).

          SECTION
2.15 Certain
Transfer Restrictions on the Notes.

          (a) By
acquiring a Note, each purchaser and transferee shall be deemed to represent
and warrant that either (a) it is not acquiring such Note (or any interest
therein) on behalf of or with any assets of (x) a Benefit Plan or (y) any
governmental plan, non-U.S. plan, church plan, other employee benefit plan or
other retirement arrangement that is subject to Similar Law; or (b) (i) such
Note is rated at least “BBB-” or its equivalent by at least one Rating Agency
at the time of purchase or transfer and (ii) the acquisition, holding and
disposition of such Note (or any interest therein) will not give rise to a
non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code or a violation of any Similar Law.

          (b) Any
Notes retained on the Closing Date by the Issuer or a Person that is considered
the same Person as the Issuer for United States federal income tax purposes may
not be transferred to another Person (other than a Person that is considered
the same Person as the Issuer for United States federal income tax purposes)
unless the Administrator shall cause an Opinion of Counsel to be delivered to
the Depositor and the Indenture Trustee at such time stating that either (x)
such Notes will be debt for United States federal income tax purposes or (y)
the sale of such Notes to a Person unrelated to the Issuer will not cause the
Issuer to be treated as an association or publicly traded partnership taxable
as a corporation. With respect to any transfer for which the Opinion of Counsel
provided pursuant to the preceding sentence is as described in clause (y),
the sale or transfer of such Notes must be to a Person who is a United States
Person (within the meaning of the Code), must not be required to be registered
under the Securities Act and such Notes and the Certificate may at no time be
held by more than 95 Persons, directly or indirectly, unless such Opinion of
Counsel also states that such Notes will be debt for United States federal
income tax purposes. In addition, if for tax or other reasons it may be
necessary to track such Notes (e.g., if the Notes have original issue
discount), tracking conditions such as requiring that such Notes be in
definitive registered form may be required by the Administrator as a condition
to such transfer. Any Notes whose transfer required the delivery of the Opinion
of Counsel as is described in clause (y) will require a similar Opinion
of Counsel with respect to each subsequent transfer of such Notes.

          (c) Any
purported transfer of a Note not in accordance with this Section 2.15
shall be null and void ab initio and shall not be given effect
for any purpose hereunder.

	
  

 	
  

 	
  

 
	
  

 	
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          (d) The
Indenture Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest
in any Note other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

ARTICLE
III COVENANTS

          SECTION 3.1
Payment
of Principal and Interest. The Issuer will duly and punctually pay
the principal of and interest on the Notes in accordance with the terms of the
Notes and this Indenture. Without limiting the foregoing and subject to Section
8.2, on each Payment Date the Issuer shall cause to be paid all amounts on
deposit in the Collection Account which represent Available Funds for such
Payment Date and the Reserve Account Draw Amount for such Payment Date received
by the Servicer during the preceding Collection Period. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered to have been paid by the Issuer
to such Noteholder for all purposes of this Indenture. Interest accrued on the
Notes shall be due and payable on each Payment Date. The final interest payment
on each Class of Notes is due on the earlier of (a) the Payment Date (including
any Redemption Date) on which the principal amount of that Class of Notes is reduced
to zero or (b) the applicable Final Scheduled Payment Date for that Class of
Notes.

          SECTION 3.2
Maintenance
of Office or Agency. As long as any of the Notes remain outstanding,
the Issuer shall maintain in the Borough of Manhattan, the City of New York, an
office or agency 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. 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 Sections 8.2
and 5.4, all payments of amounts due and payable with respect to any
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 therefrom for payments on the Notes shall be
paid over to the Issuer except as provided in this Section 3.3 and Section
4.4 of the Sale and Servicing Agreement.

          (b) On or
prior to 10:00 a.m. New York time on each Payment Date and Redemption Date, the
Issuer shall deposit or cause to be deposited into the Collection Account an
aggregate sum in immediately available funds sufficient to pay the amounts then
becoming due under the Notes, and the Paying Agent shall hold such sum to be
held in trust for the benefit of the Persons entitled thereto pursuant to the
Transaction Documents and (unless the Paying Agent is the 

	
  

 	
  

 	
  

 
	
  

 	
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Indenture Trustee) shall promptly notify the Indenture Trustee in
writing of its action or failure so to 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 to the extent relevant), subject to the
provisions of this Section, 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 provided in the Transaction
 Documents;

 
	
  

 	
  

 
	
  

 	
           (ii)
 give the Indenture Trustee written 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;

 
	
  

 	
  

 
	
  

 	
           (iv)
 promptly resign as a Paying Agent and forthwith pay to the Indenture Trustee
 all sums held by it in trust for the payment of 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 with respect to the withholding from
 any payments made by it on any 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 a payment by any Paying Agent to the Indenture Trustee, such Paying Agent
shall be released from all further liability with respect to such money.

          (e) Subject
to applicable laws with respect to the 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 years after such
amount has become due and payable shall be discharged from such trust and
distributed by the Indenture Trustee to the Issuer upon receipt of an Issuer
Request and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof 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 payment, shall at the
reasonable expense and direction of the Issuer cause to be 

	
  

 	
  

 	
  

 
	
  

 	
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published once, in an Authorized Newspaper, notice that such money
remains unclaimed and that, after a date specified therein, which date shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining shall be distributed to the Issuer. The
Indenture Trustee may also adopt and employ, at the written direction of and at
the expense 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 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 Noteholder).

          SECTION 3.4
Existence.
The Issuer will 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 enforceability of this Indenture, the
Notes, the Collateral and each other instrument or agreement included in the
Trust Estate.

          SECTION 3.5
Protection
of Collateral. The Issuer intends the security interest Granted
pursuant to this Indenture in favor of the Indenture Trustee on behalf of the
Noteholders to be prior to all other Liens in respect of the Collateral, and
the Issuer shall take all actions necessary to obtain and maintain, for the
benefit of the Indenture Trustee on behalf of the Noteholders, a first lien on
and a first priority, perfected security interest in the Collateral (except to
the extent that the interest of the Indenture Trustee therein cannot be
perfected by the filing of a financing statement). The Issuer shall from time
to time execute and deliver all such supplements and amendments hereto, shall
file or authorize the filing of all such financing statements, continuation
statements, instruments of further assurance and other instruments, all as
prepared by the Administrator and delivered to the Issuer, and shall take such
other action necessary or advisable to:

          (a) Grant
more effectively all or any portion of the Collateral;

          (b)
maintain or preserve the lien and security interest (and the priority thereof)
created by this Indenture or carry out more effectively the purposes hereof; 

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

          (d) enforce
any of the Collateral; or

          (e)
preserve and defend title to the Collateral and the rights of the Indenture
Trustee and the Noteholders in the Collateral against the claims of all
Persons.

          The Issuer
hereby designates the Indenture Trustee its agent and attorney-in-fact and
hereby authorizes the Indenture Trustee to file all financing statements,
continuation statements or other instruments required to be filed (if any)
pursuant to this Section 3.5; provided, however, the Indenture Trustee
shall have no duty and shall not be responsible for filing any financing or 

	
  

 	
  

 	
  

 
	
  

 	
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continuation statements or recording any documents or instruments in any public office at any time
or times or otherwise perfecting or maintaining the perfection of any security
interest. Notwithstanding any statement to the contrary contained herein or in
any other Transaction Document, the Issuer shall not be required to notify any
insurer with respect to any Insurance Policy or about any aspect of the
transactions contemplated by the Transaction Documents.

          SECTION 3.6
Opinions as to Collateral. (a) On the Closing Date, the Issuer shall furnish
or cause to be furnished to the Indenture Trustee an Opinion of Counsel to the
effect that, in the opinion of such counsel, either (i) such action has been
taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto and any other requisite documents, and with
respect to the filing of any financing statements and continuation statements
as are necessary to perfect and make effective the first priority lien and
security interest of this Indenture, and reciting the details of such action,
or (ii) no such action is necessary to make such lien and security interest
effective. 

          (b) On or
before April 30th of each calendar year, beginning with April 30,
2013, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel
to the effect that, in the opinion of such counsel, either (i) 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 filing of any financing statements and
continuation statements as are necessary to maintain the lien and security
interest created by this Indenture, and reciting the details of such actions or
referring to prior Opinions of Counsel in which such details are given or (ii)
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 this Indenture, any indentures supplemental hereto and any other
requisite documents and the filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to maintain
the lien and security interest of this Indenture until April 30 in the
following calendar year.

          SECTION 3.7
Performance
of Obligations; Servicing of Receivables. (a) The Issuer shall not
take any action and shall use its reasonable efforts not to permit any action
to be taken by others, including the Administrator, that would release any
Person from any of such Person’s material covenants or obligations under any
instrument or agreement included in the Collateral 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 ordered
by any bankruptcy or other court or as expressly provided in this Indenture,
the Transaction Documents or such other instrument or agreement.

          (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 Officer’s Certificate of the Issuer shall be
deemed to be action taken by the Issuer. Initially, the Issuer has contracted
with the Administrator, and the Administrator has agreed, to assist the Issuer
in performing its duties under this Indenture. The Indenture Trustee is hereby
directed to execute the acknowledgment in the Administration Agreement.

          (c) The
Issuer shall, and shall cause the Administrator and the Servicer to, punctually
perform and observe all of its respective obligations and agreements contained
in this Indenture,

	
  

 	
  

 	
  

 
	
  

 	
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the other Transaction Documents and the instruments and agreements
included in the Collateral, including but not limited to preparing (or causing
to be prepared) and filing (or causing to be filed) all UCC financing
statements and continuation statements required to be filed by the terms of
this Indenture and the other Transaction Documents 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 other than in
accordance with the amendment provisions set forth in such Transaction
Document.

          SECTION 3.8
Negative
Covenants. So long as any Notes are Outstanding, the Issuer shall
not:

          (a) engage
in any activities other than financing, acquiring, owning, pledging and managing
the Receivables and the other Collateral as contemplated by this Indenture and
the other Transaction Documents;

          (b) except
as expressly permitted by this Indenture or in the other Transaction Documents,
sell, transfer, exchange or otherwise dispose of any of the properties or
assets of the Issuer;

          (c) 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 the taxes levied or assessed
upon any part of the Trust Estate;

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

          (e) (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 (other than
Permitted Liens) to be created on or extend to or otherwise arise upon or
burden the assets of the Issuer or any part thereof or any interest therein or
the proceeds thereof or (iii) permit the lien of this Indenture not to
constitute a valid first priority (other than with respect to any Permitted
Lien) security interest in the Collateral;

          (f) incur,
assume or guarantee any indebtedness other than indebtedness incurred in
accordance with the Transaction Documents; or

          (g) merge
or consolidate with, or transfer substantially all of its assets to, any other
Person.

          SECTION 3.9
Annual Compliance Statement.

          (a) So long
as the Seller is filing any reports with respect to the Issuer, the Issuer
shall deliver to the Indenture Trustee on or before April 30th of
each calendar year beginning with April 30, 2013, an Officer’s Certificate
stating, as to the Authorized Officer signing such Officer’s Certificate, that:

	
  

 	
  

 	
  

 
	
  

 	
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           (i) a
 review of the activities of the Issuer during such year (or since the Closing
 Date, in the case of the first such Officer’s Certificate) and of its
 performance under this Indenture has been made under such Authorized
 Officer’s supervision; and 

 
	
  

 	
  

 
	
  

 	
           (ii) to
 the best of such Authorized Officer’s knowledge, based on such review, the
 Issuer has complied in all material respects with all conditions and
 covenants under this Indenture throughout such year, or, if there has been a
 default in the compliance of any such condition or covenant, specifying each
 such default known to such Authorized Officer and the nature and status
 thereof. 

 
	
  

 	
  

 
	
  

 	
 (b) The Issuer shall: 

 
	
  

 	
  

 
	
  

 	
           (i)
 deliver to the Indenture Trustee, within 15 days after the Issuer is required
 (if at all) to file the same with the Commission, copies of the annual
 reports and such other information, documents and reports (or copies of such
 portions of any of the foregoing as the Commission may from time to time by
 rules and regulations prescribe) as the Issuer may be required to file with
 the Commission pursuant to Section 13 or 15(d) of the Exchange Act or such
 other reports required pursuant to TIA Section 314(a)(1); 

 
	
  

 	
  

 
	
  

 	
           (ii)
 deliver to the Indenture Trustee and file with the Commission in accordance
 with rules and regulations prescribed from time to time by the Commission
 such other information, documents and reports with respect to compliance by
 the Issuer with the conditions and covenants of this Indenture as may be
 required from time to time by such rules and regulations; and 

 
	
  

 	
  

 
	
  

 	
           (iii)
 supply to the Indenture Trustee (and if required by TIA Section 313(c) the
 Indenture Trustee shall transmit by mail to all Noteholders) such summaries
 of any information, documents and reports required to be filed by the Issuer
 pursuant to clauses (i) and (ii) of this Section 3.9(b)
 as may be required pursuant to rules and regulations prescribed from time to
 time by the Commission. 

 

          (c)
Delivery of such reports, information and documents to the Indenture Trustee is
for informational purposes only and the Indenture Trustee’s receipt of such
shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Issuer’s
compliance with any of its covenants hereunder (as to which the Indenture
Trustee is entitled to rely exclusively on Officer’s Certificates). 

          (d) Unless
the Issuer otherwise determines, the fiscal year of the Issuer shall be the
same as the fiscal year of the Servicer. 

          SECTION
3.10 Restrictions on Certain Other
Activities. The Issuer shall not: (i) engage in any activities other
than financing, acquiring, owning, pledging and managing the Trust Estate and
the other Collateral in the manner contemplated by the Transaction Documents;
(ii) issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness other than the Notes; (iii) make any loan,
advance or credit to, 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, own, 

	
  

 	
  

 	
  

 
	
  

 	
 16

 	
 Indenture (USAA 2012-1)

 

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; or (iv) make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or
personalty). 

          SECTION
3.11 Restricted Payments. The
Issuer shall not, directly or indirectly, (a) pay any dividend or 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 or the
Administrator, (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,
that the Issuer may cause to be made distributions to the Servicer, the
Administrator, the Owner Trustee, the Indenture Trustee, the Noteholders and
the Certificateholders as permitted by, and to the extent funds are available
for such purpose under, this Indenture, the Sale and Servicing Agreement, the
Administration Agreement or the Trust Agreement. Other than as set forth in the
preceding sentence, the Issuer will not, directly or indirectly, make
distributions from the Trust Accounts. 

          SECTION
3.12 Notice of Events of Default.
The Issuer shall promptly deliver to the Indenture Trustee and each Rating
Agency written notice in the form of an Officer’s Certificate of any event
which with the giving of notice, the lapse of time or both would become an
Event of Default, its status and what action the Issuer is taking or proposes
to take with respect thereto. 

          SECTION
3.13 Further Instruments and Acts.
Upon request of the Indenture Trustee, the Issuer will 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
3.14 Compliance with Laws. The
Issuer shall comply with the requirements of all applicable laws, the
non-compliance with which would, individually or in the aggregate, materially
and adversely affect the ability of the Issuer to perform its obligations under
the Notes, this Indenture or any other Transaction Document. 

          SECTION
3.15 Perfection Representations, Warranties
and Covenants. The perfection representations, warranties and
covenants attached hereto as Schedule I shall be deemed to 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 and 3.11,
(e) the rights and immunities of the Indenture Trustee, including but not
limited to Article VI, hereunder 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
Notes, when: 

	
  

 	
  

 	
  

 
	
  

 	
 17

 	
 Indenture (USAA 2012-1)

 

          (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 2.5 and (2) Notes for which payment money has theretofore
been 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; 

          (b) the
Issuer has paid or caused to be paid all other sums payable hereunder by the
Issuer including all amounts due and owing to the Indenture Trustee; and 

          (c) the
Issuer has delivered to the Indenture Trustee an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA or the Indenture Trustee, and if
such discharge is not related to a redemption of the Notes in accordance with Section
10.1), a 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 herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with (and, in the case of an Officer’s Certificate, stating that the Rating
Agency Condition has been satisfied (provided,
that such Officer’s Certificate need not state that the Rating Agency Condition
has been satisfied if all amounts owing on each Class of Notes have been paid
or will be paid in full on the date of delivery of such Officer’s
Certificate)). 

          SECTION 4.2
Application of Trust Money. All
monies deposited with the Indenture Trustee pursuant to Section 4.1
shall be held in trust and applied by it, in accordance with the provisions of
the Notes, this Indenture and Article IV of the Sale and Servicing
Agreement. Such monies need not be segregated from other funds except to the
extent required herein, in the Sale and Servicing Agreement or by law. 

          SECTION 4.3
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.

ARTICLE V REMEDIES

          SECTION 5.1
Events of Default. The occurrence
and continuation of any one of the following events (whatever the reason for
such Event of Default and whether it 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) shall constitute a default under this Indenture (each, an “Event
of Default”): 

	
  

 	
  

 
	
  

 	
           (a)
 default in the payment of any interest on any Note of the Controlling Class
 when the same becomes due and payable, and such default shall continue for a
 period of five Business Days or more; 

 
	
  

 	
  

 
	
  

 	
           (b)
 default in the payment of principal of any Note at the related Final
 Scheduled Payment Date or the Redemption Date; 

 

	
  

 	
  

 	
  

 
	
  

 	
 18

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
           (c) any
 failure by the Issuer to duly observe or perform in any material respect any
 of its material covenants or agreements made in this Indenture (other than a
 covenant or agreement, a default in the observance or performance of which is
 elsewhere in this Section specifically dealt with), which failure materially
 and adversely affects the interests of the Noteholders, and such failure
 shall continue unremedied for a period of 60 days after there shall have been
 given, by registered or certified mail, to the Issuer by the Indenture
 Trustee or by Noteholders evidencing at least a majority of the Outstanding
 Note Balance, a written notice specifying such failure 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 made in this Indenture proves to
 have been incorrect in any material respect when made, which failure
 materially and adversely affects the interests of the Noteholders, and which
 failure continues unremedied for 60 days after there shall have been given,
 by registered or certified mail, to the Issuer by the Indenture Trustee or by
 Noteholders evidencing at least a majority of the Outstanding Note Balance, a
 written notice specifying such failure and requiring it to be remedied and
 stating that such notice is a “Notice of Default” hereunder; or 

 
	
  

 	
  

 
	
  

 	
           (e) an
 Insolvency Event with respect to the Issuer; 

 

provided, however,
that a delay in or failure of performance referred to under clauses (a),
(b), (c) or (d) above for a period of 90 days will not
constitute an Event of Default if that delay or failure was caused by force
majeure or other similar occurrence as certified by the Issuer in an Officer’s
Certificate of the Issuer delivered to the Indenture Trustee. 

          The Issuer
shall deliver to the Indenture Trustee, within five (5) days of the occurrence
thereof, written notice in the form of an Officer’s Certificate of any event
which with the giving of notice and the lapse of time would become an Event of
Default, its status and what action the Issuer is taking or proposes to take
with respect thereto. 

          SECTION 5.2
Acceleration of Maturity; Waiver of Event of
Default. (a) Except as set forth in the last sentence of this Section
5.2(a), if an Event of Default should occur and be continuing, then and in
every such case the Indenture Trustee may, or if directed by the Noteholders
representing not less than a majority of the Note Balance of the Controlling
Class shall, or the Noteholders of at least a majority of the Note Balance of
the Controlling Class may declare all the Notes to be immediately due and
payable, by a notice in writing to the Issuer (and to the Indenture Trustee if
given by Noteholders), and upon any such declaration the unpaid Note Balance of
such Notes, together with accrued and unpaid interest thereon through the date
of acceleration, shall become immediately due and payable. If an Event of
Default specified in Section 5.1(e) occurs, all unpaid principal,
together with all accrued and unpaid interest thereon, of all Notes, and all
other amounts payable hereunder, shall automatically become due and payable
without any declaration or other act on the part of the Indenture Trustee or
any Noteholder. 

	
  

 	
  

 	
  

 
	
  

 	
 19

 	
 Indenture (USAA 2012-1)

 

          (b) At any
time after such declaration of acceleration of maturity has been made and
before a judgment or decree for payment of the money due has been obtained by
the Indenture Trustee as hereinafter provided for in this Article V, the
Noteholders representing a majority of the Note Balance of the Controlling
Class, by written notice to the Issuer and the Indenture Trustee, may rescind
and annul such declaration and its consequences if: 

	
  

 	
  

 
	
  

 	
           (i) the
 Issuer has paid or deposited with the Indenture Trustee a sum sufficient to
 pay (A) all payments of principal of and interest on all Notes and all other
 amounts that would then be due hereunder or upon such Notes if the Event of
 Default giving rise to such acceleration had not occurred, and (B) all sums
 paid or advanced by the Indenture Trustee hereunder and the reasonable
 compensation, expenses, disbursements and advances of the Indenture Trustee
 and its agents and counsel; and 

 
	
  

 	
  

 
	
  

 	
           (ii) all
 Events of Default, other than the nonpayment of the principal of the 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. 

          If the
Notes have been declared due and payable or have automatically become due and
payable following an Event of Default, the Indenture Trustee may institute
Proceedings to collect amounts due, exercise remedies as a secured party
(including foreclosure or sale of the Collateral) or elect to maintain the
Collateral. Any sale of the Collateral by the Indenture Trustee will be subject
to the terms and conditions of Section 5.4. 

          SECTION 5.3
Collection of Indebtedness and Suits for
Enforcement by the Indenture Trustee. (a) The Issuer covenants that
if (i) default is made in the payment of any interest on any Note of the
Controlling Class when the same becomes due and payable, and such default
continues for a period of five Business Days or more, or (ii) default is made
in the payment of the principal of any Note at the related Final Scheduled
Payment Date or the Redemption Date, the Issuer will, upon demand of the
Indenture Trustee in writing as directed by a majority of the Note Balance of
the Controlling Class, pay to the Indenture Trustee, for the benefit of the
Holders of the Notes, the whole amount then due and payable on such Notes for
principal and interest, with interest upon the overdue principal, and, to the
extent payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest, at the applicable Interest 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.

          (b) In case
the Issuer shall fail forthwith to pay the amounts described in clause (a)
above upon such demand, the Indenture Trustee, in its own name and as trustee
of an express trust, may 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 other obligor upon such
Notes and collect in the manner provided by law out of the property of the
Issuer or other obligor upon such Notes, wherever situated, the monies adjudged
or decreed to be payable. 

	
  

 	
  

 	
  

 
	
  

 	
 20

 	
 Indenture (USAA 2012-1)

 

          (c) If an
Event of Default shall have occurred 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, by
such appropriate Proceedings as the Indenture Trustee shall deem most effective
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of 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) In case
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 Collateral,
Proceedings under the Bankruptcy Code or any other applicable federal or state
bankruptcy, insolvency or other similar law, or in case 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 in case of any other comparable
judicial Proceedings relative to the Issuer or 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, 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 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 for reimbursement of
 all expenses and liabilities incurred, and all advances and disbursements
 made, by the Indenture Trustee and each predecessor Indenture Trustee, except
 as a result of negligence, bad faith or willful misconduct) and of the Noteholders
 allowed in such Proceedings; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 unless prohibited by applicable law and regulations, to vote on behalf of the
 Holders of Notes 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 distribute 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 Noteholder to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such 

	
  

 	
  

 	
  

 
	
  

 	
 21

 	
 Indenture (USAA 2012-1)

 

Noteholders, to pay to the Indenture Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all advances and
disbursements made, by the Indenture Trustee and each predecessor Indenture
Trustee except as a result of negligence, bad faith or willful misconduct, and
any other amounts due the Indenture Trustee under 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 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 Holders of the Notes, to the extent set forth in Section
5.4(b).  

          (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; Priorities. (a) If an
Event of Default shall have occurred and be continuing, the Indenture Trustee
may, or at the direction of Noteholders representing not less than a majority
of the Note Balance of the Controlling Class shall, do one or more of the
following (subject to Sections 5.2, 5.5,
5.6 and 5.11): 

	
  

 	
  

 
	
  

 	
           (i)
 institute Proceedings in its own name and as trustee of an express trust for
 the collection of all amounts then payable on the 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
 such Notes monies adjudged due; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (iv)
 subject to Section 5.17, after an acceleration of the maturity of the
 Notes pursuant to Section 5.2, sell the Collateral or any portion
 thereof or rights or interest 

 

	
  

 	
  

 	
  

 
	
  

 	
 22

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
 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 Collateral following an Event of Default
unless (A) the Holders of 100% of the Note Balance of the Controlling Class
have consented to such liquidation, (B) the proceeds of such sale or
liquidation are sufficient to pay in full the principal of and the accrued
interest on the Outstanding Notes or (C) the default either (x) relates to the
failure to pay interest or principal when due (a “Payment Default”) and
the Indenture Trustee determines (but shall have no obligation to make such
determination) that the Collections on the Receivables will not be sufficient
on an ongoing basis to make all payments on the Notes as they would have become
due if the Notes had not been declared due and payable or (y) relates to an
Insolvency Event and, in the case of each of (x) and (y) above, the Indenture
Trustee obtains the consent of the Holders of 66-2/3% of the Note Balance of
the Controlling Class. In determining such sufficiency or insufficiency with
respect to clauses (B) and (C) of the preceding sentence, the
Indenture Trustee may at the expense of the Noteholders, 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. Notwithstanding
anything herein to the contrary, if the Event of Default does not relate to a
Payment Default or Insolvency Event with respect to the Issuer, the Indenture
Trustee may not sell or otherwise liquidate the Trust Estate unless the Holders
of all Outstanding Notes consent to such sale or the proceeds of such sale are
sufficient to pay in full the principal of and accrued interest on the
Outstanding Notes. 

          (b)
Notwithstanding the provisions of Section 8.2 of this Indenture or Section
4.4 of the Sale and Servicing Agreement after an Event of Default and
acceleration of the Notes, if the Indenture Trustee collects any Collections,
money or property with respect to the Collateral, it shall pay out such
Collections, money or property (and other amounts, including all amounts held
on deposit in the Reserve Account) held as Collateral for the benefit of the
Noteholders (net of liquidation costs associated with the sale of the Trust
Estate) in the following order of priority: 

	
  

 	
  

 
	
  

 	
           (i) first, to the Indenture Trustee and the
 Owner Trustee, any accrued and unpaid fees, (including any unpaid Indenture
 Trustee or the Owner Trustee fees with respect to prior periods) and expenses
 and indemnity payments which have not previously been paid; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (iii) third, pro rata, based on amounts due to
 the Class A Noteholders, for payment to each respective Class of Class A
 Noteholders, the Accrued Class A Note Interest; provided, that if there are not sufficient funds available
 to pay the entire amount of the Accrued Class A Note Interest, the amount
 available shall be applied to the payment of such interest on each Class of
 Class A Notes on a pro rata basis based on the amount of interest payable to
 each Class of Class A Notes; 

 
	
  

 	
  

 
	
  

 	
           (iv) fourth, to the Holders of the Class A-1
 Notes in respect of principal thereof until the Class A-1 Notes have been
 paid in full; 

 

	
  

 	
  

 	
  

 
	
  

 	
 23

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
           (v) fifth, to the Holders of the Class A-2
 Notes, Class A-3 Notes and Class A-4 Notes, in respect of principal thereon,
 on a pro rata basis (based on the Note Balance of each Class on such Payment
 Date), until all Classes of the Class A Notes have been paid in full; 

 
	
  

 	
  

 
	
  

 	
           (vi) sixth, to the Holders of the Class B
 Notes, the Accrued Class B Note Interest; 

 
	
  

 	
  

 
	
  

 	
           (vii) seventh, to the Holders of the Class B
 Notes in respect of principal thereon until the Class B Notes have been paid
 in full; 

 
	
  

 	
  

 
	
  

 	
           (viii) eighth, to the Indenture Trustee and the
 Owner Trustee, any accrued and unpaid fees, reasonable expenses and indemnity
 payments which have not previously been paid; 

 
	
  

 	
  

 
	
  

 	
           (ix) ninth, to the Servicer, legal expenses
and costs incurred pursuant to Section 6.4 (b) of the Sale and Servicing
Agreement; and  

 
	
  

 	
  

 
	
  

 	
           (x) tenth, any remaining funds shall be
 distributed to or at the direction of the Certificateholder. 

 

          The
Indenture Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section 5.4. At least 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. 

          If the
Notes have not been accelerated because of an Event of Default, if the
Indenture Trustee collects any money or property pursuant to this Article V,
such amounts shall be deposited into the Collection Account and distributed in
accordance with Section 4.4 of the Sale and Servicing Agreement and Section
8.2 hereof. 

          SECTION 5.5
Optional Preservation of the Collateral.
If the Notes have been declared or are automatically due and payable under Section
5.2 following an Event of Default and such declaration or automatic
occurrence and its consequences have not been rescinded and annulled, if
permitted hereunder, the Indenture Trustee may, but need not, elect to maintain
possession of the Trust Estate and continue to apply the proceeds thereof in
accordance with Section 5.4(b). It is the intent of the parties hereto
and the Noteholders that there be at all times sufficient funds for the payment
of principal of and interest on the Notes, and the Indenture Trustee shall take
such intent into account when determining whether or not to maintain possession
of the Collateral. In determining whether to maintain possession of the
Collateral, the Indenture Trustee may (at other than its own expense), 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 Collateral for such purpose. 

          SECTION 5.6
Limitation of Suits. (a) No
Holder of any Note shall have any right to institute any Proceeding, judicial
or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless: 

	
  

 	
  

 	
  

 
	
  

 	
 24

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (v) no
 direction inconsistent with such written request has been given to the Indenture
 Trustee during such 60-day period by the Holders of a majority of the
 Outstanding Note Balance. 

 

No Noteholder or group of 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 each case,
to the extent and 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 representing less
than a majority of the Note Balance of the Controlling Class, the Indenture Trustee
shall act at the direction of the group of Noteholders representing the greater
Note Balance of the Controlling Class. If the Indenture Trustee receives
conflicting or inconsistent requests and indemnity from two or more groups of
Noteholders representing equal Note Balances of the Controlling Class, the
Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture. 

          (b) No
Noteholder shall have any right to vote except as provided pursuant to this
Indenture and the Notes, nor any right in any manner to otherwise control the
operation and management of the Issuer. However, in connection with any action
as to which Noteholders are entitled to vote or consent under this Indenture
and the Notes, the Issuer may set a record date for purposes of determining the
identity of Noteholders entitled to vote or consent in accordance with TIA
Section 316(c). 

          SECTION 5.7
Rights of Noteholders to Receive Principal
and Interest. Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right to receive payment of
the principal of and interest 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 Noteholder. 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

          SECTION 5.8
Restoration of Rights and Remedies.
If the Indenture Trustee 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 or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee 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. 

          SECTION 5.9
Rights and Remedies Cumulative.
No right or remedy herein conferred upon or reserved to the Indenture Trustee
or to 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 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 an acquiescence therein. Every right and remedy
given by this Article V or by law to the Indenture Trustee or to the
Noteholders may be exercised from time to time, and as often as may be deemed expedient,
by the Indenture Trustee or by the Noteholders, as the case may be. 

          SECTION
5.11 Control by Noteholders.
Subject to the provisions of Sections 5.4, 5.6, 6.1(c), 6.2(d),
and 6.2(e) and 6.2(f), Noteholders holding not less than a majority
of the Note Balance of the Controlling Class 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 with respect to the exercise
of any trust or power conferred on the Indenture Trustee; provided, 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 the proviso and the last sentence of Section
5.4(a), any direction to the Indenture Trustee to sell or liquidate the Trust
Estate shall be by the Holders of Notes representing not less than 100% of
the Outstanding Note Balance unless the proceeds of such sale are sufficient
to pay in full the principal of and accrued interest on the Outstanding
Notes;  

 
	
  

 	
  

 
	
  

 	
           (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 Holders of Notes representing
 less than 100% of the Outstanding Note Balance to sell or liquidate the Trust
 Estate shall be of no force and effect; 

 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
           (d) the
 Indenture Trustee may take any other action deemed proper by the Indenture
 Trustee that is not inconsistent with such direction, applicable law and the
 terms of this Indenture; and 

 
	
  

 	
  

 
	
  

 	
           (e) such
 direction shall be in writing; 

 

provided, further, that, subject to Section 6.1,
the Indenture Trustee need not take any action that it determines might expose
it to personal liability or might materially adversely affect or unduly
prejudice the rights of any Noteholders not consenting to such action. 

          SECTION
5.12 Waiver of Past Defaults.
Prior to the declaration of the acceleration of the maturity of the Notes as
provided in Section 5.2, the Holders of Notes of not less than a
majority of the Note Balance of the Controlling Class may waive any past
Default or Event of Default and its consequences except a Default (a) in
payment of principal of or interest on any of the Notes, (b) in respect of a
covenant or provision hereof which cannot be modified or amended without the
consent of each Noteholder or (c) arising from an Insolvency Event with respect
to the Issuer. In the case of any such waiver, the Issuer, the Indenture
Trustee and the Noteholders 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
prior, 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 Noteholder by such Noteholder’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 the 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; but the provisions of this Section 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 in the aggregate
more than 10% of the Outstanding Note Balance, or (c) any suit instituted by
any Noteholder for the enforcement of the payment of principal of or 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 will
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 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

waives all benefit or advantage of any such law, and covenants that it
will 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. 

          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), if the maturity of the Notes has been
accelerated pursuant to Section 5.2, or Section 4.4 of the Sale
and Servicing Agreement and Section 8.2 of this Indenture, if the maturity of
the Notes has not been accelerated. 

          SECTION
5.16 Performance and Enforcement of Certain
Obligations. (a) Promptly following a request from the Indenture
Trustee to do so, the Issuer shall take all such lawful action as the Indenture
Trustee may request to compel or secure the performance and observance (i) by
the Seller and the Servicer, as applicable, of each of their obligations to the
Issuer under or in connection with the Sale and Servicing Agreement, or (ii) by
the Seller or the Bank, as applicable, of each of their obligations under or in
connection with the Purchase Agreement, in each case, in accordance with the
terms thereof, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the
Sale and Servicing Agreement and the Purchase Agreement, as the case may be, 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, the Servicer or
the Bank 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 Servicing Agreement or by the
Seller or the Bank, as applicable, of each of their obligations under or in
connection with the Purchase Agreement. 

          (b) If an
Event of Default has occurred and is continuing, the Indenture Trustee may,
and, at the direction (which direction shall be in writing) of the Holders of a
majority of the Note Balance of the Controlling Class shall, exercise all
rights, remedies, powers, privileges and claims of the Issuer against the
Seller or the Servicer under or in connection with the Sale and Servicing
Agreement or against the Seller or the Bank under the Purchase Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Seller, the Servicer or the Bank 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 Servicing Agreement
or the Purchase Agreement, as applicable, and any right of the Issuer to take
such action shall be suspended. 

          SECTION
5.17 Sale of Collateral. If the
Indenture Trustee acts to sell the Collateral or any part thereof, pursuant to Section
5.4(a), the Indenture Trustee or its agent shall publish a notice in an
Authorized Newspaper stating that the Indenture Trustee or its agent intends to
effect such a sale in a commercially reasonable manner and on commercially
reasonable terms, which shall include the solicitation of competitive bids.
Following such publication, the 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

Indenture Trustee or its agent shall, unless otherwise prohibited by
applicable law from any such action, sell the Collateral or any part thereof,
in such manner and on such terms as provided above to the highest bidder, provided, however,
that the Indenture Trustee or its agent may from time to time postpone any sale
by public announcement made at the time and place of such sale. The Indenture
Trustee or its agent shall give notice to the Seller and the Servicer of any
proposed sale, and the Seller, the Servicer or any Affiliate thereof shall be
permitted to bid for the Collateral at any such sale. The Indenture Trustee or
its agent may obtain a prior determination from a conservator, receiver or
trustee in bankruptcy of the Issuer that the terms and manner of any proposed
sale are commercially reasonable. The power to effect any sale of any portion
of the Collateral pursuant to Section 5.4 and this Section 5.17
shall not be exhausted by any one or more sales as to any portion of the
Collateral remaining unsold, but shall continue unimpaired until the entire
Collateral shall have been sold or all amounts payable on the Notes shall have
been paid. The Indenture Trustee may utilize an agent at other than its own
expense for the purpose of conducting any sale of Collateral hereunder. 

ARTICLE VI THE INDENTURE TRUSTEE

          SECTION 6.1
Duties of the 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 with
respect to the performance of its duties or obligations under this Indenture
only, the Indenture Trustee shall use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such Person’s own affairs. 

          (b) Except
during an Event of Default, subject to Section 6.1(a):

	
  

 	
  

 
	
  

 	
           (i) the
 Indenture Trustee undertakes to perform such duties and only such duties as
 are specifically set forth in this Indenture and the other Transaction
 Documents to which it is a party and no implied covenants or obligations
 shall be read into this Indenture or the other Transaction Documents 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 conforming on their face to the requirements of this Indenture;
 but in the case of any such certificates or opinions which by any provisions
 hereof are specifically required to be furnished to the Indenture Trustee,
 the Indenture Trustee shall examine the certificates and opinions to
 determine whether or not they conform on their face to the requirements of
 this Indenture (but need not confirm or investigate the accuracy of
 mathematical calculations or other facts stated therein). 

 

          (c) The
Indenture Trustee shall not be relieved from liability for its own negligent
action, its own 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; 

 

	
  

 	
  

 	
  

 
	
  

 	
 29

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
           (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; 

 
	
  

 	
  

 
	
  

 	
           (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 from
 Noteholders in accordance with the terms of this Indenture; and 

 
	
  

 	
  

 
	
  

 	
           (iv) the
 Indenture Trustee shall have no duty (A) to see to any recording, filing, or
 depositing of this Indenture or any agreement referred to herein or any
 financing statement or continuation statement evidencing a security interest,
 or to see to the maintenance of any such recording or filing or depositing or
 to any re-recording, refiling or redepositing of any thereof, (B) to see to
 any insurance, (C) to see to the payment or discharge of any tax, assessment,
 or other governmental charge or any lien or encumbrance of any kind owing
 with respect to, assessed or levied against, any part of the Trust Estate
 other than as directed by the Servicer or the Administrator, in either case,
 from funds available in the Collection Account, (D) except as otherwise set
 forth in Section 6.1(b)(ii), to confirm or verify the contents of any
 reports or certificates of the Servicer delivered to the Indenture Trustee
 pursuant to this Indenture believed by the Indenture Trustee to be genuine
 and to have been signed or presented by the proper party or parties, or (E)
 to execute any certificates or other documents required pursuant to the
 Sarbanes-Oxley Act or the rules and regulations promulgated thereunder,
 except with respect to the back-up certification provided pursuant to Section
 9.21 of the Sale and Servicing Agreement. 

 

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

          (g) No
provision of this Indenture or any other Transaction Document 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 thereunder or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds or indemnity satisfactory to it
against such risk or liability is not reasonably assured to it, and none of the
provisions contained in this Indenture shall in any event require the Indenture
Trustee to perform, or be responsible for the manner of performance of, any of
the obligations of the Servicer under this Indenture except during such time,
if any, as the Indenture Trustee shall be the successor to, and be vested with
the rights, duties, powers and privileges of the Servicer in accordance with
the terms of this Indenture. 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

          (h) Every
provision of this Indenture and each other Transaction Document 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 and to the provisions
of the TIA.

          (i) The
Indenture Trustee shall take all actions required to be taken by the Indenture
Trustee under the Sale and Servicing Agreement.

          SECTION 6.2
Rights of
the Indenture Trustee. Subject to the provisions of Section 6.1:

          (a) The
Indenture Trustee may conclusively rely on any resolution, certification,
statement, opinion, report, notice, request, direction, consent, order, bond,
debenture or other paper or document believed by it to be genuine and to have
been signed or presented by the proper Person. The Indenture Trustee need not
investigate any fact or matter stated in the document.

          (b) Before
the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel, as applicable. The Indenture Trustee
shall not be liable for any action it takes, suffers or omits to take in good
faith in reliance on such Officer’s Certificate or Opinion of Counsel.

          (c) The
Indenture Trustee may execute any of the trusts or powers hereunder or under
any of the Transaction Documents to which the Indenture Trustee is a party or
perform any duties hereunder or under any of the Transaction Documents to which
the Indenture Trustee is a party 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 co-trustee or separate trustee appointed in accordance with
the provisions of Section 6.10, or any other such agent, attorney,
custodian or nominee appointed with due care by it hereunder. The Indenture
Trustee shall not be responsible for any misconduct or negligence on the part
of, or for the supervision of, the Administrator or the Servicer.

          (d) The
Indenture Trustee shall not be liable for any action it takes or omits to take
in good faith which it reasonably believes to be authorized or within
discretion or rights or powers conferred upon it by this Indenture; provided, however, that the Indenture Trustee’s
conduct 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, the Notes and
any Transaction Documents to which the Indenture Trustee is a party 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 or to institute, conduct or defend any
litigation under this Indenture or in relation to this Indenture or to honor
the request or direction of any of the Noteholders pursuant to this Indenture
unless such Noteholders shall have offered to the Indenture Trustee security or
indemnity satisfactory to the Indenture Trustee against the reasonable costs,
expenses, disbursements, advances and liabilities that might be incurred by it,
its agents and its counsel in compliance with such request or direction.

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

          (g) The
Indenture Trustee shall not be deemed to have notice of any Default, Event of
Default or Servicer Replacement Event unless a Responsible Officer of the
Indenture Trustee has actual knowledge thereof or has received written notice
thereof.

          (h) The
right of the Indenture Trustee to perform any discretionary act enumerated in
this Indenture shall not be construed as a duty.

          (i)
Anything in this Indenture to the contrary notwithstanding, in no event shall
the Indenture Trustee be liable under or in connection with this Indenture for
indirect, special, incidental, punitive or consequential losses or damages of
any kind whatsoever, including but not limited to lost profits, whether or not
foreseeable, even if the Indenture Trustee has been advised of the possibility
thereof and regardless of the form of action in which such damages are sought.

          (j) The
Indenture Trustee shall not be required to give any bond or surety in respect
of the execution of the Trust Estate created hereby or the powers granted hereunder.

          SECTION 6.3
Individual
Rights of the Indenture Trustee. Subject to Section 310 of the TIA,
the Indenture Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Seller, the Owner
Trustee, the Administrator and their respective Affiliates with the same rights
it would have if it were not the Indenture Trustee, and the Seller, the Owner
Trustee, the Administrator and their respective Affiliates may maintain normal
commercial banking and investment banking relationships with the Indenture
Trustee and its Affiliates. Any Paying Agent, Note Registrar, co-registrar,
co-paying agent, co-trustee or separate trustee may do the same with like
rights. However, the Indenture Trustee must comply with Section 6.11.

          SECTION 6.4
The
Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, the Notes or the other Transaction Documents or the validity,
sufficiency or perfection of the Collateral, shall not be accountable for the
Issuer’s use of the proceeds from the Notes, and shall not be responsible for
any statement or omission of the Issuer in the Indenture or the other Transaction
Documents or in any document issued in connection with the sale of the Notes or
in the Notes, all of which shall be taken as the statements of the Issuer,
other than the Indenture Trustee’s certificate of authentication. The Indenture
Trustee shall not be responsible for making Collections called for under the
terms and provisions of the Receivables and on each Payment Date shall make the
deposits and distributions specified in this Indenture and the Sale and
Servicing Agreement solely based on information contained in, and as directed
by, the Servicer’s Certificate.

          SECTION 6.5
Notice of
Defaults. If a Default occurs and is continuing and if it is either
actually known by a Responsible Officer of the Indenture Trustee or written
notice of the existence thereof has been delivered to a Responsible Officer of
the Indenture Trustee, the Indenture Trustee shall mail to each Noteholder and
the Administrator notice of the Default within 90 days after such knowledge or
notice occurs. Except in the case of a Default in payment of principal of or
interest on any Note (including payments pursuant to the mandatory redemption
provisions of such Note), the Indenture Trustee may withhold the notice if and
so 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

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 the Indenture Trustee to Noteholders. Upon delivery from the
Servicer, the Indenture Trustee, at the expense of the Issuer, shall deliver by
mail, e-mail, courier, fax or the Indenture Trustee’s website at
gctinvestorreporting.bnymellon.com or such other website address as is provided
by the Indenture Trustee to each Noteholder, not later than the latest date
permitted by law, such information as may be required by law to enable such
Holder to prepare its federal and state income tax returns.

          SECTION 6.7
Compensation
and Indemnity. The Issuer shall cause the Servicer pursuant to the
Sale and Servicing Agreement to agree (i) to pay to the Indenture Trustee from
time to time such compensation as the Servicer and the Indenture Trustee shall
agree in writing for services rendered by the Indenture Trustee hereunder and
under the Transaction Documents in accordance with a fee letter between the
Servicer and the Indenture Trustee effective as of the Closing Date, (ii) to
reimburse the Indenture Trustee for all expenses, advances and disbursements
incurred by it in connection with the performance of its duties as Indenture
Trustee hereunder and under the Transaction Documents and (iii) to indemnify
the Indenture Trustee, its directors, officers, employees and agents for, and
hold it harmless against, any and all claims loss, liability or expense
(including attorneys’ fees and disbursements) incurred by any of them in
connection with the administration of the trust or trusts hereunder or the
performance of its duties as Indenture Trustee hereunder and under the
Transaction Documents, including but not limited to the costs and expenses of
defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder. The Indenture
Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. The Indenture Trustee shall notify the Issuer and the
Servicer promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer and the Servicer shall not relieve
the Issuer or the Servicer of its obligations hereunder. The Issuer shall, or
shall cause the Servicer to, defend any such claim, and the Indenture Trustee
may have separate counsel of its own choosing and the Issuer shall, or shall
cause the Servicer to, pay the fees and expenses of such counsel. The Indenture
Trustee shall not be indemnified by the Administrator, the Issuer, the Seller
or the Servicer against any loss, liability or expense incurred by it or
arising from (i) The Bank of New York Mellon’s own willful misconduct,
negligence or bad faith, (ii) the inaccuracy of any representation or warranty
expressly made by The Bank of New York Mellon in its individual capacity or any
representation or warranty made by The Bank of New York Mellon in accordance
with Sections 9.20, 9.21 or 9.22 of the Sale and Servicing
Agreement or (iii) taxes, fees or other charges on, based on or measured by,
any fees, commissions or compensation received by the Indenture Trustee.

          The
compensation and indemnity obligations to the Indenture Trustee pursuant to
this Section shall survive the resignation or removal of the Indenture Trustee,
the discharge of this Indenture and the termination of the Sale and Servicing
Agreement. When the Indenture Trustee incurs expenses after the occurrence of
an Event of Default set forth in Section 5.1(e)
with respect to the Issuer, the expenses are intended to constitute expenses of
administration under the Bankruptcy Code or any other applicable federal or
state bankruptcy, insolvency or similar law.

	
  

 	
  

 	
  

 
	
  

 	
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          SECTION 6.8
Removal,
Resignation and Replacement of the Indenture Trustee. The Indenture
Trustee may resign at any time by so notifying the Issuer, the Administrator
and the Servicer. The Holders of a majority of the Note Balance of the
Controlling Class may remove the Indenture Trustee without cause by so
notifying the Indenture Trustee and the Issuer, and following that removal may
appoint a successor to the Indenture Trustee. The Issuer shall cause the Administrator
to remove the Indenture Trustee if:

	
  

 	
  

 
	
  

 	
           (a)
 the Indenture Trustee fails to comply with Section 6.11;

 
	
  

 	
  

 
	
  

 	
           (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 the
Indenture Trustee resigns or is removed or if a vacancy exists in the office of
the Indenture Trustee for any reason (the Indenture Trustee in such event being
referred to herein as the retiring Indenture Trustee), the Issuer shall cause
the Administrator to promptly appoint a successor Indenture Trustee which
satisfies the requirements set forth in Section 6.11.

          A successor
Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective, and the
successor Indenture Trustee, without any further act, deed or conveyance, 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 Noteholders. The retiring Indenture Trustee shall promptly
transfer all property held by it as the Indenture Trustee to the successor
Indenture Trustee.

          If a
successor Indenture Trustee does not take office within 60 days after the
retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority of the Note Balance of the
Controlling Class may petition any court of competent jurisdiction, at the
expense of the Issuer, for the appointment of a successor Indenture Trustee.

          If the
Indenture Trustee fails to comply with Section 6.11, any Noteholder may
petition any court of competent jurisdiction for the removal of the Indenture
Trustee and the appointment of a successor Indenture Trustee.

          Any
resignation or removal of the Indenture Trustee and appointment of a successor
Indenture Trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor Indenture
Trustee pursuant to this Section 6.8 and payment of all fees, expenses
and indemnities owed to the retiring Indenture Trustee.

          The
Indenture Trustee shall not be liable for the acts or omissions of any
successor Indenture Trustee.

          SECTION 6.9
Successor
Indenture Trustee by Merger. Subject to Section 6.11, if the
Indenture Trustee consolidates with, merges or converts into, or transfers all
or substantially all 

	
  

 	
  

 	
  

 
	
  

 	
 34

 	
 Indenture (USAA 2012-1)

 

its corporate trust business or assets to, another corporation or
banking association, the resulting, surviving or transferee corporation without
any further act shall be the successor Indenture Trustee, provided, that such corporation or banking
association shall be otherwise qualified and eligible under Section 6.11.
The Indenture Trustee shall provide the Administrator written notice of any
such consolidation, merger, conversion or transfer within one Business Day of
the effectiveness of such transaction.

          In case at
the time such successor or successors by merger, conversion or consolidation 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 successor to the Indenture Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee.

          SECTION
6.10 Appointment
of Co-Indenture Trustee or Separate Indenture Trustee. (a)
Notwithstanding any other provisions of this Indenture, at any time, after
delivering written notice to the Administrator, 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 and the Administrator acting
jointly shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, 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, such powers, duties, obligations,
rights and trusts as the Indenture Trustee and the Administrator may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8.

          (b) Every
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 intended that such separate trustee or co-trustee is not
 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
 Collateral 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
 separate trustee or co-trustee hereunder shall be personally liable by reason
 of any act or omission of any other trustee hereunder, including acts or
 omissions of predecessor or successor trustees; and

 

	
  

 	
  

 	
  

 
	
  

 	
 35

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
           (iii) the
 Indenture Trustee and the Administrator may at any time accept the
 resignation of or, acting jointly, 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 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. Every such instrument shall be filed with
the Indenture Trustee and a copy thereof given to the Administrator.

          (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 not
prohibited 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. Notwithstanding anything to the contrary in this
Indenture, the appointment of any separate trustee or co-trustee shall not
relieve the Indenture Trustee of its obligations and duties under this
Indenture.

          SECTION
6.11 Eligibility;
Disqualification. The Indenture Trustee shall at all times satisfy
the requirements of TIA Section 310(a) and, in addition, shall have a
combined capital and surplus 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 or better by each Rating Agency or shall otherwise
be acceptable to each Rating Agency. The Indenture Trustee shall also satisfy
the requirements of TIA Section 310(b). Neither the Issuer nor any
Affiliate of the Issuer may serve as Indenture Trustee.

          SECTION
6.12 Preferential
Collection of Claims Against the Issuer. The Indenture Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed
in TIA Section 311(b). Any Indenture Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated.

          SECTION
6.13 Representations and Warranties.
The Indenture Trustee hereby makes the following representations and warranties
on which the Issuer and the Noteholders shall rely:

	
  

 	
  

 
	
  

 	
           (i) the
 Indenture Trustee is a banking corporation duly organized, validly existing
 and in good standing under the laws of the State of New York; and

 
	
  

 	
  

 
	
  

 	
           (ii) the
 Indenture Trustee has full power, authority and legal right to execute,
 deliver, and perform this Indenture and shall have taken all necessary action
 to authorize the execution, delivery and performance by it of this Indenture.

 

 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

ARTICLE
VII NOTEHOLDERS’ LISTS AND REPORTS

          SECTION 7.1
The
Issuer to Furnish the Indenture Trustee Names and Addresses of Noteholders.
The Issuer shall furnish or cause to be furnished to the Indenture Trustee (a)
not more than five days after each Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Noteholders as of such Record Date, and (b) at such other times as the
Indenture Trustee may request in writing, within 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 days prior to the time such list is furnished; provided, however,
that so long as (i) the Indenture Trustee is the Note Registrar, or (ii) the
Notes are issued as Book-Entry Notes, no such list shall be required to be
furnished to the Indenture Trustee.

          SECTION 7.2
Preservation
of Information; Communications to Noteholders. (a) 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 Noteholders received by the Indenture Trustee in its
capacity as the Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.1 upon receipt of a
new list so furnished; provided, however, that so long as the Indenture
Trustee is the Note Registrar or the Notes are issued as Book-Entry Notes, no
such list shall be required to be preserved or maintained.

          (b) The
Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes. Upon receipt by the Indenture Trustee of any request by three or more
Noteholders or by one or more Noteholders of Notes evidencing not less than 25%
of the Outstanding Note Balance to receive a copy of the current list of
Noteholders (whether or not made pursuant to TIA Section 312(b)), the
Indenture Trustee shall promptly notify the Administrator thereof by providing
to the Administrator a copy of such request and a copy of the list of
Noteholders produced in response thereto.

          (c) The
Issuer, the Indenture Trustee and Note Registrar shall have the protection of
TIA Section 312(c).

          SECTION 7.3
Reports
by the Indenture Trustee. If required by TIA Section 313(a),
within 60 days after each March 31, beginning with March 31, 2013, the
Indenture Trustee shall mail to each Noteholder as required by TIA
Section 313(c), a brief report dated as of such date that complies with
TIA Section 313(a). The Indenture Trustee also shall comply with TIA
Section 313(b). A copy of each report at the time of its mailing to
Noteholders shall be filed by the Indenture Trustee with the Commission and
each stock exchange, if any, on which the Notes are listed. The Issuer shall
notify the Indenture Trustee if and when the Notes are listed on any stock
exchange.

ARTICLE
VIII ACCOUNTS, DISBURSEMENTS AND RELEASES

          SECTION 8.1
Collection
of Money. 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 

	
  

 	
  

 	
  

 
	
  

 	
 37

 	
 Indenture (USAA 2012-1)

 

property payable to or receivable by the Indenture Trustee pursuant to
this Indenture and the Sale and Servicing Agreement. The Indenture Trustee
shall apply all such money received by it as provided in this Indenture and the
Sale and Servicing 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 Collateral, 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.

          SECTION 8.2
Trust
Accounts. (a) On or prior to the Closing Date, the Issuer shall
cause the Servicer to establish, in the name of Indenture Trustee, the Trust
Accounts as provided in Section 4.1 of the Sale and Servicing Agreement.

          (b) On or
before each Payment Date, the Issuer shall cause (i) the Servicer to deposit
all Collections and (ii) the Servicer, the Seller or the Bank, as applicable,
to deposit all Repurchase Prices with respect to the Collection Period
preceding such Payment Date in the Collection Account as provided in the Sale
and Servicing Agreement. On or before each Payment Date, all amounts required
to be withdrawn from the Reserve Account and deposited in the Collection
Account pursuant to Section 4.3 of the Sale and Servicing Agreement
shall be withdrawn by the Indenture Trustee from the Reserve Account and
deposited to the Collection Account.

          (c) If the
Notes have not been accelerated because of an Event of Default, then on each
Payment Date and the Redemption Date, the Indenture Trustee shall distribute
all amounts on deposit in the Principal Distribution Account to Noteholders in
respect of principal of the Notes to the extent of the funds therein in the
following order of priority:

	
  

 	
  

 
	
  

 	
           (i)
 first, to the Holders of the
 Class A-1 Notes, until the Class A-1 Notes are paid in full;

 
	
  

 	
  

 
	
  

 	
           (ii)
 second, to the Holders of the
 Class A-2 Notes, until the Class A-2 Notes are paid in full;

 
	
  

 	
  

 
	
  

 	
           (iii)
 third, to the Holders of the
 Class A-3 Notes, until the Class A-3 Notes are paid in full; 

 
	
  

 	
  

 
	
  

 	
           (iv)
 fourth,
 to the Holders of the Class A-4 Notes, until the Class A-4 Notes are paid in
 full; and

 
	
  

 	
  

 
	
  

 	
           (v)
 fifth,
 to the Holders of the Class B Notes, until the Class B Notes are paid in
 full.

 

          SECTION 8.3
General
Provisions Regarding Accounts. (a) The funds in the Trust Accounts
shall be invested in Permitted Investments in accordance with and subject to Section
4.1(b) of the Sale and Servicing Agreement and all interest and investment
income (net of losses and investment expenses) on funds on deposit (i) in the
Collection Account shall be distributed in accordance with the provisions of Section
3.7 of the Sale and Servicing Agreement and (ii) in the Reserve Account
shall be distributed in accordance with the provisions of Sections 4.3(b)
and 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

 (d) of the Sale and Servicing Agreement. The
Indenture Trustee shall not be directed 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 the Indenture Trustee shall have no duty to
make any such determination in its compliance with the written direction of the
Servicer pursuant to Section 4.1(b) of the Sale and Servicing Agreement.

          (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 failure to make payments on any such
Permitted 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)
investment directions shall not have been given in writing by the Servicer in
accordance with Section 4.1(b) of the Sale and Servicing Agreement 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 by the Servicer
and the Indenture Trustee), on any Business Day or (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) the Notes shall have been declared due and payable following an Event
of Default and amounts collected or received from the Trust Estate are being
applied in accordance with Section 5.4 of the Sale and Servicing Agreement
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 one or more Permitted Investments in accordance with the standing
instructions most recently given by the Servicer or should that for any reason
not be possible such funds shall be held uninvested.

          SECTION 8.4
Release
of Collateral. (a) The Indenture Trustee may if permitted by and in
accordance with the terms hereof, 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 or such other document. 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 and all
amounts due to the Indenture Trustee have been paid pursuant to Section 6.7
(as certified by an Authorized Officer of the Issuer in an Officer’s
Certificate delivered to the Indenture Trustee), release any remaining portion
of the Collateral 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. Such release shall include release of the lien
of this Indenture and transfer of dominion and control over the Trust Accounts
to the Issuer or its designee. The Indenture Trustee shall release property
from the lien of this Indenture pursuant to this Section only upon receipt of an Issuer Request accompanied
by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

          Each
Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note
Owner, a beneficial interest in a Note, acknowledges that from time to time the
Indenture Trustee shall release the lien of this Indenture (or shall be deemed
to automatically release the lien of this Indenture without any further action)
on any Receivable to be sold to (i) the Seller in accordance with Section
2.3 of the Sale and Servicing Agreement, (ii) to the Servicer in accordance
with Section 3.6 of the Sale and Servicing Agreement and (iii) to the
Bank in accordance with Section 3.3 of the Purchase Agreement.

          SECTION 8.5
Opinion of Counsel. The Indenture
Trustee shall receive at least five days’ notice (or such shorter notice
acceptable to the Indenture Trustee) when requested by the Issuer to take any
action pursuant to Section 8.4, accompanied by copies of any instruments
involved, and the Indenture Trustee may also require 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 the same, 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 in contravention of the provisions of this Indenture;
provided, 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, as to factual matters, without independent investigation, on
the 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. (a) Without the consent
of the Noteholders or any other Person, the Issuer and the Indenture Trustee
(when so directed by an Issuer Request) at any time and from time to time, may
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 for the purposes of modifying in any manner
the rights of the Noteholders under this Indenture subject to the satisfaction
of the following conditions: 

	
  

 	
  

 
	
  

 	
           (i) the
 Issuer delivers to the Indenture Trustee (a) an Opinion of Counsel to the
 effect that such supplemental indenture will not materially and adversely
 affect the interests of the Noteholders and (b) an Officer’s Certificate of
 the Issuer to the effect that such supplemental indenture will not materially
 and adversely affect the interests of the Noteholders; or

 
	
  

 	
  

 
	
  

 	
           (ii) the
 Rating Agency Condition is satisfied with respect to such amendment and the
 Issuer notifies the Indenture Trustee in writing that the Rating Agency
 Condition is satisfied with respect to such amendment.

 

          (b) Prior
to the execution of any supplemental indenture pursuant to this Section 9.1,
the Issuer shall provide written notification of the substance of such
supplemental indenture to each Rating Agency and the Owner Trustee; and
promptly after the execution of any such supplemental indenture, the Issuer
shall furnish a copy of such supplemental indenture to each Rating Agency, the
Owner Trustee and the Indenture Trustee; provided, that no supplemental 

	
  

 	
  

 	
  

 
	
  

 	
 40

 	
 Indenture (USAA 2012-1)

 

indenture pursuant to this Section 9.1 shall be effective which
affects the rights, protections or duties of the Indenture Trustee or the Owner
Trustee without the prior written consent of such Person (which consent shall
not be unreasonably withheld or delayed).

          (c)
Promptly after the execution by the Issuer and the Indenture Trustee of any
supplemental indenture pursuant to this Section 9.1, the Indenture
Trustee shall mail to the Noteholders a copy of such amendment or supplemental
indenture. Any failure of the Indenture Trustee to mail a copy of such
amendment or supplemental indenture, or any defect therein, shall not, however,
in any way impair or affect the validity of any such supplemental indenture.

          SECTION 9.2
Supplemental
Indentures with Consent of Noteholders. The Issuer and the Indenture
Trustee, when authorized by an Issuer Order, also may, with prior notice from
the Issuer to the Rating Agencies and with the consent of the Holders of not
less than a majority of the Outstanding Note Balance of the Controlling Class,
by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or 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 of modifying in any manner the rights of the
Noteholders under this Indenture; provided, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Note affected
thereby:

	
  

 	
  

 
	
  

 	
           (i)
 change the Final Scheduled Payment Date of any Note, or reduce the principal
 amount thereof, the interest rate thereon or the Redemption Price with
 respect thereto, or change any place of payment where, or the coin or
 currency in which, any Note or the interest thereon is payable, or impair the
 right to institute suit for the enforcement of the provisions of this
 Indenture requiring the application of funds available therefor, as provided
 in Article V, to the payment of any such amount due on the Notes on or
 after the respective due dates thereof (or, in the case of redemption, on or
 after the Redemption Date);

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (iv)
 reduce the percentage of the Outstanding Note Balance required
 to direct the Indenture Trustee to direct the Issuer to sell or liquidate the
 Trust Estate pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay
 the Outstanding Note Balance plus accrued but unpaid interest on the Notes;

 
	
  

 	
  

 
	
  

 	
           (v)
 modify any provision of this Section in any respect materially adverse to the
 interests of the Noteholders except to increase any percentage specified
 herein or to provide that certain additional provisions of this Indenture or
 the Transaction Documents 

 

	
  

 	
  

 	
  

 
	
  

 	
 41

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 
	
  

 	
 cannot be modified or waived without the consent of the Holder of
 each Outstanding Note affected thereby;

 
	
  

 	
  

 
	
  

 	
           (vi)
 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 or in the Transaction Documents,
 terminate the lien of this Indenture on any property at any time subject
 hereto or deprive any Noteholder of the security provided by the lien of this
 Indenture; or

 
	
  

 	
  

 
	
  

 	
           (vii)
 impair the right to institute suit for the enforcement of payment as provided
 in Section 5.7.

 

          Prior to
the execution of any supplemental indenture pursuant to this Section 9.2,
the Issuer shall provide written notification of the substance of such
supplemental indenture to each Rating Agency and the Owner Trustee; and
promptly after the execution of any such supplemental indenture, the Issuer
shall furnish a copy of such supplemental indenture to each Rating Agency, the
Owner Trustee and the Indenture Trustee; provided, that no supplemental
indenture pursuant to this Section 9.2 shall be effective which affects
the rights, protections or duties of the Indenture Trustee or the Owner Trustee
without the prior written consent of such Person (which consent shall not be
unreasonably withheld or delayed).

          It shall
not be necessary for any Act of Noteholders under this Section 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, the Indenture Trustee shall mail to the Noteholders
to which such amendment or supplemental indenture relates a notice (to be
provided by the Issuer and at the Issuer’s expense) 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 modifications thereby of the trusts created by this Indenture,
the Indenture Trustee shall be entitled to receive, and shall be 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 to the execution and delivery by the Indenture
Trustee 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 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 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

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
Conformity
With Trust Indenture Act. Every amendment of this Indenture and
every supplemental indenture executed pursuant to this Article IX shall
conform to the requirements of the Trust Indenture Act as then in effect so
long as this Indenture shall then be qualified under the Trust Indenture Act.

          SECTION 9.6
Reference
in Notes to Supplemental Indentures. 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.
(a) Each of the Notes will be redeemed in whole, but not in part, at the
direction of the Servicer pursuant to Section 8.1 of the Sale and
Servicing Agreement, on any Payment Date on which the Trust Estate (other than
the Reserve Account) is purchased pursuant to said Section 8.1, for a
purchase price equal to the Optional Purchase Price, which amount shall be
deposited into the Collection Account on the Redemption Date.

          (b) If the
Notes are to be redeemed pursuant to Section
10.1(a), the Administrator or the Issuer shall
provide at least 20 days’ prior notice of the redemption of the Notes to the
Indenture Trustee and the Owner Trustee, and the Indenture Trustee shall
provide prompt (but not later than 10 days prior to the applicable Redemption Date)
notice thereof to the Noteholders.

          SECTION
10.2 Form
of Redemption Notice. Notice of redemption under Section 10.1
shall be given by the Indenture Trustee by facsimile or by first-class mail,
postage prepaid, transmitted or mailed prior to the applicable Redemption Date
to each Holder of Notes as of the close of business on the Record Date
preceding the applicable Redemption Date, at such Holder’s address appearing in
the Note Register.

	
  

 	
  

 
	
  

 	
           All
 notices of redemption shall state:

 
	
  

 	
  

 
	
  

 	
           (i)
 the Redemption Date;

 
	
  

 	
  

 
	
  

 	
           (ii)
 the Redemption Price;

 
	
  

 	
  

 
	
  

 	
           (iii)
 that the Record Date otherwise applicable to such Redemption Date is not
 applicable and that payments shall be made only upon presentation and
 surrender of such Notes, and the place where such Notes are to be surrendered
 for payment of the Redemption Price (which shall be the office or agency of
 the Issuer to be maintained as provided in Section 3.2);

 

	
  

 	
  

 	
  

 
	
  

 	
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           (iv)
 that interest on the Notes shall cease to accrue on the Redemption Date; and

 
	
  

 	
  

 
	
  

 	
           (v)
 the CUSIP numbers (if applicable) for such Notes.

 

          Notice of
redemption of the Notes shall be given by the Indenture Trustee in the name and
at the expense of the Issuer. In addition, the Issuer shall notify each Rating
Agency upon redemption of the Notes. Failure to give notice of redemption, or
any defect therein, to any Noteholder shall not impair or affect the validity
of the redemption of any 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), on the Redemption Date become
due and payable 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
Officer’s Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
that satisfies TIA Section 314(c)(1), (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with that satisfies TIA Section 314(c)(2) and (iii) if required by the
TIA in the case of condition precedent compliance with which is subject to
verification by accountants, a certificate or opinion of an accountant that
satisfies TIA Section 314(c)(3), except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

          Every
certificate or opinion in accordance with TIA Section 314(e) with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

	
  

 	
  

 
	
  

 	
           (i) 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;

 
	
  

 	
  

 
	
  

 	
           (ii) 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;

 
	
  

 	
  

 
	
  

 	
           (iii) 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

 
	
  

 	
  

 
	
  

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

 

	
  

 	
  

 	
  

 
	
  

 	
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          (b) (i)
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, furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of each Person signing such certificate as to
the fair value in accordance with TIA Section 314(d) (within 90 days of such
deposit) to the Issuer of the Collateral or other property or securities to be
so deposited.

	
  

 	
  

 
	
  

 	
           (ii)
 Whenever the Issuer is required to furnish to the Indenture Trustee an
 Officer’s Certificate certifying or stating the opinion of any signer thereof
 as to the matters described in clause (i) above, the Issuer shall also
 deliver to the Indenture Trustee an Independent Certificate as to the same
 matters, if the fair value in accordance with TIA Section 314(d) to the
 Issuer of the property or securities to be so deposited and of all other such
 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 delivered pursuant to clause (i) and this clause
 (ii), is 10% or more of the Outstanding Note Balance, but such a
 certificate need not be furnished with respect to any securities so
 deposited, if the fair value thereof to the Issuer as set forth in the
 related Officer’s Certificate is less than $25,000 or less than one percent
 of the Outstanding Note Balance.

 
	
  

 	
  

 
	
  

 	
           (iii)
 Other than as contemplated by Section 11.1(b)(v), 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 Officer’s
 Certificate certifying or stating the opinion of each Person signing such
 certificate as to the fair value (within 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.

 
	
  

 	
  

 
	
  

 	
           (iv)
 Whenever the Issuer is required to furnish to the Indenture Trustee an
 Officer’s Certificate certifying or stating the opinion of any signer thereof
 as to the matters described in clause (iii) above, 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 other than Purchased Receivables, 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 clause (iii) above
 and this clause (iv), equals 10% or more of the Outstanding Note
 Balance, but such 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 Officer’s Certificate is less than $25,000 or less than one
 percent of the then Outstanding Note Balance.

 
	
  

 	
  

 
	
  

 	
           (v)
 Notwithstanding Section 2.9 or any other provision of this Section,
 the Issuer may (A) collect, liquidate, sell or otherwise dispose of
 Receivables and Financed Vehicles as and to the extent permitted or required
 by the Transaction Documents, and (B) make cash payments out of the Trust
 Accounts as and to the extent permitted or required by the Transaction
 Documents.

 

 

	
  

 	
  

 	
  

 
	
  

 	
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          SECTION
11.2 Form
of Documents Delivered to the Indenture Trustee. 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.

          Any
certificate of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon an opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know,
that the opinion or representations with respect to the matters upon which his
or her certificate is based are erroneous. Any Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate, or
representations by, an officer or 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 counsel knows, or in the exercise of reasonable care
should know, that the certificate or representations with respect to such
matters are erroneous.

          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.

          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 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 Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such 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.

	
  

 	
  

 	
  

 
	
  

 	
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           (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 any Noteholder 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.
All demands, notices and communications hereunder shall be in writing and shall
be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, by facsimile or,
if so provided on Schedule II to the Sale and Servicing Agreement, by
electronic transmission, and addressed in each case as specified on Schedule
II to the Sale and Servicing Agreement or at such other address as shall be
designated by any of the specified addressees in a written notice to the other
parties hereto. Delivery will be deemed to have been made: (i) upon delivery
or, in the case of a letter mailed by registered or certified first-class
United States mail, postage prepaid, three days after deposit in the mail, (ii)
in the case of a facsimile, when receipt is confirmed by telephone, reply email
or reply facsimile from the recipient, (iii) in the case of electronic
transmission, when receipt is confirmed by telephone or reply email from the
recipient and (iv) in the case of an electronic posting to a password-protected
website to which the recipient has been provided access, upon delivery (without
the requirement of confirmation of receipt) and notice (including email) to
such recipient stating that such electronic posting has occurred.

          SECTION
11.5 Notices
to Noteholders; Waiver. 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 his 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.

          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.

          In case, 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 

	
  

 	
  

 	
  

 
	
  

 	
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manner of giving such notice as shall be satisfactory to the Indenture
Trustee shall be deemed to be a sufficient giving of such notice.

          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 an 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 Noteholder providing for a method of payment, or notice by
the Indenture Trustee or any Paying Agent to such Noteholder, that is different
from the methods provided for in this Indenture for such payments or notices, provided, that such methods are reasonable
and consented to by the Indenture Trustee (which consent shall not be
unreasonably withheld). The Issuer will furnish to the Indenture Trustee a copy
of each such agreement and the Indenture Trustee will cause payments to be made
and notices to be given in accordance with such agreements.

          SECTION
11.7 Conflict
with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with another provision hereof that is required to be included in
this Indenture by any of the provisions of the Trust Indenture Act, such
required provision shall control.

          The
provisions of TIA Sections 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

          SECTION
11.8 Effect
of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

          SECTION
11.9 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.

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

          SECTION
11.11 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 and to the extent expressly provided herein, the
Noteholders, any other party with rights to payments or distributions under
this Indenture, and any other Person with an ownership interest in any portion
of the Collateral, any benefit or any legal or equitable right, remedy or claim
under this Indenture.

          SECTION
11.12 Legal
Holidays. In any case where the date on which any payment is due
shall not be a Business Day, then (notwithstanding any other provision of the
Notes or this 

	
  

 	
  

 	
  

 
	
  

 	
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 Indenture (USAA 2012-1)

 

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
11.13 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
OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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

          SECTION
11.15 Recording
of Indenture. If this Indenture is subject to recording in any
appropriate public recording offices, such recording is to be effected by the
Issuer and at its expense accompanied by an Opinion of Counsel 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
11.16 Trust
Obligation. Each Noteholder or Note Owner, by acceptance of a Note,
or, in the case of a Note Owner or a beneficial interest in a Note, by
accepting the benefits of this Indenture, 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 the Notes or under this
Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Indenture Trustee or the Owner Trustee in their
respective individual capacities, (ii) any Certificateholder or any other owner
of a beneficial interest in the Issuer, (iii) the Servicer, the Administrator
or the Seller or (iv) any partner, owner, beneficiary, agent, officer,
director, employee, successor or assign of any Person described in clauses (i),
(ii)
and (iii)
above, 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 capacity) 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.

          SECTION
11.17 No
Petition. Each of the Indenture Trustee, by entering into this
Indenture, and each Noteholder and Note Owner, by accepting a Note or, in the
case of a Note Owner, a beneficial interest in a Note, hereby covenants and
agrees that prior to the date which is one year and one day after payment in
full of all obligations of each Bankruptcy Remote Party in respect of all
securities issued by the Bankruptcy Remote Parties, (i) such party shall not
authorize any Bankruptcy Remote Party to commence a voluntary winding-up or
other voluntary case or other Proceeding seeking liquidation, reorganization or
other relief with respect to such Bankruptcy Remote Party or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect in
any jurisdiction or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such
relief or to the appointment 

	
  

 	
  

 	
  

 
	
  

 	
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of or taking possession by any such official in an involuntary case or
other Proceeding commenced against such Bankruptcy Remote Party, or to make a
general assignment for the benefit of, its creditors generally, any party
hereto or any other creditor of such Bankruptcy Remote Party, and (ii) such
party shall not commence, join with any other Person in commencing or institute
with any other Person any Proceeding against such Bankruptcy Remote Party under
any bankruptcy, reorganization, arrangement, liquidation or insolvency law or statute
now or hereafter in effect in any jurisdiction, provided that nothing in
this Section 11.17 shall preclude, or be deemed to stop, the Indenture
Trustee (i) from taking any action prior to the expiration of the
aforementioned period in (A) any voluntary winding-up or other voluntary case
or Proceeding filed or commenced by the Issuer or (B) any involuntary
insolvency Proceeding filed or commenced by a Person other than the Indenture
Trustee, in each case, without the authorization or consent of the Indenture
Trustee, or (ii) from commencing against the Issuer or any of its property any
legal action which is not a bankruptcy, reorganization, arrangement,
insolvency, moratorium or liquidation Proceeding.

          SECTION
11.18 Intent. (a) It is the intent
of the Issuer that the Notes constitute indebtedness for all financial
accounting purposes and the Issuer agrees and each purchaser of a Note (by
virtue of the acquisition of such Note or an interest therein) shall be deemed
to have agreed, to treat the Notes as indebtedness for all financial accounting
purposes.

          (b) It is
the intent of the Issuer that the Notes constitute indebtedness of the Issuer
for all tax purposes and the Issuer agrees and each purchaser of a Note (by
virtue of the acquisition of such Note or an interest therein) shall be deemed
to have agreed to treat the Notes as indebtedness for all federal, state and
local income and franchise tax purposes (except Notes owned by the Issuer or a
Person that is considered the same Person as the Issuer for U.S. federal income
tax purposes).

          SECTION
11.19 Submission to Jurisdiction; Waiver of
Jury Trial. 

	
  

 	
  

 
	
  

 	
 (a) Each of the parties hereto hereby irrevocably and
 unconditionally:

 
	
  

 	
  

 
	
  

 	
           (i)
 submits for itself and its property in any legal action or Proceeding
 relating to this Indenture or any documents executed and delivered in
 connection herewith, or for recognition and enforcement of any judgment in
 respect thereof, to the nonexclusive general jurisdiction of the courts of the
 State of New York, the courts of the United States of America for the
 Southern District of New York and appellate courts from any thereof;

 
	
  

 	
  

 
	
  

 	
           (ii)
 consents that any such action or Proceeding may be brought and maintained in
 such courts and waives any objection that it may now or hereafter have to the
 venue of such action or Proceeding in any such court or that such action or
 Proceeding was brought in an inconvenient court and agrees not to plead or
 claim the same;

 
	
  

 	
  

 
	
  

 	
           (iii)
 agrees that service of process in any such action or Proceeding may be
 effected by mailing a copy thereof by registered or certified mail (or any
 substantially similar form of mail), postage prepaid, to such Person at its
 address determined in accordance with Section
 11.4 of this Indenture; 

 

	
  

 	
  

 	
  

 
	
  

 	
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           (iv)
 agrees that nothing herein shall affect the right to effect service of
 process in any other manner permitted by law or shall limit the right to sue
 in any other jurisdiction; and

 
	
  

 	
  

 
	
  

 	
           (v) to
 the extent permitted by applicable law, waives all right of trial by jury in
 any action, Proceeding or counterclaim based on, or arising out of, under or
 in connection with this Indenture, any other Transaction Document, or any
 matter arising hereunder or thereunder.

 

          (b) By
acquiring a Note, each Noteholder or Note Owner, by acceptance of a Note, or,
in the case of a Note Owner, a beneficial interest in a Note, specifically
agrees that such Noteholder or Note Owner, as applicable shall to the extent
permitted by applicable law, waive all right of trial by jury in any action,
Proceeding or counterclaim based on, or arising out of, under or in connection
with this Indenture, any other Transaction Document, or any matter arising
hereunder or thereunder. 

          SECTION
11.20 Subordination of Claims.
The Issuer’s obligations under this Indenture are obligations solely of the
Issuer and will not constitute a claim against the Seller to the extent that
the Issuer does not have funds sufficient to make payment of such obligations.
In furtherance of and not in derogation of the foregoing, each of the Owner
Trustee (in its individual capacity and as the Owner Trustee), by accepting the
benefits of this Indenture, the Certificateholder, by accepting the
Certificate, and the Indenture Trustee (in its individual capacity and as
Indenture Trustee), by entering into this Indenture, and each Noteholder, each
Note Owner, by accepting the benefits of this Indenture, hereby acknowledges
and agrees that such Person has no right, title or interest in or to the Other
Assets of the Seller. To the extent that, notwithstanding the agreements and
provisions contained in the preceding sentence, each of the Owner Trustee, the
Indenture Trustee, each Noteholder or Note Owner and the Certificateholder
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 such Person 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 Seller), 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. Each of the Indenture Trustee
(in its individual capacity and as the Indenture Trustee), by entering into or
accepting this Indenture, the Certificateholder, by accepting the Certificate, and
the Owner Trustee, and each Noteholder or Note Owner, by accepting the benefits
of this Indenture, hereby further acknowledges and agrees that no adequate
remedy at law exists for a breach of this Section and the terms of this Section
may be enforced by an action for specific performance. The provisions 

	
  

 	
  

 	
  

 
	
  

 	
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of this Section will be for the third party benefit of those entitled
to rely thereon and will survive the termination of this Indenture.

          SECTION
11.21 Limitation
of Liability of Owner Trustee. It is expressly understood and agreed
by and between the parties hereto that (i) this Indenture is executed and
delivered by Wells Fargo Delaware Trust Company, National Association, not in
its individual capacity but solely as Owner Trustee of the Issuer in the
exercise of the power and authority conferred and vested in it as such Owner
Trustee, (ii) each of the representations, undertakings and agreements made
herein by the Issuer are not personal representations, undertakings and
agreements of Wells Fargo Delaware Trust Company, National Association, but are
binding only on the Issuer, (iii) nothing contained herein shall be construed
as creating any liability on Wells Fargo Delaware Trust Company, National
Association individually or personally, to perform any covenant of the Issuer,
either expressed or implied, contained herein, all such liability, if any,
being expressly waived by the parties hereto and by any Person claiming by,
through or under any such party, and (iv) under no circumstances shall Wells
Fargo Delaware Trust Company, National Association be personally liable for the
payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this Indenture.

          SECTION
11.22 Information
Requests. The parties hereto shall provide any information
reasonably requested by the Servicer, the Issuer, the Seller or any of their
Affiliates, that such party has access to, and is not restricted from
providing, in order to comply with or obtain more favorable treatment under any
current or future law, rule, regulation, accounting rule or principle.

          SECTION
11.23 Inspection.
The Issuer agrees that, with reasonable prior notice, it will permit any
representative of the Indenture Trustee, during the Issuer’s normal business
hours, to examine all 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 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
11.24 Force
Majeure. The Indenture Trustee shall not incur any liability for not
performing any act or fulfilling any duty, obligation or responsibility
hereunder if such delay or failure was caused by a force majeure or other
similar occurrence.

[Remainder of Page Intentionally Left Blank]

	
  

 	
  

 	
  

 
	
  

 	
 52

 	
 Indenture (USAA 2012-1)

 

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

	
  

 	
  

 	
  

 
	
  

 	
 USAA AUTO OWNER TRUST 2012-1

 
	
  

 	
  

 
	
  

 	
 By: Wells Fargo Delaware Trust Company, National Association,
 not in its individual capacity but solely as Owner Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Sandra Battaglia

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Sandra Battaglia

 
	
  

 	
 Title: Vice President

 

 

	
  

 	
  

 	
  

 
	
  

 	
 S-1

 	
 Indenture (USAA 2012-1)

 

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW
 YORK MELLON, not in its individual capacity but
 solely as Indenture Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Christopher J. Ryan

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Christopher J. Ryan

 
	
  

 	
 Title: Vice President

 

 

	
  

 	
  

 	
  

 
	
  

 	
 S-2

 	
 Indenture (USAA 2012-1)

 

SCHEDULE I

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: 

General

          1. The
Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables and the other Collateral in favor of the
Indenture Trustee, which security interest is prior to all other Liens, and is
enforceable as such against creditors of and purchasers from the Issuer.

          2. The
Receivables constitute “chattel paper” (including “tangible chattel paper” and
“electronic chattel paper”) “accounts,” “instruments” or “general intangibles”
within the meaning of the applicable UCC.

          3. Each
Receivable is secured by a first priority validly perfected security interest
in the related Financed Vehicle in favor of the Originator, as secured party,
or all necessary actions with respect to such Receivable have been taken or
will be taken to perfect a first priority security interest in the related
Financed Vehicle in favor of the Originator, as secured party. 

          4. Each
Trust Account constitutes either a “deposit account” or a “securities account”
within the meaning of the UCC. 

Creation

          5.
Immediately prior to the sale, transfer, assignment and conveyance of a
Receivable by the Seller to the Issuer, the Seller owned and had good and
marketable title to such Receivable free and clear of any Lien and immediately
after the sale, transfer, assignment and conveyance of such Receivable to the
Issuer, the Issuer will have good and marketable title to such Receivable free
and clear of any Lien. 

Perfection

          6. The
Issuer has caused or will have caused, within ten days after the effective date
of the Indenture, 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 Receivables granted to the
Indenture Trustee hereunder; and the Servicer, in its capacity as custodian,
has in its possession the original copies of such instruments or tangible
chattel paper that constitute or evidence the Receivables, and all financing
statements referred to in this paragraph contain a statement that: “A purchase
of or security interest in any collateral described in this financing statement
will violate the rights of the Secured Party.”

          7. With
respect to Receivables that constitute instruments or tangible chattel paper,
either: 

	
 

	
 

	
 

	
 

	
I - 1

	
Indenture (USAA 2012-1)

          (i) all
original executed copies of each such instrument or tangible chattel paper have
been delivered to the Indenture Trustee; or 

          (ii) such
instruments or tangible chattel paper are in the possession of the Servicer and
the Indenture Trustee has received a written acknowledgment from the Servicer
that the Servicer (in its capacity as custodian) is holding such instruments or
tangible chattel paper solely on behalf and for the benefit of the Indenture
Trustee; or 

          (iii) the
Servicer received possession of such instruments or tangible chattel paper
after the Indenture Trustee received a written acknowledgment from the Servicer
that the Servicer is acting solely as agent of the Indenture Trustee.

          8. With
respect to the Trust Accounts that constitute deposit accounts, either:

          (i) the
Issuer has delivered to the Indenture Trustee a fully executed agreement
pursuant to which the bank maintaining the deposit accounts has agreed to
comply with all instructions originated by the Indenture Trustee directing
disposition of the funds in such Trust Accounts without further consent by the
Issuer; or 

          (ii) the
Issuer has taken all steps necessary to cause the Indenture Trustee to become
the account holder of such Trust Accounts. 

          9. With
respect to the Trust Accounts that constitute securities accounts or securities
entitlements, either: 

          (i) the
Issuer has delivered to the Indenture Trustee a fully executed agreement
pursuant to which the securities intermediary has agreed to comply with all
instructions originated by the Indenture Trustee relating to such Trust
Accounts without further consent by the Issuer; or 

          (ii) the
Issuer has taken all steps necessary to cause the securities intermediary to
identify in its records the Indenture Trustee as the Person having a security
entitlement against the securities intermediary in each of such Trust Accounts.

Priority

          10. The
Issuer has not authorized the filing of, and is not aware of any financing
statements against the Issuer that include a description of collateral covering
the Receivables other than any financing statement (i) relating to the
conveyance of the Receivables by the Bank to the Seller under the Purchase
Agreement, (ii) relating to the conveyance of the Receivables by the
Seller to the Issuer under the Sale and Servicing Agreement,
(iii) relating to the security interest granted to the Indenture Trustee
under the Indenture or (iv) that has been terminated. 

          11. The
Issuer is not aware of any material judgment, ERISA or tax lien filings against
the Issuer. 

          12. Neither
the Issuer nor a custodian or vaulting agent thereof holding any Receivable
that is electronic chattel paper has communicated an “authoritative copy” (as
such 

	
 

	
 

	
 

	
 

	
I - 2

	
Indenture (USAA 2012-1)

term is used in Section 9-105 of the UCC) of any loan agreement that
constitutes or evidences such Receivable to any Person other than the Servicer.

          13. None of
the instruments, tangible chattel paper or electronic chattel paper that
constitute or evidence the Receivables has any marks or notations indicating
that they have been pledged, assigned or otherwise conveyed to any Person other
than the Seller, the Issuer or the Indenture Trustee.

          14. No
Trust Account that constitutes a securities account or securities entitlement
is in the name of any Person other than the Issuer or the Indenture Trustee.
The Issuer has not consented to the securities intermediary of any such Trust
Account to comply with entitlement orders of any Person other than the
Indenture Trustee.

          15. No
Trust Account that constitutes a deposit account is in the name of any Person
other than the Issuer or the Indenture Trustee. The Issuer has not consented to
the bank maintaining such Trust Account to comply with instructions of any
Person other than the Indenture Trustee.

Survival of Perfection Representations

          16.
Notwithstanding any other provision of the Indenture or any other Transaction
Document, the perfection representations, warranties and covenants contained in
this Schedule I shall be continuing, and remain in full force and effect
until such time as all obligations under the Indenture have been finally and
fully paid and performed.

No Waiver

          17. The
Issuer shall provide the Rating Agencies with prompt written notice of any
material breach of the perfection representations, warranties and covenants
contained in this Schedule I, and shall not, without satisfying the
Rating Agency Condition, waive a breach of any of such perfection
representations, warranties or covenants. 

Issuer to Maintain Perfection and Priority

          18. The
Issuer covenants that, in order to evidence the interests of the Indenture
Trustee under this Indenture, the Issuer shall take such action, or execute and
deliver such instruments as may be necessary or advisable (including, without
limitation, such actions as are requested by the Indenture Trustee) to maintain
and perfect, as a first priority interest, the Indenture Trustee’s security
interest in the Receivables. The Issuer shall, from time to time and within the
time limits established by law, prepare and file, all financing statements, amendments,
continuations, initial financing statements in lieu of a continuation
statement, terminations, partial terminations, releases or partial releases, or
any other filings necessary or advisable to continue, maintain and perfect the
Indenture Trustee’s security interest in the Receivables as a first-priority
interest.

	
 

	
 

	
 

	
 

	
I - 3

	
Indenture (USAA 2012-1)

Exhibit A

FORMS OF NOTES

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Indenture (USAA 2012-1)

 

FORM OF CLASS [A-1] [A-2] [A-3] [A-4] [B]
NOTES

	
  

 	
  

 
	
 REGISTERED

 	
 $___________________1

 
	
 No.
 R-________

 	
 CUSIP NO.
 ______________

 
	
  

 	
 ISIN.
 ______________

 

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

          THE
PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

          BY
ACQUIRING THIS NOTE, EACH PURCHASER OR TRANSFEREE WILL BE DEEMED TO REPRESENT
AND WARRANT THAT EITHER (A) IT IS NOT ACQUIRING THIS NOTE (OR ANY INTEREST HEREIN)
WITH ANY ASSETS OF (I) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) WHICH
IS SUBJECT TO TITLE I OF ERISA, (II) A “PLAN” AS DESCRIBED BY SECTION
4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), WHICH
IS SUBJECT TO SECTION 4975 OF THE CODE, (III) AN ENTITY DEEMED TO HOLD THE PLAN
ASSETS OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR
PLAN’S INVESTMENT IN SUCH ENTITY, OR (IV) ANY GOVERNMENT PLAN, NON-U.S. PLAN,
CHURCH PLAN, OTHER EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT
IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW THAT IS SUBSTANTIALLY
SIMILAR TO SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR
LAW”) OR (B)(I) THE NOTE IS RATED AT LEAST “BBB-” OR ITS EQUIVALENT BY A RATING
AGENCY AT THE TIME OF PURCHASE OR TRANSFER, AND (II) THE ACQUISITION, HOLDING
AND DISPOSITION OF THIS NOTE (OR ANY INTEREST HEREIN) WILL NOT GIVE RISE TO A
NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE OR A VIOLATION OF ANY SIMILAR LAW.

	
  

 
	

 

 
	
 1
 Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

	
  

 	
  

 	
  

 
	
  

 	
 A-2

 	
 Indenture (USAA 2012-1)

 

USAA AUTO OWNER TRUST 2012-1

[CLASS A-1 0.23000%] [CLASS A-2 0.38%] [CLASS
A-3 0.43%]

[CLASS A-4 0.57%] [CLASS B 1.02%]

AUTO LOAN ASSET BACKED NOTES

          USAA Auto
Owner Trust 2012-1, a statutory
trust organized and existing under the laws of the State of Delaware (including
any successor, the “Issuer”), for value received, hereby promises to pay
to [______], or registered assigns, the principal sum of [___] DOLLARS
($[___]), in monthly installments on the 15th of each month, or if
such day is not a Business Day, on the immediately succeeding Business Day,
commencing on October 15, 2012 (each, a “Payment Date”) until the
principal of this Note is paid or made available for payment, and to pay
interest on each Payment Date on the Class [A-1] [A-2] [A-3] [A-4] [B] Note
Balance as of the preceding Payment Date (after giving effect to all payments
of principal made on the preceding Payment Date), or as of the Closing Date in
the case of the first Payment Date, at the rate per annum shown above (the “Interest
Rate”), in each case as and to the extent set forth in Sections 2.7,
3.1, 5.4(b) and 8.2 of the Indenture and Section 4.4
of the Sale and Servicing Agreement; provided, however, that the entire
Class [A-1] [A-2] [A-3] [A-4] [B] Note Balance shall be due and payable on the
earliest of (i) [___] (the “Final Scheduled Payment Date”), (ii) the
Redemption Date, if any, pursuant to Section 10.1 of the Indenture and
(iii) the date the Notes are accelerated after an Event of Default pursuant to Section
5.2 of the Indenture. Interest on this Note will accrue for each Payment Date
from and including the preceding Payment Date (or, in the case of the initial
Payment Date, from and including the Closing Date) to but excluding such
Payment Date. Interest will be computed on the basis of [Class A-1: actual days
elapsed and a 360-day year][Class A-2, A-3, A-4 and B: a 360-day year of twelve
30-day months]. Such principal of and interest on this Note shall be paid in
the manner specified on the reverse hereof.

          The
principal of and interest on this Note are payable in such coin or currency of
the United States 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
Note shall be applied first to interest on this Note as provided above and then
to the unpaid principal of this Note.

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

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

	
  

 	
  

 	
  

 
	
  

 	
 A-3

 	
 Indenture (USAA 2012-1)

 

          IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually, by its
Authorized Officer.

Dated: September [__], 2012 

	
  

 	
  

 	
  

 
	
  

 	
USAA AUTO OWNER TRUST 2012-1

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 WELLS FARGO
 DELAWARE TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity
 but solely as Owner Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
   Name:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
      Title:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 A-4
 	
 Indenture (USAA 2012-1)

 

INDENTURE TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

Dated: September [__], 2012

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON,

 not in its individual capacity but solely as Indenture Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Signatory

 

	
  

 	
  

 	
  

 
	
  

 	
 A-5

 	
 Indenture (USAA 2012-1)

 

 [REVERSE OF NOTE]

          This Note
is one of a duly authorized issue of Notes of the Issuer, designated as its
[Class A-1 0.23000%] [Class A-2 0.38%] [Class A-3 0.43%] [Class A-4 2 0.57%]
[Class B 1.02%] Auto Loan Asset-Backed Notes (herein called the “Class [A-1]
[A-2] [A-3] [A-4] [B] Notes” or the “Notes”), all issued under an
Indenture dated as of September 19, 2012 (such Indenture, as supplemented or
amended, is herein called the “Indenture”), between the Issuer and The
Bank of New York Mellon, a banking corporation organized under the laws of the
State of New York, not in its individual capacity but solely as trustee (the “Indenture
Trustee”), which term includes any successor Indenture Trustee under the
Indenture, to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes
are subject to all terms of the Indenture and the Sale and Servicing Agreement.
All terms used in this Note that are not otherwise defined herein and that are
defined in the Indenture or the Sale and Servicing Agreement shall have the
meanings assigned to them in the Indenture or in Appendix A of the Sale
and Servicing Agreement.

          The Class
A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes are
and will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture. The Class B Notes are subordinated to
the Class A Notes, and are secured by the collateral pledged as security
therefor on a subordinated basis as provided in the Indenture. All covenants
and agreements made by the Issuer in the Indenture are for the benefit of the
Holders of the Notes.

          Principal
payable on the Notes will be paid on each Payment Date in the amount specified
in the Indenture and in the Sale and Servicing Agreement. As described above,
the entire Class [A-1] [A-2] [A-3] [A-4] [B] Note Balance shall be due and
payable on the earliest of (i) [___] (the “Final Scheduled Payment Date”),
(ii) the Redemption Date, if any, pursuant to Section 10.1 of the
Indenture and (iii) the date the Notes are accelerated after an Event of
Default pursuant to Section 5.2 of the Indenture. All principal payments
on the Class [A-1] [A-2] [A-3] [A-4] [B] Notes shall be made pro rata to the
Class [A-1] [A-2] [A-3] [A-4] [B] Noteholders entitled thereto.

          Payments of
principal of and interest on this Note made on each Payment Date, Redemption
Date or upon acceleration shall be made by check mailed to the Person whose
name appears as the registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on the related Record
Date, except that with respect to Notes registered on the Record Date in the name
of the nominee of DTC (initially, such nominee to be Cede & Co.), payments
will be made by wire transfer in immediately available funds to the account
designated by such nominee. Such checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of
the applicable Record Date without requiring that this Note be submitted for
notation of payment. Any reduction in the principal amount of this Note (or any
one or more Predecessor Notes) affected by any payments made on any Payment
Date or Redemption Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected to
be available, as provided in the Indenture, for payment in full of the
remaining unpaid principal amount of this Note on a 

	
  

 	
  

 	
  

 
	
  

 	
 A-6

 	
 Indenture (USAA 2012-1)

 

Payment Date or Redemption 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 or
Redemption Date by notice mailed prior to such Payment Date or Redemption Date
and the amount then due and payable shall be payable only upon presentation and
surrender of this Note at the Corporate Trust Office of the Indenture Trustee
or at the office of the Indenture Trustee’s agent appointed for such purposes
located in The City of New York.

          Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, covenants and agrees that no recourse
may be taken, directly or indirectly, with respect to the obligations of the
Issuer, the Seller, the Servicer, the Owner Trustee or the Indenture Trustee on
the Notes or under the Indenture or any certificate or other writing delivered
in connection herewith or therewith, against (i) the Seller, the Servicer, the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Seller, the
Servicer, the Indenture Trustee or the Owner Trustee in its individual
capacity, any Holder of a beneficial interest in the Issuer, the Seller, the
Servicer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Seller, the Servicer, 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 capacity) 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.

          It is the
intent of the Seller, the Servicer, the Noteholders and the Note Owners that,
for purposes of federal, state and local income and franchise tax the Notes
will qualify as indebtedness of the Issuer (except Notes owned by the Issuer or
a Person that is considered the same Person as the Issuer for U.S. federal
income tax purposes). The Noteholders, by acceptance of a Note, agree to treat,
and to take no action inconsistent with the treatment of, the Notes for such
tax purposes as indebtedness of the Issuer.

          Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, covenants and agrees that, prior to the
date which is one year and one day after payment in full of all obligations of
each Bankruptcy Remote Party in respect of all securities issued by any
Bankruptcy Remote Party (i) such party shall not authorize any Bankruptcy
Remote Party to commence a voluntary winding-up or other voluntary case or
other Proceeding seeking liquidation, reorganization or other relief with
respect to such Bankruptcy Remote Party or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect in any jurisdiction
or seeking the appointment of an administrator, a trustee, receiver,
liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such
relief or to the appointment of or taking possession by any such official in
any involuntary case or other Proceeding commenced against such Bankruptcy
Remote Party, or to make a general assignment for the benefit of, its creditors
generally, any party hereto or any other creditor of such Bankruptcy Remote
Party, and (ii) none of the parties hereto shall commence or join with any
other Person in commencing any Proceeding against such Bankruptcy Remote Party
under any bankruptcy, 

	
  

 	
  

 	
  

 
	
  

 	
 A-7

 	
 Indenture (USAA 2012-1)

 

reorganization, liquidation or insolvency law or statute now or
hereafter in effect in any jurisdiction.

          Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, specifically agrees that, such
Noteholder or Note Owner, as applicable, shall to the extent permitted by
applicable law, waive all right of trial by jury in any action, Proceeding or
counterclaim based on, or arising out of, under or in connection with this
Note, the Indenture, any other Transaction Document, or any matter arising
hereunder or thereunder.

          This Note
and the 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 hereunder and thereunder shall
be determined in accordance with such laws.

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

	
  

 	
  

 	
  

 
	
  

 	
 A-8

 	
 Indenture (USAA 2012-1)

 

ASSIGNMENT

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

	
  

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

 
	
 (name and address of
 assignee)                    
       

 

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Dated: 

 	
  

 	
  

 	
  

 	
  */

 
	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Signature
 Guaranteed:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
 Signatures must be guaranteed by an “eligible guarantor institution”
 meeting the requirements of the Note Registrar, which requirements include
 membership or participation in STAMP or such other “signature guarantee
 program” as may be determined by the Note Registrar in addition to, or in
 substitution for, STAMP, all in accordance with the Securities Exchange Act
 of 1934, as amended.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

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

 

	
  

 	
  

 	
  

 
	
  

 	
 A-9

 	
 Indenture (USAA 2012-1)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]