Document:

Exhibit 10.3

   

  ADMINISTRATION AGREEMENT

   

  This ADMINISTRATION AGREEMENT, dated as of September 18, 2019 (this “Administration Agreement”), is entered into by and between AEP Texas INC. (“AEP Texas”), as administrator (in such capacity, the “Administrator”), and AEP TEXAS RESTORATION FUNDING LLC, a Delaware limited liability company (the “Issuer”). Capitalized
    terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in Appendix A to the Indenture (as defined below).

   

  W I T N E S S E T H:

   

  WHEREAS, the Issuer is issuing System Restoration Bonds pursuant to that certain Indenture (including Appendix A thereto) dated as of the date hereof (the “Indenture”),

    by and between the Issuer and U.S. Bank National Association, a national banking association, in its capacity as indenture trustee (the “Indenture Trustee”) and in its separate capacity as a securities intermediary (the “Securities
      Intermediary”), as the same may be amended, restated, supplemented or otherwise modified from time to time, and the Series Supplement;

   

  WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the System Restoration Bonds, including (i) the Indenture, (ii) the
    Transition Property Servicing Agreement, dated as of September 18, 2019 (the “Servicing Agreement”), by and between the Issuer and AEP Texas, as Servicer, (iii) the Transition Property Purchase and Sale Agreement, dated as of September 18, 2019
    (the “Sale Agreement”), by and between the Issuer and AEP Texas, as Seller and (iv) the other Basic Documents to which the Issuer is a party, relating to the System Restoration Bonds (the Indenture, the Servicing Agreement, the Sale Agreement
    and the other Basic Documents to which the Issuer is a party, as such agreements may be amended and supplemented from time to time, being referred to hereinafter collectively as the “Related Agreements”);

   

  WHEREAS, pursuant to the Related Agreements, the Issuer is required to perform certain duties in connection with the Related Agreements, the System Restoration Bonds
    and the System Restoration Bond Collateral pledged to the Indenture Trustee pursuant to the Indenture;

   

  WHEREAS, the Issuer has no employees, other than its officers and managers, and does not intend to hire any employees, and consequently desires to have the
    Administrator perform certain of the duties of the Issuer referred to in the preceding clauses and to provide such additional services consistent with the terms of this Administration Agreement and the Related Agreements as the Issuer may from time to
    time request; and

   

  WHEREAS, the Administrator has the capacity to provide the services and the facilities required thereby and is willing to perform such services and provide such
    facilities for the Issuer on the terms set forth herein;

  
    
      
 

  

  
  NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
    acknowledged, the parties agree as follows:

   

  1.             Duties of the Administrator – Management Services. The Administrator hereby agrees to provide the following corporate management services to
    the Issuer and to cause third parties to provide professional services required for or contemplated by such services in accordance with the provisions of this Administration Agreement:

   

  (a)          furnish the Issuer with ordinary clerical, bookkeeping and other corporate administrative services necessary and appropriate for the Issuer, including,
    without limitation, the following services:

   

  (i)          maintain at the Premises (as defined below) general accounting records of the Issuer (the “Account Records”), subject to year-end
    audit, in accordance with generally accepted accounting principles, separate and apart from its own accounting records, prepare or cause to be prepared such quarterly and annual financial statements as may be necessary or appropriate and arrange for
    year-end audits of the Issuer's financial statements by the Issuer's independent accountants;

   

  (ii)         prepare and, after execution by the Issuer, file with the Securities and Exchange Commission (the “Commission”) and any applicable
    state agencies documents required to be filed by the Issuer with the Commission and any applicable state agencies, including, without limitation, periodic reports required to be filed under the Securities Exchange Act of 1934, as amended;

   

  (iii)        prepare for execution by the Issuer and cause to be filed such income, franchise or other tax returns of the Issuer as shall be required to be
    filed by applicable law (the “Tax Returns”) and cause to be paid on behalf of the Issuer from the Issuer's funds any taxes required to be paid by the Issuer under applicable law;

   

  (iv)        prepare or cause to be prepared for execution by the Issuer’s Managers minutes of the meetings of the Issuer’s Managers and such other
    documents deemed appropriate by the Issuer to maintain the separate limited liability company existence and good standing of the Issuer (the “Company Minutes”) or otherwise required under the Related Agreements (together with the Account
    Records, the Tax Returns, the Company Minutes, the LLC Agreement, and the Certificate of Formation, the “Issuer Documents”); and any other documents deliverable by the Issuer thereunder or in connection therewith; and

   

  (v)         hold, maintain and preserve at the Premises (or such other place as shall be required by any of the Related Agreements) executed copies (to the
    extent applicable) of the Issuer Documents and other documents executed by the Issuer thereunder or in connection therewith;

   

  (b)          take such actions on behalf of the Issuer, as are necessary or desirable for the Issuer to keep in full effect its existence, rights and franchises as a
    limited liability company under the laws of the state of Delaware and obtain and preserve its qualification to do business in each jurisdiction in which it becomes necessary to be so qualified;

  
    2

    
      
 

  

  (c)           take such actions on the behalf of the Issuer as are necessary for the issuance and delivery of the System Restoration Bonds;

   

  (d)           provide for the performance by the Issuer of its obligations under each of the Related Agreements, and prepare, or cause to be prepared, all documents,
    reports, filings, instruments, notices, certificates and opinions that it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Related Agreements;

   

  (e)           to the full extent allowable under applicable law, enforce each of the rights of the Issuer under the Related Agreements, at the direction of the
    Indenture Trustee;

   

  (f)            provide for the defense, at the direction of the Issuer's Managers, of any action, suit or proceeding brought against the Issuer or affecting the
    Issuer or any of its assets;

   

  (g)           provide office space (the “Premises”) for the Issuer and such reasonable ancillary services as are necessary to carry out the obligations of the
    Administrator hereunder, including telecopying, duplicating and word processing services;

   

  (h)           undertake such other administrative services as may be appropriate, necessary or requested by the Issuer; and

   

  (i)            provide such other services as are incidental to the foregoing or as the Issuer and the Administrator may agree.

   

  In providing the services under this Section 1 and as otherwise provided under this Administration Agreement, the Administrator will not knowingly take any
    actions on behalf of the Issuer which (i) the Issuer is prohibited from taking under the Related Agreements, or (ii) would cause the Issuer to be in violation of any federal, state or local law or the LLC Agreement.

   

  In performing its duties hereunder, the Administrator shall use the same degree of care and diligence that the Administrator exercises with respect to performing
    such duties for its own account and, if applicable, for others.

   

  2.             Compensation. As compensation for the performance of the Administrator’s obligations under this Administration Agreement (including the
    compensation of Persons serving as Manager(s), other than the Independent Manager(s), and officers of the Issuer, but, for the avoidance of doubt, excluding the performance by AEP Texas of its obligations in its capacity as Servicer), the Administrator
    shall be entitled to $100,000 annually (the “Administration Fee”), payable by the Issuer in installments of $50,000 on each Payment Date. In addition, the Administrator shall be entitled to be reimbursed by the Issuer for all costs and expenses
    of services performed by unaffiliated third parties and actually incurred by the Administrator in connection with the performance of its obligations under this Administration Agreement in accordance with Section 3 (but, for the avoidance of
    doubt, excluding any such costs and expenses incurred by AEP Texas in its capacity as Servicer), to the extent that such costs and expenses are supported by invoices or other customary documentation and are reasonably allocated to the Issuer (“Reimbursable

      Expenses”).

  
    3

    
      
 

  

  3.             Third Party Services. Any services required for or contemplated by the performance of the above-referenced services by the Administrator to be
    provided by unaffiliated third parties (including independent auditors' fees and counsel fees) may, if provided for or otherwise contemplated by the Financing Order and if the Issuer deems it necessary or desirable, be arranged by the Issuer or by the
    Administrator at the direction (which may be general or specific) of the Issuer. Costs and expenses associated with the contracting for such third-party professional services may be paid directly by the Issuer or paid by the Administrator and
    reimbursed by the Issuer in accordance with Section 2, or otherwise as the Administrator and the Issuer may mutually arrange.

   

  4.             Additional Information to be Furnished to the Issuer. The Administrator shall furnish to the Issuer from time to time such additional
    information regarding the System Restoration Bond Collateral as the Issuer shall reasonably request.

   

  5.             Independence of the Administrator. For all purposes of this Administration Agreement, the Administrator shall be an independent contractor and
    shall not be subject to the supervision of the Issuer with respect to the manner in which it accomplishes the performance of its obligations hereunder. Unless expressly authorized by the Issuer, the Administrator shall have no authority, and shall not
    hold itself out as having the authority, to act for or represent the Issuer in any way and shall not otherwise be deemed an agent of the Issuer.

   

  6.             No Joint Venture. Nothing contained in this Administration Agreement (a) shall constitute the Administrator and the Issuer as partners or
    co-members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (b) shall be construed to impose any liability as such on either of them or (c) shall be deemed to confer on either of them any
    express, implied or apparent authority to incur any obligation or liability on behalf of the other.

   

  7.             Other Activities of Administrator. Nothing herein shall prevent the Administrator or any of its members, managers, officers, employees,
    subsidiaries or affiliates from engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an Administrator for any other person or entity even though such person or entity may engage in business activities similar to
    those of the Issuer.

   

  8.             Term of Agreement; Resignation and Removal of Administrator.

   

  (a)           This Administration Agreement shall continue in force until the payment in full of the System Restoration Bonds and any other amount which may become
    due and payable under the Indenture, upon which event this Administration Agreement shall automatically terminate.

   

  (b)           Subject to Sections 8(e) and 8(f), the Administrator may resign its duties hereunder by providing the Issuer with at least sixty (60)
    days’ prior written notice.

   

  (c)           Subject to Sections 8(e) and 8(f), the Issuer may remove the Administrator without cause by providing the Administrator with at least
    sixty (60) days’ prior written notice.

  
    4

    
      
 

  

  (d)          Subject to Sections 8(e) and 8(f), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of
    termination from the Issuer to the Administrator if any of the following events shall occur:

   

  (i)          the Administrator shall default in the performance of any of its duties under this Administration Agreement and, after notice of such
    default, shall fail to cure such default within ten (10) days (or, if such default cannot be cured in such time, shall (A) fail to give within ten (10) days such assurance of cure as shall be reasonably satisfactory to the Issuer and (B) fail to cure
    such default within thirty (30) days thereafter);

   

  (ii)         a court of competent jurisdiction shall enter a decree or order for relief, and such decree or order shall not have been vacated within
    sixty (60) days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or such court shall appoint a receiver, liquidator, assignee, custodian, trustee,
    sequestrator or similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or

   

  (iii)        the Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in
    effect, shall consent to the entry of an order for relief in an involuntary case under any such law, shall consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any
    substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they
    become due.

   

  The Administrator agrees that if any of the events specified in clauses (ii) or (iii) of this Section 8(d) shall occur, it shall give written notice thereof to
    the Issuer and the Indenture Trustee as soon as practicable but in any event within seven (7) days after the happening of such event.

   

  (e)          No resignation or removal of the Administrator pursuant to this Section 8 shall be effective until a successor Administrator has been appointed
    by the Issuer, and such successor Administrator has agreed in writing to be bound by the terms of this Administration Agreement in the same manner as the Administrator is bound hereunder.

   

  (f)           The appointment of any successor Administrator shall be effective only after satisfaction of the Rating Agency Condition with respect to the proposed
    appointment.

   

  9.             Action upon Termination, Resignation or Removal. Promptly upon the effective date of termination of this Administration Agreement pursuant to Section

      8(a), the resignation of the Administrator pursuant to Section 8(b) or the removal of the Administrator pursuant to Section 8(c) or 8(d), the Administrator shall be entitled to be paid a pro-rated portion of the annual fee
    described in Section 2 hereof through the date of termination and all Reimbursable Expenses incurred by it through the date of such termination, resignation or removal. The Administrator shall forthwith upon such termination pursuant to Section

      8(a) deliver to the Issuer all property and documents of or relating to the System Restoration Bond Collateral then in the custody of the Administrator. In the event of the resignation of the Administrator pursuant to Section 8(b) or the
    removal of the Administrator pursuant to Section 8(c) or 8(d), the Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer in making an orderly transfer of the duties of the
    Administrator.

  
    5

    
      
 

  

  10.           Administrator’s Liability. Except as otherwise provided herein, the Administrator assumes no liability other than to render or stand ready to
    render the services called for herein, and neither the Administrator nor any of its members, managers, officers, employees, subsidiaries or affiliates shall be responsible for any action of the Issuer or any of the members, managers, officers,
    employees, subsidiaries or affiliates of the Issuer (other than the Administrator itself). The Administrator shall not be liable for nor shall it have any obligation with regard to any of the liabilities, whether direct or indirect, absolute or
    contingent of the Issuer or any of the members, managers, officers, employees, subsidiaries or affiliates of the Issuer (other than the Administrator itself).

   

  11.           INDEMNITY.

   

  (a)           SUBJECT TO THE PRIORITY OF PAYMENTS SET FORTH IN THE INDENTURE, THE ISSUER SHALL INDEMNIFY THE ADMINISTRATOR, ITS MEMBERS, MANAGERS, OFFICERS,
    EMPLOYEES AND AFFILIATES AGAINST ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, LIABILITIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR WHETHER OR NOT THE ADMINISTRATOR IS A PARTY THERETO) WHICH
    ANY OF THEM MAY PAY OR INCUR ARISING OUT OF OR RELATING TO THIS ADMINISTRATION AGREEMENT AND THE SERVICES CALLED FOR HEREIN; PROVIDED, HOWEVER, THAT SUCH INDEMNITY SHALL NOT APPLY TO ANY SUCH LOSS, CLAIM, DAMAGE, PENALTY, JUDGMENT,
    LIABILITY OR EXPENSE RESULTING FROM THE ADMINISTRATOR’S NEGLIGENCE OR WILLFUL MISCONDUCT IN THE PERFORMANCE OF ITS OBLIGATIONS HEREUNDER.

   

  (b)           THE ADMINISTRATOR SHALL INDEMNIFY THE ISSUER, ITS MEMBERS, MANAGERS, OFFICERS AND EMPLOYEES AGAINST ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
    LIABILITIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR WHETHER OR NOT THE ISSUER IS A PARTY THERETO) WHICH ANY OF THEM MAY INCUR AS A RESULT OF THE ADMINISTRATOR’S NEGLIGENCE OR WILLFUL MISCONDUCT IN
    THE PERFORMANCE OF ITS OBLIGATIONS HEREUNDER.

   

  12.           Notices. Any notice, report or other communication given hereunder shall be in writing and addressed as follows:

   

  		(a)	if to the Issuer, to:

   

  AEP Texas Restoration Funding LLC

  539 N. Carancahua Street, Suite 1700

  Corpus Christi, Texas 78401 

    Attention: Manager

  Telephone: (361) 881-5399

  Facsimile: (361) 880-6128

  
    6

    
      
 

  

  		(b)	if to the Administrator, to:

   

  AEP Texas Inc.

  1 Riverside Plaza

  Columbus, Ohio 43215

    Attention: Treasurer

  Telephone: (614) 716-1000

  Facsimile: (614) 716-2807

   

  		(c)	if to the Indenture Trustee, to the Corporate Trust Office;

   

  or to such other address as any party shall have provided to the other parties in writing. Any notice required to be in writing hereunder shall be deemed given if such notice is mailed
    by certified mail, postage prepaid, or hand-delivered to the address of such party as provided above.

   

  13.           Amendments. This Administration Agreement may be amended from time to time by a written amendment duly executed and delivered by each of the
    Issuer and the Administrator with ten Business Days’ prior written notice given to the Rating Agencies and, if the contemplated amendment may in the judgment of the PUCT increase ongoing Qualified Costs, the consent of the PUCT pursuant to Section
      14, but without the consent of any of the Holders, (i) to cure any ambiguity, to correct or supplement any provisions in this Administration Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of
    the provisions in this Administration Agreement or of modifying in any manner the rights of the Holders; provided, however, that the Issuer and the Indenture Trustee shall receive an Officer’s Certificate stating that the execution of
    such amendment shall not adversely affect in any material respect the interests of any Holder and that all conditions precedent have been satisfied or (ii) to conform the provisions hereof to the description of this Administration Agreement in the
    Prospectus.

   

  In addition, this Administration Agreement may be amended from time to time by a written amendment duly executed and delivered by each of the Issuer and the
    Administrator with the prior written consent of the Indenture Trustee, the satisfaction of the Rating Agency Condition and, if the contemplated amendment may in the judgment of the PUCT increase ongoing Qualified Costs, the consent of the PUCT pursuant
    to Section 14; provided that any such amendment may not adversely affect the interest of any Holder in any material respect without the consent of the Holders of a majority of the outstanding principal amount of the System Restoration
    Bonds. Promptly after the execution of any such amendment or consent, the Issuer shall furnish copies of such amendment or consent to each of the Rating Agencies.

   

  14.           PUCT Condition. Notwithstanding anything to the contrary in Section 13, no amendment or modification of this Agreement shall be
    effective unless the process set forth in this Section 14 has been followed.

  
    7

    
      
 

  

  (a)          At least thirty-one (31) days prior to the effectiveness of any such amendment or modification and after obtaining the other necessary approvals set
    forth in Section 13 above (except that the consent of the Indenture Trustee may be subject to the consent of Holders if such consent is required or sought by the Indenture Trustee in connection with such amendment or modification), the
    Administrator shall have delivered to the PUCT’s executive director and general counsel written notification of any proposed amendment or modification, which notification shall contain:

   

  (i)          a reference to Docket No. 49308;

   

  (ii)         an Officer’s Certificate stating that the proposed amendment or modification has been approved by all parties to this Administration
    Agreement;

   

  (iii)        a statement identifying the person to whom the PUCT or its staff is to address any response to the proposed amendment or modification or to
    request additional time; and

   

  (iv)        a statement as to the possible effect of the amendment or modification on the ongoing qualified costs.

   

  (b)          The PUCT or its staff shall, within thirty (30) days of receiving the notification complying with Section 14(a) above, either:

   

  (i)          provide notice of its determination that the proposed amendment or modification will not under any circumstances have the effect of increasing
    the ongoing qualified costs related to the System Restoration Bonds,

   

  (ii)         provide notice of its consent or lack of consent to the person specified in Section 14(a)(iii) above, or

   

  (iii)        be conclusively deemed to have consented to the proposed amendment or modification,

   

  unless, within thirty (30) days of receiving the notification complying with Section 14(a) above, the PUCT or its staff delivers to the office of the person
    specified in Section 14(a)(iii) above a written statement requesting an additional amount of time not to exceed thirty (30) days in which to consider whether to consent to the proposed amendment or modification. If the PUCT or its staff
    requests an extension of time in the manner set forth in the preceding sentence, then the PUCT shall either provide notice of its consent or lack of consent or notice of its determination that the proposed amendment or modification will not under any
    circumstances increase ongoing qualified costs to the person specified in Section 14(a)(iii) above no later than the last day of such extension of time or be conclusively deemed to have consented to the proposed amendment or modification on the
    last day of such extension of time. Any amendment or modification requiring the consent of the PUCT shall become effective on the later of (i) the date proposed by the parties to such amendment or modification and (ii) the first day after the
    expiration of the thirty (30)-day period provided for in this Section 14(b), or, if such period has been extended pursuant hereto, the first day after the expiration of such period as so extended.

  
    8

    
      
 

  

  (c)           Following the delivery of a notice to the PUCT by the Administrator under Section 14(a) above, the Administrator shall have the right at any
    time to withdraw from the PUCT further consideration of any notification of a proposed amendment or modification. Such withdrawal shall be evidenced by the prompt written notice thereof by the Administrator to the PUCT, the Indenture Trustee, the
    Issuer and the Servicer.

   

  15.           Successors and Assigns. This Administration Agreement may not be assigned by the Administrator unless such assignment is previously consented to
    in writing by the Issuer and the Indenture Trustee and subject to the satisfaction of the Rating Agency Condition in connection therewith. Any assignment with such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder
    in the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this Administration Agreement may be assigned by the Administrator without the consent of the Issuer or the Indenture Trustee and without satisfaction of the
    Rating Agency Condition to a corporation or other organization that is a successor (by merger, reorganization, consolidation or purchase of assets) to the Administrator, including without limitation any Permitted Successor; provided that such
    successor or organization executes and delivers to the Issuer an Agreement in which such corporation or other organization agrees to be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder. Subject
    to the foregoing, this Administration Agreement shall bind any successors or assigns of the parties hereto. Upon satisfaction of all of the conditions of this Section 15, the preceding Administrator shall automatically and without further notice be
    released from all of its obligations hereunder.

   

  16.           Governing Law. This Administration Agreement shall be construed in accordance with the laws of the State of Texas, without reference to its
    conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

   

  17.           Headings. The Section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning,
    construction or effect of this Administration Agreement.

   

  18.           Counterparts. This Administration Agreement may be executed in counterparts, each of which when so executed shall be an original, but all of
    which together shall constitute but one and the same Administration Agreement.

   

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

  
    9

    
      
 

  

  20.           Nonpetition Covenant. Notwithstanding any prior termination of this Administration Agreement, the Administrator covenants that it shall not,
    prior to the date which is one year and one day after payment in full of the System Restoration Bonds, acquiesce, petition or otherwise invoke or cause the Issuer to invoke the process of any court or government authority for the purpose of commencing
    or sustaining an involuntary case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any
    substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer.

   

  21.           Assignment to Indenture Trustee. The Administrator hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security
    interest by the Issuer to the Indenture Trustee for the benefit of the Secured Parties pursuant to the Indenture of any or all of the Issuer’s rights hereunder and the assignment of any or all of the Issuer’s rights hereunder to the Indenture Trustee
    for the benefit of the Secured Parties. For the avoidance of doubt, the Indenture Trustee is a third-party beneficiary of this Agreement and is entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party
    hereto.

   

  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  
    10

    
      
 

  

  IN WITNESS WHEREOF, the parties have caused this Administration Agreement to be duly executed and delivered as of the day and year first above written.

   

  	 	AEP TEXAS RESTORATION FUNDING LLC, as Issuer
	 	 	 
	 	By:	  
	 	Name:
	 	Title:
	 	 	 
	 	AEP TEXAS INC., as Administrator
	 	 	 
	 	By:	
           

            

        
	 	Name:
	 	Title:

   

  Signature Page to

  Administration AgreementExhibit 10.4

   

  SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT

   

  SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT (this “Agreement”) dated as of September 18, 2019 by and among:

   

  AEP Texas Inc. (in its individual capacity, the “Company”);

   

  AEP Texas Central Transition Funding II LLC, a Delaware limited liability company (the “First Additional Transition Bond Issuer”);

   

  The Bank of New York Mellon, a New York banking corporation, in its capacity as indenture trustee (including any successor in such capacity, the “First Additional
      Transition Bond Trustee” and, together with the First Additional Transition Bond Issuer, the “First Additional Secured Parties”) under the First Additional Indenture referred to below;

   

  AEP Texas Inc. (successor to AEP Texas Central Company), in its capacity as the initial servicer of the First Additional Transition Property referred to below
    (including any successor in such capacity, the “First Additional TC Servicer” and, together with the First Additional Transition Bond Issuer and the First Additional Transition Bond Trustee, the “First Additional Parties”);

   

  AEP Texas Central Transition Funding III LLC, a Delaware limited liability company (the “Second Additional Transition Bond Issuer”);

   

  U.S. Bank National Association, a national banking association, in its capacity as indenture trustee (including any successor in such capacity, the “Second
      Additional Transition Bond Trustee” and, together with the Second Additional Transition Bond Issuer, the “Second Additional Secured Parties”) under the Second Additional Indenture referred to below;

   

  AEP Texas Inc. (successor to AEP Texas Central Company), in its capacity as the initial servicer of the Second Additional Transition Property referred to below
    (including any successor in such capacity, the “Second Additional TC Servicer” and, together with the Second Additional Transition Bond Issuer and the Second Additional Transition Bond Trustee, the “Second Additional Parties”);

   

  AEP Texas Restoration Funding LLC, a Delaware limited liability company (the “System Restoration Bond Issuer”);

   

  U.S. Bank National Association, a national banking association, in its capacity as indenture trustee (including any successor in such capacity, the “System
      Restoration Bond Trustee” and, together with the System Restoration Bond Issuer, the “System Restoration Secured Parties”) under the System Restoration Indenture referred to below;

   

  AEP Texas Inc., in its capacity as the initial servicer of the System Restoration Transition Property referred to below (including any successor in such capacity, the
    “System Restoration Servicer” and, together with the System Restoration Bond Issuer and the System Restoration Bond Trustee, the “System Restoration Parties”); and

  
    
      
 

  

  
  The Company, in its capacity as collection agent for the benefit of the First Additional TC Servicer, the Second Additional TC Servicer and the System Restoration
    Servicer.

   

  WHEREAS, pursuant to the terms of the Transition Property Purchase and Sale Agreement dated as of October 11, 2006, between the First Additional Transition Bond Issuer
    and AEP Texas Central Company, in its capacity as seller (as it may hereafter from time to time be amended, restated or modified, the “First Additional Sale Agreement”), AEP Texas Central Company has sold to the First Additional Transition Bond
    Issuer certain assets known as “Transition Property” which includes the “Transition Charges” (hereinafter, the “First Additional Transition Property” and the “First Additional Transition Charges”);

   

  WHEREAS, pursuant to the terms of the Indenture dated as of October 11, 2006, among the First Additional Transition Bond Issuer and the First Additional Transition
    Bond Trustee, in its capacity as indenture trustee and in its separate capacity as a securities intermediary (as it may hereafter from time to time be amended, restated or modified and as supplemented from time to time by one or more Series
    Supplements, such Series Supplements and Indenture being collectively referred to herein as the “First Additional Indenture”), the First Additional Transition Bond Issuer, among other things, has granted to the First Additional Transition Bond
    Trustee a security interest in certain of its assets, including the First Additional Transition Property, to secure, among other things, the transition bonds issued pursuant to the First Additional Indenture (“First Additional Transition Bonds”);

   

  WHEREAS, pursuant to the terms of the Transition Property Servicing Agreement dated as of October 11, 2006, between the First Additional Transition Bond Issuer and the
    First Additional TC Servicer (as it may hereafter from time to time be amended, restated or modified, the “First Additional Servicing Agreement”), the First Additional TC Servicer has agreed to provide for the benefit of the First Additional
    Transition Bond Issuer servicing functions with respect to the First Additional Transition Charges;

   

  WHEREAS, pursuant to the terms of the Transition Property Purchase and Sale Agreement dated as of March 14, 2012, between the Second Additional Transition Bond Issuer
    and AEP Texas Central Company, in its capacity as seller (as it may hereafter from time to time be amended, restated or modified, the “Second Additional Sale Agreement”), AEP Texas Central Company has sold to the Second Additional Transition
    Bond Issuer certain assets known as “Transition Property” which includes the “Transition Charges” (hereinafter, the “Second Additional Transition Property” and the “Second Additional Transition Charges”);

   

  WHEREAS, pursuant to the terms of the Indenture dated as of March 14, 2012, among the Second Additional Transition Bond Issuer and the Second Additional Transition
    Bond Trustee, in its capacity as indenture trustee and in its separate capacity as a securities intermediary (as it may hereafter from time to time be amended, restated or modified and as supplemented by a Series Supplement, such Series Supplement and
    Indenture being collectively referred to herein as the “Second Additional Indenture”), the Second Additional Transition Bond Issuer, among other things, has granted to the Second Additional Transition Bond Trustee a security interest in certain
    of its assets, including the Second Additional Transition Property, to secure, among other things, the transition bonds issued pursuant to the Second Additional Indenture (“Second Additional Transition Bonds”);

  
    2

    
      
 

  

  WHEREAS, pursuant to the terms of the Transition Property Servicing Agreement dated as of March 14, 2012, between the Second Additional Transition Bond Issuer and the
    Second Additional TC Servicer (as it may hereafter from time to time be amended, restated or modified, the “Second Additional Servicing Agreement”), the Second Additional TC Servicer has agreed to provide for the benefit of the Second Additional
    Transition Bond Issuer servicing functions with respect to the Second Additional Transition Charges;

   

  WHEREAS, pursuant to the terms of the Transition Property Purchase and Sale Agreement dated as of September 18, 2019, between the System Restoration Bond Issuer and
    the Company, in its capacity as seller (as it may hereafter from time to time be amended, restated or modified, the “System Restoration Sale Agreement”), the Company has sold to the System Restoration Bond Issuer certain assets known as
    “Transition Property” which includes the “System Restoration Charges” (hereinafter, the “System Restoration Transition Property” and the “System Restoration Charges”);

   

  WHEREAS, pursuant to the terms of the Indenture dated as of September 18, 2019, among the System Restoration Bond Issuer and the System Restoration Bond Trustee, in
    its capacity as indenture trustee and in its separate capacity as a securities intermediary (as it may hereafter from time to time be amended, restated or modified and as supplemented by a Series Supplement, such Series Supplement and Indenture being
    collectively referred to herein as the “System Restoration Indenture” and, together with the First Additional Indenture and the Second Additional Indenture, the “Indentures”), the System Restoration Bond Issuer, among other things, has
    granted to the System Restoration Bond Trustee a security interest in certain of its assets, including the System Restoration Transition Property, to secure, among other things, the system restoration bonds issued pursuant to the System Restoration
    Indenture (“System Restoration Bonds” and, together with the First Additional Transition Bonds and the Second Additional Transition Bonds, the “Transition Bonds”);

   

  WHEREAS, pursuant to the terms of the Transition Property Servicing Agreement dated as of September 18, 2019, between the System Restoration Bond Issuer and the System
    Restoration Servicer (as it may hereafter from time to time be amended, restated or modified, the “System Restoration Servicing Agreement” and, together with the First Additional Servicing Agreement and the Second Additional Servicing Agreement,
    the “Servicing Agreements”), the System Restoration Servicer has agreed to provide for the benefit of the System Restoration Bond Issuer servicing functions with respect to the System Restoration Charges;

   

  WHEREAS, pursuant to the terms of the Amended and Restated Intercreditor Agreement dated as of March 14, 2012 (the “First Amended and Restated Intercreditor
      Agreement”), by and among AEP Texas Central Company, AEP Texas Central Transition Funding LLC (the “Initial Transition Bond Issuer”), U.S. Bank National Association, as initial transition bond trustee (the “Initial Transition Bond
      Trustee”), AEP Texas Central Company, as initial TC servicer (the “Initial TC Servicer” and, together with the Initial Transition Bond Issuer and the Initial Transition Bond Trustee, the “Initial Parties”), the First Additional
    Parties, the Second Additional Parties, and AEP Texas Central Company in its capacity as collection agent for the benefit of the Initial TC Servicer, the First Additional TC Servicer and the Second Additional TC Servicer (together, the “First
      Amended and Restated Intercreditor Parties”), the First Amended and Restated Intercreditor Parties agreed upon their respective rights relating to such collections and any bank accounts into which the same may be deposited, as well as other
    matters of common interest to them which arise under or result from the coexistence of the Initial Sale Agreement (as defined therein), the Initial Indenture (as defined therein), the Initial Servicing Agreement (as defined therein), the First
    Additional Sale Agreement, the First Additional Indenture, the First Additional Servicing Agreement, the Second Additional Sale Agreement, the Second Additional Indenture and the Second Additional Servicing Agreement;

  
    3

    
      
 

  

  WHEREAS, the transition bonds issued pursuant to the Indenture dated as of February 7, 2002 among the Initial Transition Bond Issuer and the Initial Transition Bond
    Trustee have been paid in full, and the First Amended and Restated Intercreditor Agreement has terminated as to the Initial Parties pursuant to Section 8 thereof; and

   

  WHEREAS, the First Additional Parties, the Second Additional Parties, the System Restoration Parties and the Company in its capacity as collection agent for the
    benefit of the System Restoration Servicer now wish to amend and restate the First Amended and Restated Intercreditor Agreement in its entirety to agree upon their respective rights relating to such collections and any bank accounts into which the same
    may be deposited, as well as other matters of common interest to them which arise under or result from the coexistence of the First Additional Sale Agreement, the First Additional Indenture, the First Additional Servicing Agreement, the Second
    Additional Sale Agreement, the Second Additional Indenture, the Second Additional Servicing Agreement, the System Restoration Sale Agreement, the System Restoration Indenture and the System Restoration Servicing Agreement;

   

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

   

  SECTION 1. Acknowledgment of Ownership Interests and Security
      Interests. The First Additional Parties, the Second Additional Parties and the System Restoration Parties hereby acknowledge as follows:

   

  (a)          the ownership
    interest of the System Restoration Bond Issuer in the System Restoration Transition Property, including the System Restoration Charges and the revenues, collections, claims, rights, payments, money and proceeds arising therefrom, and the security
    interests in favor of the System Restoration Bond Trustee for the benefit of itself, the holders of the System Restoration Bonds and any credit enhancement provider (as defined in the System Restoration Indenture) in the System Restoration Transition
    Property;

   

  (b)          the ownership interest of the Second
    Additional Transition Bond Issuer in the Second Additional Transition Property, including the Second Additional Transition Charges and the revenues, collections, claims, rights, payments, money and proceeds arising therefrom, and the security interests
    in favor of the Second Additional Transition Bond Trustee for the benefit of itself, the holders of the Second Additional Transition Bonds and any credit enhancement provider (as defined in the Second Additional Indenture) in the Second Additional
    Transition Property; and

  
    4

    
      
 

  

  (c)          the ownership interest of the First
    Additional Transition Bond Issuer in the First Additional Transition Property, including the First Additional Transition Charges and the revenues, collections, claims, rights, payments, money and proceeds arising therefrom, and the security interests
    in favor of the First Additional Transition Bond Trustee for the benefit of itself, the holders of the First Additional Transition Bonds and any credit enhancement provider (as defined in the First Additional Indenture) in the First Additional
    Transition Property.

   

  SECTION 2. Deposit Accounts. The First Additional Parties,
    the Second Additional Parties and the System Restoration Parties each acknowledge that collections with respect to the First Additional Transition Property, the Second Additional Transition Property and the System Restoration Transition Property may
    from time to time be deposited into one or more designated accounts of the Company (the “Deposit Accounts”). Subject to Section 4, the Company in its capacity as collection agent agrees to:

   

  (a)          maintain the Deposit Accounts for the
    benefit of the First Additional Parties, the Second Additional Parties and the System Restoration Parties as their respective interests may appear;

   

  (b)          allocate and remit funds from the Deposit Accounts at the times specified in the respective Indentures and Servicing Agreements to the First Additional Transition Bond Trustee in the case of collections
    relating to the First Additional Transition Property, to the Second Additional Transition Bond Trustee in the case of collections relating to the Second Additional Transition Property and to the System Restoration Bond Trustee in the case of
    collections relating to the System Restoration Transition Property; provided that (i) to the extent the combined amounts of remittance by a retail electric provider are insufficient to satisfy amounts owed in respect of the First Additional
    Transition Charges, the Second Additional Transition Charges, the System Restoration Charges and the transmission and distribution charges (other than late payment penalties), such allocation and remittances shall be made on a pro rata basis among the
    First Additional Transition Charges, the Second Additional Transition Charges and the System Restoration Charges based on the amounts of such Transition Charges (other than late payment penalties) then due and owing; and (ii) in the event a
    late-payment penalty is received, allocations and remittances of such late payment penalties shall be made on a pro rata basis among the First Additional Transition Charges, the Second Additional Transition Charges and the System Restoration Charges
    based on the amounts of such Transition Charges in respect of which such penalties were owed; and

   

  (c)          maintain records as to the amounts deposited
    into the Deposit Accounts, the amounts remitted therefrom and the allocation as provided in subsection (b) above.

   

  The First Additional Secured Parties, the Second Additional Secured Parties and the System Restoration Secured Parties shall each have the right to require an
    accounting from time to time of collections, allocations and remittances by the Company in its capacity as collection agent relating to the Deposit Accounts.

   

  Each of the parties hereto acknowledges the respective security interests of the others in amounts on deposit in the Deposit Accounts to the extent of their respective
    interests as described in this Agreement and the other Basic Documents (as defined in the Indentures).

  
    5

    
      
 

  

  SECTION 3. Time or Order of Attachment. The acknowledgments
    contained in Sections 1 and 2 are applicable irrespective of the time or order of attachment or perfection of security or ownership interests or the time or order of filing or recording of financial statements or mortgages or filings
    under applicable law.

   

  SECTION 4. Servicing.

   

  (a)          Pursuant to Section 2, the Company, in its role
    as First Additional TC Servicer, Second Additional TC Servicer and System Restoration Servicer, shall allocate and remit funds received from retail electric providers for the First Additional Transition Bonds, the Second Additional Transition Bonds and
    the System Restoration Bonds, respectively, and shall control the movement of such funds out of the Deposit Accounts (such allocation, remittance and deposits hereafter called the “Allocation Services”). The same entity must always act as
    servicer in the performance of the Allocation Services as to the First Additional Transition Bonds, the Second Additional Transition Bonds and the System Restoration Bonds.

   

  (i)           In the event that the First Additional
    Transition Bond Trustee, the Second Additional Transition Bond Trustee or the System Restoration Bond Trustee (each, so long as the related Transition Bonds are outstanding, a “Trustee” and each such Trustee collectively, the “Trustees”)
    is entitled to and desires to exercise its right, pursuant to the applicable Servicing Agreement and Indenture, to replace the Company as First Additional TC Servicer, Second Additional TC Servicer or System Restoration Servicer, respectively, in its
    role as the provider of the Allocations Services in accordance with the applicable Servicing Agreements, the party desiring to exercise such right shall promptly give written notice to the others (the “Servicer Notice”) in accordance with the
    notice provisions of this Agreement and consult with the others with respect to the Person who would replace the Company in such capacities. Any successor in such capacities shall be agreed to by all of the Trustees within ten (10) Business Days of the
    date of the Servicer Notice, and such successor shall be subject to satisfaction of the Rating Agency Condition (as defined below) and the provisions of the applicable Servicing Agreements. “Business Day” means any day other than a Saturday,
    Sunday, or any holiday for national banks or any New York banking corporation in Dallas, Texas, Columbus, Ohio, Chicago, Illinois or New York, New York. The Person named as replacement First Additional TC Servicer, Second Additional TC Servicer and
    System Restoration Servicer in accordance with this Section 4 is referred to herein as the “Replacement Servicer.” The parties hereto agree that the Replacement Servicer for the First Additional TC Servicer, the Second Additional TC
    Servicer and the System Restoration Servicer shall be the same entity. In the event that the Trustees cannot agree on a Replacement Servicer, any Trustee may petition a court of competent jurisdiction for the appointment of a Replacement Servicer.

  
    6

    
      
 

  

  (ii)          In the event that any Trustee is entitled
    to and desires to exercise its right, pursuant to the applicable Servicing Agreement and Indenture, to redirect collections relating to the First Additional Transition Property, the Second Additional Transition Property or the System Restoration
    Transition Property (as the case may be), any redirection of funds shall be either to (A) the Replacement Servicer or (B) if there is no Replacement Servicer, to the Designated Account with the Designated Account Holder chosen in accordance with the
    provisions set forth below, on or before the tenth Business Day occurring from and after the date of the Servicer Notice. The “Designated Account” shall be an “Eligible Account” (as defined in the Indentures) and shall be held for the
    benefit of the Trustees as their respective interests may appear. The “Designated Account Holder” shall be a financial institution selected by all of the Trustees, subject to satisfaction of the Rating Agency Condition, to hold and allocate
    amounts in the Designated Account for the benefit of the Trustees as their respective interests may appear as provided in subsection (b) of this Section 4. In the event that the Trustees are unable to agree upon a Designated Account
    Holder on or before the tenth Business Day occurring from and after the date of the Servicer Notice, a Designated Account Holder shall be promptly selected by the Trustee representing the holders of a majority (by amount) of the aggregate Transition
    Bonds outstanding, subject to the satisfaction of the Rating Agency Condition. None of the Trustees shall have any liability for such selection of the Designated Account Holder. The parties hereto agree that the Designated Account Holder for the
    Trustees shall be the same entity.

   

  (b)          Upon exercise by any Trustee of its rights to redirect
    collections relating to the First Additional Transition Property, the Second Additional Transition Property or the System Restoration Transition Property, respectively, and in the absence of a Replacement Servicer, the parties agree that all
    collections relating to the First Additional Transition Property, the Second Additional Transition Property and the System Restoration Transition Property shall be deposited into the Designated Account and that the Designated Account Holder shall be
    instructed by the Company to (i) allocate and remit funds from such Designated Account, in amounts calculated by the Company, with such calculations provided to the Designated Account Holder on a daily basis to the persons entitled thereto, being the
    First Additional Transition Bond Trustee in the case of all collections relating to the First Additional Transition Property, the Second Additional Transition Bond Trustee in the case of all collections relating to the Second Additional Transition
    Property, and the System Restoration Bond Trustee in the case of all collections relating to the System Restoration Transition Property (in each instance, other than in the case of late payment penalties, which shall be allocated and remitted as
    described in Section 2(b)); and (ii) maintain records as to the amounts deposited into such account, the amounts remitted therefrom and the allocation as provided in clause (i). The fees and expenses of the Designated Account Holder
    shall be payable from amounts deposited into the Designated Account on a pro rata basis as between collections relating to the First Additional Transition Property, the Second Additional Transition Property and the System Restoration Transition
    Property; provided, that that portion of those fees and expenses allocable to collections relating to the First Additional Transition Property, the Second Additional Transition Property and the System Restoration Transition Property shall be payable by
    the First Additional TC Servicer, the Second Additional TC Servicer and the System Restoration Servicer, respectively, from the servicer fees provided for in the First Additional Servicing Agreement, the Second Additional Servicing Agreement and the
    System Restoration Servicing Agreement, respectively. The First Additional Secured Parties, the Second Additional Secured Parties and the System Restoration Secured Parties shall each have the right to require an accounting from time to time of
    collections, allocations and remittances by the Designated Account Holder.

  
    7

    
      
 

  

  (c)          Anything in this Agreement to the contrary
    notwithstanding, any action taken by any of the Trustees to appoint a Replacement Servicer or designate the Designated Account pursuant to this Section 4 shall be subject to the Rating Agency Condition and the consent, if required by law or any
    Financing Order (as defined in the Indentures), of the Public Utility Commission of Texas. For the purposes of this Agreement, the “Rating Agency Condition” means, with respect to any such action, satisfaction of the “Rating Agency Condition” as
    such term is defined in each Indenture under which any Transition Bonds remain outstanding at the time of such action. The parties hereto acknowledge and agree that the approval or the consent of the rating agencies which is required in order to
    satisfy the Rating Agency Condition is not subject to any standard of commercial reasonableness, and the parties are bound to satisfy this condition whether or not the rating agencies are unreasonable or arbitrary.

   

  SECTION 5. Sharing of Information. The parties hereto agree
    to cooperate with each other and make available to each other or any Replacement Servicer any and all records and other data relevant to the First Additional Transition Property, the Second Additional Transition Property and the System Restoration
    Transition Property which it may have in its possession or may from time to time receive from the Company or any predecessor First Additional TC Servicer, the Second Additional TC Servicer or the System Restoration Servicer or any successor thereto,
    including, without limitation, any and all computer programs, data files, documents, instruments, files and records and any receptacles and cabinets containing the same. The Company hereby consents to the release of information regarding the Company
    pursuant to this Section 5.

   

  SECTION 6. No Joint Venture. Nothing herein contained shall
    be deemed as effecting a joint venture among any of the First Additional Secured Parties, the Second Additional Secured Parties, the System Restoration Secured Parties and the Company.

   

  SECTION 7. Method of Adjustment and Allocation. Each of the
    parties hereto acknowledges that: (i) the First Additional TC Servicer will adjust, calculate and allocate payments of First Additional Transition Charges in accordance with Section 4.01 of the First Additional Servicing Agreement and Section

      6 of Annex 1 of the First Additional Servicing Agreement in the form attached thereto, (ii) the Second Additional TC Servicer will adjust, calculate and allocate payments of Second Additional Transition Charges in accordance with Section

      4.01 of the Second Additional Servicing Agreement and Section 6 of Annex 1 of the Second Additional Servicing Agreement in the form attached thereto, and (iii) the System Restoration Servicer will adjust, calculate and allocate
    payments of System Restoration Charges in accordance with Section 4.01 of the System Restoration Servicing Agreement and Section 6 of Annex 1 of the System Restoration Servicing Agreement in the form attached thereto. Each of
    the parties hereto hereby acknowledges that (a) none of the First Additional Secured Parties shall be deemed or required under this Agreement to have any knowledge of or responsibility for the terms of the Second Additional Servicing Agreement and Annex

      1 thereto, or the System Restoration Servicing Agreement and Annex 1 thereto, or any adjustment, calculation and allocation thereunder, (b) none of the Second Additional Secured Parties shall be deemed or required under this Agreement to
    have any knowledge of or responsibility for the terms of the First Additional Servicing Agreement and Annex 1 thereto, or the System Restoration Servicing Agreement and Annex 1 thereto, or any adjustment, calculation and allocation
    thereunder, and (c) none of the System Restoration Secured Parties shall be deemed or required under this Agreement to have any knowledge of or responsibility for the terms of the First Additional Servicing Agreement and Annex 1 thereto, or the
    Second Additional Servicing Agreement and Annex 1 thereto, or any adjustment, calculation and allocation thereunder. Accordingly, (A) each of the First Additional Secured Parties may, solely for the purpose of this Agreement, conclusively rely
    on the accuracy of the calculations of the Second Additional TC Servicer in making adjustments, calculations and allocations under the Second Additional Servicing Agreement and Annex I thereto and of the System Restoration Servicer in making
    adjustments, calculations and allocations under the System Restoration Servicing Agreement and Annex I thereto, (B) each of the Second Additional Secured Parties may, solely for the purpose of this Agreement, conclusively rely on the accuracy
    of the calculations of the First Additional TC Servicer in making adjustments, calculations and allocations under the First Additional Servicing Agreement and Annex I thereto and of the System Restoration Servicer in making adjustments,
    calculations and allocations under the System Restoration Servicing Agreement and Annex I thereto, and (C) each of the System Restoration Secured Parties may, solely for the purpose of this Agreement, conclusively rely on the accuracy of the
    calculations of the First Additional TC Servicer in making adjustments, calculations and allocations under the First Additional Servicing Agreement and Annex I thereto and of the Second Additional TC Servicer in making adjustments, calculations
    and allocations under the Second Additional Servicing Agreement and Annex I thereto. Such acknowledgement shall not relieve the Company of any of its obligations to make payments in accordance with the terms of the First Additional Sale
    Agreement, the Second Additional Sale Agreement and the System Restoration Sale Agreement, nor shall it relieve the First Additional TC Servicer, the Second Additional TC Servicer or the System Restoration Servicer of their obligations under the First
    Additional Servicing Agreement, the Second Additional Servicing Agreement and the System Restoration Servicing Agreement, respectively.

  
    8

    
      
 

  

  SECTION 8. Termination. This Agreement shall terminate at
    such time as there is only one outstanding issue of Transition Bonds, except that the understandings and acknowledgements contained in Sections 1, 2 and 3 shall survive the termination of this Agreement. Upon the payment in full
    of the First Additional Transition Bonds this Agreement shall terminate as to the First Additional Parties but the parties hereto agree that the provisions hereof shall remain enforceable as among the Second Additional Parties and the System
    Restoration Parties.

   

  SECTION 9. Governing Law. THIS AGREEMENT SHALL BE
    CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

   

  SECTION 10. Further Assurances. Each of the parties hereto
    agrees to execute any and all agreements, instruments, financing statements, releases and any and all other documents reasonably requested by any of the other parties hereto in order to effectuate the intent of this Agreement. In each case where a
    release is to be given pursuant to this Agreement, the term release shall include any documents or instruments necessary to effect a release, as contemplated by this Agreement. All releases, subordinations and other instruments submitted to the
    executing party are to be prepared at no expense to such party. Notwithstanding anything herein to the contrary, none of the First Additional Transition Bond Trustee, the Second Additional Transition Bond Trustee nor the System Restoration Bond Trustee
    shall be required to execute any such agreements, instruments, releases or other documents unless directed to do so by an “Issuer Order,” as such term is defined in the applicable Indenture.

  
    9

    
      
 

  

  SECTION 11. Limitation on Rights of Others. This Agreement
    is solely for the benefit of the First Additional Transition Bond Issuer, the First Additional Transition Bond Trustee for the benefit of itself, the Second Additional Transition Bond Issuer, the Second Additional Transition Bond Trustee for the
    benefit of itself, the System Restoration Bond Issuer, the System Restoration Bond Trustee for the benefit of itself, the holders of the Transition Bonds, and the Company, and no other person or entity shall have any rights, benefits, priority or
    interest under or because of the existence of this Agreement.

   

  SECTION 12. Amendments. In the event that the Company
    hereafter causes transition property to be created under any financing order and acts as servicer for the transition bonds issued pursuant to such financing order, the parties hereto agree that this Agreement may be amended and restated (i) to add as
    parties hereto the relevant issuer of such transition bonds, the indenture trustee therefor, and the servicer of such transition property and (ii) to reflect the rights and obligations of such parties with respect to such transition property on terms
    substantially similar to the rights and obligations of the issuers, trustees and servicers currently party hereto; provided that no such amendment shall be effective unless (x) evidenced by written instrument signed by the parties hereto and
    such additional parties and (y) the Rating Agency Condition shall have been satisfied with respect thereto and provided, further, that no party hereto shall be required to execute any such amended agreement on terms which are materially
    more disadvantageous to it or the Holders (as defined in the respective Indenture) than those contained herein. None of the First Additional Transition Bond Trustee, the Second Additional Transition Bond Trustee nor the System Restoration Bond Trustee
    shall be required to execute any such amendment unless directed to do so by an “Issuer Order,” as such term is defined in the applicable Indenture.

   

  SECTION 13. Severability. The provisions of this Agreement
    shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any
    circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and
    (ii) the remainder of this Agreement and the application of such provision to other Persons, or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or
    enforceability of such provision, or the application thereof, in any other jurisdiction.

   

  SECTION 14. Counterparts. This Agreement may be executed in
    any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.
    Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

  
    10

    
      
 

  

  SECTION 15. Nonpetition Covenant. Notwithstanding any prior
    termination of this Agreement or any of the Indentures, each of the parties covenants that it shall not, prior to the date which is one year and one day after payment in full of the last of the Transition Bonds, acquiesce, petition or otherwise invoke
    or cause any of the First Additional Transition Bond Issuer, the Second Additional Transition Bond Issuer or the System Restoration Bond Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a
    case against the First Additional Transition Bond Issuer, the Second Additional Transition Bond Issuer or the System Restoration Bond Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
    assignee, trustee, custodian, sequestrator or other similar official of the First Additional Transition Bond Issuer, the Second Additional Transition Bond Issuer or the System Restoration Bond Issuer, or any substantial part of its property, or
    ordering the winding up or liquidation of the affairs of the First Additional Transition Bond Issuer, the Second Additional Transition Bond Issuer or the System Restoration Bond Issuer.

   

  SECTION 16. Trustees. The Bank of New York Mellon, as First
    Additional Transition Bond Trustee, in acting hereunder, is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the First Additional Indenture. U.S. Bank National Association, as Second Additional Transition
    Bond Trustee, in acting hereunder, is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Second Additional Indenture. U.S. Bank National Association, as System Restoration Bond Trustee, in acting
    hereunder, is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the System Restoration Indenture.

   

  SECTION 17. Notices, Etc. Any notice provided or permitted
    by this Agreement to be made upon, given or furnished to or filed with any party hereto shall be shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing by facsimile transmission, first-class mail or overnight
    delivery service to the applicable party at its address set forth on Exhibit A hereto or, as to any party, at such other address as shall be designated by such party by written notice to the other parties hereto.

   

  SECTION 18. Restatement. This Agreement amends and
    restates in its entirety that certain First Amended and Restated Intercreditor Agreement dated as of March 14, 2012, by and among AEP Texas Central Company, including in its capacity as collection agent, the Initial Parties, the First Additional
    Parties and the Second Additional Parties.

   

  [REMAINDER OF PAGE INTENTIONALLY LEFT
    BLANK]

  
    11

    
      
 

  

  IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date
    first above written.

   

  	 	AEP TEXAS INC., as Company, First Additional TC Servicer, Second Additional TC Servicer, System Restoration Servicer and as collection agent
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

   

  	 	AEP TEXAS CENTRAL TRANSITION FUNDING II LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

   

  	 	AEP TEXAS CENTRAL TRANSITION FUNDING III LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

   

  	 	AEP TEXAS RESTORATION FUNDING LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

   

  	 	THE BANK OF NEW YORK Mellon, as First Additional Transition Bond Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

   

  Signature Page to 

  Intercreditor Agreement

  
    
      
 

  

  	 	U.S. BANK NATIONAL ASSOCIATION, as Second Additional Transition Bond Trustee and System Restoration Bond Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

     

  Signature Page to 

  Intercreditor Agreement

  
    
      
 

  

  EXHIBIT A

   

  Notice Addresses

   

  AEP Texas Inc.

  1 Riverside Plaza

  Columbus, Ohio 43215

  Attention: Treasurer

  Telephone: (614) 716-1000

  Facsimile: (614) 716-2807

   

  AEP Texas Central Transition Funding II LLC

  539 N. Carancahua Street, Suite 1700

  Corpus Christi, Texas 78401

  Attention: Manager

  Telephone: (361) 881-5399

  Facsimile: (361) 880-6128

   

  AEP Texas Central Transition Funding III LLC

  539 N. Carancahua Street, Suite 1700

  Corpus Christi, Texas 78401

  Attention: Manager

  Telephone: (361) 881-5399

  Facsimile: (361) 880-6128

   

  AEP Texas Restoration Funding LLC

  539 N. Carancahua Street, Suite 1700

  Corpus Christi, Texas 78401

  Attention: Manager

  Telephone: (361) 881-5399

  Facsimile: (361) 880-6128

   

  The Bank of New York Mellon

  240 Greenwich Street, Floor 7 East

  New York, New York 10286

  Attention: Henry Li, Vice President

  Telephone: (212) 815-5754

  Facsimile: (212) 815-2493

   

  U.S Bank National Association

  190 South LaSalle Street, 7th Floor

  MK-IL-SL7R

  Chicago, Illinois 60603

  Attention: Global Structured Finance – AEP SRC 2019-1

  

  Telephone: (312) 332-7464
  Email: nicholos.xeros@usbank.com; melissa.rosal@usbank.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]