Document:

Exhibit 10(a)

 

[SUTHERLAND ASBILL &
BRENNAN LLP LETTERHEAD]

 

DAVID S. GOLDSTEIN

DIRECT LINE: 202.383.0606

Internet:
david.goldstein@sablaw.com

 

April 18, 2005

 

Board of Directors

Protective Life Insurance
Company

2801 Highway 201 South

Birmingham, Alabama 35223

 

Directors:

 

We hereby
consent to the reference to our name under the caption “Legal Matters” in the
statement of additional information filed as part of post-effective amendment
number 1 to the registration statement on Form N-4 (File No. 333-115212)
filed by Protective Life Insurance Company and Protective Variable Annuity
Separate Account with the Securities and Exchange Commission.  In giving this consent, we do not admit that
we are in the category of persons whose consent is required under Section 7
of the Securities Act of 1933.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  SUTHERLAND
  ASBILL & BRENNAN LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David S. Goldstein

  	
   

  
	
   

  	
  David S. GoldsteinExhibit 10(b)

 

CONSENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

We hereby consent to the use in this
Registration Statement on Form N-4 (File No. 333-115212) of our
report dated March 30, 2005, relating to the consolidated financial
statements and financial statement schedules of Protective Life Insurance
Company and subsidiaries, which appears in such Registration Statement.  We also consent to the use in this
Registration Statement on Form N-4 of our report dated April14, 2005,
relating to the financial statements of The Protective Variable Annuity
Separate Account, which appears in such Registration Statement.  We also consent to the reference to us under
the heading “Independent Registered Public Accounting Firm,” in such
Registration Statement.

 

 

PricewaterhouseCoopers LLP

Birmingham, Alabama

April 19, 2005Exhibit 10.71

 

 

 

NAVISTAR FINANCIAL SECURITIES CORPORATION

 

Seller

 

NAVISTAR FINANCIAL CORPORATION

 

Servicer

 

and

 

THE BANK OF NEW YORK

 

Master Trust Trustee

 

on behalf of the Series 2000-VFC Certificateholders

 

 

SERIES 2000-VFC SUPPLEMENT

 

Dated as of January 28, 2000

 

to

 

POOLING AND SERVICING AGREEMENT

 

Dated as of June 8, 1995

 

 

Floating Rate

Dealer Note Asset Backed Certificates, Series 2000-VFC

 

 

DEALER NOTE MASTER TRUST

 

 

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE
  I

  	
   

  
	
   

  	
  CREATION
  OF SERIES 2000-VFC ANDTHE SERIES 2000-VFC CERTIFICATES

  	
   

  
	
   

  	
  SECTION 1.01
  Designation

  	
   

  
	
   

  	
  SECTION 1.02 Incremental Fundings

  	
   

  
	
   

  	
  SECTION 1.03 Optional Early Pay Out

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
   

  
	
   

  	
  DEFINITIONS

  	
   

  
	
   

  	
  SECTION
  2.01  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
   

  
	
   

  	
  SERVICING
  FEE

  	
   

  
	
   

  	
  SECTION
  3.01  Servicing Compensation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
   

  
	
   

  	
  RIGHTS OF SERIES 2000-VFC
  CERTIFICATEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS

  	
   

  
	
   

  	
  SECTION 4.01 Rights of the Series 2000-VFC
  Certificateholders

  	
   

  
	
   

  	
  SECTION 4.02 Establishment of Series
  Principal Account, Spread Account, Liquidity Reserve Account and Incremental
  Funding Reserve Account.

  	
   

  
	
   

  	
  SECTION 4.03 [Reserved]

  	
   

  
	
   

  	
  SECTION 4.04 Application of Available
  Certificateholder Interest Collections

  	
   

  
	
   

  	
  SECTION 4.05 Application of Available
  Seller’s Finance Charge Collections, Spread Account and Liquidity Reserve
  Account to Deficiency Amount

  	
   

  
	
   

  	
  SECTION 4.06 Investor Charge-Offs

  	
   

  
	
   

  	
  SECTION 4.07 Application of Seller’s
  Finance Charge Collections

  	
   

  
	
   

  	
  SECTION 4.08 Application of Series
  Allocable Principal Collections

  	
   

  
	
   

  	
  SECTION 4.09 Shared Principal Collections

  	
   

  
	
   

  	
  SECTION 4.10 Distributions to Series
  2000-VFC Certificateholders

  	
   

  
	
   

  	
  SECTION 4.11  [Reserved]

  	
   

  
	
   

  	
  SECTION 4.12  Partial Month Due Period

  	
   

  
	
   

  	
  SECTION 4.13 Additional Rights upon the
  Occurrence of Certain Events

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
   

  
	
   

  	
  DISTRIBUTIONS AND REPORTSTO SERIES 2000-VFC
  CERTIFICATEHOLDERS

  	
   

  
	
   

  	
  SECTION 5.01 Distributions.

  	
   

  
	
   

  	
  SECTION 5.02 Monthly and Annual Certificateholders’
  Statement

  	
   

  

 

i

 

	
  ARTICLE
  VI

  	
   

  
	
   

  	
  EARLY
  AMORTIZATION EVENTS

  	
   

  
	
   

  	
  SECTION
  6.01 Additional Early Amortization Events

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
   

  
	
   

  	
  OTHER
  SERIES PROVISIONS

  	
   

  
	
   

  	
  SECTION
  7.01 Conveyance of Dealer Notes

  	
   

  
	
   

  	
  SECTION
  7.02 Tax Treatment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
   

  
	
   

  	
  FINAL DISTRIBUTIONS

  	
   

  
	
   

  	
  SECTION 8.01 Sale of Investors’ Interest
  Pursuant to Section 2.07 of the Agreement; Distributions Pursuant to Section
  2.03 or 12.03 of the Agreement

  	
   

  
	
   

  	
  SECTION 8.02 Distribution of Proceeds of
  Sale, Disposition or Liquidation of the Dealer Notes Pursuant to Section 9.02
  of the Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
   

  
	
   

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
  SECTION
  9.01 Ratification of Agreement

  	
   

  
	
   

  	
  SECTION
  9.02 Counterparts

  	
   

  
	
   

  	
  SECTION
  9.03 GOVERNING LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  

 

	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Investor
  Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of Monthly Servicer
  and Settlement Statement

  

 

ii

 

SERIES
2000-VFC SUPPLEMENT

TO
POOLING AND SERVICING AGREEMENT

 

SERIES 2000-VFC SUPPLEMENT
dated as of January 28, 2000 (the “Series Supplement”), by and among NAVISTAR
FINANCIAL SECURITIES CORPORATION, a Delaware corporation, as Seller (the “Seller”),
NAVISTAR FINANCIAL CORPORATION, a Delaware corporation, as Servicer (the “Servicer”),
and THE BANK OF NEW YORK, a New York banking corporation, as trustee (together
with its successors in trust thereunder as provided in the Agreement referred
to below, the “Master Trust Trustee”) under the Pooling and Servicing
Agreement, dated as of June 8, 1995 (as amended and supplemented, the “Agreement”)
among the Seller, the Servicer, the Master Trust Trustee and The Chase
Manhattan Bank (formerly know as Chemical Bank), as trustee under the 1990
Trust Agreement.

 

Section 6.09 of the
Agreement provides that the Seller may from time to time direct the Master
Trust Trustee to issue, on behalf of the Master Trust, one or more new Series
of Investor Certificates representing fractional undivided interests in the
Master Trust.  The Principal Terms of any
new Series are to be set forth in a Supplement to the Agreement.

 

Pursuant to this Series
Supplement, the Seller and the Master Trust Trustee shall create a new Series
of Investor Certificates and specify the Principal Terms thereof.

 

ARTICLE I

CREATION
OF SERIES 2000-VFC AND

THE
SERIES 2000-VFC CERTIFICATES

 

SECTION                                            1.01  Designation.

 

(a)                                  There is hereby created a new Series pursuant
to the Agreement and this Series Supplement to be known as the “Floating Rate
Dealer Note Asset Backed Certificates Series 2000-VFC.”  The interest of the Investor
Certificateholders in Series 2000-VFC shall be represented by the Series 2000-VFC
Certificates.  The Series 2000-VFC
Certificates are a series of variable funding certificates, meaning that their
Funded Amount may be increased from time to time during the Revolving Period as
Incremental Fundings are made under the Certificate Purchase Agreement and may
be decreased from time to time, as Investor Principal Collections or certain
other funds are distributed to the Series 2000-VFC Certificateholders for that
purpose.  The Funded Amount of the Series
2000-VFC may not at any time exceed the Maximum Funded Amount.

 

(b)                                 If any term or provision contained herein
shall conflict with or be inconsistent with any term or provision contained in the
Agreement, the terms and provisions of this Series Supplement shall govern with
respect to Series 2000-VFC.

 

 

SECTION
                                         1.02  Incremental Fundings.  Incremental Fundings may occur on any
Distribution Date to the extent provided in the Certificate Purchase
Agreement.  Upon any Incremental Funding,
the Funded Amount, the Series Allocation Percentage, the Floating Allocation
Percentage and other terms will be reset to the extent provided herein and in
the Certificate Purchase Agreement.

 

SECTION
                                         1.03  Optional Early Pay Out.

 

(a)                                  On any Funding Change Date falling in the
Revolving Period, the Seller may cause the principal portion of the
Certificates to be prepaid in full or in part, (x) if the aggregate principal
amount of such prepayment is greater than $150,000,000, on not less than five
Business days prior written notice by the Servicer or (y) otherwise, on not
less than three Business Days prior written notice by the Servicer to the
Master Trust Trustee and the Administrative Agent, with Shared Principal
Collections as provided in Section 4.03(e) of the Agreement; provided, however that such prepayment
shall not be permitted unless all due (or if the Certificates are paid in full,
all accrued) and unpaid Monthly Interest, Additional Amounts and Non-Use Fees
have been paid in full.

 

(b)                                 In addition, on any Business Day, the Seller
may cause the principal portion of the Certificates to be prepaid in full or in
part, (x) if the aggregate principal amount of such prepayment is greater than
$150,000,000, on not less than five Business Days prior written notice by the
Servicer or (y) otherwise, on not less than three Business Days prior written
notice by the Servicer to the Master Trust Trustee and the Administrative
Agent, with the proceeds from issuance of a new Series issued substantially
contemporaneously with such prepayment; provided,
however that such prepayment shall not be permitted unless all due
(or, if the Certificates are paid in full, all accrued) and unpaid Monthly
Interest, Additional Amounts and Non-Use Fees have been paid in full.

 

(c)                                  Servicer shall not give notice of any
prepayment pursuant to Section 1.03(a) unless the Master Trust has funds
sufficient to make such prepayment on the day notice is given and shall not
give notice of any prepayment pursuant to Section 1.03(b) unless the Seller has
obtained binding commitments which may be subject to customary conditions from
one or more persons to purchase the new series in such amounts as will yield
the net proceeds necessary to make the prepayment.

 

2

 

ARTICLE II

DEFINITIONS

 

SECTION 2.01  Definitions.

 

(a)                                  Whenever used in this Series Supplement, the
following words and phrases shall have the following meanings:

 

“Accrual Period” shall mean with respect to any Distribution Date, if Monthly Interest
is to be calculated on the basis of the CP Rate, the related Due Period and if
Monthly Interest is to be calculated on the basis of the Alternate Rate, the
related Distribution Period.

 

“Additional Amounts” shall have the meaning specified in the
Certificate Purchase Agreement.

 

“Adjusted Invested Amount” shall mean, with respect to any
Distribution Date, an amount (which shall never be less than zero) equal to the
Initial Invested Amount as of the related Determination Date, plus the
Available Subordinated Amount as of the end of the related Transfer Date, plus
the amount of any Incremental Funding to be made on that Distribution Date, if
any, minus the aggregate amount of Investor Charge-Offs since the end of the
Revolving Period not reimbursed on or prior to such Distribution Date; provided that, for purposes of calculating
the Series Allocation Percentage, the Series 2000-VFC shall be deemed to have
been outstanding as of January 25, 2000 with respect to allocations of
Principal Collections and related concepts and as of December 26, 1999 with
respect to Finance Charge Collections and related concepts, in each case with
an Adjusted Invested Amount of $346,500,000.

 

“Administrative  Agent”
shall have the meaning specified in the Certificate Purchase Agreement.

 

“Amortization Period” shall mean, unless an Early
Amortization Event shall have occurred prior thereto, the period commencing on
the Amortization Period Commencement Date, and ending upon the first to occur
of (a) the commencement of an Early Amortization Period, (b) the payment in
full to Series 2000-VFC Certificateholders of the outstanding Funded Amount and
(c) the Series Termination Date.

 

“Amortization Period Commencement Date” shall mean the first
day of the Due Period occurring after the Purchase Expiration Date then in
effect.

 

“Amortizing Due Period” shall have the meaning specified in
Section 4.12.

 

“Available Certificateholder Interest Collections” shall
mean, with respect to any Due Period, the sum of (a) Investor Finance Charge
Collections for such Due Period and (b) Investment Income for that Due Period.

 

3

 

“Available Draw Funds” shall have the meaning specified in
Section 4.05(b).

 

“Available Seller’s Finance Charge Collections” shall mean,
with respect to any Due Period, an amount equal to the product of (a) the
excess of (i) the Seller’s Percentage for such Due Period over (ii) the result
(if positive) of the Excess Seller’s Percentage for such Due Period minus the
Required Excess Seller Interest Percentage and (b) Series Allocable Finance
Charge Collections for such Due Period; provided,
however, that Available Seller’s
Finance Charge Collections shall be zero for any Due Period to the extent the
Available Subordinated Amount equals or is reduced to zero on the Transfer Date
related to such Due Period.

 

“Available Seller’s Principal Collections” shall mean, with
respect to any Business Day, an amount equal to the product of (a) the excess
of (i) the Seller’s Percentage for the Due Period in which such Business
Day occurs over (ii) the Excess Seller’s Percentage for such Due Period
and (b) Series Allocable Principal Collections for such Business Day; provided, however,
that Available Seller’s Principal Collections shall be zero for any Business
Day to the extent the Available Subordinated Amount equals or is reduced to
zero on the Transfer Date immediately preceding such Business Day.

 

“Available Subordinated Amount” shall mean for each Transfer
Date (before giving effect to all adjustments in the Available Subordinated
Amount thereto on such Transfer Date), the lesser of (i) the Maximum
Subordinated Amount as of such Transfer Date (or, in the case of the first
Transfer Date after the Closing Date $46,500,000) and (ii) the sum of (a) the
Available Subordinated Amount as of the end of the preceding Transfer Date and
(b) any Incremental Subordinated Amount with respect to the Distribution Date
related to such preceding Transfer Date, if any.

 

“Average Coverage Differential” shall be determined, on any Determination
Date, by reference to the Coverage Differentials for each of the related Due
Period and the three immediately preceding Due Periods, and shall equal the sum
of the three highest such Coverage Differentials divided  by
three.  Average Coverage Differential
shall be expressed as a percentage, and shall be rounded to the nearest
one-hundredth of a percentage point.

 

“Business Day” shall mean, with respect to Series 2000-VFC, any day other than a
Saturday, a Sunday, or a day on which banking institutions in New York, New
York, Chicago, Illinois, or the city in which the Corporate Trust Office is
located, or in connection with the determination of LIBOR, London, England, are
authorized or obligated by law or executive order to be closed or remain
closed.

 

“Certificate Purchase Agreement” shall mean the Certificate Purchase
Agreement, dated as of the Closing Date, among the Seller, the Servicer and the
other parties thereto, as amended, supplemented or otherwise modified from time
to time.

 

4

 

“Certificate Rate” shall mean, for any Distribution Date, the percentage equivalent of a
fraction (a) the numerator of which is the product of (i) Monthly Interest to
be paid on the Distribution Date (excluding any portion thereof consisting of
Monthly Interest carried over from the prior Distribution Date and interest on
such unpaid Monthly Interest), and (ii) a fraction, the numerator of which is
365 and the denominator of which is the number of days in which such Monthly
Interest was calculated and (b) the denominator of which is the weighted
average Funded Amount for such Accrual Period.

 

“Closing Date” shall mean January 28, 2000.

 

“Coverage Differential” shall mean, with respect to any Due Period,
the result of (a) the Portfolio Yield for such Due Period minus (b) the
sum of (i) the Certificate Rate for the related Distribution Date and
(ii) one percent (1%).  Coverage
Differential shall be expressed as a percentage, and shall be rounded to the
nearest one-hundredth of a percentage point.

 

“Deficiency Amount” shall have the meaning specified in
Section 4.05(a).

 

“Draw Amount” shall mean, with respect to any Transfer Date,
the least of (a) the Deficiency Amount for such Transfer Date, (b) the
Available Subordinated Amount as of the end of the preceding Transfer Date plus
any Incremental Subordinated Amount with respect to the Distribution Date
related to such preceding Transfer Date, if any, and (c) Available Draw Funds
for such Transfer Date.

 

“Early Amortization Event” shall mean, with respect to Series
2000-VFC, any event specified in Section 9.01(c) of the Agreement, together
with any additional Early Amortization Event specified in Section 6.01 of this
Series Supplement, but shall not mean any other event specified in Section 9.01
of the Agreement.

 

“Early Amortization Period” shall mean an Early Amortization
Period with respect to Series 2000-VFC that occurs as a result of any event
specified in Section 9.01(c) of the Agreement or any Early Amortization Event
specified in Section 6.01 of this Series Supplement.

 

“Early Amortization Period Shortfall Amount” shall have the meaning specified in Section
4.08(e).

 

“Eligible Investments” shall mean

 

(a)                                  book-entry securities, negotiable instruments
or securities represented by instruments in bearer or registered form having
(except in the case of clause (iv) below) remaining maturities occurring not
later than the Distribution Date next succeeding the Master Trust Trustee’s
acquisition thereof, except as otherwise described herein, that evidence:

 

5

 

(i)                                     direct obligations of, and obligations fully
guaranteed as to timely payment by, the United States of America;

 

(ii)                                  demand deposits, time deposits or
certificates of deposit of, or bankers’ acceptances issued by, any depository
institution or trust company incorporated under the laws of the United States
of America or any state thereof (or any domestic branch of a foreign bank) and
subject to supervision and examination by federal or state banking or
depository institution authorities; provided,
however, that at the time of the Master Trust’s investment or
contractual commitment to invest therein, the commercial paper or other
short-term unsecured debt obligations (other than such obligations the rating
of which is based on the credit of a person or entity other than such
depository institution or trust company) of such depository institution or
trust company shall have a credit rating not lower than the highest investment
category for short term unsecured debt obligations granted by Moody’s and
S&P;

 

(iii)                               commercial paper having, at the time of the
Master Trust’s investment or contractual commitment to invest therein, a rating
not lower than the highest investment category for short term unsecured debt
obligations granted by Moody’s and S&P;

 

(iv)                              investments in money market funds or common
trust funds having a rating not lower than the highest investment category for
short term unsecured debt obligations granted by Moody’s and S&P or
otherwise approved in writing by the Administrative Agent (including funds for
which the Master Trust Trustee or any of its affiliates is investment manager
or advisor, so long as such fund shall have such rating);

 

(v)                                 repurchase obligations (x) 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 (ii) or (y) the counterparty for
which has a rating not lower than the highest investment category for short
term unsecured debt obligations granted by Moody’s and S&P, the collateral
for which is held by a custodial bank for the benefit of the Master Trust or
the Master Trust Trustee, is marked to market daily and is maintained in an amount
that exceeds the amounts of such repurchase obligation, and which required
liquidation of the collateral immediately upon the amount of such

 

6

 

collateral being less than
the amount of such repurchase obligation (unless the counterparty immediately
satisfies the repurchase obligation upon being notified of such shortfall); or

 

(vi)  commercial paper master notes where the
issuer has, at the time of the Master Trust’s investment or contractual
commitment to invest therein, a rating not lower than the highest investment
category for short term unsecured debt obligations granted by Moody’s and
S&P; and

 

(b)  any other investment consisting of a
financial asset that by its terms converts to cash within a finite period of
time approved by the Administrative Agent.

 

Unless approved by the
Administrative Agent, Eligible Investments of funds in the Series Principal
Account and the Liquidity Reserve Account will be subject to the following
additional restrictions: (x) no more than the greater of (A) $1,000,000 and (B)
20% of the aggregate Eligible Investments in all such accounts collectively
shall be obligations of or investments in any single issuer (except that such
20% limitation shall not apply to Eligible Investments of the type specified in
clause (a)(i)); and (y) each Eligible Investment shall be denominated and be
payable solely in U.S. dollars, shall bear interest at a specified rate that
is, or is based upon, LIBOR or a commercial paper rate, shall entitle the
holder to a fixed principal amount at maturity and shall have a yield that is
not inversely or disproportionately affected by changes in interest rates.

 

“Excess Seller’s Percentage” shall mean, with respect to any
Due Period, a percentage (which percentage shall never be less than 0% nor more
than 100%) equal to the excess of (a) the Seller’s Percentage for such Due
Period, over (b) the percentage equivalent (which percentage shall never be
less than 0% nor more than 100%) of a fraction, the numerator of which is the
Available Subordinated Amount as of the end of the related Transfer Date, plus
any Incremental Subordinated Amount with respect to the Distribution Date
related to such Transfer Date, if any, and the denominator of which is the
product of (x) the sum of the aggregate principal amount of Dealer Notes
in the Master Trust and the aggregate principal amount of funds on deposit in
the Excess Funding Account, both as of the end of the immediately preceding Due
Period and (y) the Series 2000-VFC Allocation Percentage for the Due Period for
which the Excess Seller’s Percentage is being calculated.

 

“Excess Seller’s Principal Collections” shall mean, with
respect to any Business Day during a Due Period, the product of (a) Series
Allocable Principal Collections for such Business Day and (b) the Excess Seller’s
Percentage for such Due Period.

 

“Expected Payment Date” shall mean the Distribution Date in
the calendar month beginning six months after the Amortization Period
Commencement Date.

 

“Floating Allocation Percentage” shall mean, with respect to
any Due Period , the percentage equivalent (which percentage shall never exceed
100%) of a fraction, the numerator

 

7

 

of
which is the Invested Amount as of the immediately preceding Distribution Date
(after giving effect to all increases and reductions thereof on such
Distribution Date) and the denominator of which is the product of (a) the sum
of the aggregate principal amount of Dealer Notes in the Master Trust and the
aggregate principal amount of funds on deposit in the Excess Funding Account,
both as of the end of the immediately preceding Due Period, and (b) the Series
2000-VFC Allocation Percentage for the Due Period for which the Floating
Allocation Percentage is being calculated.

 

“Funded Amount” shall have the meaning specified in the
Certificate Purchase Agreement.

 

“Funding Change Date” shall mean any Distribution Date.

 

“Incremental Funded Amount” shall mean the amount of the
increase in the Funded Amount occurring as a result of any Incremental Funding,
which amount shall equal the aggregate amount of the purchase prices paid with
respect to such Incremental Funding pursuant to the Certificate Purchase
Agreement.

 

“Incremental Funding” shall have the meaning specified in the
Certificate Purchase Agreement.

 

“Incremental Funding Reserve Account” shall have the meaning
specified in Section 4.02(d)(i).

 

“Incremental Funding Reserve Deposit Amount” shall mean (a)
zero, with respect to any Distribution Date on which the Incremental Funded
Amount is zero; and (b) with respect to any Distribution Date on which the
Incremental Funded Amount is greater than zero, the positive difference of (x)
the product of (i) the Incremental Funded Amount, (ii) the Certificate Rate for
such Distribution Date, (iii) 1.25 and (iv) a fraction, the numerator of which
is the actual number of days remaining in the Due Period in which such
Distribution Date occurs, including such Distribution Date, and the denominator
of which is 360; and (y) the balance in the Incremental Funding Reserve Account
after giving effect to any withdrawals therefrom on such Distribution Date.

 

Incremental Subordinated Amount” shall mean, with respect to any Distribution
Date on which there is an Incremental Funding, the product of (i) the
Incremental Funded Amount on such Distribution Date and (ii) the Subordinated
Percentage.

 

“Initial Funded Amount” shall mean $300,000,000.

 

“Initial Invested Amount” shall mean, on any Determination
Date (for purposes of any reference in the Pooling and Servicing Agreement to
the “Initial Invested Amount” or the “initial invested amount” of a Series),
(a) during the Revolving Period, the Invested Amount as of

 

8

 

such
date or (b) during an Amortization Period or an Early Amortization Period, the
Invested Amount as of the last day of the Revolving Period.

 

“Initial Spread Account Required Amount” shall mean
$3,750,000.

 

“Invested Amount” shall mean, with respect to any Distribution
Date, an amount (which shall never be less than zero) equal to the Funded
Amount minus the sum of (i) the aggregate amount, if any, of unreimbursed
Investor Charge-Offs and (ii) the aggregate amount of Series Principal Account
Losses on or prior to such Distribution Date.

 

“Investment Income” shall mean, for any Due Period with respect to Series 2000-VFC, the
sum of (i) income during such Due Period from the investment of funds on
deposit in the Series Principal Account and the Spread Account and (ii) the
product of (a) the Series Allocation Percentage for such Due Period and (b)
income from the investment of funds on deposit in the Collections Account and
the Excess Funding Account.

 

“Investor Charge-Off” shall have the meaning specified in Section 4.06.

 

“Investor Dealer Note Losses” shall mean, with respect to any
Due Period, the product of (a) the Floating Allocation Percentage for such Due
Period and (b) Series Allocable Dealer Note Losses for such Due Period.

 

“Investor Finance Charge Collections” shall mean, with
respect to any Due Period,  an amount
equal to the product of (a) the Floating Allocation Percentage for such Due
Period and (b) Series Allocable Finance Charge Collections for such Due
Period.

 

“Investor Principal Collections” shall mean, with respect to
any Business Day, the sum of (a) the product of (i) with respect to the
Revolving Period, the Floating Allocation Percentage and with respect to the
Amortization Period or any Early Amortization Period, the Principal Allocation
Percentage, in either case for the Due Period in which such Business Day occurs
and (ii) Series Allocable Principal Collections for such Business Day and (b)
on any Transfer Date, the amount, if any, of Available Certificateholder
Interest Collections treated as Investor Principal Collections pursuant to
Sections 4.04(a)(iii) and (iv).

 

“Investor Servicing Fee” shall have the meaning specified in
Section 3.01.

 

“LIBOR” shall have the meaning specified in the Certificate Purchase
Agreement.

 

“Liquidity Reserve Account” shall have the meaning specified in Section
4.02(c)(i).

 

“Maximum Funded Amount” shall have the meaning specified in
the Certificate Purchase Agreement.

 

9

 

“Maximum Subordinated Amount” shall mean, with respect to any Transfer
Date related to a Due Period, the product of (a) the Invested Amount as of
the preceding Distribution Date and (b) the Subordinated Percentage; provided, however,
that with respect to a Transfer Date related to a Due Period occurring during
an Early Amortization Period, the Maximum Subordinated Amount shall not decline
until the Invested Amount equals the Maximum Subordinated Amount, and
thereafter the Maximum Subordinated Amount shall equal the Invested Amount.

 

“Minimum Series 2000-VFC Seller’s Interest” shall mean, with
respect to any Business Day, the sum of (a) the Available Subordinated Amount
as of the end of the preceding Transfer Date, (b) the Incremental Subordinated
Amount with respect to the Distribution Date related to such preceding Transfer
Date, if any, and (c) the Required Excess Seller Interest as of the end of the
preceding Distribution Date.

 

“Monthly Interest” shall have the meaning specified in the
Certificate Purchase Agreement.

 

“Monthly Servicing Fee” shall have the meaning specified in Section
3.01.

 

“New Vehicle Monthly Interest Rate” shall mean, with respect to any Due Period,
the product of (a) the per annum rate of interest and finance charges billed by
NFC during such Due Period on New Vehicle Dealer Notes and (b) the
quotient of (i) the number of days during such Due Period and (ii) the actual
number of days in the related calendar year.

 

“Non-Use Fee” shall have the meaning specified in the Certificate Purchase
Agreement.

 

“Portfolio Yield” shall mean, with respect to any Due Period, the product of (a) the
quotient of (i) Finance Charges for such Due Period and (ii) the daily average
principal amount of Dealer Notes outstanding during such Due Period and (b) a
fraction, the numerator of which is 365 and the denominator of which is the
actual number of days elapsed during such Due Period.  Portfolio Yield shall be expressed as a
percentage, and shall be rounded to the nearest one-hundredth of a percentage
point.

 

“Principal Allocation Percentage” shall mean, with respect to
any Due Period occurring during the Amortization Period or any Early
Amortization Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the end of the Revolving Period and the denominator of which is equal to the
product of (a) the sum of the aggregate amount of Dealer Notes in the Master
Trust and the aggregate principal amount of funds on deposit in the Excess
Funding Account, both as of the end of the Revolving Period and (b) the Series
2000-VFC Allocation Percentage for the Due Period for which the Principal
Allocation Percentage is being calculated.

 

10

 

“Principal Shortfall” shall mean, with respect to Series 2000-VFC,
the Series 2000-VFC Principal Shortfall.

 

“Projected Dealer Note Income” shall mean, on any Transfer Date, an amount
equal to the sum of (a) the product of (i) the principal amount of Dealer Notes
financing new vehicles outstanding on such Transfer Date, (ii) the New Vehicle
Monthly Interest Rate for the Due Period in which such Transfer Date occurs and
(iii) the Series 2000-VFC Allocation Percentage for such Due Period and (b) the
product of (i) the principal amount of Dealer Notes financing used vehicles
outstanding on such Transfer Date, (ii) the Used Vehicle Monthly Interest Rate
for such Due Period and (iii) the Series 2000-VFC Allocation Percentage for
such Due Period.

 

“Projected Monthly Interest” shall mean, on any Transfer
Date, an amount equal to the product of (a) the Certificate Rate for the
related Distribution Date, (b) the Invested Amount as of the immediately
preceding Distribution Date, (c) the result of (i) the actual number of days in
such Accrual Period divided by (ii) 360 and (d) 1.25.

 

“Projected Monthly Servicing Fee” shall mean, on any Transfer
Date with respect to the Due Period in which such Transfer Date occurs, an
amount equal to one-twelfth of the product of (a) 1%, (b) the aggregate
principal amount of Dealer Notes as of such Transfer Date, (c) the Series 2000-VFC
Allocation Percentage for the Due Period related to such Transfer Date and
(d) the Floating Allocation Percentage for the Due Period related to such
Transfer Date.

 

“Projected Spread” shall mean, with respect to the
Distribution Date next following the Distribution Date to which such Transfer
Date relates, the sum of (a) the positive amount, if any, by which (i) the sum
of (A) Projected Monthly Interest for such Distribution Date, and (B) the
Projected Monthly Servicing Fee for the Due Period in which such Transfer Date
occurs exceeds (ii) the Projected Dealer Note Income as of such Transfer Date
and (b) 1.25% of the Invested Amount as of such Distribution Date.

 

“Purchase Expiration Date” shall have the meaning specified in the
Certificate Purchase Agreement.

 

“Reassignment Amount” shall mean, with respect to any
Distribution Date, after giving effect to any deposits and distributions
otherwise to be made on such Distribution Date, the sum of (a) the Invested
Amount on such Distribution Date, (b) accrued and unpaid interest thereon and
(c) accrued and unpaid Non-Use Fees and Additional Amounts.

 

“Remaining Available Seller’s Principal Calculations” shall have the meaning specified in Section
4.08(d).

 

11

 

“Required Excess Seller Interest” shall mean, with respect to any Business
Day, 3.0% of the Invested Amount as of the end of the preceding Distribution
Date (and such percentage shall be the “Required
Excess Seller Interest Percentage”).

 

“Required Subordinated Amount” shall mean, with respect to
any Transfer Date related to a Due Period, an amount equal to 87.1% of the
Maximum Subordinated Amount as of such Transfer Date.

 

“Revolving Due Period” shall have the meaning specified in
Section 4.12.

 

“Revolving Period” shall mean, unless an Early Amortization
Event shall have occurred prior thereto, the period beginning on the Closing
Date and ending on the earlier of (a) the close of business on the
Business Day immediately preceding the Amortization Period Commencement Date
and (b) the close of business on the Business Day immediately preceding
the day on which an Early Amortization Event occurs.

 

“Seller’s Percentage” shall mean, with respect to any Due
Period, 100% minus (a) the Floating Allocation Percentage for such Due Period,
when used with respect to Finance Charge Collections and Dealer Note Losses at
all times or Principal Collections during the Revolving Period, and (b) the
Principal Allocation Percentage for such Due Period, when used with respect to
Principal Collections during the Amortization Period or any Early Amortization
Period.

 

“Seller’s Principal Collections” shall mean, with respect to
any Business Day, an amount equal to the sum of (a) Available Seller’s
Principal Collections for such Business Day and (b) Excess Seller’s Principal
Collections for such Business Day.

 

“Series 2000-VFC” shall mean the Series of Investor
Certificates, the terms of which are specified in this Series Supplement.

 

“Series 2000-VFC Accounts” shall mean, collectively, the
Series Principal Account, the Distribution Account maintained for the Series
2000-VFC Certificateholders, the Liquidity Reserve Account, the Incremental
Funding Reserve Account and the Spread Account.

 

“Series 2000-VFC Allocation Percentage” shall mean the Series
Allocation Percentage with respect to Series 2000-VFC.

 

“Series 2000-VFC Certificateholders” shall mean the holders
of Series 2000-VFC Certificates.

 

“Series 2000-VFC Certificateholders’ Interest” shall mean
that portion of the Certificateholders’ Interest evidenced by the Series 2000-VFC
Certificates.

 

12

 

“Series 2000-VFC Certificates” shall mean any one of the
certificates executed by the Seller and authenticated by the Master Trust
Trustee, substantially in the form of Exhibit A.

 

“Series 2000-VFC Principal Shortfall” shall equal, with respect to any Business
Day during any Early Amortization Period, the excess, if any, of the Invested
Amount (reduced by (i) amounts on deposit in the Series Principal Account and
(ii) the aggregate amount of Series Principal Account Losses for the Due Period
in which such Business Day occurs) as of the immediately preceding Distribution
Date over Investor Principal Collections for such Business Day.

 

“Series 2000-VFC Shared Principal Collections” shall have the
meaning specified in Section 4.09(b).

 

“Series 2000-VFC Shared Seller Principal Collections” shall have the meaning specified in Section
4.08(d)(iv).

 

“Series Allocable Dealer Note Losses” shall mean, with
respect to any Due Period, the product of (a) the Series 2000-VFC Allocation
Percentage for such Due Period and (b) Dealer Note Losses for such Due Period.

 

“Series Allocable Finance Charge Collections” shall mean,
with respect to any Due Period, the product of (a) the Series 2000-VFC
Allocation Percentage for such Due Period and (b) the amount of Finance Charge
Collections for such Due Period.

 

“Series Allocable Principal Collections” shall mean, with
respect to any Business Day, the sum of (a) the product of (i) the
Series 2000-VFC Allocation Percentage for the related Due Period and
(ii) the amount of Principal Collections deposited in the Collections
Account on such Business Day and (b) if the Amortization Period Commencement
Date occurs on such Business Day, the product of (i) the Series 2000-VFC
Allocation Percentage for such Due Period and (ii) the amount of funds on
deposit in the Excess Funding Account on such Amortization Period Commencement
Date.

 

“Series Invested Amount” shall mean, with respect to Series
2000-VFC, the Invested Amount.

 

“Series Principal Account” shall have the meaning specified
in Section 4.02(a)(i).

 

“Series Principal Account Losses” shall mean losses of principal on investment
of funds in the Series Principal Account.

 

“Series Termination Date” shall mean the Distribution Date 36 months
after the Expected Payment Date.

 

13

 

“Spread Account” shall have the meaning specified in Section
4.02(b)(i).

 

“Spread Account Deposit Amount” shall mean, with respect to
any Transfer Date, the amount, if any, by which the Projected Spread exceeds
the amount of funds on deposit in the Spread Account.

 

“Subject Month” shall have the meaning specified in Section
4.12.

 

“Subordinated Percentage” shall mean 15.5%.

 

“Turnover” shall have the meaning specified in Section 6.01(k).

 

“Used Vehicle Monthly Interest Rate” shall mean, with respect to any Due Period,
the product of (i) the per annum rate of interest and finance charges billed by
NFC during such Due Period on Used Vehicle Dealer Notes and (ii) the
quotient of (a) a number equal to the number of days during such Due
Period and (b) the actual number of days in the related calendar year.

 

(b)                                 As used in this Series Supplement and in the
Agreement with respect to Series 2000-VFC, “highest investment category” shall
mean (i) in the case of Standard & Poor’s, A-1+, AAA, AAAm, or AAAm-G, as
applicable, and (ii) in the case of Moody’s, P-1 or Aaa, as applicable.

 

(c)                                  All capitalized terms used herein and not
otherwise defined herein have the same meanings ascribed to them in the
Agreement or, if not defined therein, in the Certificate Purchase Agreement.

 

(d)                                 The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Series Supplement shall refer to
this Series Supplement as a whole and not to any particular provision of this
Series Supplement; references to any Article, Section or Exhibit are references
to Articles, Sections and Exhibits in or to this Series Supplement unless
otherwise specified; and the term “including” means “including without
limitation.”

 

(e)                                  As used in this Series Supplement, references
to the Available Subordinated Amount “as of the end” of a Transfer Date shall
mean the Available Subordinated Amount as of such Transfer Date, after giving
effect to all increases and reductions thereof pursuant to Article IV hereof.

 

(f)                                    As used in this Series Supplement, accounting
terms which are not defined, and accounting terms partly defined, herein shall
have the respective meanings given to them under generally accepted accounting
principles as in effect on the date hereof. 
To the extent that the definitions of accounting terms in this Series
Supplement are inconsistent with the

 

14

 

meanings
of such terms under generally accepted accounting principles, the definitions
contained in this Series Supplement will control.

 

(g)                                 With respect to any Distribution Date or
Transfer Date, the “related Due Period” and the “related Distribution Period”
will mean the Due Period and Distribution Period, respectively, immediately
preceding such Distribution Date or Transfer Date, and the relationships
between Due Periods and Distribution Periods will be correlative to the
foregoing relationships.  With respect to
any LIBOR Determination Date, the “related Distribution Period” will mean the
Distribution Period beginning on the Distribution Date immediately following
such LIBOR Determination Date.

 

(h)                                 Each defined term used in this Series
Supplement has a comparable meaning when used in its plural or singular
form.  Each gender-specific term used in
this Series Supplement has a comparable meaning whether used in a masculine,
feminine or gender-neutral form.

 

ARTICLE III

SERVICING
FEE

 

SECTION 3.01  Servicing
Compensation.  The monthly servicing
fee (the “Monthly Servicing Fee”) shall be payable to the Servicer, in arrears,
on each Distribution Date in respect of a Due Period (or portion thereof)
occurring prior to the earlier of the first Distribution Date following the
Series Termination Date and the first Distribution Date on which the Invested
Amount is zero, in an amount equal to one-twelfth of the result of (a) 1% multiplied  by (b) the aggregate principal amount of Dealer Notes
outstanding as of the last day of such Due Period and multiplied  by (c) the Series 2000-VFC Allocation Percentage with
respect to such Due Period.  The share of
the Monthly Servicing Fee allocable to the Series 2000-VFC Certificateholders
with respect to any Transfer Date (the “Investor Servicing Fee”) shall be equal
to the product of (a) the Monthly Servicing Fee and (b) the Floating
Allocation Percentage with respect to such Due Period.  The remainder of the Monthly Servicing Fee
shall be paid by the Seller and in no event shall the Master Trust, the Master
Trust Trustee or the Series 2000-VFC Certificateholders be liable for the share
of the Monthly Servicing Fee to be paid by the Seller; and the remainder of the
Servicing Fee shall be paid by the Seller and the Investor Certificateholders
of other Series and the Series 2000-VFC Certificateholders shall in no event be
liable for the share of the Servicing Fee to be paid by the Seller or the
Investor Certificateholders of other Series. 
The Investor Servicing Fee shall be payable to the Servicer solely to
the extent amounts are available for distribution in accordance with the terms
of this Series Supplement.

 

The Servicer will be
permitted, in its sole discretion, to waive the Monthly Servicing Fee for any
Distribution Date by notice to the Master Trust Trustee on or before the
related Determination Date; provided,
however, that the Servicer
believes that sufficient Series Allocable Finance Charge Collections will be available
on any future Distribution Date to pay the Investor Servicing Fee relating to
the waived Monthly Servicing Fee.  If the
Servicer so waives

 

15

 

the
Monthly Servicing Fee for any Distribution Date, the Monthly Servicing Fee and
the Investor Servicing Fee for such Distribution Date shall be deemed to be
zero for all purposes of this Series Supplement and the Agreement; provided, however,
that such Investor Servicing Fee shall be paid on a future date solely to the
extent amounts are available therefor pursuant to Section 4.04(a)(vi); and provided  further
that, to the extent any such waived Investor Servicing Fee is so paid, the
related portion of the Monthly Servicing Fee to be paid by the Seller shall be
paid by the Seller to the Servicer.

 

ARTICLE IV

RIGHTS
OF SERIES 2000-VFC CERTIFICATEHOLDERS

AND ALLOCATION AND APPLICATION OF COLLECTIONS

 

SECTION 4.01   Rights
of the Series 2000-VFC Certificateholders. 
The Series 2000-VFC Certificates shall represent fractional undivided
interests in the Master Trust, consisting of the right to receive, to the
extent necessary to make the required payments with respect to the Series 2000-VFC
Certificates at the times and in the amounts specified in this Series Supplement,
Collections allocated to Series 2000-VFC pursuant to Article IV of the
Agreement and this Article IV, funds on deposit in the Collections Account and
the Excess Funding Account allocable to Series 2000-VFC Certificateholders
pursuant to Article IV of the Agreement and this Article IV, and funds on
deposit in the Series 2000-VFC Accounts (collectively, the “Series 2000-VFC
Certificateholders’ Interest”), it being understood that the Series 2000-VFC
Certificates shall not represent any interest in any Series Account or
Enhancement for the benefit of any other Series or Class.  The Servicer shall apply, or instruct the
Master Trust Trustee to apply, all funds on deposit in the Collections Account
and Excess Funding Account allocable to the Series 2000-VFC Certificates, and
all funds on deposit in the Series Principal Account, the Spread Account, the
Incremental Funding Reserve Account and the Distribution Account maintained for
the Series 2000-VFC Certificateholders, as described in this Article IV.

 

SECTION 4.02  Establishment
of Series Principal Account, Spread Account, Liquidity Reserve Account and
Incremental Funding Reserve Account.

 

(a)                                  Series Principal Account.

 

(i)                                     On or prior to the commencement of an Early
Amortization Period or the Amortization Period, the Master Trust Trustee, for
the benefit of the Series 2000-VFC Certificateholders, shall establish and
maintain in the name of the Master Trust an Eligible Deposit Account bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Series 2000-VFC Certificateholders (the “Series Principal
Account”).  The Master Trust Trustee
shall possess all right, title and interest in all funds on deposit from time
to time in the Series Principal Account and in all proceeds thereof.  Pursuant to authority granted to it pursuant
to Section 3.01(b) of the Agreement, the Servicer shall have the revocable
power to instruct the Master Trust

 

16

 

Trustee to withdraw funds
from the Series Principal Account for the purpose of carrying out the duties of
the Servicer under this Series Supplement and the Agreement.  The Servicer at all times shall maintain
accurate records reflecting each transaction in the Series Principal Account.

 

(ii)                                  Funds on deposit in the Series Principal
Account overnight or for a longer period shall at all times be invested in
Eligible Investments at the direction of the Servicer or its agent, subject to
the restrictions set forth in the Agreement and subject to the requirement that
each such Eligible Investment shall have a stated maturity on or prior to the
following Transfer Date (or such longer maturity as shall be allowed upon the
written consent of the Administrative Agent). 
Net interest and earnings (less investment expenses) on funds on deposit
in the Series Principal Account, if any, shall be allocated and distributed as
provided in Section 4.04.

 

(b)                                 Spread Account.

 

(i)                                     The Master Trust Trustee, for the benefit of
the Series 2000-VFC Certificateholders, shall cause to be established and
maintained in the name of the Master Trust, an Eligible Deposit Account bearing
a designation clearly indicating that the funds deposited therein are held for
the benefit of the Series 2000-VFC Certificateholders (the “Spread Account”).  The Master Trust Trustee shall possess all
right, title and interest in all funds on deposit from time to time in the
Spread Account and in all proceeds thereof. 
Pursuant to authority granted to it pursuant to Section 3.01(b) of the Agreement,
the Servicer shall have the revocable power to instruct the Master Trust
Trustee to withdraw funds from the Spread Account for the purpose of carrying
out the duties of the Servicer under this Series Supplement and the Agreement.  The Servicer at all times shall maintain
accurate records reflecting each transaction in the Spread Account.  As of the Closing Date, the Servicer shall
cause to be deposited in the Spread Account an amount equal to the Initial Spread
Account Required Amount.

 

(ii)                                  Funds on deposit in the Spread Account
overnight or for a longer period shall at all times be invested in Eligible
Investments at the direction of the Servicer or its agent, subject to the
restrictions set forth in the Agreement and subject to the requirement that
each such Eligible Investment shall have a stated maturity on or prior to the
following Transfer Date.  Net interest
and earnings (less investment expenses) on funds on deposit in the Spread
Account, if any, shall be allocated and distributed as provided in Section
4.04.

 

(iii)                               On any Transfer Date related to a Due Period
on which the amount of funds on deposit in the Spread Account is greater than
the Projected Spread on such Transfer Date, the Servicer shall withdraw the
amount of such excess from the Spread Account and allocate and pay such excess
to the Seller.

 

17

 

(iv)                              Upon
the commencement of and during an Early Amortization Period, the Master Trust
Trustee will deposit all funds in the Spread Account into the Liquidity Reserve
Account, and no additional funds shall be deposited into the Spread Account.

 

(c)                                  Liquidity
Reserve Account.

 

(i)                                     The
Master Trust Trustee, for the benefit of the Seller, shall establish on or
prior to the commencement of an Early Amortization Period and maintain or cause
to be established and maintained in the name of the Master Trust Trustee, an
Eligible Deposit Account bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Seller (the “Liquidity
Reserve Account”).  The Seller shall
possess all right, title and interest in all funds on deposit from time to time
in the Liquidity Reserve Account and in all proceeds thereof; provided, however,
that no funds on deposit in the Liquidity Reserve Account shall be paid to the
Seller if such payment would reduce the funds in such account below an amount
equal to the Available Subordinated Amount. 
Pursuant to authority granted to it pursuant to Section 3.01(b) of the
Agreement, the Servicer shall have the revocable power to instruct the Master
Trust Trustee to withdraw funds from the Liquidity Reserve Account for the
purpose of fulfilling the obligations of the Seller under this Series
Supplement and the Agreement.  The
Servicer at all times shall maintain accurate records reflecting transactions
in the Liquidity Reserve Account.

 

(ii)                                  Funds
on deposit in the Liquidity Reserve Account overnight or for a longer period
shall at all times be invested in Eligible Investments at the direction of the
Seller or its agent, subject to the restrictions set forth in the
Agreement.  Any Eligible Investment with
a stated maturity shall mature on or prior to the following Transfer Date.  All net interest and earnings (less
investment expenses) on funds on deposit in the Liquidity Reserve Account, if
any, shall be paid to the Seller.  On any
Transfer Date on which the amount on deposit in the Liquidity Reserve Account
exceeds the Available Subordinated Amount as of the end of such Transfer Date,
the Servicer shall withdraw the amount of such excess from the Liquidity
Reserve Account and allocate and pay such excess to the Seller.

 

(d)                                 Incremental
Funding Reserve Account.

 

(i)                                     The
Master Trust Trustee, for the benefit of the Series 2000-VFC
Certificateholders, shall establish on or prior to the commencement of an Early
Amortization Period and maintain or cause to be established and maintained in
the name of the Master Trust Trustee, an Eligible Deposit Account bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Series 2000-VFC Certificateholders, (the “Incremental Funding
Reserve Account”).  The Master Trust
Trustee shall possess all right, title and interest in all funds on deposit
from time to time

 

18

 

in the Incremental Funding Reserve Account and in all proceeds thereof.  Pursuant to authority granted to it pursuant
to Section 3.01(b) of the Agreement, the Servicer shall have the revocable
power to instruct the Master Trust Trustee to withdraw funds from the
Incremental Funding Reserve Account for the purpose of fulfilling the
obligations of the Servicer under this Series Supplement and the
Agreement.  The Servicer at all times
shall maintain accurate records reflecting transactions in the Incremental
Funding Reserve Account.

 

(ii)                                  Funds
on deposit in the Incremental Funding Reserve Account overnight or for a longer
period shall at all times be invested in Eligible Investments at the direction
of the Servicer or its agent, subject to the restrictions set forth in the
Agreement.  Any Eligible Investment with
a stated maturity shall mature on or prior to the following Transfer Date.  All net interest and earnings (less
investment expenses) on funds on deposit in the Incremental Funding Reserve
Account, if any, shall be paid to the Seller.

 

(e)                                  Replacement
Series 2000-VFC Accounts.  If, at any
time, any of the Series 2000-VFC Accounts ceases to be an Eligible Deposit
Account, the Master Trust Trustee (or the Servicer on its behalf) shall upon
the earlier of (a) 30 calendar days, or (b) the next Determination Date,
establish a new Series 2000-VFC Account meeting the conditions specified in
paragraphs (a), (b), (c) or (d) above, as applicable, as an Eligible Deposit
Account and shall transfer any cash and/or any investments to such new Series
2000-VFC Account.  Neither the Seller,
the Servicer nor any person or entity claiming by, through or under the Seller,
the Servicer or any such person or entity shall have any right, title or
interest in, or any right to withdraw any amount from, any Series 2000-VFC
Account, except as expressly provided herein.

 

SECTION 4.03  [Reserved].

 

SECTION 4.04    Application of Available
Certificateholder Interest Collections

 

(a)                                  Application
of Available Certificateholder Interest Collections.  On each Transfer Date related to a Due
Period, the Master Trust Trustee, acting in accordance with instructions from
the Servicer, shall apply Available Certificateholder Interest Collections for
such Due Period in the following amounts and in the following order of
priority:

 

(i)                                     Investor
Servicing Fee.  An amount equal to
the Investor Servicing Fee for such Due Period (unless such amount has been
netted against deposits to the Collections Account or waived) shall be
allocated and paid to the Servicer.

 

(ii)                                  Monthly
Interest.  An amount equal to Monthly
Interest for the Distribution Date shall be deposited in the Distribution
Account.

 

19

 

(iiA)                        Non-Use
Fees.  An amount equal to the Non-Use
Fees for the related Distribution Date shall be deposited in the Distribution
Account.

 

(iiB)                        Additional
Amounts.  An amount equal to the
Additional Amounts

for the related Distribution Date, but not in excess of 0.40% of the
Invested Amount as of the Distribution Date immediately preceding the related
Due Period, shall be deposited into the Distribution Account.

 

(iii)                               Investor
Dealer Note Losses.  An amount equal
to the Investor Dealer Note Losses, if any, for such Due Period shall be
reimbursed by being treated as Investor Principal Collections for such Transfer
Date.

 

(iv)                              Reimbursement
of Investor Charge-Offs.  An amount
equal to the aggregate amount of unreimbursed Investor Charge-Offs, if any, for
any prior Due Period shall be reimbursed by being treated as Investor Principal
Collections for such Transfer Date.

 

(v)                                 Spread
Account Deposit Amount.  An amount
equal to the Spread Account Deposit Amount, if any, for such Transfer Date
shall be deposited into the Spread Account.

 

(vi)                              Deferred
Investor Servicing Fee.  An amount
equal to the aggregate outstanding amounts of the Investor Servicing Fee which
have been previously waived pursuant to Section 3.01 (unless such amounts have
been waived again) shall be allocated and paid to the Servicer.

 

(vii)                           Reinstatement
of Available Subordinated Amount.  An
amount equal to the excess, if any, of the Maximum Subordinated Amount as of
the end of the preceding Transfer Date over the Available Subordinated Amount
as of the end of the preceding Transfer Date shall be (A) during the
Revolving Period or the Amortization, allocated and paid to the Seller or
(B) during an Early Amortization Period, deposited in the Liquidity
Reserve Account, and in either case (A) or (B) the Available Subordinated
Amount shall be reinstated by the amount of such payment or deposit.

 

(viiA)                 Additional
Amounts.  An amount equal to any
Additional Amounts for the related Distribution Date not paid pursuant to
Section 4.04(iiB) shall be deposited into the Distribution Account.

 

(viiB)                   Incremental
Funding Reserve Deposit Amount.  An
amount equal to the Incremental Funding Reserve Deposit Amount, if any, shall
be deposited into the Incremental Funding Reserve Account.

 

20

 

(viii)                        Excess
Interest Collections.  Any remaining Available
Certificateholder Interest Collections shall be treated as Excess Interest
Collections, and applied pursuant to Section 4.03(f) of the Agreement.

 

If Available
Certificateholder Interest Collections are not sufficient to satisfy the
application described in clauses (i) through (viiA) above on any Transfer Date,
then funds on deposit in the Incremental Funding Reserve Account will be
applied in the manner described in clause (ii) above.  After such application, any remaining funds
in the Incremental Funding Reserve Account shall be paid to the Seller.  If Available Certificateholder Interest
Collections, plus amounts allocated from the Incremental Funding Reserve
Account as described above, are not sufficient to satisfy each of the
applications described in clauses (i) through (viiA) above on any Transfer
Date, then Excess Interest Collections from other Series allocable to Series
2000-VFC will be applied as Available Certificateholder Interest Collections in
the priority and the manner described in clauses (i) through (viiA) above.  If Excess Interest Collections are less than
the shortfalls for all Series that provide for allocations of Excess Interest
Collections, such Excess Interest Collections shall be allocable to shortfalls
for Series 2000-VFC and any other Series that so provides pro rata based on the relative amounts of
each Series’ shortfall.

 

SECTION 4.05  Application of Available Seller’s Finance
Charge Collections, Spread Account and Liquidity Reserve Account to Deficiency
Amount.

 

(a)                                  On
each Transfer Date, the Servicer shall determine the amount (the “Deficiency
Amount”), if any, by which the amount of the entire allocations required on
such Transfer Date by Sections 4.04(a)(i) through (iv) exceeds the amount of
Available Certificateholder Interest Collections for such Due Period and Excess
Interest Collections allocated to Series 2000-VFC on such Transfer Date, if
any, for the related Due Period.

 

(b)                                 If
the Deficiency Amount for any Transfer Date is greater than zero, the Master
Trust Trustee, acting in accordance with instructions from the Servicer, shall
apply available funds from the following sources in the following order of
priority in the same manner as Available Certificateholder Interest
Collections, each of which applications shall reduce such Deficiency Amount
(all such available funds being the “Available Draw Funds” for such Transfer
Date):

 

(i)                                     Available
Seller’s Finance Charge Collections;

 

(ii)                                  funds
on deposit in the Spread Account;

 

(iii)                               for
any Transfer Date occurring during any Early Amortization Period, funds on deposit
in the Liquidity Reserve Account;

 

21

 

provided, however,
that the amount applied pursuant to this Section 4.05(b) shall not exceed the
Draw Amount.  The Available Subordinated
Amount shall be reduced by the aggregate amount of Available Draw Funds applied
pursuant to this Section 4.05(b).

 

(c)                                  If
all of the amounts applied pursuant to Section 4.05(a) and (b) are insufficient
to make the entire application described in Section 4.04(a)(iii), the Available
Subordinated Amount shall be reduced (but not below zero) by the amount of such
deficiency and any remaining Investor Dealer Note Losses shall be deemed to be
reimbursed to the extent of such reduction.

 

SECTION 4.06  Investor Charge-Offs.  If, for any Transfer Date on which the
Available Subordinated Amount equals or is reduced to zero (after giving effect
to the allocations, distributions, withdrawals and deposits to be made on such
Transfer Date) and the Deficiency Amount for such Transfer Date (as reduced by
the applications required by Section 4.05 of this Series Supplement) is greater
than zero, the Invested Amount shall be reduced by the lesser of (i) such
remaining Deficiency Amount for such Transfer Date and (ii) the amount of
Investor Dealer Note Losses for the related Due Period remaining unreimbursed
after all applications of funds or reductions of the Available Subordinated
Amount pursuant to Section 4.04 and 4.05 (such lesser amount being an “Investor
Charge-Off”).

 

SECTION 4.07  Application of Seller’s Finance Charge
Collections.

 

(a)                                  Application
of Available Seller’s Finance Charge Collections.  On each Transfer Date related to a Due
Period, the Master Trust Trustee, acting in accordance with instructions from
the Servicer, shall withdraw and apply from the Collections Account to the
extent of Available Seller’s Finance Charge Collections for such Due Period,
the following amounts in the following order of priority:

 

(i)                                     On
each Transfer Date related to a Due Period for which a Deficiency Amount
exists, the amount required by Section 4.05(b)(i) shall be applied as specified
in Section 4.05(b).

 

(ii)                                  On
each Transfer Date related to a Due Period occurring during an Early
Amortization Period, the amount, if any, by which the Available Subordinated
Amount as of the end of such Transfer Date exceeds the amount of funds on
deposit in the Liquidity Reserve Account shall be deposited in the Liquidity
Reserve Account.

 

(iii)                             On
each Transfer Date on which the full Spread Account Deposit Amount was not deposited
in the Spread Account pursuant to Section 4.04(a)(v), an amount equal to the
shortfall in such Spread Account Deposit Amount shall be deposited in the
Spread Account.

 

22

 

(iv)                            Any
remaining Available Seller’s Finance Charge Collections for the related Due
Period shall be allocated and paid to the Seller.

 

(b)                                 Application
of Series Allocable Finance Charge Collections to the Seller.  On each Transfer Date related to a Due
Period, the Master Trust Trustee, acting in accordance with instructions from
the Servicer, shall withdraw from the Collections Account and allocate and pay
to the Seller an amount equal to the product of (i) the result of the Excess
Seller’s Percentage for such Due Period minus the Required Excess Seller
Interest Percentage and (ii) Series Allocable Finance Charge Collections for
such Due Period.

 

SECTION 4.08  Application of Series Allocable Principal
Collections.  On each Business Day,
the Master Trust Trustee, acting in accordance with instructions from the
Servicer, shall withdraw Series Allocable Principal Collections for such
Business Day from the Collections Account and apply such funds in the following
amounts:

 

(a)                                  Investor
Principal Collections During Revolving Period.  During the Revolving Period, an amount equal
to Investor Principal Collections for such Business Day shall be treated as
Shared Principal Collections, and applied, pursuant to the written direction of
the Servicer, pursuant to Section 4.03(e) of the Agreement.

 

(b)                                 Investor
Principal Collections during Amortization Period or Early Amortization Period.  During the Amortization Period or any Early
Amortization Period,  Investor Principal
Collections for such Business Day shall be allocated to the Series 2000-VFC
Certificateholders and deposited into the Series Principal Account to the
extent the Invested Amount as of the preceding Distribution Date exceeds the
amount of funds on deposit in the Series Principal Account on such Business
Day.  Any Investor Principal Collections
remaining after the applications described in the preceding sentence shall be
treated as Shared Principal Collections, and applied, pursuant to the written
direction of the Servicer, pursuant to Section 4.03(e) of the Agreement.

 

(c)                                  Seller’s
Principal Collections During the Revolving Period.  During the Revolving Period, all Seller’s
Principal Collections for such Business Day shall be deemed to be Series 2000-VFC
Shared Seller Principal Collections and shall be allocated as provided in
Section 4.08(d)(iii).

 

(d)                                 Seller’s
Principal Collections During Amortization Period or Early Amortization Period;
Shared Seller Principal Collections.

 

(i)                                     During
the Amortization Period, Available Seller’s Principal Collections for such
Business Day shall be deemed to be “Remaining Available Seller’s Principal
Collections,” which shall be included in Series 2000-VFC Shared Seller
Principal Collections and allocated as provided in clause (iii) below.  During the Amortization Period, Excess Seller’s

 

23

 

Principal Collections shall be
included in Series 2000-VFC Shared Seller Principal Collections and allocated
as provided in clause (iii) below.

 

(ii)                                  During
any Early Amortization Period Available Seller’s Principal Collections for such
Business Day shall be deposited in the Liquidity Reserve Account to the extent
the Available Subordinated Amount as of the end of the immediately preceding
Transfer Date exceeds the amount of funds on deposit in the Liquidity Reserve Account
(including amounts deposited pursuant to Section 4.07(a)(ii)).  The amount required to be deposited pursuant
to the preceding sentence shall be reduced by the amount of Available Seller’s
Finance Charge Collections deposited in the Liquidity Reserve Account on such
Business Day.  Any remaining Available
Seller’s Principal Collections for such Business Day shall be deemed to be “Remaining
Available Seller’s Principal Collections.” 
During any Early Amortization Period, all Excess Seller’s Principal Collections,
all Remaining Available Seller’s Principal Collections and all shared seller
principal collections of any other Series that provides for shared seller
principal collections not allocated in respect of principal shortfalls shall be
allocated and paid to the Seller or deposited in the Excess Funding Account to
the extent necessary to maintain the Master Trust Seller’s Interest at an
amount equal to (or, in the Seller’s discretion, greater than) the Minimum
Master Trust Seller’s Interest.

 

(iii)                               During
the Revolving Period or the Amortization Period, Series 2000-VFC Shared Seller
Principal Collections, if any, and shared seller principal collections for any
other Series that provides for shared seller principal collections shall be
determined on each business day and allocated in the following priority:  (i) to any other Series to the extent such
Series provides for the use of shared seller principal collections in respect
of principal shortfalls, (ii) to the Excess Funding Account to the extent necessary
to maintain the Master Trust Seller’s Interest at an amount equal to (or, in
the discretion of the Seller, greater than) the Minimum Master Trust Seller’s
Interest, (iii) at the election of the Seller, retained and allocated to the
Series 2000-VFC Certificateholders and deposited in the Series Principal
Account on the related Transfer Date to make any prepayments as described in
Section 1.03 and (iv) to the Seller.  If
shared seller principal collections for all Series are less than the shortfalls
for which shared seller principal collections may be used, then such shared
seller principal collections will be allocated to all such shortfalls pro rata based on the relative amounts of
each such shortfall.

 

(iv)                              “Series
2000-VFC Shared Seller Principal Collections” means on each business day (i)
during a Revolving Period, all Available Seller’s Principal Collections and all
Excess Seller’s Principal Collections and (ii) during an Amortization Period,
all Remaining Available Seller’s Principal Collections and all Excess Seller’s
Principal Collections.  There shall be no
Series 2000-VFC Shared Seller Principal Collections during any Early
Amortization Period.

 

(e)                                  If
on any Distribution Date during an Early Amortization Period after the
application of all funds to be allocated or distributed on such date the
excess, if any, of (x) the Invested Amount over (y) the amount in the Series
Principal Account (the “Early Amortization

 

24

 

Period Shortfall Amount”) is
less than or equal to the aggregate amount of funds contained in the Liquidity
Reserve Account then funds shall be withdrawn in an amount equal to the Early
Amortization Period Shortfall Amount and shall be deposited in the Series
Principal Account.

 

SECTION 4.09  Shared Principal Collections.

 

(a)                                  That
portion of Shared Principal Collections for any Business Day equal to the
amount of Series 2000-VFC Shared Principal Collections for such Business Day
will be allocated to Series 2000-VFC and will be applied in the same manner as
Investor Principal Collections pursuant to Section 4.08(b) and otherwise will
be deposited in the Excess Funding Account to the extent necessary to maintain
the Master Trust Seller’s Interest at an amount equal to (or, in the discretion
of the Seller, greater than) the Minimum Master Trust Seller’s Interest or
allocated to the Seller.

 

(b)                                 “Series
2000-VFC Shared Principal Collections,” with respect to any Business Day, shall
mean an amount equal to the Series 2000-VFC Principal Shortfall for such
Business Day; provided, however, that, if the aggregate amount of
Shared Principal Collections for all Series for such Business Day is less than
the aggregate amount of Principal Shortfalls for all Series for such Business
Day, then Series 2000-VFC Shared Principal Collections for such Business Day
shall equal the product of (x) Shared Principal Collections for all Series for
such Business Day and (y) a fraction, the numerator of which is the Series 2000-VFC
Principal Shortfall for such Business Day and denominator of which is the
aggregate amount of Principal Shortfalls for all Series for such Business Day; provided further that if Shared Principal
Collections are not required to be applied to any other Series, the Seller may
direct that all or any portion of such Shared Principal Collections be retained
and allocated to the Series 2000-VFC Certificateholders and deposited in the
Series Principal Account on the related Transfer Date to make any prepayment
permitted by Section 1.03.

 

SECTION 4.10  Distributions to Series 2000-VFC
Certificateholders.  On each Transfer
Date, after all allocations to the Distribution Account and the Series
Principal Account for the related Transfer Date have been made, the Master
Trust Trustee, acting in accordance with instructions from the Servicer, shall
transfer to the Distribution Account the funds on deposit in the Series
Principal Account and shall make, without duplication, the following
distributions from the Distribution Account:

 

(a)                                  Interest
Distributions.  On each Distribution
Date (including the Expected Payment Date), Monthly Interest, Non-Use Fees and
Additional Amounts will be distributed as such to the Series 2000-VFC
Certificateholders to the extent of the amount on deposit in the Distribution
Account for such purpose.

 

(b)                                 Amortization
Period and Early Amortization Period. 
On each Distribution Date related to a Due Period occurring during an
Amortization Period or an Early Amortization Period, in addition to the amount
described in (a) above, amounts on deposit in the Series

 

25

 

Principal Account will be
distributed as principal (up to a maximum of the Invested Amount on such
Distribution Date) on the Series 2000-VFC Certificates.

 

(c)                                 Revolving Period.  On each Distribution Date relating to a Due
Period

during the
Revolving Period, in addition to the amount described in (a) above, amounts on
deposit in the Series Principal Account will be distributed as principal (up to
a maximum of the Invested Amount on such Distribution Date) on the Series
2000-VFC Certificates.

 

SECTION 4.11   [Reserved]

 

SECTION 4.12   Partial Month Due Period.  The allocation and distribution provisions in
this Series Supplement are based upon the assumptions that each Due Period will
be a calendar month and that each Due Period will have a unique related
Transfer Date and Distribution Date. 
However, under certain circumstances (such as the occurrence of an Early
Amortization Event, the Revolving Period could end on a date other than the
last day of a calendar month (the period from the first day of such month (the “Subject
Month”) to and including the date of such occurrence being referred to herein
as the “Revolving Due Period”), and an Early Amortization Period could commence
on a date other than the first day of a calendar month (the period from such
other date until the last day of the Subject Month being the “Amortizing Due
Period”).  If such a circumstance occurs,
then the Servicer, the Seller and the Master Trust Trustee shall observe the
following rules:

 

(i)                                     the
Transfer Date for both the Revolving Due Period and the Amortizing Due Period
shall be the date on which the Transfer Date would have occurred if the Subject
Month had been an ordinary Due Period;

 

(ii)                                  the
allocations and distributions of Finance Charge Collections (and all items
derived from Finance Charge Collections, such as Available Certificateholder
Interest Collections and Available Seller’s Finance Charge Collections) and
Dealer Note Losses occurring during the Subject Month shall be made as if the
Subject Month were one Due Period, without any distinction between the
Revolving Due Period and the Amortizing Due Period; and

 

(iii)                               two
separate sets of allocations and distributions of Principal Collections (and all
items derived from Principal Collections, such as Investor Principal
Collections and Seller’s Principal Collections) shall be made on such Transfer
Date, according to whether such Principal Collections were received during the
Revolving Due Period (in which case allocations and distributions shall be made
as provided in Sections 4.08(a) and (c)) or the Amortizing Due Period (in which
case allocations and distributions shall be made as provided in Sections
4.08(b) and (d)).

 

SECTION 4.13  Additional Rights upon the Occurrence of
Certain Events.  Notwithstanding the
provisions of

Section 9.02(a) of the Agreement, if any insolvency event

 

26

 

occurs with respect to the
Seller, Navistar International Corporation, Navistar International
Transportation Corp. or Navistar Financial Corporation on the day of such
insolvency event, the Seller will (subject to the actions of the
Certificateholders) immediately cease to transfer Dealer Notes to the Master
Trust, and promptly give notice to the Master Trust Trustee of such insolvency
event.  Under the terms of the Pooling
and Servicing Agreement, if an insolvency event occurs with respect to the
Seller prior to the date on which the Series 2000-VFC Certificates issued by the
Master Trust have been paid in full, then within 15 days the Master Trust
Trustee will publish a notice of such insolvency event stating that the Master
Trust Trustee intends to sell, liquidate or otherwise dispose of the Dealer
Notes in a commercially reasonable manner and on commercially reasonable terms,
unless within a specified period of time Certificate holders representing more
than 50% of the aggregate series invested amount of the certificates of each
such Series and each person holding a Supplemental Certificate, instruct the
Master Trust Trustee not to sell, dispose of or otherwise liquidate the Dealer
Notes and to continue transferring Dealer Notes as before such insolvency
event.

 

ARTICLE V

DISTRIBUTIONS AND REPORTS

TO SERIES 2000-VFC CERTIFICATEHOLDERS

 

SECTION 5.01  Distributions.

 

(a)                                  The
Paying Agent shall distribute (in accordance with the Monthly Servicer
Certificate and Settlement Statement delivered by the Servicer to the Master
Trust Trustee and the Paying Agent pursuant to Section 3.04(d) of the
Agreement) to each Series 2000-VFC Certificateholder of record on the preceding
Record Date (other than as provided in Section 12.02 of the Agreement
respecting a final distribution) on each Distribution Date such
Certificateholder’s pro rata share
(based on the aggregate fractional undivided interests represented by the
Series 2000-VFC Certificates held by such Certificateholder) of the amounts on
deposit in the Series 2000-VFC Accounts as is payable to the Series 2000-VFC
Certificateholders on such Distribution Date pursuant to Sections 4.10  (a), (b) and (c).

 

(b)                                 Except
as provided in Section 12.03 of the Agreement with respect to a final
distribution, distributions to Series 2000-VFC Certificateholders hereunder
shall be made to each Series 2000-VFC Certificateholder by wire transfer of
immediately available funds to the account specified by such Series 2000-VFC
Certificateholder without presentation or surrender of any Series 2000-VFC
Certificate or the making of any notation thereon.

 

SECTION 5.02  Monthly and Annual Certificateholders’
Statement.

 

(a)                                  Monthly
Series 2000-VFC Certificateholders’ Statement.  At least two Business Days prior to each
Distribution Date, the Servicer will provide to the Master Trust Trustee and
the Paying Agent, and on each Distribution Date, the Paying Agent shall forward
to each Series 2000-VFC Certificateholder a Monthly Servicer Certificate and
Settlement Statement

 

27

 

substantially in the form of Exhibit
B with such changes as the Servicer shall deem necessary or appropriate,
prepared by the Servicer and delivered to the Master Trust Trustee setting
forth, among other things, the following information:

 

(i)                                     the
aggregate amount of Collections, including the aggregate amount of Finance
Charge Collections and the aggregate amount of Principal Collections for the
related Due Period;

 

(ii)                                  the
Series 2000-VFC Allocation Percentage, the Floating Allocation Percentage and
the Principal Allocation Percentage (if applicable) for the related Due Period;

 

(iii)                               the
total amount to be distributed on the Series 2000-VFC Certificates on such
Distribution Date;

 

(iv)                              the
amount, if any, of such distribution allocable to the Invested Amount;

 

(v)                                 the
amount, if any, of such distribution allocable to interest on the Series 2000-VFC
Certificates;

 

(vi)                              Dealer
Note Losses for the related Due Period;

 

(vii)                           the
Draw Amount as of the related Transfer Date, if any;

 

(viii)                        the
amount of the Investor Charge-Offs and the amount of reimbursement thereof as
of the related Transfer Date;

 

(ix)                                the
amount of the Investor Servicing Fee to be paid on such Distribution Date;

 

(x)                                   the
amount of any Incremental Funding or prepayment to occur on such Distribution
Date, the aggregate amount on deposit in the Incremental Funding Reserve
Account as of the related Transfer Date, if any, the amount thereof, if any,
allocated to pay Monthly Interest for such Distribution Date, the amount, if
any, thereof to be distributed to the Seller, the Incremental Funding Reserve
Account Deposit Amount for such Distribution Date, if any, and the Incremental
Subordinated Amount, if any, for such Distribution Date;

 

(xi)                                the
Invested Amount (after giving effect to all distributions that will occur on
such Distribution Date);

 

28

 

(xii)                             the
aggregate amount of Dealer Notes and funds on deposit in each of the Excess
Funding Account, Series Principal Account and Spread Account as of the end of
the last day of the related Due Period (after giving effect to payments and
adjustments made pursuant to Article IV of this Series Supplement and of
the Agreement);

 

(xiii)                          the
Available Subordinated Amount as of the end of the related Transfer Date;

 

(xiv)                         with
respect to Eligible Investments in the Series Principal Account, the Excess
Funding Account and the Liquidity Reserve Account, as of the last day of the
related Due Period, the aggregate amount of funds invested in Eligible
Investments in each such Series Account, a brief description of each such
Eligible Investment and amount invested in each such Eligible Investment, the
rate of interest applicable to each such Eligible Investment and the rating of
each such Eligible Investment;

 

(xv)                            the
Dealers with the five largest aggregate outstanding principal amounts of Dealer
Notes in the Master Trust as of the end of the related Due Period;

 

(xvi)                         the
aggregate outstanding principal amount of Dealer Notes issued to finance OEM
Vehicles as of the end of the related Due Period;

 

(xvii)                      the
percentages and all other information calculated pursuant to Section 6.01 to
determine whether an Early Amortization Event has occurred;

 

(xviii)                   the
amount of Excess Interest Collections and Investor Principal Collections
treated as Shared Principal Collections, each for the related Due Period, and
the amount of such Excess Interest Collections and Shared Principal Collections
allocated to other Series; and

 

(xix)                           the
amount of Remaining Available Seller’s Principal Collections, the amount of
Excess Seller’s Principal Collections and Remaining Available Seller’s
Principal Collections treated as Series 2000-VFC Shared Seller Principal
Collections, the amount of Shared Seller Principal Collections from other
Series, and the amount of Shared Seller Principal Collections allocated to
Series 2000-VFC and to other Series, each for the related Due Period.

 

(b)                                 [Reserved]

 

(c)                                  A
copy of the statement provided pursuant to subsection (a) will be made
available for inspection at the Corporate Trust Office.

 

29

 

(d)                                 Annual
Certificateholder’s Tax Statement. 
On or about January 31 of each calendar year, beginning with calendar
year 2001, the Master Trust Trustee shall furnish to the Servicer and Paying
Agent a list of each Person who at any time during the preceding calendar year
was a Series 2000-VFC Certificateholder and received any payment thereon and
the dates such Person held a Series 2000-VFC Certificate, and the Paying Agent
shall furnish to each such Series 2000-VFC Certificateholder a statement
prepared by the Paying Agent containing the information prepared by the Master
Trust Trustee which is required to be contained in the statement to Series 2000-VFC
Certificateholders as set forth in Sections 5.02(a)(iii)-(a)(v) above,
aggregated for such calendar year or the applicable portion thereof during
which such Person was a Series 2000-VFC Certificateholder, together with such
other customary information as the Master Trust Trustee or the Servicer deems
necessary or desirable to enable the Series 2000-VFC Certificateholders to
prepare their tax returns, including information (to be supplied by the
Servicer to the Master Trust Trustee) regarding original issue discount on the
Series 2000-VFC Certificates, if any. 
Such obligation of the Paying Agent shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Master Trust Trustee pursuant to any requirements of the
Internal Revenue Code as from time to time in effect.

 

ARTICLE VI

EARLY AMORTIZATION EVENTS

 

SECTION 6.01  Additional Early Amortization Events.  The occurrence of any of the following events
shall, immediately upon the occurrence thereof without notice or other action
on the part of the Master Trust Trustee or the Series 2000-VFC
Certificateholders, be deemed to be an Early Amortization Event solely with
respect to Series 2000-VFC:

 

(a)                                  the
Invested Amount is not reduced to zero by the Expected Payment Date;

 

(b)                                 the
United States government or any agency or instrumentality thereof files a
notice of a lien under Internal Revenue Code §6323 or any similar statutory
provision (including, but not limited to, §302(f) or §4068 of ERISA) on the
assets of NFC or NFSC which is or may in the future be prior to the lien of the
Master Trust Trustee or the assets of the Master Trust (including, without
limitation, proceeds of the Dealer Notes);

 

(c)                                  failure
on the part of the Seller (i) to make any payment, distribution or deposit
required under the Agreement within five business days of the date required or
(ii) to observe or perform in any material respect any other material
covenants or agreements of the Seller, which continues unremedied for a period
of 60 days after written notice of such failure shall have been given to the
Seller;

 

(d)                                 any
representation or warranty made by the Seller pursuant to the Agreement or any
information contained in the schedule of Dealer Notes delivered thereunder or
this Series Supplement shall prove to have been incorrect in any material
respect when made or when delivered, which representation, warranty or
schedule, or the circumstances or condition

 

30

 

that caused such
representation, warranty or schedule to be incorrect, continues to be incorrect
or uncured in any material respect for a period of 60 days after written notice
of such incorrectness shall have been given to the Seller and as a result of
which the interests of the Series 2000-VFC Certificateholders are materially
and adversely affected, except that an Early Amortization Event shall not be
deemed to occur if the Seller has repurchased the related Dealer Notes or all
such Dealer Notes, if applicable, during such period in accordance with the
provisions of the Agreement;

 

(e)                                  the
Seller shall become legally unable for any reason to transfer Dealer Notes to
the Master Trust in accordance with the provisions of the Agreement;

 

(f)                                    on
any Transfer Date related to a Due Period, the Available Subordinated Amount
for such Transfer Date will be reduced to an amount less than the Required
Subordinated Amount;

 

(g)                                 any
Servicer Termination Event shall occur for which the Servicer has received a
notice of termination;

 

(h)                                 the
delivery by the Seller to the Master Trust Trustee of a notice stating that the
Seller will no longer continue to sell Dealer Notes to the Master Trust
commencing on the date specified in such notice;

 

(i)                                     the
Average Coverage Differential shall be equal to or less than negative two
percent (-2.00%) on each of three consecutive Determination Dates;

 

(j)                                     at
the end of any Due Period, the Master Trust Seller’s Interest is reduced to an
amount less than the Master Trust Minimum Seller’s Interest and the Seller has
failed to assign additional Dealer Notes to the Master Trust in the amount of
such deficiency within ten Business Days following the end of such Due Period;

 

(k)                                  on
any Determination Date, the quotient of (i) the product of (a) the sum of
Dealer Note Collections for each of the related Due Period and the two immediately
preceding Due Periods and (b) four divided
by (ii) the daily average
principal amount of Dealer Notes outstanding during such Due Periods (“Turnover”)
is less than 1.7;

 

(l)                                     on
any Determination Date, the quotient of (i) the sum of Dealer Note Losses
for each of the related Due Period and the five immediately preceding Due
Periods and (ii) the sum of Principal Collections for each of the related
Due Period and the five immediately preceding Due Periods, is greater than or
equal to one percent (1.00%);

 

(m)                               [Reserved]

 

31

 

(n)                                 any
of the Seller, NITC, NIC or NFC shall file a petition commencing a voluntary
case under any chapter of the federal bankruptcy laws; or the Seller or NFC
shall file a petition or answer or consent seeking reorganization, arrangement,
adjustment or composition under any other similar applicable federal law, or
shall consent to the filing of any such petition, answer or consent; or the
Seller, NITC, NIC or NFC shall appoint, or consent to the appointment of a
custodian, receiver, liquidator, trustee, assignee, sequestrator or other
similar official in bankruptcy or insolvency of it or of any substantial part
of its property; or the Seller, NITC, NIC or NFC shall make an assignment for
the benefit of creditors, or shall admit in writing its inability to pay its
debts generally as they become due;

 

(o)                                 any
order for relief against any of the Seller, NITC, NIC or NFC shall have been
entered by a court having jurisdiction in the premises under any chapter of the
federal bankruptcy laws, and such order shall have continued undischarged or
unstayed for a period of 120 days; or a decree or order by a court having
jurisdiction in the premises shall have been entered approving as properly filed
a petition seeking reorganization, arrangement, adjustment, or composition of
the Seller, NITC, NIC or NFC under any other similar applicable federal law,
and such decree or order shall have continued undischarged or unstayed for a
period of 120 days; or a decree or order of a court having jurisdiction in the
premises for the appointment of a custodian, receiver, liquidator, trustee,
assignee, sequestrator or other similar official in bankruptcy or insolvency of
the Seller, NITC, NIC or NFC of any substantial part of their property, or for
the winding up or liquidation of their affairs, shall have been entered, and
such decree or order shall have remained in force undischarged or unstayed for
a period of 120 days; and

 

(p)                                 failure
on the part of NITC to make a deposit in the Interest Deposit Account required
by the terms of the Interest Deposit Agreement on or before the date occurring
five Business Days after the date such deposit is required by the Interest
Deposit Agreement to be made.

 

ARTICLE VII

OTHER SERIES PROVISIONS

 

SECTION 7.01  Conveyance of Dealer Notes.  Upon the date on which each other Series is
either no longer outstanding or the fully funded date has occurred with respect
thereto, the Master Trust Trustee shall sell, assign and convey to the Seller
or its designee, without recourse, representations or warranty, all right,
title and interest of the Master Trust in the Dealer Notes, whether then
existing or thereafter created, all security interests in the Financed Vehicles
with respect thereto, all monies due or to become due and all amounts received
with respect thereto and all proceeds thereof except for amounts on deposit in
the Collections Account that are allocable to Investor Certificates and amounts
on deposit in any Series Account.  The
Master Trust Trustee shall execute and deliver such instruments of transfer and
assignment, in each case without recourse, as shall be reasonably requested by
the Seller to vest in the Seller or its designee all right, title and interest
which the Master Trust had in all such property.

 

32

 

SECTION 7.02  Tax Treatment.  The Seller has entered into the Agreement and
this Series Supplement and the Series 2000-VFC Certificates have been issued
with the intention that the Series 2000-VFC Certificates will qualify under
applicable tax law as indebtedness secured by the Master Trust assets
attributable to the Series 2000-VFC Certificates.  The Seller and each Series 2000-VFC
Certificateholder and Certificate Owner, by the acceptance of its Series 2000-VFC
Certificate or Book-Entry Certificate, as applicable, agrees to treat the
Series 2000-VFC Certificates as indebtedness secured by the Master Trust assets
attributable to the Series 2000-VFC Certificates, for Federal income taxes,
state and local income and franchise taxes and any other taxes imposed on or
measured by income in whole or in part.

 

ARTICLE VIII

FINAL DISTRIBUTIONS

 

SECTION 8.01  Sale of Investors’ Interest Pursuant to
Section 2.07 of the Agreement; Distributions Pursuant to Section 2.03 or 12.03
of the Agreement.

 

(a)                                  The
amount to be paid by the Seller to the Collections Account with respect to
Series 2000-VFC in connection with a purchase of the Certificateholders’
Interest pursuant to Section 2.07 of the Agreement shall equal the Reassignment
Amount for the Distribution Date on which such purchase occurs.

 

(b)                                 With
respect to the Reassignment Amount, if any, deposited into the Collections
Account pursuant to this Section 8.01 of this Series Supplement or Section 2.07
of the Agreement or any proceeds deposited into the Collections Account
pursuant to Section 12.03(c) of the Agreement, the Master Trust Trustee shall,
not later than 12:00 noon, New York City time, on the Distribution Date on
which such amounts are deposited (or, if such date is not a Distribution Date,
on the immediately following Distribution Date) (in the priority set forth
below):  (i) first, deposit the Invested Amount on
such Distribution Date into the Series Principal Account, (ii) second, deposit the amount of accrued
and unpaid interest on the unpaid balance of the Series 2000-VFC Certificates
in the Distribution Account,  (iii) third, deposit the amount of accrued
but unpaid Non-Use Fees and Additional Amounts in the Distribution Account, and
(iv) fourth, pay the
remainder of any such Reassignment Amounts to the Seller.

 

(c)                                  Notwithstanding
any other provision to the contrary in this Series Supplement or the Agreement,
the entire amount deposited in the Series Principal Account on a Distribution
Date pursuant to Section 8.01(b) and all other amounts on deposit therein shall
be distributed in full to the Series 2000-VFC Certificateholders on such
Distribution Date and any distribution made pursuant to this paragraph (c)
shall be deemed to be a final distribution pursuant to Section 12.03 of the
Agreement with respect to Series 2000-VFC.

 

33

 

SECTION 8.02  Distribution of Proceeds of Sale,
Disposition or Liquidation of the Dealer Notes Pursuant to Section 9.02 of the
Agreement.

 

(a)                                  Not
later than 12:00 noon, New York City time, on the Distribution Date following
the date on which the Insolvency Proceeds are deposited into the Collections
Account pursuant to Section 9.02(b) of the Agreement, the Master Trust Trustee
shall first (in each case, after giving effect to any deposits and
distributions otherwise to be made on such Distribution Date) deduct an amount
equal to the Invested Amount on such Distribution Date from the portion of the
Insolvency Proceeds allocated to Series Allocable Principal Collections and
deposit such amount in the Series Principal Account; provided that the amount of such deposit shall not exceed
the product of (x) the portion of the Insolvency Proceeds allocated to Series
Allocable Principal Collections and (y) 100% minus the Excess Seller’s
Percentage with respect to the related Due Period.  The remainder of the portion of the
Insolvency Proceeds allocated to Series Allocable Principal Collections shall
be allocated to the Master Trust Seller’s Interest and shall be distributed on
such Distribution Date to the Seller.

 

(b)                                 Not
later than 12:00 noon, New York City time, on such Distribution Date, the
Master Trust Trustee shall first (in each case, after giving effect to any
deposits and distributions otherwise to be made on such Distribution Date)
deduct an amount equal to the sum of (i) Monthly Interest for such Distribution
Date and (ii) any accrued but unpaid Non-Use Fees and Additional Amounts, from
the portion of the Insolvency Proceeds allocated to Series Allocable Finance
Charge Collections and deposit such amount in the Distribution Account; provided that the amount of such
distribution shall not exceed the product of (x) the portion of the Insolvency
Proceeds allocated to Series Allocable Finance Charge Collections and (y) 100%
minus the Excess Seller’s Percentage with respect to the related Due
Period.  The remainder of the portion of
the Insolvency Proceeds allocated to Series Allocable Finance Charge Collections
shall be allocated to the Master Trust Seller’s Interest and shall be
distributed on such Distribution Date to the Seller.

 

(c)                                  Notwithstanding
anything to the contrary in this Series Supplement or the Agreement, the entire
amount deposited in the Series Principal Account and the Distribution Account
pursuant to this Section 8.02 and all other amounts on deposit therein shall be
distributed in full to the Series 2000-VFC Certificateholders on the
Distribution Date on which funds are deposited pursuant to this Section 8.02
(or, if not so deposited on a Distribution Date, on the immediately following
Distribution Date) and any distribution made pursuant to this Section 8.02
shall be deemed to be a final distribution pursuant to Section 12.03 of the
Agreement with respect to Series 2000-VFC.

 

34

 

ARTICLE IX

MISCELLANEOUS PROVISIONS

 

SECTION 9.01  Ratification of Agreement.  As supplemented by this Series Supplement,
the Agreement is in all respects ratified and confirmed and the Agreement as so
supplemented by this Series Supplement shall be read, taken and construed as
one and the same instrument.

 

SECTION 9.02  Counterparts.  This Series Supplement may be executed in two
or more counterparts (and by different parties on separate counterparts) each
of which shall be an original, but all of which together shall constitute one
and the same instrument.

 

SECTION 9.03  GOVERNING LAW.  THIS SERIES SUPPLEMENT SHALL BE CONSTRUED,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED, IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, EXCEPT THAT THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE MASTER TRUST TRUSTEE SHALL BE DETERMINED
IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICT OF LAW PROVISIONS.

 

 

[END OF PAGE]

 

 

[SIGNATURE PAGE FOLLOWS]

 

35

 

IN WITNESS
WHEREOF, the Seller, the Servicer and the Master Trust Trustee have caused this
Series Supplement to be duly executed by their respective officers as of the
day and year first above written.

 

 

	
   

  	
  NAVISTAR
  FINANCIAL SECURITIES CORPORATION

  
	
   

  	
  as Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John A.
  Bongiorno

  	
   

  
	
   

  	
  Name: John A. Bongiorno

  
	
   

  	
  Title:   President & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAVISTAR
  FINANCIAL CORPORATION

  
	
   

  	
  as Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John A. Bongiorno

  	
   

  
	
   

  	
  Name: John A. Bongiorno

  
	
   

  	
  Title:   President & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK

  
	
   

  	
  as Master Trust Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Edwin Soriano

  	
   

  
	
   

  	
  Name: Edwin Soriano

  
	
   

  	
  Title:    Assistant Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]