Document:

Note Guaranty Insurance Policy

 Exhibit 10.5 
 NOTE GUARANTY INSURANCE POLICY 
 POLICY NUMBER: 48120 
  

			
	OBLIGATIONS:    	 	UPFC Auto Receivables Trust 2006-A
		 	$52,000,000 Class A-1 Notes
		 	$94,000,000 Class A-2 Notes
		 	$96,000,000 Class A-3 Notes

 MBIA Insurance Corporation (the “Insurer”), in consideration of the payment of the
premium and subject to the terms of this Note Guaranty Insurance Policy (this “Policy”), hereby unconditionally and irrevocably guarantees to any Owner that an amount equal to each full and complete Insured Payment will be received from
the Insurer by Deutsche Bank Trust Company Americas, or its successors, as Trustee for the Owners (the “Trustee”), on behalf of the Owners, for distribution by the Trustee to each Owner of each Owner’s proportionate share of the
Insured Payment. The Insurer’s obligations hereunder with respect to a particular Insured Payment shall be discharged to the extent funds equal to the applicable Insured Payment are received by the Trustee, whether or not such funds are
properly applied by the Trustee. Insured Payments shall be made only at the time set forth in this Policy, and no accelerated Insured Payments shall be made regardless of any acceleration of the Obligations, unless such acceleration is at the sole
option of the Insurer. 
 Notwithstanding the foregoing paragraph, this Policy does not cover any shortfalls, if any, attributable to the
liability of the Issuer or the Trustee for withholding taxes, if any (including interest and penalties in respect of any such liability). This Policy also does not cover any additional amounts due to any holder described in the second paragraph of
Section 10.1(a) of the Sale and Servicing Agreement following the Servicer’s failure to exercise its optional redemption right pursuant to Section 10.1(a) of the Sale and Servicing Agreement. 
 The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day following receipt on a Business Day by the Fiscal Agent (as
described below) of (a) a certified copy of the order requiring the return of a preference payment, (b) an opinion of counsel satisfactory to the Insurer that such order is final and not subject to appeal, (c) an assignment in such
form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all rights and claims of the Owner relating to or arising under the Obligations against the debtor which made such preference payment or otherwise with respect to
such preference payment and (d) appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any legal proceeding related to such preference payment, such instruments being in a form satisfactory to the Insurer,
provided that if such documents are received after 10:00 a.m., New York City time, on such Business Day, they will be deemed to be received on the following Business Day. Such payments shall be disbursed to the receiver or trustee in
bankruptcy named in the final order of the court exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such Owner has returned principal or interest paid on the Obligations to such receiver or trustee in bankruptcy, in
which case such payment shall be disbursed to such Owner. 

 The Insurer will pay any other amount payable hereunder no later than 10:00 a.m., New York City
time, on the later of the Distribution Date on which the related Deficiency Amount is due or the Business Day following receipt in New York, New York on a Business Day by U.S. Bank Trust National Association, as Fiscal Agent for the
Insurer, or any successor fiscal agent appointed by the Insurer (the “Fiscal Agent”), of a Notice (as described below), provided that if such Notice is received after 10:00 a.m., New York City time, on such Business Day, it will
be deemed to be received on the following Business Day. If any such Notice received by the Fiscal Agent is not in proper form or is otherwise insufficient for the purpose of making claim hereunder, it shall be deemed not to have been received by the
Fiscal Agent for purposes of this paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall promptly so advise the Trustee and the Trustee may submit an amended Notice. 
 Insured Payments due hereunder, unless otherwise stated herein, will be disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire
transfer of immediately available funds in the amount of the Insured Payment less, in respect of Insured Payments related to Preference Amounts, any amount held by the Trustee for the payment of such Insured Payment and legally available therefor.

 The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent shall in no event be liable to Owners for any acts of the Fiscal
Agent or any failure of the Insurer to deposit, or cause to be deposited, sufficient funds to make payments due under this Policy. 
 Subject
to the terms of the Agreement, the Insurer shall be subrogated to the rights of each Owner to receive payments under the Obligations to the extent of any payment by the Insurer hereunder. 
 As used herein, the following terms shall have the following meanings: 
 “Agreement” means the Indenture dated as of June 1, 2006 among UPFC Auto Receivables Trust 2006-A, as Issuer and Deutsche Bank Trust Company Americas, as Trustee and Trust Collateral Agent, and
the Sale and Servicing Agreement (the “Sale and Servicing Agreement”) dated as of June 1, 2006 among UPFC Auto Receivables Trust 2006-A, as Issuer, UPFC Auto Receivables Corp., as Seller, United Auto Credit Corporation, as Servicer,
Deutsche Bank Trust Company Americas, as Trust Collateral Agent, as Custodian, and as Backup Servicer, and Centerone Financial Services LLC, as Designated Backup SubServicer, without regard to any amendment or supplement thereto, unless such
amendment or supplement has been approved in writing by the Insurer. 
 “Business Day” means any day other than (a) a
Saturday or a Sunday or (b) a day on which banking institutions in New York City, Newport Beach, California, Wilmington, Delaware or in the city in which the corporate trust office of the Trustee under the Indenture or the Owner Trustee under
the Trust Agreement is located are authorized or obligated by law or executive order to be closed. 
 “Deficiency Amount”
means, for any Distribution Date, an amount equal to the excess, if any, of: (a) Scheduled Payments over (b) the sum, without duplication, of (i) the amount actually deposited into or otherwise available in the Note Distribution
Account on such Distribution Date (excluding amounts to be drawn under the Note Policy) and (ii) Additional Funds Available, if any, for the Distribution Date. 
  

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 “Insured Payment” means (a) as of any Distribution Date, any Deficiency Amount and
(b) any Preference Amount. 
 “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is subsequently delivered by registered or certified mail, from the Trustee specifying the Insured Payment which shall be due and owing on the applicable
Distribution Date. 
 “Owner” means each Note Owner (as defined in the Agreement) who, on the applicable Payment Date, is
entitled under the terms of the applicable Obligations to payment thereunder. 
 “Preference Amount” means any amount
previously distributed to an Owner on the Obligations that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to
time in accordance with a final nonappealable order of a court having competent jurisdiction. 
 Capitalized terms used herein and not
otherwise defined herein shall have the respective meanings set forth in the Agreement as of the date of execution of this Policy, without giving effect to any subsequent amendment to or modification of the Agreement unless such amendment or
modification has been approved in writing by the Insurer. 
 Any notice hereunder or service of process on the Fiscal Agent may be made at
the address listed below for the Fiscal Agent or such other address as the Insurer shall specify in writing to the Trustee. 
 The notice
address of the Fiscal Agent is 15th Floor, 61 Broadway, New York, New York 10006, Attention:
Municipal Registrar and Paying Agency, or such other address as the Fiscal Agent shall specify to the Trustee in writing. 
 THIS POLICY IS
BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 
 The insurance provided by this Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of the New York
Insurance Law. 
 This Policy is not cancelable for any reason. The premium on this Policy is not refundable for any reason, including
payment, or provision being made for payment, prior to maturity of the Obligations. 
  

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 IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed and attested this 15th day of June 2006. 
  

			
	MBIA INSURANCE CORPORATION
		
	By	 	  

		 	President
	
	Attest:
		
	By	 	  

		 	Assistant Secretary

  

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 EXHIBIT A 
 TO NOTE GUARANTY INSURANCE 
 POLICY NUMBER: 48120 
 NOTICE UNDER NOTE GUARANTY 
 INSURANCE
POLICY NUMBER: 48120 
 U.S. Bank Trust National Association, as Fiscal Agent for MBIA Insurance Corporation

 15th Floor 
 61 Broadway 
 New York, NY 10006 
 Attention: Municipal Registrar and Paying Agency 
 MBIA Insurance Corporation 
 113 King Street 
 Armonk, NY 10504 
 The undersigned, a duly authorized officer of [NAME OF TRUSTEE] as Trustee (the “Trustee”), hereby certifies to U.S. Bank Trust, National Association,
(the “Fiscal Agent”) and MBIA Insurance Corporation (the “Insurer”), with reference to Note Guaranty Insurance Policy Number: 48120 (the “Policy”) issued by the Insurer in respect of the UPFC Auto Receivables Trust
2006-A $52,000,000 Class A-1 Notes, $94,000,000 Class A-2 Notes, $96,000,000 Class A-3 Notes, (the “Obligations”), that: 
 (a) the Trustee is the Trustee under the Indenture dated as of June 1, 2006 among UPFC Auto Receivables Trust 2006-A, as Issuer and Deutsche Bank Trust Company Americas as Trustee and as Trust Collateral Agent; 
 (b) the amount under clause (a) of the definition of Deficiency Amount for the Distribution Date occurring on
[                    ] (the “Applicable Distribution Date”) is
$[            ]; 
 (c) the amount under
clause (b)(i) of the definition of Deficiency Amount for the Applicable Distribution Date is $[            ]; 
 (d) the amount under clause (b)(ii) of the definition of Deficiency Amount for the Applicable Distribution Date is
$[            ]; 
 (e) the excess of (1) the
amount listed in paragraph (b) above over (2) the sum of the amounts listed in paragraphs (c) and (d) above, as of the date of this Notice, is
$[            ] (the “Deficiency Amount”); 
 (f) the amount of previously distributed payments on the Obligations that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in accordance with a final nonappealable
order of a court having competent jurisdiction is $[            ] (the “Preference Amount”); 
  

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 (g) the total Insured Payment due is
$[            ], which amount equals the sum of the Deficiency Amount and the Preference Amount; 
 (h) the Trustee is making a claim under and pursuant to the terms of the Policy for the dollar amount of the Insured Payment set forth in
(e) above to be applied to the payment of the Deficiency Amount for the Applicable Distribution Date in accordance with the Agreement and for the dollar amount of the Insured Payment set forth in (f) above to be applied to the payment of
any Preference Amount; and 
 (i) the Trustee directs that payment of the Insured Payment be made to the following account by
bank wire transfer of federal or other immediately available funds in accordance with the terms of the Policy: [TRUSTEE’S ACCOUNT NUMBER]. 
 Any capitalized term used in this Notice and not otherwise defined herein shall have the meaning assigned thereto in the Policy. 
 Any Person Who Knowingly And With Intent To Defraud Any Insurance Company Or Other Person Files An Application For Insurance Or Statement Of Claim Containing Any Materially False Information, Or Conceals For The Purpose Of Misleading,
Information Concerning Any Fact Material Thereto, Commits A Fraudulent Insurance Act, Which Is A Crime, And Shall Also Be Subject To A Civil Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of The Claim For Each Such Violation.

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

			
	[NAME OF TRUSTEE], as Trustee
		
	By	 	  

	Title	 	  

  

 6Indemnification Agreement

 Exhibit 10.6 
 EXECUTION COPY 

 MBIA INSURANCE CORPORATION, 
 as Insurer 
 UNITED AUTO CREDIT CORPORATION

 and 
 DEUTSCHE BANK SECURITIES
INC. 
 INDEMNIFICATION AGREEMENT 
 UPFC Auto Receivables Trust 2006-A 
 Class A-1 Notes, Class A-2 Notes and Class A-3 Notes 
 Dated as of June 6, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 Section 1.
	  	Definitions	  	1
	 Section 2.
	  	Representations and Warranties of the Insurer	  	3
	 Section 3.
	  	Agreements, Representations and Warranties of the Underwriter	  	4
	 Section 4.
	  	Agreements, Representations and Warranties of UACC	  	4
	 Section 5.
	  	Indemnification	  	5
	 Section 6.
	  	Notice To Be Given	  	5
	 Section 7.
	  	Contribution	  	7
	 Section 8.
	  	Notices	  	8
	 Section 9.
	  	Governing Law, Etc	  	9
	 Section 10.
	  	Insurance Agreement; Underwriting Agreement; Sale and Servicing Agreement	  	9
	 Section 11.
	  	Limitations	  	9
	 Section 12.
	  	Counterparts	  	9
	 Section 13.
	  	Nonpetition	  	9
		
	 TESTIMONIUM
	  	
		
	 SIGNATURES AND SEALS
	  	

 INDEMNIFICATION AGREEMENT 
 This Agreement, dated as of June 6, 2006, is by and among MBIA INSURANCE CORPORATION (the “Insurer”), as the Insurer under the Note Guaranty
Insurance Policy (the “Policy”) issued in connection with the Offered Notes described below, UNITED AUTO CREDIT CORPORATION (“UACC”) and DEUTSCHE BANK SECURITIES INC., (the “Underwriter”). 
 Section 1. Definitions. As used in this Agreement, the following terms shall have the respective meanings stated herein, unless the
context clearly requires otherwise, in both singular and plural form, as appropriate. Capitalized terms used in this Agreement but not otherwise defined herein will have the meanings ascribed to such terms in the Sale and Servicing Agreement (as
described below). 
 “Act” means the Securities Act of 1933, as amended, together with all related rules and regulations.

 “Agreement” means this Indemnification Agreement by and among the Insurer, UACC and the Underwriter. 
 “Indemnified Party” means any party entitled to any indemnification pursuant to Section 5 below, as the context requires.

 “Indemnifying Party” means any party required to provide indemnification pursuant to Section 5 below, as the context
requires. 
 “Indenture” means the Indenture dated as of June 1, 2006 between the Issuer and the Trustee and Trust
Collateral Agent as the same may be amended or supplemented from time to time in accordance with the terms thereof. 
 “Insurance
Agreement” means the Insurance Agreement, dated as of June 15th, 2006, by and among the Insurer, the
Issuer, UACC, individually, the Servicer, the Seller, the Trustee, the Trust Collateral Agent, the Collateral Agent, and the Backup Servicer. 
 “Insurer Party” means the Insurer and its respective parents, subsidiaries and affiliates and any shareholder, director, officer, employee, agent or any “controlling person” (as such term is used in the Act) of
any of the foregoing. 
 “Issuer” means UPFC Auto Receivables Trust 2006-A. 
 “Losses” means (i) any actual out-of-pocket loss, charge, claim or liability paid by the party entitled to indemnification or
contribution hereunder and (ii) any actual out-of-pocket costs 

 
and expenses paid by such party, including reasonable fees and expenses of its counsel, to the extent not paid, satisfied or reimbursed from funds provided
by any other Person (provided that the foregoing shall not create or imply any obligation to pursue recourse against any such other Person). 
 “Offered Notes” means the UPFC Automobile Receivables Trust 2006-A Class A-1 Notes, Class A-2 Notes and Class A-3 Notes issued pursuant to the Indenture. 
 “Person” means any individual, partnership, joint venture, corporation, trust or unincorporated organization or any government or agency
or political subdivision thereof. 
 “Preliminary Prospectus Supplement” means the preliminary Prospectus Supplement dated
June 5, 2006 and filed with the Securities and Exchange Commission on June 6, 2006. 
 “Prospectus” means the form
of final Prospectus included in the Registration Statement on each date that the Registration Statement and any post effective amendment or amendments thereto became effective. 
 “Prospectus Supplement” means the form of final Prospectus Supplement, dated June 6, 2006. 
 “Registration Statement” means the registration statement on Form S-3 of UPFC Auto Receivables Corp. relating to the Offered Notes.

 “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of June 1, 2006, by and among the
Issuer, the Seller, the Servicer, the Trust Collateral Agent, the Custodian, the Backup Servicer and the Designated Backup Subservicer. 
 “Servicer” means United Auto Credit Corporation, as Servicer. 
 “UACC Party” means UACC, each of
its parents, subsidiaries and affiliates and any shareholder, director, officer, employee, agent or any “controlling person” (as such term is used in the Act) of any of the foregoing. 
 “Underwriter Party” means the Underwriter and its parent, subsidiaries and affiliates and any shareholder, director, officer, employee,
agent or “controlling person” (as such term is used in the Act) of any of the foregoing. 
 “Underwriter” means
Deutsche Bank Securities Inc. 
 “Underwriting Agreement” means the Underwriting Agreement between the Seller and the
Underwriter, dated June 6, 2006. 
  

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 Section 2. Representations and Warranties of the Insurer. The Insurer represents and
warrants to the Underwriter and UACC as follows: 
 (a) Organization and Licensing. The Insurer is a duly incorporated
and existing New York stock insurance company licensed to do business in the State of New York and is in good standing under the laws of such state. 
 (b) Corporate Power. The Insurer has the corporate power and authority to issue the Policy and execute and deliver this Agreement
and the Insurance Agreement and to perform all of its obligations hereunder and thereunder. 
 (c) Authorization;
Approvals. The issuance of the Policy and the execution, delivery and performance of this Agreement and the Insurance Agreement have been duly authorized by all necessary corporate proceedings. No further approvals or filings of any kind,
including, without limitation, any further approvals of or further filings with any governmental agency or other governmental authority, or any approval of the Insurer’s board of directors or stockholders, are necessary for the Policy, this
Agreement and the Insurance Agreement to constitute the legal, valid and binding obligations of the Insurer. 
 (d)
Enforceability. The Policy, when issued, and this Agreement and the Insurance Agreement will each constitute legal, valid and binding obligations of the Insurer, enforceable in accordance with their terms, subject to applicable laws affecting
the enforceability of creditors’ rights generally and general equitable principles and public policy considerations as to rights of indemnification for violations of federal securities laws. 
 (e) Financial Information. The consolidated financial statements of the Insurer as of December 31, 2005 and December 31,
2004 and for the three years ended December 31, 2005 incorporated by reference in the Preliminary Prospectus Supplement and the Prospectus Supplement (the “Insurer Audited Financial Statements”) fairly present in all material respects
the financial condition of the Insurer as of such date and for the period covered by such statements in accordance with generally accepted accounting principles consistently applied. The consolidated financial statements of the Insurer and its
subsidiaries as of March 31, 2006 and for the three months ended March 31, 2006 and March 31, 2005 incorporated by reference in the Preliminary Prospectus Supplement and the Prospectus Supplement present fairly in all material
respects the financial condition of the Insurer as of such date and for the period covered by such statements in accordance with generally accepted accounting principles applied in a manner consistent with the accounting principles used in preparing
the Insurer Audited Financial Statements. Since March 31, 2006, there has been no material change in such financial condition of the Insurer which would materially and adversely affect its ability to perform its obligations under the Note
Policy. 
  

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 (f) Insurer Information. The information in the Preliminary Prospectus Supplement
and the Prospectus Supplement as of the date hereof under the captions “The Policy” and “The Insurer” (including any information incorporated by reference therein) (the “Insurer Information”) is limited
and does not purport to provide the scope of disclosure required to be included in a prospectus for a registrant under the Securities Act of 1933, in connection with the public offer and sale of securities of such registrant. Within such limited
scope of disclosure, the Insurer Information does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. 
 (g) No Litigation. There are no actions, suits, proceedings or investigations pending or, to the best of
the Insurer’s knowledge, threatened against it at law or in equity or before or by any court, governmental agency, board or commission or any arbitrator which, if decided adversely, would materially and adversely affect its condition (financial
or otherwise) or its operations or would materially and adversely affect its ability to perform its obligations under this Agreement, the Policy or the Insurance Agreement. 
 Section 3. Agreements, Representations and Warranties of the Underwriter. The Underwriter represents and warrants to and
agrees with the Insurer that the information contained in or omitted from the Prospectus Supplement (or any supplement thereto) in reliance upon and in conformity with written information furnished to UACC by the Underwriter specifically for use in
the preparation thereof which information consists solely of the information set forth in the chart following the second paragraph, the third and the fourth paragraph under the heading “Underwriting” in the Prospectus Supplement (referred
to herein as the “Underwriter Information”) does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. 
 Section 4. Agreements, Representations and Warranties of UACC. UACC represents, warrants to and
agrees with the Insurer and the Underwriter that: 
 (a) Registration Statement. The information in the Registration
Statement, the Prospectus, the Preliminary Prospectus Supplement and the Prospectus Supplement, other than the Insurer Information and the Underwriter Information, does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (b) Representations and Warranties. Each of the representations and warranties of UACC contained in the Insurance Agreement is true and correct in all material respects, and UACC hereby makes each such representation and warranty to,
and for the benefit of, the Insurer as if the same were set forth in full herein. 
  

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 Section 5. Indemnification. 
 (a) The Insurer hereby agrees, upon the terms and subject to the conditions of this Agreement, to indemnify, defend and hold harmless each
UACC Party and each Underwriter Party against any and all Losses incurred by them with respect to the offer and sale of any of the Offered Notes and resulting from (i) the Insurer’s breach of any of its representations and warranties set
forth in Section 2 of this Agreement (ii) any and all Losses to which each UACC Party and each Underwriter Party may become subject, under the Act of otherwise, subject to the limited scope of the Insurer Information described below
insofar as such Losses arise out of or result from an untrue statement of a material fact contained in the Preliminary Prospectus Supplement or the Prospectus Supplement or the omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or omission was made in the Insurer Information included therein; and provided further, that it is understood
that the Insurer Information is limited and does not purport to provide the scope of disclosure required to be included in a prospectus for a registrant under the Securities Act of 1933, in connection with the public offer and sale of securities of
such registrant. 
 (b) The Underwriter hereby agrees, upon the terms and subject to the conditions of this Agreement, to
indemnify, defend and hold harmless each Insurer Party against any and all Losses incurred by it with respect to the offer and sale of any of the Offered Notes and resulting from the Underwriter’s breach of any of its representations and
warranties set forth in Section 3 of this Agreement. 
 (c) UACC hereby agrees, upon the terms and subject to the
conditions of this Agreement, to indemnify, defend and hold harmless each Insurer Party against any and all Losses incurred by it with respect to the offer and sale of any of the Offered Notes and resulting from UACC’s breach of any of its
representations and warranties set forth in Section 4 of this Agreement. 
 (d) Upon the incurrence of any Losses
entitled to indemnification hereunder, the Indemnifying Party shall reimburse the Indemnified Party promptly upon establishment by the Indemnified Party to the Indemnifying Party of the Losses incurred. 
 Section 6. Notice To Be Given. 
 (a) Except as provided in Section 7 below with respect to contribution, the indemnification provided herein by the Indemnifying Party shall be the exclusive remedy of each Indemnified Party for the Losses
resulting from the Indemnifying Party’s breach 

  

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of a representation, warranty or agreement hereunder; provided, however, that each Indemnified Party shall be entitled to pursue any other remedy at law or
in equity for any such breach so long as the damages sought to be recovered shall not exceed the Losses incurred thereby resulting from such breach. 
 (b) In the event that any action or regulatory proceeding shall be commenced or claim asserted which may entitle an Indemnified Party to be indemnified under this Agreement, such party shall give the Indemnifying
Party written or facsimile notice of such action or claim reasonably promptly after receipt of written notice thereof; provided, however, that the failure to notify the Indemnifying Party shall not relieve it of any liability it may have to an
Indemnified Party. 
 (c) Upon request of the Indemnified Party, the Indemnifying Party shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and any others the Indemnifying Party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. The Indemnifying
Party may, at its option, at any time upon written notice to the Indemnified Party, assume the defense of any proceeding and may designate counsel reasonably satisfactory to the Indemnified Party in connection therewith, provided that the counsel so
designated would have no actual or potential conflict of interest in connection with such representation. Unless it shall assume the defense of any proceeding the Indemnifying Party shall not be liable for any settlement of any proceeding, effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement or
judgment. The Indemnifying Party shall be entitled to participate in the defense of any such action or claim in reasonable cooperation with, and with the reasonable cooperation of, each Indemnified Party. 
 (d) The Indemnified Party will have the right to employ its own counsel in any such action, but the fees and expenses of such counsel will
be at the expense of such Indemnified Party unless (i) the employment of counsel by the Indemnified Party at the Indemnifying Party’s expense has been authorized in writing by the Indemnifying Party, (ii) the Indemnifying Party has
not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action or (iii) the named parties to any such action include the Indemnifying Party on the one hand
and, on the other hand, the Indemnified Party, and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them (in which case if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense of such action or proceeding on such Indemnified Party’s
behalf), in each of which cases the reasonable fees and expenses of counsel (including local counsel) will be at the expense of the 

  

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Indemnifying Party, and all such fees and expenses will be reimbursed promptly as they are incurred. In the event that any expenses so paid by the
Indemnifying Party are subsequently determined not to be required to be borne by the Indemnifying Party hereunder, the party which received such payment shall promptly refund to the Indemnifying Party the amount so paid by such Indemnifying Party.
Notwithstanding the foregoing, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, the Indemnifying Party shall not be
liable for the fees and expenses of more than one counsel for all UACC Parties, more than one counsel for all Underwriter Parties and more than one counsel for all Insurer Parties, as applicable. 
 (e) The Indemnified Parties shall cooperate with the Indemnifying Parties in resolving any event which would give rise to an indemnity
obligation pursuant to Section 5 hereof in the most efficient manner. 
 (f) No settlement of any such claim or action
shall be entered into without the consent of each Indemnified Party who is subject to such claim or action, on the one hand, and each Indemnifying Party who is subject to such claim or action, on the other hand; provided, however, that the consent
of such Indemnified Party shall not be required if such settlement fully discharges, with prejudice against the plaintiff, the claim or action against such Indemnified Party. 
 (g) Any failure by an Indemnified Party to comply with the provisions of this Section shall relieve the Indemnifying Party of liability
only if such failure is materially prejudicial to any legal pleadings, grounds, defenses or remedies in respect thereof or the Indemnifying Party’s financial liability hereunder, and then only to the extent of such prejudice. 
 Section 7. Contribution. 
 (a) To provide for just and equitable contribution if the indemnification provided by the Insurer is determined to be unavailable for an Underwriter Party (other than pursuant to Section 5 or 6 of this
Agreement), or if the indemnification provided by the Underwriter is determined to be unavailable for any Insurer Party (other than pursuant to Section 5 or 6 of this Agreement), the Insurer and the Underwriter shall contribute to the aggregate
costs of liabilities arising from any breach of their respective representations and warranties set forth in this Agreement on the basis of the relative fault of all Insurer Parties and all Underwriter Parties. 
 (b) To provide for just and equitable contribution if the indemnification provided by the Insurer is determined to be unavailable for any
UACC Party (other than pursuant to Section 5 or 6 of this Agreement), or if the indemnification provided by UACC is determined to be unavailable for any Insurer Party (other than pursuant to 

  

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Section 5 or 6 of this Agreement), the Insurer and UACC shall contribute to the aggregate cost of liabilities arising from any breach of their
respective representations and warranties set forth in this Agreement on the basis of the relative fault of all Insurer Parties and all UACC Parties. 
 (c) The relative fault of each Indemnifying Party, on the one hand, and of each Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether the breach of, or alleged breach
of, any of its representations and warranties set forth in Section 2, 3 or 4 of this Agreement relates to information supplied by, or action within the control of, the Indemnifying Party or the Indemnified Party and the Parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such breach. 
 (d) The parties agree that the
Insurer shall be solely responsible for the Insurer Information and for the Insurer Financial Statements, that the Underwriter shall be solely responsible for the Underwriter Information provided by the Underwriter in writing for use in the
Prospectus Supplement and that UACC shall be responsible for all other information in the Registration Statement and in the Prospectus Supplement. 
 (e) No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 (f) The indemnity and contribution agreements contained in this Agreement shall remain operative and in full force and
effect, regardless of (i) any investigation made by or on behalf of any Underwriter Party, any UACC Party or any Insurer Party, (ii) the issuance of any Offered Notes or the Policy or (iii) any termination of this Agreement.

 (g) Upon the incurrence of any Losses entitled to contribution hereunder, the contributor shall reimburse the party
entitled to contribution promptly upon establishment by the party entitled to contribution to the contributor of the Losses incurred. 
 Section 8. Notices. All notices and other communications provided for under this Agreement shall be addressed to the address set forth below as to each party or at such other address as shall be designated by a
party in a written notice to the other party. 
  

 8 

			
	If to the Insurer:	  	MBIA Insurance Corporation
		  	113 King Street
		  	Armonk, NY 10504
		  	 Attention:    Insured Portfolio Management—Structured

		  	                        Finance (IPM-SF)

		
	If to UACC:	  	United Auto Credit Corporation
		  	3990 Westerly Place, Suite 200
		  	Newport Beach, CA 92660
		  	Attention: Arash A. Khazei
		
	If to the Representative:	  	Deutsche Bank Securities Inc.
		  	60 Wall Street, 19th Floor
		  	New York, NY 10005

 Section 9. Governing Law, Etc. This Agreement shall be deemed to be a
contract under the laws of the State of New York and shall be governed by and construed in accordance with the laws of the State of New York without regard to its conflicts of laws provisions. This Agreement may not be assigned by any party without
the express written consent of each other party. Amendments of this Agreement shall be in writing signed by each party. This Agreement shall not be effective until executed by each of the Insurer, UACC and the Underwriter. 
 Section 10. Insurance Agreement; Underwriting Agreement; Sale and Servicing Agreement. This Agreement in no way limits or
otherwise affects the indemnification obligations of UACC under (a) the Insurance Agreement, or (b) the Sale and Servicing Agreement. 
 Section 11. Limitations. Nothing in this Agreement shall be construed as a representation or undertaking by the Insurer concerning maintenance of the rating currently assigned to its claims-paying ability by
Moody’s Investors Service, Inc. (“Moody’s”) and/or Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (“S&P”) or any other rating agency. 
 Section 12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall together
constitute but one and the same instrument. 
 Section 13. Nonpetition. So long as the Insurance Agreement is in
effect, and for one year following its termination, none of the parties hereto will file any involuntary petition or 
  

 9 

 
otherwise institute any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceeding under any federal or state
bankruptcy or similar law against the Issuer. 
 [Remainder of this page intentionally left blank.] 
  

 10 

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

			
	MBIA INSURANCE CORPORATION
		
	By	 	  

		 	Assistant Secretary
	
	UNITED AUTO CREDIT CORPORATION
		
	By	 	  

	Title	 	  

	
	DEUTSCHE BANK SECURITIES INC.
		
	By	 	  
  

	Title	 	  
  

	By	 	  
  

	Title	 	  
  

 UACC Automobile Receivables Trust 2006-A 
 Indemnification Agreement Signature Page

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