Document:

Form of Sale and Servicing Agreement.

 Exhibit 10.1.1 

  
 SALE AND SERVICING 
 AGREEMENT 
  
 among 
  
 UPFC AUTO RECEIVABLES TRUST 2006-__, 

 
 Issuing Entity, 
  
 UPFC AUTO RECEIVABLES CORP., 
  
 Seller, 
  
 UNITED AUTO CREDIT CORPORATION, 
  
 Servicer, 
  
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
  
 Trust Collateral Agent, Custodian and Backup Servicer 
  
 and 
  
 CENTERONE FINANCIAL
SERVICES LLC, 
  
 Designated Backup Subservicer 
  
 Dated as of
                             
  

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page

	ARTICLE I Definitions	  	1
	 SECTION 1.1.
	    	Definitions	  	1
	 SECTION 1.2.
	    	Other Definitional Provisions.	  	17
		
	 ARTICLE II Conveyance of Receivables
	  	18
	 SECTION 2.1.
	    	Conveyance of Receivables	  	18
	 SECTION 2.2.
	    	[Reserved]	  	19
	 SECTION 2.3.
	    	Further Encumbrance of Trust Property	  	19
		
	ARTICLE III The Receivables	  	20
	 SECTION 3.1.
	    	Representations and Warranties with Respect to the Receivables	  	20
	 SECTION 3.2.
	    	Repurchase Upon Breach.	  	21
	 SECTION 3.3.
	    	Custodian Of Receivable Files.	  	21
	 SECTION 3.4.
	    	Rights and Duties of the Custodian.	  	25
		
	ARTICLE IV Administration and Servicing of Receivables	  	26
	 SECTION 4.1.
	    	Duties of the Servicer and the Designated Backup Subservicer	  	26
	 SECTION 4.2.
	    	Collection of Receivable Payments; Modifications of Receivables.	  	27
	 SECTION 4.3.
	    	Realization upon Receivables.	  	28
	 SECTION 4.4.
	    	Insurance	  	30
	 SECTION 4.5.
	    	Maintenance of Security Interests in Vehicles	  	31
	 SECTION 4.6.
	    	Covenants, Representations, and Warranties of Servicer	  	32
	 SECTION 4.7.
	    	Purchase of Receivables Upon Breach of Covenant	  	33
	 SECTION 4.8.
	    	Total Servicing Fee; Payment of Certain Expenses by Servicer	  	34
	 SECTION 4.9.
	    	Servicer’s Certificate	  	34
	 SECTION 4.10.
	    	Annual Statement as to Compliance, Notice of Servicer Termination Event	  	35
	 SECTION 4.11.
	    	Annual Independent Accountants’ Report	  	35
	 SECTION 4.12.
	    	Access to Certain Documentation and Information Regarding Receivables	  	36
	 SECTION 4.13.
	    	Monthly Tape	  	36
	 SECTION 4.14.
	    	Servicer Renewal.	  	38
	 SECTION 4.15.
	    	Fidelity Bond and Errors and Omissions Policy	  	38
		
	ARTICLE V Trust Accounts; Distributions; Statements to Noteholders	  	38
	 SECTION 5.1.
	    	Establishment of Trust Accounts	  	38
	 SECTION 5.2.
	    	[Reserved]	  	41
	 SECTION 5.3.
	    	Certain Reimbursements to the Servicer	  	41
	 SECTION 5.4.
	    	Application of Collections	  	41
	 SECTION 5.5.
	    	Withdrawals from Spread Account	  	41
	 SECTION 5.6.
	    	Additional Deposits	  	42
	 SECTION 5.7.
	    	Distributions	  	42

  

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	 SECTION 5.8.
	    	Note Distribution Account.	  	44
	 SECTION 5.9.
	    	[Reserved]	  	45
	 SECTION 5.10.
	    	Statements to Noteholders.	  	45
	 SECTION 5.11.
	    	Optional Deposits by the Insurer	  	46
		
	 ARTICLE VI The Note Policy
	  	47
	 SECTION 6.1.
	    	Claims Under Note Policy.	  	47
	 SECTION 6.2.
	    	Preference Claims Under Note Policy	  	48
	 SECTION 6.3.
	    	Surrender of Note Policy	  	49
		
	 ARTICLE VII The Seller
	  	49
	 SECTION 7.1.
	    	Representations of Seller	  	49
	 SECTION 7.2.
	    	Corporate Existence	  	51
	 SECTION 7.3.
	    	Liability of UACC; Indemnities	  	51
	 SECTION 7.4.
	    	Merger or Consolidation of, or Assumption of the Obligations of, Seller	  	52
	 SECTION 7.5.
	    	Limitation on Liability of Seller and Others	  	52
	 SECTION 7.6.
	    	Ownership of the Certificates or Notes	  	52
		
	 ARTICLE VIII The Servicer
	  	53
	 SECTION 8.1.
	    	Representations of Servicer	  	53
	 SECTION 8.2.
	    	Liability of Servicer, Backup Servicer and Designated Backup Subservicer; Indemnities	  	54
	 SECTION 8.3.
	    	Merger or Consolidation of, or Assumption of the Obligations of the Servicer, Designated Backup Subservicer or Backup Servicer	  	56
	 SECTION 8.4.
	    	Limitation on Liability of Servicer, Designated Backup Subservicer, Backup Servicer and Others	  	57
	 SECTION 8.5.
	    	Delegation of Duties	  	59
	 SECTION 8.6.
	    	Servicer, the Designated Backup Subservicer and Backup Servicer Not to Resign	  	60
		
	 ARTICLE IX Default
	  	61
	 SECTION 9.1.
	    	Servicer Termination Event	  	61
	 SECTION 9.2.
	    	Consequences of a Servicer Termination Event	  	62
	 SECTION 9.3.
	    	Appointment of Successor	  	63
	 SECTION 9.4.
	    	Notification to Noteholders	  	64
	 SECTION 9.5.
	    	Waiver of Past Defaults	  	64
		
	 ARTICLE X Termination
	  	65
	 SECTION 10.1.
	    	Optional Purchase of All Receivables	  	65
		
	ARTICLE XI Administrative Duties of the Servicer	  	66
	 SECTION 11.1.
	    	Administrative Duties	  	66
	 SECTION 11.2.
	    	Records	  	68
	 SECTION 11.3.
	    	Additional Information to be Furnished to the Trust	  	68
	 SECTION 11.4.
	    	Reporting Requirements of the Commission and Indemnification	  	68

  

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	 ARTICLE XII Miscellaneous Provisions
	  	69
	 SECTION 12.1.
	    	Amendment	  	69
	 SECTION 12.2.
	    	Protection of Title to Trust	  	71
	 SECTION 12.3.
	    	Notices	  	72
	 SECTION 12.4.
	    	Assignment	  	73
	 SECTION 12.5.
	    	Limitations on Rights of Others	  	73
	 SECTION 12.6.
	    	Severability	  	74
	 SECTION 12.7.
	    	Separate Counterparts	  	74
	 SECTION 12.8.
	    	Headings	  	74
	 SECTION 12.9.
	    	Governing Law	  	74
	 SECTION 12.10.
	    	Assignment to Trustee	  	74
	 SECTION 12.11.
	    	Nonpetition Covenants	  	74
	 SECTION 12.12.
	    	Limitation of Liability of Owner Trustee and Trustee	  	75
	 SECTION 12.13.
	    	Independence of the Servicer	  	76
	 SECTION 12.14.
	    	No Joint Venture	  	76
	 SECTION 12.15.
	    	Benefits of Sale and Servicing Agreement	  	76
	 SECTION 12.16.
	    	State Business Licenses	  	76
	 SECTION 12.17.
	    	Additional Liability.	  	76

  

			
	SCHEDULES	  	 
	Schedule A	  	Schedule of Receivables
	Schedule B	  	Location of Receivables
	Schedule C	  	Schedule of Servicer’s Representations
	Schedule D	  	Terms and Conditions of Designated Backup Subservicer
		
	EXHIBITS	  	 
	Exhibit A	  	[Reserved]
	Exhibit B	  	Form of Servicer’s Certificate
	Exhibit C	  	[Reserved]
	Exhibit D	  	Form of Request for Release

  

 iii 

 SALE AND SERVICING AGREEMENT dated as of
                            , 2006, among UPFC AUTO RECEIVABLES TRUST
2006-    , a Delaware statutory trust (the “Trust”), UPFC AUTO RECEIVABLES CORP., a California corporation (the “Seller”), UNITED AUTO CREDIT CORPORATION, a California corporation (the
“Servicer”) DEUTSCHE BANK TRUST COMPANY AMERICAS, a banking corporation organized under the laws of the State of New York, in its capacity as trust collateral agent (the “Trust Collateral Agent”, in its capacity as
custodian, the “Custodian” and in its capacity as backup servicer, the “Backup Servicer”) and CENTERONE FINANCIAL SERVICES LLC, a Delaware limited liability company (the “Designated Backup Subservicer”). 
  
 WHEREAS the Trust desires to purchase a portfolio of receivables arising in
connection with motor vehicle retail installment sale contracts made by United Auto Credit Corporation or acquired by United Auto Credit Corporation through motor vehicle dealers; 
  
 WHEREAS the Seller has purchased such receivables from United Auto Credit Corporation and is willing to sell such
receivables to the Trust; 
  
 WHEREAS the Servicer is willing to
service all such receivables; 
  
 WHEREAS the Backup Servicer is
willing to provide backup servicing for all such receivables; 
  
 WHEREAS the Designated Backup Subservicer is willing to provide backup subservicing for all such receivables 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.1. Definitions. Whenever used in this Agreement, the following words and phrases shall have the following meanings: 
  
 “Accountants’ Report” means the report of a firm of
nationally recognized independent accountants described in Section 4.11. 
  
 “Accounting Date” means, with respect to any Collection Period the last day of such Collection Period. 
  
 “Additional Funds Available” means, with respect to any Distribution Date, the sum of (i) the Spread Account Claim Amount, if any,
received by the Trust Collateral Agent with respect to such Distribution Date plus (ii) the Insurer Optional Deposit, if any, received by the Trust Collateral Agent with respect to such Distribution Date. 

 “Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Aggregate Principal Balance” means, with respect to any
date of determination, the sum of the Principal Balances for all Receivables (other than (i) any Receivable that became a Liquidated Receivable prior to the end of the related Collection Period and (ii) any Receivable that became a Purchased
Receivable prior to the end of the related Collection Period) as of the date of determination. 
  
 “Agreement” means this Sale and Servicing Agreement, as the same may be amended and supplemented from time to time. 
  
 “Amount Financed” means, with respect to a Receivable, the
aggregate amount advanced under such Receivable toward the purchase price of the Financed Vehicle and any related costs, including amounts advanced in respect of accessories, insurance premiums, service and warranty contracts, other items
customarily financed as part of retail automobile installment sale contracts or promissory notes, and related costs. 
  
 “Annual Percentage Rate” or “APR” of a Receivable means the annual percentage rate of finance charges or service
charges, as stated in the related Contract. 
  
 “Available Funds” means, with respect to any Distribution Date, the sum of (i) the Collected Funds for the related Collection Period, (ii) following the acceleration of the Notes pursuant to Section 5.2 of the Indenture,
the amount of money or property collected pursuant to Section 5.3 of the Indenture since the preceding Distribution Date by the Trust Collateral Agent or Controlling Party for distribution pursuant to Section 5.6 and Section 5.8 of the Indenture,
(iii) the proceeds of any purchase or sale of the assets of the Trust described in Section 10.1 hereof, (iv) Investment Earnings with respect to the Trust Accounts for the related Collection Period and (vi) excess amounts released from the Spread
Account. 
  
 “Backup Servicer” means the Trust
Collateral Agent in its capacity as backup servicer. 
  
 “Base Servicing Fee” means, with respect to any Collection Period, the fee payable to the Servicer for services rendered during such Collection Period, which shall be equal to the product of the Servicing Fee Rate times the
product of (i) the aggregate Principal Balance of the Receivables as of the opening of business on the first day of such Collection Period multiplied by (ii) one twelfth. 
  
 “Basic Documents” means this Agreement, the Certificate of Trust, the Trust Agreement, the Indenture, the
Spread Account Agreement, the Insurance Agreement, the Sale Agreement and other documents and certificates delivered in connection therewith. 
  

 2 

 “Business Day” means any day other than (a) a Saturday or a Sunday, (b) a day on which
the Insurer is closed or (c) 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. 
  
 “CenterOne” mean CenterOne Financial Services LLC, a Delaware limited liability company. 
  
 “Certificate” means the trust certificate evidencing the
beneficial interest of the Certificateholder in the Trust. 
  
 “Certificateholder” means the Person in whose name the Certificate is registered. 
  
 “Class” means the Class A-1 Notes, the Class A-2 Notes or the Class A-3 Notes, as the context requires. 
  
 “Class A-1 Notes” has the meaning assigned to such term in
the Indenture. 
  
 “Class A-2 Notes” has the
meaning assigned to such term in the Indenture. 
  
 “Class A-3 Notes” has the meaning assigned to such term in the Indenture. 
  
 “Closing Date” means
                            , 2006. 
  
 “Collateral Agent” means Deutsche Bank Trust Company Americas, in its capacity as Collateral Agent under
the Spread Account Agreement. 
  
 “Collateral
Insurance” shall have the meaning set forth in Section 4.4(a). 
  
 “Collected Funds” means, with respect to any Collection Period, the amount of funds in the Collection Account representing collections on the Receivables during such Collection Period, including all
Net Liquidation Proceeds collected during such Collection Period and any Purchase Amounts deposited in the Collection Account with respect to such Collection Period. 
  
 “Collection Account” means the account designated as such, established and maintained pursuant to Section
5.1. 
  
 “Collection Period” means, with respect
to the first Distribution Date, the period beginning on the close of business on
                            , 2006 and ending on the close of business on
                            , 2006. With respect to each subsequent Distribution Date,
“Collection Period” means the immediately preceding calendar month. 
  
 “Collection Records” means all manually prepared or computer generated records relating to collection efforts or payment histories with respect to the Receivables. 
  
 “Commission” means the United States Securities and
Exchange Commission. 
  

 3 

 “Computer Tape” means the computer tapes or other electronic media furnished by the
Servicer to the Trust and the Insurer and its assigns describing certain characteristics of the Receivables as of the Cutoff Date. 
  
 “Contract” means a motor vehicle retail installment sale contract or promissory note. 
  
 “Controlling Party” means the Insurer, so long as no
Insurer Default shall have occurred and be continuing and the Trust Collateral Agent for the benefit of the Noteholders, in the event an Insurer Default shall have occurred and be continuing. 
  
 “Corporate Trust Office” means (i) with respect to the
Owner Trustee, the principal corporate trust office of the Owner Trustee, which at the time of execution of this agreement is 919 Market Street, Suite 700, Wilmington, Delaware 19801, Attention: Corporate Trust Administration, (ii) with respect to
the Trustee, the Trust Collateral Agent and the Collateral Agent, the principal office thereof at which at any particular time its corporate trust business shall be administered, which at the time of execution of this agreement is 60 Wall Street,
26th Floor, New York, New York 10005, Attention: Trust Securities Services/Structured Finance Services and (iii)
with respect to the Custodian, the principal office at which any particular time its custodial business shall be administered, which at the time of execution of this agreement is 1761 East St. Andrew Place, Santa Ana, California 92705, Attention:
Mortgage Custody UPFC5B. 
  
 “Cram Down Loss”
means, with respect to a Receivable that has not become a Liquidated Receivable, if a court of appropriate jurisdiction in a proceeding related to an Insolvency Event shall have issued an order reducing the amount owed on a Receivable or otherwise
modifying or restructuring the Scheduled Receivables Payments to be made on a Receivable in a manner that reduces the total principal payable by the obligor, an amount equal to the excess of the principal balance of such Receivable immediately prior
to such order over the principal balance of such Receivable as so reduced. A “Cram Down Loss” shall be deemed to have occurred on the date of issuance of such order. 
  
 “Custodian” means the Trust Collateral Agent in its capacity as custodian of the Receivable Files.

  
 “Cutoff Date” means
                            , 2006. 
  
 “Dealer” means a dealer who sold a Financed Vehicle and who originated and assigned the respective
Receivable to UACC under a Dealer Agreement or pursuant to a Dealer Assignment. 
  
 “Dealer Agreement” means any agreement between a Dealer and UACC relating to the acquisition of Receivables from a Dealer by UACC. 
  
 “Dealer Assignment” means, with respect to a Receivable, the executed assignment executed by a Dealer
conveying such Receivable to UACC. 
  
 “Deficiency
Notice” shall have the meaning set forth in Section 5.5. 
  

 4 

 “Delivery” when used with respect to Trust Account Property means: 
  
 (a) with respect to bankers’ acceptances, commercial
paper, negotiable certificates of deposit and other obligations that constitute “instruments” within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of physical delivery, transfer thereof to the Trust Collateral Agent or
its nominee or custodian by physical delivery to the Trust Collateral Agent or its nominee or custodian endorsed to, or registered in the name of, the Trust Collateral Agent or its nominee or custodian or endorsed in blank, and, with respect to a
certificated security (as defined in Section 8-102 of the UCC), transfer thereof (i) by delivery of such certificated security endorsed to, or registered in the name of, the Trust Collateral Agent or its nominee or custodian or endorsed in blank to
a financial intermediary (as defined in Section 8-313 of the UCC) and the making by such financial intermediary of entries on its books and records identifying such certificated securities as belonging to the Trust Collateral Agent or its nominee or
custodian and the sending by such financial intermediary of a confirmation of the purchase of such certificated security by the Trust Collateral Agent or its nominee or custodian, or (ii) by delivery thereof to a “clearing corporation” (as
defined in Section 8-102(3) of the UCC) and the making by such clearing corporation of appropriate entries on its books reducing the appropriate securities account of the transferor and increasing the appropriate securities account of a financial
intermediary by the amount of such certificated security, the identification by the clearing corporation of the certificated securities for the sole and exclusive account of the financial intermediary, the maintenance of such certificated securities
by such clearing corporation or a “custodian bank” (as defined in Section 8-102(4) of the UCC) or the nominee of either subject to the clearing corporation’s exclusive control, the sending of a confirmation by the financial
intermediary of the purchase by the Trust Collateral Agent or its nominee or custodian of such securities and the making by such financial intermediary of entries on its books and records identifying such certificated securities as belonging to the
Trust Collateral Agent or its nominee or custodian (all of the foregoing, “Physical Property”), and, in any event, any such Physical Property in registered form shall be in the name of the Trust Collateral Agent or its nominee or
custodian; and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of ownership of any such Trust Account Property to the Trust Collateral Agent or its nominee or custodian, consistent with
changes in applicable law or regulations or the interpretation thereof; 
  
 (b) with respect to any security issued by the U.S. Treasury, the Federal Home Loan Mortgage Corporation or by the Federal National Mortgage Association that is a book-entry security held through the Federal Reserve
System pursuant to federal book-entry regulations, the following procedures, all in accordance with applicable law, including applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry registration of such Trust Account Property to
an appropriate book-entry account maintained with a Federal Reserve Bank by a financial intermediary which is also a “depository” pursuant to applicable Federal regulations and issuance by such financial intermediary of a deposit advice or
other written confirmation of such book-entry registration to the Trust Collateral Agent or its nominee or custodian of the purchase by the Trust Collateral Agent or its nominee or custodian of such book-entry securities; the making by such
financial intermediary of entries in its books and records identifying such 
  

 5 

 book-entry security held through the Federal Reserve System pursuant to Federal book-entry regulations as
belonging to the Trust Collateral Agent or its nominee or custodian and indicating that such custodian holds such Trust Account Property solely as agent for the Trust Collateral Agent or its nominee or custodian; and such additional or alternative
procedures as may hereafter become appropriate to effect complete transfer of ownership of any such Trust Account Property to the Trust Collateral Agent or its nominee or custodian, consistent with changes in applicable law or regulations or the
interpretation thereof; and 
  
 (c) with respect
to any item of Trust Account Property that is an uncertificated security under Article 8 of the UCC and that is not governed by clause (b) above, registration on the books and records of the Trust thereof in the name of the financial intermediary,
the sending of a confirmation by the financial intermediary of the purchase by the Trust Collateral Agent or its nominee or custodian of such uncertificated security, the making by such financial intermediary of entries on its books and records
identifying such uncertificated certificates as belonging to the Trust Collateral Agent or its nominee or custodian. 
  
 “Depositor” shall mean the Seller in its capacity as Depositor under the Trust Agreement. 
  
 “Designated Backup Subservicer” mean the designated backup
subservicer appointed by the Backup Servicer pursuant to Section 8.5(c), initially CenterOne. 
  
 “Determination Date” means, with respect to any Collection Period the third Business Day preceding the Distribution Date in the next calendar month and with respect to the first Distribution Date,
                            , 2006. 
  
 “Distribution Date” means, with respect to each Collection Period, the 15th day of the following calendar month, or, if such day is not a Business Day, the immediately following Business Day, commencing
                            , 2006. 
  
 “Draw Date” means, with respect to any Distribution Date, the second Business Day immediately preceding
such Distribution Date. 
  
 “Electronic Ledger”
means the electronic master record of the retail installment sales contracts or installment loans of the Servicer. 
  
 “Eligible Deposit Account” means a segregated trust account with the corporate trust department of a depository institution acceptable
to the Insurer organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited
in such account, so long as any of the securities of such depository institution have a credit rating from each Rating Agency in one of its generic rating categories which signifies investment grade. 
  
 “Eligible Investments” mean book-entry securities,
negotiable instruments or securities represented by instruments in bearer or registered form which evidence: 
  
 (a) direct obligations of, and obligations fully guaranteed as to timely payment by, the United States of America; 
  

 6 

 (b) demand deposits, time deposits or certificates of deposit of any depository
institution or trust company incorporated under the laws of the United States of America or any state thereof or the District of Columbia (or any domestic branch of a foreign bank) and subject to supervision and examination by federal or state
banking or depository institution authorities (including depository receipts issued by any such institution or trust company as custodian with respect to any obligation referred to in clause (a) above or portion of such obligation for the benefit of
the holders of such depository receipts); provided, however, that at the time of the investment or contractual commitment to invest therein (which shall be deemed to be made again each time funds are reinvested following each Distribution Date), the
commercial paper or other short-term senior unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of such depository institution or
trust company shall have a credit rating from Standard & Poor’s of A-1+ and from Moody’s of Prime-1; 
  
 (c) commercial paper and demand notes investing solely in commercial paper having, at the time of the investment or contractual commitment
to invest therein, a rating from Standard & Poor’s of A-1+ and from Moody’s of Prime-1; 
  
 (d) investments in money market funds (including funds for which the Trust Collateral Agent or the Owner Trustee in each of their
individual capacities or any of their respective Affiliates is investment manager, controlling party or advisor) having a rating from Standard & Poor’s of AAA-m or AAAm-G and from Moody’s of Aaa and having been approved by the Insurer,
which approval shall not be unreasonably withheld; 
  
 (e) bankers’ acceptances issued by any depository institution or trust company referred to in clause (b) above; 
  
 (f) repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of
America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America, in either case entered into with a depository institution or trust company (acting as principal)
referred to in clause (b) above; 
  
 (g) any
other investment which would satisfy the Rating Agency Condition and is consistent with the ratings of the Securities and which, so long as no Insurer Default shall have occurred and be continuing, has been approved by the Insurer, which approval
shall not be unreasonably withheld, or any other investment that by its terms converts to cash within a finite period, if the Rating Agency Condition is satisfied with respect thereto; and 
  
 (h) cash denominated in United States dollars. 

 
 Any of the foregoing Eligible Investments may be purchased by or through
the Owner Trustee or the Trust Collateral Agent or any of their respective Affiliates. 
  
 “Eligible Servicer” means, UACC, Deutsche Bank Trust Company Americas, as Backup Servicer, CenterOne Financial Services, LLC, as Designated Backup Subservicer, or 
  

 7 

 another Person which at the time of its appointment as Servicer or Backup Servicer, (i) is servicing a portfolio of motor
vehicle retail installment sale contracts and/or motor vehicle installment loan contracts, (ii) is legally qualified and has the capacity to service the Receivables, (iii) has demonstrated the ability professionally and competently to service a
portfolio of motor vehicle retail installment sale contracts and/or motor vehicle installment loan contracts similar to the Receivables with reasonable skill and care and (iv) is qualified and entitled to use, pursuant to a license or other written
agreement, and agrees to maintain the confidentiality of, the software which the Servicer uses in connection with performing its duties and responsibilities under this Agreement or otherwise has available software which is adequate to perform its
duties and responsibilities under this Agreement. 
  
 “FDIC” means the Federal Deposit Insurance Corporation. 
  
 “Final Scheduled Distribution Date” means with respect to (i) the Class A-1 Notes, the
                            , 2006 Distribution Date, (ii) the Class A-2 Notes, the
                            , 200     Distribution Date and (iii) the Class
A-3 Notes, the                             , 20     Distribution Date.

  
 “Financed Vehicle” means an automobile or
light-duty truck, van or minivan, together with all accessions thereto, securing an Obligor’s indebtedness under the respective Receivable. 
  
 “Indenture” means the Indenture dated as of
                            , 2006, between the Trust and Deutsche Bank Trust Company Americas, as
Trust Collateral Agent and Trustee, as the same may be amended and supplemented from time to time. 
  
 “Insolvency Event” means, with respect to a specified Person, (a) the filing of a petition against such Person or the entry of a decree
or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar official for such Person or for any substantial part of its property, or ordering the winding-up or liquidation or such Person’s
affairs, and such petition, decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or (b) the commencement by such Person of a voluntary case under any applicable federal or state bankruptcy, insolvency or other
similar law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, or the consent by such Person to the appointment of or taking possession by, a receiver, liquidator,
assignee, custodian, trustee, sequestrator, or similar official for such Person or for any substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally
to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing. 
  
 “Insurance Agreement” means the Insurance Agreement, dated as of
                            , 2006, among the Insurer, the Trustee, the Trust Collateral Agent, the
Collateral Agent, the Trust, the Seller, the Servicer and the Backup Servicer, as the same may be amended or supplemented from time to time. 
  

 8 

 “Insurance Agreement Event of Default” means an “Insurance Agreement Event of
Default” as defined in the Insurance Agreement. 
  
 “Insurance Policy” means, with respect to a Receivable, any insurance policy (including the insurance policies described in Section 4.4 hereof) benefiting the holder of the Receivable providing loss or physical damage,
credit life, credit disability, theft, mechanical breakdown or similar coverage with respect to the Financed Vehicle or the Obligor. 
  
 “Insurer” means
                                        
        , or any successor thereto, as Trust of the Note Policy. 
  
 “Insurer Default” means the occurrence and continuance of any of the following events: 
  
 (a) the Insurer shall have failed to make a payment required
under the Note Policy in accordance with its terms; 
  
 (b) the Insurer shall have (i) filed a petition or commenced any case or proceeding under any provision or chapter of the United States Bankruptcy Code or any other similar federal or state law relating to insolvency, bankruptcy,
rehabilitation, liquidation or reorganization, (ii) made a general assignment for the benefit of its creditors, or (iii) had an order for relief entered against it under the United States Bankruptcy Code or any other similar federal or state law
relating to insolvency, bankruptcy, rehabilitation, liquidation or reorganization which is final and nonappealable; or 
  
 (c) a court of competent jurisdiction, the New York Department of Insurance or other competent regulatory authority shall have entered a
final and nonappealable order, judgment or decree (i) appointing a custodian, trustee, agent or receiver for the Insurer or for all or any material portion of its property or (ii) authorizing the taking of possession by a custodian, trustee, agent
or receiver of the Insurer (or the taking of possession of all or any material portion of the property of the Insurer). 
  
 “Insurer Optional Deposit” means, with respect to any Distribution Date, an amount delivered by the Insurer pursuant to Section 5.11, at
its sole option, other than amounts in respect of an Insured Payment (as defined in the Note Policy), to the Trust Collateral Agent for deposit into the Collection Account for any of the following purposes: (i) to provide funds in respect of the
payment of fees or expenses of any provider of services to the Trust with respect to such Distribution Date; or (ii) to include such amount as part of the Additional Funds Available for such Distribution Date to the extent that without such amount a
draw would be required to be made on the Note Policy. 
  
 “Interest Period” means with respect to any Distribution Date (i) for the Class A-1 Notes, from and including the prior Distribution Date (or in the case of the first Distribution Date, from and including the Closing Date)
to, but excluding, the current Distribution Date, and (ii) with respect to the Class A-2 Notes and the Class A-3 Notes, from and including the 15th day of the preceding calendar month (or, in the case of the first Distribution Date, from and including the Closing Date) to, but excluding, the 15th day of the month of the current Distribution Date. 
  

 9 

 “Interest Rate” means, with respect to (i) the Class A-1 Notes,
            % per annum (computed on the basis of a 360-day year and the actual number of days elapsed in the applicable Interest Period), (ii) the Class A-2 Notes,
            % per annum (computed on the basis of a 360-day year consisting of twelve 30-day months), and (iii) the Class A-3 Notes,
            % per annum (computed on the basis of a 360-day year consisting of twelve 30-day months). 
  
 “Investment Earnings” means, with respect to any date of determination and Trust Account, the investment
earnings on amounts on deposit in such Trust Account on such date. 
  
 “Trust” means UPFC Auto Receivables Trust 2006-    . 
  
 “Lien” means a security interest, lien, charge, pledge, equity, or encumbrance of any kind, other than tax liens, mechanics’ liens
and any liens that attach to the respective Receivable by operation of law as a result of any act or omission by the related Obligor. 
  
 “Lien Certificate” means, with respect to a Financed Vehicle, an original certificate of title, certificate of lien or other
notification issued by the Registrar of Titles of the applicable state to a secured party which indicates that the lien of the secured party on the Financed Vehicle is recorded on the original certificate of title. In any jurisdiction in which the
original certificate of title is required to be given to the Obligor, the term “Lien Certificate” shall mean only a certificate or notification issued to a secured party. 
  
 “Liquidated Receivable” means, with respect to any Collection Period, a Receivable for which, as of the
last day of the Collection Period, (i) 90 days have elapsed since the Servicer repossessed the Financed Vehicle provided, however, that in no case shall 5% or more of a Scheduled Receivables Payment have become 210 or more days delinquent in the
case of a repossessed Financed Vehicle and which is not a Sold Receivable, (ii) the Servicer has determined in good faith that all amounts it expects to recover have been received and which is not a Sold Receivable, (iii) 5% or more of a Scheduled
Receivables Payment shall have become 120 or more days delinquent, except in the case of a repossessed Financed Vehicle, and which is not a Sold Receivable or (iv) that is a Sold Receivable. 
  
 “Liquidation Proceeds” means, with respect to a Liquidated
Receivable, all amounts realized with respect to such Receivable (other than amounts withdrawn from the Spread Account and drawings under the Note Policy), and, with respect to a Sold Receivable, the related Sale Amount. 
  
 “Minimum Sale Price” means (i) with respect to a Receivable
(x) that has become 60 to 210 days delinquent or (y) that has become greater than 210 days delinquent and with respect to which the related Financed Vehicle has been repossessed by the Servicer and has not yet been sold at auction, the greater of
(A) 55% multiplied by the Principal Balance of such Receivable and (B) the product of the three month rolling average recovery rate (expressed as a percentage) for the Servicer in its liquidation of all receivables for which it acts as servicer,
either pursuant to this Agreement or otherwise, multiplied by the Principal Balance of such Receivable or (ii) with respect to a Receivable (x) with respect to which the related Financed Vehicle has been repossessed by the Servicer and has been sold
at auction and the net Liquidation Proceeds for which have been deposited in the Collection Account, or (y) that has 
  

 10 

 become greater than 210 days delinquent and with respect to which the related Financed Vehicle has not been repossessed
by the Servicer despite the Servicer’s diligent efforts, consistent with its servicing obligations, to repossess the Financed Vehicle, $1. 
  
 “Monthly Extension Rate” means, with respect to any Accounting Date, the fraction, expressed as a percentage, the numerator of which is
the aggregate Principal Balance of Receivables whose payments are extended during the related Collection Period and the denominator of which is the aggregate Principal Balance of Receivables as of the immediately preceding Accounting Date.

  
 “Monthly Records” means all records and data
maintained by the Servicer with respect to the Receivables, including the following with respect to each Receivable: the account number; the originating Dealer; Obligor name; Obligor address; Obligor home phone number; Obligor business phone number;
original Principal Balance; original term; Annual Percentage Rate; current Principal Balance; current remaining term; origination date; first payment date; final scheduled payment date; next payment due date; date of most recent payment; new/used
classification; collateral description; days currently delinquent; number of contract extensions (months) to date; amount of Scheduled Receivables Payment; current Insurance Policy expiration date; and past due late charges. 
  
 “Moody’s” means Moody’s Investors Service, or its
successor. 
  
 “Net Liquidation Proceeds” means,
with respect to a Liquidated Receivable Liquidation Proceeds net of (i) reasonable out-of-pocket expenses incurred by the Servicer in connection with the collection of such Receivable and the repossession and disposition of the Financed Vehicle and
(ii) amounts that are required to be refunded to the Obligor on such Receivable; provided, however, that the Net Liquidation Proceeds with respect to any Receivable shall in no event be less than zero. 
  
 “Note Distribution Account” means the account designated as
such, established and maintained pursuant to Section 5.1. 
  
 “Note Majority” means a majority by principal amount of the Noteholders. 
  
 “Note Policy” means the financial guaranty insurance policy issued by the Insurer to the Trustee, for the benefit of the Noteholders.

  
 “Note Pool Factor” for each Class of Notes
as of the close of business on any date of determination means a seven-digit decimal figure equal to the outstanding principal amount of such Class of Notes divided by the original outstanding principal amount of such Class of Notes. 
  
 “Noteholders’ First Principal Distributable Amount”
means, for any Distribution Date, an amount equal to the sum of: 
  
 (1) the greater of (i) zero and (ii) (a) the outstanding principal balance of the Notes immediately preceding such Distribution Date; less (b) the Pool Balance as of the end of the preceding calendar month; and 
  

 11 

 (2) (a) in the case of the Final Scheduled Distribution Date for a Class of Notes, the excess of the
outstanding principal balance of that Class of Notes, if any, over the amounts described in clause (1), and (b) in the case of the acceleration of the Notes under the Indenture, the excess of the outstanding principal balance of all classes of the
Notes then outstanding over the amount described in clause (1). 
  
 “Noteholders’ Interest Carryover Amount” means, with respect to any Class of Notes and any date of determination, all or any portion of the Noteholders’ Interest Distributable Amount for that Class for the
immediately preceding Distribution Date, any of which remains unpaid as of such date of determination, plus interest on such unpaid amount, to the extent permitted by law, at the respective Interest Rate borne by each Class of Notes from such
immediately preceding Distribution Date to but excluding the related Distribution Date. 
  
 “Noteholders’ Interest Distributable Amount” means, with respect to any Distribution Date and Class of Notes, the sum of the Noteholders’ Monthly Interest Distributable Amount for such
Distribution Date and Class of Notes and the Noteholders’ Interest Carryover Amount, if any for such Distribution Date and such Class. 
  
 “Noteholders’ Monthly Interest Distributable Amount” means, with respect to any Distribution Date and any Class of Notes, interest
accrued at the related Interest Rate during the applicable Interest Period on the principal amount of the Notes of such Class outstanding as of the end of the prior Distribution Date (or, in the case of the first Distribution Date, as of the Closing
Date). 
  
 “Noteholders’ Second Principal
Distributable Amount” means for a Distribution Date, an amount equal to the lesser of: 
  
 (1) the excess, if any, of the amount of Available Funds and Additional Funds Available on the Distribution Date over the amounts payable on the
Distribution Date under Section 5.7(b)(i) through (vi); and 
  
 (2) the amount necessary to reduce the principal balance of the notes to the Targeted Note Balance. 
  
 “Obligor” on a Receivable means the purchaser or co-purchasers of the Financed Vehicle and any other Person who owes payments under the
Receivable. 
  
 “Officers’ Certificate”
means a certificate signed by the chairman of the board, the president, any executive vice president, senior vice president or any vice president, any treasurer, assistant treasurer, secretary or assistant secretary of the Seller or the Servicer, as
appropriate. 
  
 “Opinion of Counsel” means a
written opinion of counsel reasonably acceptable to the Insurer, which opinion is satisfactory in form and substance to the Trust Collateral Agent and, if such opinion or a copy thereof is required by the provisions of this Agreement to be delivered
to the Insurer, to the Insurer. 
  

 12 

 “Original Pool Balance” means the Pool Balance as of the Cutoff Date, which equaled
$                    . 
  
 “Other Conveyed Property” means all property conveyed by the Seller to the Trust pursuant to Section 2.1(b) through (j) of this
Agreement. 
  
 “Owner Trust Estate” has the
meaning assigned to such term in the Trust Agreement. 
  
 “Owner Trustee” means Wells Fargo Delaware Trust Company, not in its individual capacity but solely as Owner Trustee, acting on behalf of the Trust, under the Trust Agreement, its successors in interest or any successor
Owner Trustee under the Trust Agreement. 
  
 “Person” means any individual, corporation, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or
political subdivision thereof. 
  
 “Physical
Property” has the meaning assigned to such term in the definition of “Delivery” above. 
  
 “Pool Balance” means, as of any date of determination, the aggregate Principal Balance of the Receivables (excluding Purchased
Receivables and Liquidated Receivables). 
  
 “Policy
Claim Amount” means, (i) with respect to each Distribution Date, the excess, if any, without duplication, of (a) the Scheduled Payments minus (b) the sum of, without duplication: (w) all amounts of Available Funds for the related Collection
Period, (x) Additional Funds Available, if any, for such Distribution Date, (y) all other funds on deposit in the Collection Account, the Note Distribution Account and the Spread Account available for payment of Scheduled Payments on the Notes on
such Distribution Date and (z) any other amounts available pursuant to the Basic Documents to pay the Scheduled Payments on such Distribution Date, in each case to the extent available in accordance with the priorities set forth in Indenture and
Section 5.7 of this Agreement, and (ii) with respect to any preference payment date, Preference Amounts as defined in the Insurance Agreement; provided, however, that the aggregate amount of all such Preference Amounts will be subject to the
limitations in such definition; provided, further, that in no event will the aggregate amount payable by the Insurer under the Policy exceed the Maximum Insured Amount as defined in the Insurance Agreement. 
  
 “Principal Balance” means, with respect to any Receivable,
as of any date of determination, the Amount Financed minus (i) that portion of all amounts received on or prior to such date and allocable to principal in accordance with the terms of the Receivable and (ii) any Cram Down Loss accounted for as of
such date in respect of such Receivable. 
  
 “Purchase
Amount” means, with respect to a Purchased Receivable, the Principal Balance and all accrued and unpaid interest on the Purchased Receivable, after giving effect to the receipt of any moneys collected (from whatever source) on such
Purchased Receivable, if any as of the date of purchase. 
  

 13 

 “Purchased Receivable” means a Receivable purchased as of the close of business on the
last day of a Collection Period by the Servicer pursuant to Sections 4.2 or 4.7 or repurchased by the Seller or the Servicer pursuant to Section 3.2 or Section 10.1(a). 
  
 “Rating Agency” means Moody’s and Standard & Poor’s. If no such organization or successor
maintains a rating on the Securities, “Rating Agency” shall be a nationally recognized statistical rating organization or other comparable Person designated by the Seller and acceptable to the Insurer (so long as an Insurer Default
shall not have occurred and be continuing), notice of which designation shall be given to the Trust Collateral Agent, the Owner Trustee and the Servicer. 
  
 “Rating Agency Condition” means, with respect to any action, that each Rating Agency shall have been given 10 days (or such shorter
period as shall be acceptable to each Rating Agency) prior notice thereof and that each Rating Agency shall have notified the Seller, the Servicer, the Insurer, the Trustee, the Owner Trustee and the Trust in writing that such action will not result
in a reduction or withdrawal of the then current rating of any Class of Notes without regard to the Note Policy. 
  
 “Realized Losses” means, with respect to any Receivable that becomes a Liquidated Receivable, the excess of the Principal Balance of
such Liquidated Receivable over Net Liquidation Proceeds to the extent allocable to principal. 
  
 “Receivables” means the contracts transferred to the Trust pursuant to this Agreement as listed on Schedule A attached hereto (which
Schedule may be in the form of microfiche or a disk). 
  
 “Receivable Files” means the documents specified in Section 3.3. 
  
 “Record Date” means, with respect to each Distribution Date, the Business Day immediately preceding such Distribution Date, unless otherwise specified in the Agreement. 
  
 “Registrar of Titles” means, with respect to any state, the
governmental agency or body responsible for the registration of, and the issuance of certificates of title relating to, motor vehicles and liens thereon. 
  
 “Requisite Amount” has the meaning specified in the Spread Account Agreement. 
  
 “Sale Agreement” means the means the Sale Agreement between
UACC, as seller and the Seller, as purchaser dated as of                             , 2006, pursuant
to which the Seller acquired the Receivables, as such Agreement may be amended from time to time. 
  
 “Sale Amount” means, with respect to any Sold Receivable, the amount received from the related third–party purchaser as payment for
such Sold Receivable. 
  
 “Schedule of
Receivables” means the schedule of all Receivables originally held as part of the Trust, which schedule is attached as Schedule A, (which Schedule may be in the form of microfiche or a disk). 
  

 14 

 “Schedule of Representations” means the Schedule of Representations and Warranties
attached hereto as Schedule C. 
  
 “Scheduled
Payments” means, with respect to any Distribution Date, an amount equal to the sum of the Noteholders’ Interest Distributable Amount (net of interest shortfalls resulting from the application of Relief Act Shortfalls) and the
Noteholders’ First Principal Distributable Amount (other than the amount specified in clause (2)(b) of the definition thereof) for the related Distribution Date; provided that Scheduled Payments will not include (x) any portion of a
Noteholders’ Interest Distributable Amount or of a Noteholders’ Interest Carryover Amount due to Noteholders because the notice in proper form was not timely received by the Insurer or (y) any portion of a Noteholders’ Interest
Distributable Amount due to registered owners of notes representing interest on any Noteholders’ Monthly Interest Distributable Amount. 
  
 “Scheduled Receivables Payment” means, with respect to any Collection Period for any Receivable, the amount set forth in such Receivable
as required to be paid by the Obligor in such Collection Period. If after the Closing Date, the Obligor’s obligation under a Receivable with respect to a Collection Period has been modified so as to differ from the amount specified in such
Receivable as a result of (i) the order of a court in an insolvency proceeding involving the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act, as amended, or (iii) modifications or extensions of the Receivable permitted by Section
4.2(b), the Scheduled Receivables Payment with respect to such Collection Period shall refer to the Obligor’s payment obligation with respect to such Collection Period as so modified. 
  
 “Seller” means UPFC Auto Receivables Corp., a California
corporation, and its successors in interest to the extent permitted hereunder. 
  
 “Service Contract” means, with respect to a Financed Vehicle, the agreement, if any, financed under the related Receivable that provides for the repair of such Financed Vehicle. 
  
 “Servicer” means United Auto Credit Corporation, as the
servicer of the Receivables, and each replacement Servicer pursuant to Section 9.3. 
  
 “Servicer Non-Renewal Notice” has the meaning assigned to it in Section 4.14. 
  
 “Servicer Termination Event” means an event specified in Section 9.1. 
  
 “Servicer’s Certificate” means an Officers’ Certificate of the Servicer delivered pursuant to
Section 4.9(b), substantially in the form of Exhibit B. 
  
 “Servicing Fee” has the meaning specified in Section 4.8. 
  
 “Servicing Fee Rate” means 3.00% per annum. 
  
 “Simple Interest Method” means the method of allocating a fixed level payment on an obligation between principal and interest, pursuant to which the portion of such payment that is allocated to
interest is equal to the product of the fixed rate of interest on such obligation multiplied by the period of time (expressed as a fraction of a year, based on the actual number of days in the calendar month and 365 days in the calendar year)
elapsed since the preceding payment under the obligation was made. 
  

 15 

 “Sold Receivable” means a Receivable that was more than 60 days delinquent and was sold
to an unaffiliated third party by the Trust, at the Servicer’s direction, as of the close of business on the last day of a collection period and in accordance with the provisions of Section 4.3(c) hereof. 
  
 “Spread Account” means the account designated as such,
established and maintained pursuant to the Spread Account Agreement. 
  
 “Spread Account Agreement” means the Spread Account Agreement dated as of
                            , 2006, among the Insurer, the Trust, the Trustee, the Trust Collateral
Agent and the Collateral Agent, as the same may be modified, supplemented or otherwise amended in accordance with the terms thereof. 
  
 “Spread Account Claim Amount” means with respect to any Determination Date, after taking into account the application on the related
Distribution Date of the Available Funds for the related Collection Period, an amount equal to any shortfall in the payment of the full amounts described in clauses (i) through (v) of Section 5.7(b) herein. 
  
 “Spread Account Claim Date” means, with respect to any
Distribution Date, the third Business Day immediately preceding such Distribution Date. 
  
 “Spread Account Initial Deposit” means an amount equal to
$                            . 
  
 “Standard & Poor’s” means Standard & Poor’s, a Division of The McGraw-Hill Companies,
Inc., or its successor. 
  
 “Supplemental Servicing
Fee” means, with respect to any Collection Period, all administrative fees, expenses and charges paid by or on behalf of Obligors, including late fees, prepayment fees and liquidation fees collected on the Receivables during such Collection
Period but excluding any fees or expenses related to extensions. 
  
 “Targeted Note Balance” means, for any Distribution Date, the product of             % and the Pool Balance as of the last day of the preceding calendar
month. The Insurer may, in its discretion, permit the Targeted Note Balance to increase. 
  
 “Trigger Event” has the meaning assigned thereto in the Spread Account Agreement. 
  
 “Trust” means the Issuing Entity. 
  
 “Trust Account Property” means the Trust Accounts, all amounts and investments held from time to time in any Trust Account (whether in
the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), and all proceeds of the foregoing. 
  

 16 

 “Trust Accounts” has the meaning assigned thereto in Section 5.1. 
  
 “Trust Agreement” means the Trust Agreement dated as of
                            , 2006, between the Seller and the Owner Trustee, as amended and restated
as of                             , 2006, as the same may be amended and supplemented from time to
time. 
  
 “Trust Collateral Agent” means
Deutsche Bank Trust Company Americas or its successors in interest and any successor Trust Collateral Agent hereunder. 
  
 “Trust Officer” means, (i) in the case of the Trust Collateral Agent, the chairman or vice-chairman of the board of directors, any
managing director, the chairman or vice-chairman of the executive committee of the board of directors, the president, any vice president, assistant vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer or any other officer of the Trust Collateral Agent customarily performing functions similar to those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject, and (ii) in the case of the Owner Trustee, any officer in the
corporate trust office of the Owner Trustee or any agent of the Owner Trustee under a power of attorney (including the Servicer) with direct responsibility for the administration of this Agreement or any of the Basic Documents on behalf of the Owner
Trustee. 
  
 “Trust Property” means the property
and proceeds conveyed pursuant to Section 2.1, together with certain monies paid on or after the Cutoff Date, the Collection Account (including all Eligible Investments therein and all proceeds therefrom), the Note Distribution Account, the Spread
Account and certain other rights under this Agreement. 
  
 “Trustee” means the Person acting as Trustee under the Indenture, its successors in interest and any successor trustee under the Indenture. 
  
 “UACC” means United Auto Credit Corporation, the initial servicer hereunder. 
  
 “UCC” means the Uniform Commercial Code as in effect in the
relevant jurisdiction on the date of the Agreement. 
  
 “Underwriter’s Information” means solely the information set forth in the table following the second paragraph of text, and the third, fourth, fifth and sixth paragraphs of text under the heading
“Underwriting” in the Prospectus Supplement. 
  
 SECTION
1.2. Other Definitional Provisions. 
  
 (a) Capitalized
terms used herein and not otherwise defined herein have meanings assigned to them in the Indenture, or, if not defined therein, in the Trust Agreement. 
  
 (b) All terms defined in this Agreement shall have the defined meanings when used in any instrument governed hereby and in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. 
  

 17 

 (c) As used in this Agreement, in any instrument governed hereby and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such instrument, certificate or other document, and accounting terms partly defined in this Agreement or in any such instrument,
certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles as in effect on the date of this Agreement or any such instrument, certificate or other
document, as applicable. To the extent that the definitions of accounting terms in this Agreement or in any such instrument, certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting
principles, the definitions contained in this Agreement or in any such instrument, certificate or other document shall control. 
  
 (d) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section, Schedule and Exhibit references contained in this Agreement are references to Sections, Schedules and Exhibits in or to this Agreement unless
otherwise specified; and the term “including” shall mean “including without limitation.” 
  
 (e) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as
to the feminine and neuter genders of such terms. 
  
 (f) Any
agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns. 
  
 ARTICLE II 
  
 Conveyance of Receivables 
  
 SECTION 2.1. Conveyance of Receivables. In consideration of the Trust’s delivery to or upon the order of the Seller on the Closing Date of the
Notes and certificates and the amounts to be distributed from time to time to the Seller in accordance with the terms of this Agreement, the Seller does hereby sell, transfer, assign, set over and otherwise convey to the Trust, without recourse
(subject to the obligations set forth herein), all right, title and interest of the Seller in and to: 
  
 (a) the Receivables and all moneys received thereon after the Cutoff Date; 
  
 (b) the security interests in the Financed Vehicles granted by Obligors pursuant to the Receivables and any other interest
of the Seller in such Financed Vehicles; 
  
 (c) any proceeds and
the right to receive proceeds with respect to the Receivables from claims on any physical damage, credit life or disability insurance policies covering Financed Vehicles or Obligors and any proceeds from the liquidation of the Receivables;

  

 18 

 (d) any proceeds from any Receivable repurchased by a Dealer pursuant to a Dealer Agreement as a result
of a breach of representation or warranty in the related Dealer Agreement; 
  
 (e) all rights under any Service Contracts on the related Financed Vehicles; 
  
 (f) the related Receivable Files; 
  
 (g) all of the Seller’s right, title and interest in its rights and benefits, but none of its obligations or burdens, under the Sale Agreement;

  
 (h) all of the Seller’s (a) Accounts, (b) Chattel Paper,
(c) Documents, (d) Instruments and (e) General Intangibles (as such terms are defined in the UCC) relating to the property described in (a) through (h); and 
  
 (i) all proceeds and investments with respect to items (a) through (h). 
  
 It is the intention of the Seller that the transfer and assignment contemplated by this Agreement shall constitute a sale
of the Receivables and Other Conveyed Property from the Seller to the Trust and the beneficial interest in and title to the Receivables and the Other Conveyed Property shall not be part of the Seller’s estate in the event of the filing of a
bankruptcy petition by or against the Seller under any bankruptcy law. In the event that, notwithstanding the intent of the Seller, the transfer and assignment contemplated hereby is held by a court of competent jurisdiction not to be a sale, this
Agreement shall constitute a grant of a security interest in the property referred to in this Section for the benefit of the Noteholders and the Insurer. 
  
 SECTION 2.2. [Reserved] 
  
 SECTION 2.3. Further Encumbrance of Trust Property. 
  
 (a) Immediately upon the conveyance to the Trust by the Seller of any item of the Trust Property pursuant to Section 2.1, all right, title and interest
of the Seller in and to such item of Trust Property shall terminate, and all such right, title and interest shall vest in the Trust, in accordance with the Trust Agreement and Sections 3802 and 3805 of the Statutory Trust Statute (as defined in the
Trust Agreement). 
  
 (a) Immediately upon the vesting of the
Trust Property in the Trust, the Trust shall have the sole right to pledge or otherwise encumber, such Trust Property. Pursuant to the Indenture, the Trust shall grant a security interest in the Trust Property to the Trust Collateral Agent securing
the repayment of the Notes and the Trust’s obligations to the Insurer. The Certificates shall represent the beneficial ownership interest in the Trust Property, and the Certificateholders shall be entitled to receive distributions with respect
thereto as set forth herein. 
  

 19 

 (b) Following the payment in full of the Notes and the release and discharge of the Indenture, all
covenants of the Trust under Article III of the Indenture shall, until payment in full of the Certificates, remain as covenants of the Trust for the benefit of the Certificateholders, enforceable by the Certificateholders to the same extent as such
covenants were enforceable by the Noteholders prior to the discharge of the Indenture. Any rights of the Trustee under Article III of the Indenture, following the discharge of the Indenture, shall vest in Certificateholders. 
  
 (c) The Trust Collateral Agent shall, at such time as there are no Notes or
Certificates outstanding and all sums due to (i) the Trustee pursuant to the Indenture, (ii) the Insurer pursuant to the Insurance Agreement and (iii) the Trust Collateral Agent pursuant to this Agreement, have been paid, release any remaining
portion of the Trust Property to the Certificateholder. 
  
 SECTION 2.4. Repurchase of Receivables. The Seller may repurchase Receivables, effective as of the first day of each Collection Period, by giving notice of its exercise of that right to the Indenture Trustee and Owner Trustee no
later than the last Business Day of the immediately preceding Collection Period. The aggregate Principal Balance of Receivables that the Seller may repurchase during any Collection Period shall not exceed 2% of the Original Pool Balance, provided,
however, that Receivables repurchased pursuant to this Section 2.3 shall not include any Receivables repurchased pursuant to Section 3.4. Each repurchase of Receivables shall close on the Distribution Date in the Collection Period in which each such
repurchase is effective. The repurchase price to be paid by the Seller shall equal the aggregate Principal Balance of the repurchased Receivables as of the last day of the immediately preceding Collection Period and shall be deposited into the
Collection Account not later than the Business Day prior to the applicable Distribution Date. The Receivables Files for the repurchased Receivables and any Collections received by the Servicer as to those repurchased Receivables on or after the
effective date of their repurchase shall be delivered to the Seller on the Distribution Date related to that repurchase. 
  
 ARTICLE III 
  
 The Receivables 
  
 SECTION 3.1. Representations and Warranties with Respect to the Receivables. UACC has made the representations and warranties set forth in Section 3.3 of the Sale Agreement, and has consented to the assignment
by Seller to Trust of Seller’s rights with respect thereto. Pursuant to Section 2.1 of this Agreement, Seller has transferred to Trust all of Seller’s right, title and interest, but none of its obligations or burdens, in, to and under the
Sale Agreement, including the representations and warranties of UACC therein and all of UACC’s right, title and interest, but none of its obligations or burdens, in, to and under the Sale Agreement and all of UACC’s right, title and
interest, but none of its obligations or burdens, in, to and under each Dealer Agreement, including the representations and warranties of the Obligors therein, upon which Trust relies in accepting the Receivables, together with all rights of Seller
with respect to any breach thereof, including the right to require UACC to purchase Receivables in accordance with the Sale Agreement. 
  

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 SECTION 3.2. Repurchase Upon Breach. 
  
 (a) Seller, Servicer, Backup Servicer, the Designated Backup Subservicer or
Trust Collateral Agent, as the case may be, shall inform the other parties to this Agreement promptly, in writing, upon actual knowledge of any breach or failure to be true of the representations or warranties made by UACC in Section 3.3 of the Sale
Agreement, which materially and adversely affects the interests of Trust and the Noteholders in any Receivable; provided that the failure to give such notice shall not affect any obligation of UACC; and, provided, further, that
the Designated Backup Subservicer, so long as it has not been appointed Servicer or subservicer, shall have no liability for a failure to give such notice. In consideration of the repurchase of a Receivable hereunder by UACC under Section 3.4 of the
Sale Agreement, UACC shall remit the Purchase Amount of such Receivable, no later than the close of business on the next Determination Date, in the manner specified in Section 5.6. 
  
 (b) With respect to all Receivables repurchased pursuant to this Section 3.2, Trust shall assign to the Seller without
recourse, all of Trust’s right, title and interest in and to such Receivables and all other Trust Property, security and documents, relating solely to such Receivable. 
  
 (c) In addition to the foregoing and notwithstanding whether the related Receivable shall have been purchased by UACC, UACC
shall indemnify the Trust, the Trustee, the Seller, the Backup Servicer, the Designated Backup Subservicer, the Trust Collateral Agent, Collateral Agent and the officers, directors, agents and employees thereof, the Insurer, and the Noteholders
against all costs, expenses, losses, damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third party claims arising out of the events or facts
giving rise to such breach. 
  
 SECTION 3.3. Custodian Of
Receivable Files. 
  
 (a) CUSTODY. To assure uniform
quality in servicing the Receivables and to reduce administrative costs, Trust, upon the execution and delivery of this Agreement, revocably appoints the Custodian, as agent, and the Custodian accepts such appointment, to act as agent on behalf of
the Trustee (or if no Notes are outstanding, Trust) to maintain custody of the following documents or instruments, which are hereby constructively delivered to Trust with respect to each Receivable (with respect to each Receivable, a
“Receivable File”): 
  
 (i) copies of
(A) the original certificate of title, lien card or application of title, as used in the applicable jurisdiction and/or (B) if the security interest of the applicable Obligor is evidenced with respect to a Financed Vehicle under the Uniform
Commercial Code of a state and the Custodian is given notice of such security interest, the UCC-1 financing statements evidencing the applicable Obligor’s security interest; 
  
 (ii) the fully executed original counterpart of the (a) installment sale contract or (b) note and the
security agreement, as applicable relating to each Receivable and, in the case of promissory notes, endorsements of such notes in blank; 
  

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 (iii) a copy of the credit application of the Obligor; and 
  
 (iv) such other documents that the Servicer causes to be
delivered to the Custodian. 
  
 The Custodian makes no representations as to and
shall not be responsible to verify (A) the validity, legality, enforceability, due authorization, recordability, sufficiency or genuineness of any of the documents contained in each Receivable File or (B) the collectability, insurability,
effectiveness, perfection, priority or suitability of any such Receivable. 
  
 On the Closing Date, UACC shall deliver to the Custodian a delivery certification certifying that the Receivable Files have been delivered to the Custodian as of the Closing Date, with any exceptions as noted thereon,
which certification shall be agreed to and acknowledged by the Custodian. Within fifteen (15) days following the Closing Date, the Custodian will deliver to the Trust, the Insurer and UACC a final certification of the custodian certifying that the
Custodian has received all of the Receivable Files, with any exceptions as noted thereon. 
  
 (b) SAFEKEEPING. The Custodian shall hold the applicable Receivable Files as agent on behalf of Trust and maintain accurate and complete records and computer systems pertaining to each Receivable in accordance
with the terms of this Agreement. In performing its duties as Custodian hereunder, Custodian shall act with reasonable care, exercising the degree of skill, attention and care that Custodian exercises with respect to receivable files relating to
other similar motor vehicle loans which are held by Custodian and that is consistent with industry standards. In accordance with its customary practice with respect to its custody files, Custodian shall maintain the Receivable Files in such a manner
as shall enable the Trust, the Insurer, the Trust Collateral Agent and the Trustee to verify, if the Trust, the Insurer, the Trust Collateral Agent or Trustee so elects, the accuracy of the record keeping of Custodian. Custodian shall promptly
report to the Trust and the Insurer any failure on its part to hold the Receivable Files and maintain its records and computer systems as herein provided, and promptly take appropriate action to remedy any such failure. Custodian hereby acknowledges
receipt of the Receivable File for each Receivable listed on the Schedule of Receivables, except as it may report to the Trust in writing. Nothing herein shall be deemed to require Trust, Owner Trustee or Trustee to verify the accuracy of the record
keeping of the Custodian. 
  
 (c) MAINTENANCE OF AND ACCESS TO
RECORDS. Custodian shall maintain each Receivable File at the locations specified in Schedule B to this Agreement, or at such other offices of Custodian or its Affiliates within the United States (or, in the case of any successor Custodian,
within the state in which its principal place of business is located) as shall be specified to the Trust by 30 days’ prior written notice. Custodian shall make available to the Trust, the Trust Collateral Agent, Trustee, Insurer and their
respective agents (or, when requested in writing by the Trust or Trustee, their respective attorneys or auditors) the Receivable Files and the related records maintained by Custodian at such times as the Trust, Trustee or Insurer shall instruct for
purposes of inspecting, auditing or making copies of abstracts of the same, but only upon two (2) Business Days prior notice and during the normal business hours at the respective offices of Custodian. 
  

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 (d) RELEASE OF DOCUMENTS. Upon written instructions from Servicer (or, if no Notes are then
Outstanding, the Trust), and receipt from the Servicer of a request for release (substantially in the form of Exhibit D), Custodian shall release any document in the Receivable Files to Servicer or the Trust or its respective agent or designee, as
the case may be, at such place or places as Servicer or the Trust may designate, as soon thereafter as is practicable and at the cost of the Trust. Any document so released shall be handled by Servicer or the Trust with due care and returned to
Custodian for safekeeping as soon as Servicer or the Trust or its respective agent or designee, as the case may be, shall have no further need therefor. 
  
 Upon becoming aware of the payment in full of any Receivable, the Servicer shall promptly notify the Custodian, in writing, that such Receivable has been
paid in full and upon such written notice from the Servicer, Custodian shall release the related Receivable File to the Servicer or the Trust or its respective agent or designee, as the case may be, at such place or places as the Servicer or the
Trust may designate, as soon thereafter as is practicable. Upon such release of the Receivable File, the Custodian shall have no further responsibility with regard to such Receivable File. 
  
 (e) TITLE TO RECEIVABLES. Custodian agrees that, in respect of any
Receivable File held by Custodian hereunder, Custodian shall not at any time have or in any way attempt to assert any interest in such Receivable File or the related Receivable, other than solely as Trust Collateral Agent for the purpose of
collecting or enforcing the Receivable for the benefit of Trust and that the entire equitable interest in such Receivable and the related Receivable File shall at all times be vested in Trust. 
  
 (f) INSTRUCTIONS; AUTHORITY TO ACT. Custodian shall be deemed to have
received proper instructions with respect to the Receivable Files upon its receipt of written instructions signed by an Authorized Officer of the Trust Collateral Agent or the Trust, as applicable. A certified copy of excerpts of certain resolutions
of the Board of Directors of the Trust Collateral Agent shall constitute conclusive evidence of the authority of any such Trust Officer to act and shall be considered in full force and effect until receipt by Custodian of written notice to the
contrary given by the Trust or the Trust Collateral Agent, as applicable. 
  
 (g) CUSTODIAN’S INDEMNIFICATION. In the event that the Custodian fails to produce an original note or installment contract that was in its possession pursuant to Section 3.3 within five (5) Business Days
after required or requested by the Trustee or Trust under Section 3.3(e), and provided that (i) the Custodian previously notified the Trust that it was in possession of such document; (ii) such document is not outstanding pursuant to a request for
release of documents under Section 3.3(e); and (iii) such document was held by the Custodian on behalf of the Trust (a “Custodian Delivery Failure”), then the Custodian shall indemnify the Trust, Insurer and Trustee in accordance
with the succeeding sentence of this Section 3.3(g). The Custodian shall indemnify and hold harmless Trust, Insurer and Trustee (individually and in its capacity as such), and each of their respective officers, directors, employees and agents from
and against any and all direct liabilities, obligations, losses, payments, costs or expenses (including reasonable legal fees and expenses, if any) of any kind whatsoever that may be imposed on, incurred or asserted against Trust, Trustee, Insurer
or the Holders as the result of such Custodian Delivery Failure. Indemnification under this Subsection (g) shall survive termination of this Agreement and the resignation or removal of the Trustee, as the case may be. 
  

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 If Custodian shall have made any indemnity payments to Trustee or Insurer pursuant to this Section and Trustee or Insurer
thereafter shall collect any of such amounts from Persons other than Custodian, Trust, Trustee or Insurer, as the case may be, shall, as soon as practicable following such receipt thereof, repay such amounts to Custodian, without interest.

  
 (h) EFFECTIVE PERIOD AND TERMINATION. Trust Collateral
Agent’s appointment as Custodian shall become effective as of the date of delivery of the Receivable Files (which shall be a date on or before the Closing Date) and shall continue in full force and effect until terminated pursuant to this
Subsection (h). If Backup Servicer shall resign as Backup Servicer in accordance with Section 8.6, the Custodian hereunder may be terminated by the Insurer (so long as an Insurer Default has not occurred and is continuing), the Owner Trustee,
Trustee or by the Holders of Notes evidencing greater than 25% of the aggregate outstanding principal amount of the Notes (or, if no Notes are then Outstanding, the Holders of Certificates representing greater than 50% of the outstanding percentage
interest of the Certificates), upon the prior written consent of the Insurer (so long as no Insurer Default shall have occurred and be continuing) in each case in the same manner as the Trust, Trustee or such Holders may terminate the rights and
obligations of Backup Servicer under Section 9.1. The Trustee, or, if no Notes are then outstanding, the Owner Trustee at the direction of Holders of Certificates evidencing greater than 50% of the outstanding principal interest of the Certificates,
may terminate Trust Collateral Agent’s appointment as Custodian hereunder at any time with cause. As soon as practicable after any termination of such appointment, Trust Collateral Agent shall deliver, or cause to be delivered, the Receivable
Files to Trustee or Owner Trustee, as applicable, or its respective agent or designee at such place or places as Trustee or Owner Trustee, as applicable, may reasonably designate. Notwithstanding any termination of Trust Collateral Agent as
Custodian hereunder, from and after the date of such termination, and for so long as Trust Collateral Agent is acting as such pursuant to this Agreement, Trustee shall provide, or cause the successor Custodian to provide, access to the Receivable
Files to Trust Collateral Agent, at such times as Trust Collateral Agent shall reasonably request, for the purpose of carrying out its duties and responsibilities with respect to the servicing of the Receivables hereunder. 
  
 In addition, the obligations of the Custodian under this Agreement shall
terminate upon the final payment or other liquidation (or advance with respect thereto) of the last Receivable, and the final remittance of all funds due the Owner Trustee under the Trust Agreement and the Indenture Trustee under the Indenture. In
such event, all documents remaining in the Receivable Files shall be released in accordance with the written instructions of the Trustee or the Trust, as applicable. 
  
 (i) DELEGATION. Custodian may, at any time without notice or consent, delegate any or all of its duties under this
Agreement to any Affiliate which is legally qualified and has the capacity to perform such delegated duties hereunder; provided that no such delegation shall relieve Custodian of its responsibility with respect to such duties and Custodian shall
remain obligated and liable to Trust, Insurer and the Holders for its duties hereunder as if Custodian alone were performing such duties. 
  
 (j) LEVEL 2 TRIGGER EVENT. Upon the occurrence of a Level 2 Trigger Event (as defined in the Spread Account Agreement), the Servicer shall within
30 days transfer custody of the original certificates of title to the Custodian. The Custodian shall confirm receipt 
  

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 of each original certificate of title (for up to 25,000 Receivable Files) in writing to the Trust Collateral Agent and
the Insurer within fifteen (15) Business Days of receiving each certificate of title; provided, however, that the Custodian will have an additional five (5) Business Days to confirm receipt for each additional 5,000 Receivable Files transferred in
excess of 25,000 Receivable Files. On and after such transfer, the original certificates of title will constitute part of the Receivable File, and will be held by the Custodian in the manner described hereunder. 
  
 SECTION 3.4. Rights and Duties of the Custodian. 
  
 (a) The Custodian shall have no duties or responsibilities with respect to
the contents of the Receivables Files except as specifically set forth herein. 
  
 (b) The Custodian shall neither be responsible for or under, nor chargeable with knowledge of the terms and conditions of, any other agreement, instrument or document in connection herewith. 
  
 (c) The Custodian may conclusively rely upon, and shall be fully protected
from all liability, loss, cost, damage or expense in acting or omitting to act pursuant to any written notice, instrument, request, consent, certificate, document, letter, telegram, opinion, order resolution or other writing hereunder which it
reasonably believes to be authentic without being required to determine the authenticity of such document, the correctness of any fact stated therein, the propriety of the service thereof of the capacity, identity or authority of any party
purporting to sign or deliver such document. 
  
 (d) This
Agreement expressly sets forth all the duties and obligations of the Custodian with respect to any and all matters pertinent thereto. No implied duties or obligations of the Custodian shall be read into this Agreement. 
  
 (e) No provision of this Agreement shall require the Custodian to expend or
risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers. 
  

(f) In order to comply with its duties under the U.S.A. Patriot Act, the Custodian shall obtain and verify certain information and documentation from
the other parties (except for Deutsche Bank Trust Company Americas) hereto, including, but not limited to, such parties’ names, addresses and other identifying information. 
  
 (g) [Item 1122(b) of Regulation AB compliance] 
  

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 ARTICLE IV 
  
 Administration and Servicing of Receivables 
  
 SECTION 4.1. Duties of the Servicer and the Designated Backup Subservicer 
  
 (a) The Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer
and make collections on the Receivables, and perform the other actions required by the Servicer under this Agreement. The Servicer agrees that its servicing of the Receivables shall be carried out in accordance with customary and usual procedures of
institutions which service motor vehicle retail installment sales contracts and, to the extent more exacting, the degree of skill and attention that the Servicer exercises from time to time with respect to all comparable motor vehicle receivables
that it services for itself or others. In performing such duties, so long as UACC is the Servicer, it shall substantially comply with the policies and procedures generally used to service motor vehicle loans. The Servicer’s duties shall
include, without limitation, collection and posting of all payments, responding to inquiries of Obligors on the Receivables, investigating delinquencies, sending payment coupons to Obligors, reporting any required tax information to Obligors,
monitoring the collateral, accounting for collections and furnishing monthly and annual statements to the Trust Collateral Agent, the Trustee and the Insurer with respect to distributions, monitoring the status of Insurance Policies with respect to
the Financed Vehicles and performing the other duties specified herein. 
  
 The Servicer shall deposit in or credit to the Collection Account within two Business Days of receipt all collections of monthly principal and interest received after the Cut-Off Date by it on or in respect of the
Receivables together with the proceeds of all Prepayments and any accompanying interest. The Servicer shall likewise deposit in the Collection Account within two Business Days of receipt all Net Liquidation Proceeds and Net Insurance Proceeds.

  
 In addition, annually, the Servicer will engage an accounting
firm, acceptable to the Insurer, to complete an operational audit of 12 branches over any consecutive 12 month period. The results of such audit will be delivered to the Insurer. In addition, annually, the Servicer, upon request, will provide to the
Backup Servicer and the Designated Backup Subservicer a list of the addresses of all active branch offices. 
  
 The Servicer, or if UACC is no longer the Servicer, UACC at the request of the Servicer, shall also administer and enforce all rights and
responsibilities of the holder of the Receivables provided for in the Dealer Agreements (and shall maintain possession of the Dealer Agreements, to the extent it is necessary to do so), the Dealer Assignments and the Insurance Policies, to the
extent that such Dealer Agreements, Dealer Assignments and Insurance Policies relate to the Receivables, the Financed Vehicles or the Obligors. To the extent consistent with the standards, policies and procedures otherwise required hereby, the
Servicer shall follow its customary standards, policies, and procedures and shall have full power and authority, acting alone, to do any and all things in connection with such managing, servicing, administration and collection that it may deem
necessary or desirable. Without limiting the generality of the foregoing, the Servicer is hereby authorized and empowered by the Trust to execute and deliver, on behalf of the Trust, any and all instruments of satisfaction or cancellation, or of
partial or full 
  

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 release or discharge, and all other comparable instruments, with respect to the Receivables and with respect to the
Financed Vehicles; provided, however, that notwithstanding the foregoing, the Servicer shall not, except pursuant to an order from a court of competent jurisdiction, release an Obligor from payment of any unpaid amount under any
Receivable or waive the right to collect the unpaid balance of any Receivable from the Obligor except in accordance with the Servicer’s customary practices. 
  
 The Servicer is hereby authorized, but not required, to commence, in its own name or in the name of the Trust, a legal
proceeding to enforce a Receivable pursuant to Section 4.3 or to commence or participate in any other legal proceeding (including, without limitation, a bankruptcy proceeding) relating to or involving a Receivable, an Obligor or a Financed Vehicle.
If the Servicer commences or participates in such a legal proceeding in its own name, the Trust shall thereupon be deemed to have automatically assigned such Receivable to the Servicer solely for purposes of commencing or participating in any such
proceeding as a party or claimant, and the Servicer is authorized and empowered by the Trust to execute and deliver in the Servicer’s name any notices, demands, claims, complaints, responses, affidavits or other documents or instruments in
connection with any such proceeding. The Trust Collateral Agent and the Owner Trustee shall furnish the Servicer with any limited powers of attorney and other documents which the Servicer may reasonably request and which the Servicer deems necessary
or appropriate and take any other steps which the Servicer may deem necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement. 
  
 (b) The duties of the Designated Backup Subservicer are described in
Schedule D hereto. 
  
 SECTION 4.2. Collection of Receivable
Payments; Modifications of Receivables. 
  
 (a) Consistent
with the standards, policies and procedures required by this Agreement, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall
follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the
Insurance Policies and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust with respect thereto, including directing the Trust to sell the Receivables
pursuant to Section 4.3(c) hereof. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable. 
  
 (b) The Servicer may (A) at any time agree to a modification or amendment of
a Receivable in order to (i) change on one or more occasions the Obligor’s regular monthly due date to a date that shall in no event be later than 30 days in total after the original monthly due date of that Receivable or (ii) re-amortize the
Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in
good faith that such extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the
Trust. 
  

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 (c) The Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable
(in addition to those modifications permitted by Section 4.2(b)) hereof, in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such
Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, that: 
  
 (i) The aggregate period of all extensions on a Receivable
shall not exceed eight months; 
  
 (ii) In no
event may a Receivable be extended beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date; 
  
 (iii) The average Monthly Extension Rate for (A) any three consecutive calendar months, other than the months of December, January and
February, shall not exceed 3.0% and (B) for the calendar months of December, January and February, shall not exceed 3.5%; and 
  
 (iv) So long as an Insurer Default shall not have occurred and be continuing, the Servicer shall not amend or modify a Receivable (except
as provided in Section 4.2(b) and this Section 4.2(c)) without the consent of the Insurer or a Note Majority (if an Insurer Default shall have occurred and be continuing). 
  
 With respect to clause (iii) of this Section 4.2(c), in the event the average of the Monthly Extension Rates calculated
with respect to (A) three consecutive calendar months, other than the months of December, January and February, exceeds 3.0% and (B) for the calendar months of December, January and February, exceeds 3.5% (in each case, which information shall be
set forth in the related Servicer’s Certificate), the Servicer shall, on the third such Accounting Date, purchase from the Trust the Receivables with respect to which payment had been extended (starting with the Receivables most recently so
extended) in an aggregate Principal Balance equal to the product of (i) the difference between such average of Monthly Extension Rates and 3.0% and (ii) the Aggregate Principal Balance, and pay the related Purchase Amount on the related
Determination Date; provided, however, that in the event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup
Servicer. 
  
 SECTION 4.3. Realization upon Receivables.

  
 (a) In addition to the Servicer’s ability to direct the
Trust to sell Receivables pursuant to Section 4.3(c) hereof, and consistent with the standards, policies and procedures required by this Agreement, the Servicer shall use its best efforts to repossess (or otherwise comparably convert the ownership
of) and liquidate any Financed Vehicle securing a Receivable with respect to which the Servicer has determined that payments thereunder are not likely to be resumed, as soon as is practicable after default on such Receivable but in no event later
than the date on which all or any portion of a Scheduled Receivables Payment has become 91 days 
  

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 delinquent; provided, however, that the Servicer may elect not to repossess a Financed Vehicle within such
time period if in its good faith judgment it determines that the proceeds ultimately recoverable with respect to such Receivable would be increased by forbearance or if it instead elects to direct the Trust to sell the Receivables pursuant to
Section 4.3(c). The Servicer is authorized to follow such customary practices and procedures as it shall deem necessary or advisable, consistent with the standard of care required by Section 4.1, which practices and procedures may include reasonable
efforts to realize upon any recourse to Dealers, the sale of the related Financed Vehicle at public or private sale, the submission of claims under an Insurance Policy and other actions by the Servicer in order to realize upon such a Receivable. The
foregoing is subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with any repair or towards the repossession of such Financed Vehicle unless it shall
determine in its discretion that such repair and/or repossession shall increase the proceeds of liquidation of the related Receivable by an amount greater than the amount of such expenses. All amounts received upon liquidation of a Financed Vehicle
shall be remitted directly by the Servicer to the Collection Account without deposit into any intervening account as soon as practicable, but in no event later than the Business Day after receipt thereof. The Servicer shall be entitled to recover
all reasonable expenses incurred by it in the course of repossessing and liquidating a Financed Vehicle into cash proceeds, including costs to repair the Financed Vehicle, but only out of the cash proceeds of such Financed Vehicle, any deficiency
obtained from the Obligor or any amounts received from the related Dealer, which amounts in reimbursement may be retained by the Servicer (and shall not be required to be deposited as provided in Section 4.2(e)) to the extent of such expenses. The
Servicer shall pay on behalf of the Trust any personal property taxes assessed on repossessed Financed Vehicles. The Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds with respect to such Receivable.

  
 (b) If the Servicer, or if UACC is no longer the Servicer,
UACC at the request of the Servicer, elects to commence a legal proceeding to enforce a Dealer Agreement or Dealer Assignment, the act of commencement shall be deemed to be an automatic assignment from the Trust to the Servicer, or to UACC at the
request of the Servicer, of the rights under such Dealer Agreement or Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer or UACC, as appropriate, may not enforce a
Dealer Agreement or Dealer Assignment on the grounds that it is not a real party in interest or a Person entitled to enforce the Dealer Agreement or Dealer Assignment, the Owner Trustee, at UACC’s expense or the Seller, at the Seller’s
expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer Assignment, including bringing suit in its name or the name of the Seller or of the Trust and the Owner Trustee and/or the Trust
Collateral Agent for the benefit of the Noteholders. All amounts recovered shall be remitted directly by the Servicer as provided in Section 4.2(e). 
  
 (c) Consistent with the standards, policies and procedures required by this Agreement, the Servicer may use its best efforts to locate a third party
purchaser that is not affiliated with the Servicer, the Seller or the Trust to purchase from the Trust any Receivable that has become more than 60 days delinquent, and shall have the right to direct the Trust to sell any such Receivable to the
third-party purchaser; provided, that no more than 20% of the number of Receivables in the pool as of the Closing Date may be sold by the Trust pursuant to this Section 4.3(c) in the aggregate; provided further, that the
Servicer may elect to not direct the Trust to sell 
  

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 a Receivable that has become more than 60 days delinquent if in its good faith judgment the Servicer determines that the
proceeds ultimately recoverable with respect to such Receivable would be increased by forbearance. In selecting Receivables to be sold to a third party purchaser pursuant to this Section 4.3(c), the Servicer shall use commercially reasonable efforts
to locate purchasers for the most delinquent Receivables first. In any event, the Servicer shall not use any procedure in selecting Receivables to be sold to third party purchasers which is materially adverse to the interest of the Noteholders or
the Insurer. The Trust shall sell each Sold Receivable for the greatest market price possible; provided, however, that aggregate Sale Amounts received by the Trust for all Receivables sold to a single third-party purchaser on a single
date must be at least equal to the sum of the Minimum Sale Prices for all such Receivables. The Servicer shall remit or cause the third-party purchaser to remit all sale proceeds from the sale of Receivables directly to the Collection Account
without deposit into any intervening account as soon as practicable, but in no event later than the Business Day after receipt thereof. 
  
 (d) Upon the occurrence of a Level 2 Trigger Event, the Servicer shall, within 30 Business Days, send notice to the Obligors, provide an updated list of
Obligors a list of active branch offices to the Backup Servicer or the Designated Backup and post payment instruction signage at each branch directing payments to be made to the appropriate post office box. 
  
 (e) Upon the occurrence of a Level 3 Trigger Event (as defined in the Spread
Account Agreement), the Servicer shall (i) within 21 Business Days, send notice to the Obligors that payments must be mailed to the Servicer’s service provider, (ii) within 5 Business Days, send written notice to the Backup Servicer and the
Designated Backup Servicer of the occurrence of such Trigger Event and request that the Designated Backup Subservicer provide the Servicer with revised payment instructions and (iii) post any payment instruction signage provided by the Backup
Servicer or the Designated Backup Subservicer in plain view at each branch. 
  
 SECTION 4.4. Insurance. 
  
 (a) The Servicer shall require, in accordance with its customary servicing policies and procedures, that each Financed Vehicle be insured by the related Obligor under the Insurance Policies referred to in Paragraph (cc) of Section 3.3 to
the Sale Agreement and shall monitor the status of such physical loss and damage insurance coverage thereafter, in accordance with its customary servicing procedures. Each Receivable requires the Obligor to maintain such physical loss and damage
insurance, naming UACC and its successors and assigns as additional insureds, and permits the holder of such Receivable to obtain physical loss and damage insurance at the expense of the Obligor if the Obligor fails to maintain such insurance. If
the Servicer shall determine that an Obligor has failed to obtain or maintain a physical loss and damage Insurance Policy covering the related Financed Vehicle which satisfies the conditions set forth in clause (i)(a) of such Paragraph (cc) of
Section 3.3 to the Purchase Agreement (including, without limitation, during the repossession of such Financed Vehicle) the Servicer may, but is not required to, enforce the rights of the holder of the Receivable under the Receivable to require the
Obligor to obtain such physical loss and damage insurance in accordance with its customary servicing policies and procedures. The Servicer may, but is not required to, maintain a vendor’s single interest or other collateral protection insurance
policy with respect to all Financed Vehicles (“Collateral Insurance”) which policy shall by its terms insure against physical loss and 
  

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 damage in the event any Obligor fails to maintain physical loss and damage insurance with respect to the related Financed
Vehicle. All policies of Collateral Insurance shall be endorsed with clauses providing for loss payable to the Servicer. Costs incurred by the Servicer in maintaining such Collateral Insurance shall be paid by the Servicer. 
  
 (b) [Reserved]. 
  
 (c) [Reserved]. 
  
 (d) The Servicer may sue to enforce or collect upon the Insurance Policies,
in its own name, if possible, or as agent of the Trust. If the Servicer elects to commence a legal proceeding to enforce an Insurance Policy, the act of commencement shall be deemed to be an automatic assignment of the rights of the Trust under such
Insurance Policy to the Servicer for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce an Insurance Policy on the grounds that it is not a real party in interest or a
holder entitled to enforce the Insurance Policy, the Trust and/or the Trust Collateral Agent, at the Servicer’s expense shall take such steps as the Servicer deems necessary to enforce such Insurance Policy, including bringing suit in its name
or the name of the Trust and/or the Trust Collateral Agent for the benefit of the Noteholders. 
  
 (e) The Servicer will cause itself and may cause the Trust Collateral Agent to be named as named insured under all policies of Collateral Insurance.

  
 SECTION 4.5. Maintenance of Security Interests in
Vehicles. 
  
 (a) Consistent with the policies and
procedures required by this Agreement, the Servicer shall take such steps on behalf of the Trust as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Vehicle, including, but not limited
to, obtaining the execution by the Obligors and the recording, registering, filing, re-recording, re-filing, and re-registering of all security agreements, financing statements and continuation statements as are necessary to maintain the security
interest granted by the Obligors under the respective Receivables. The Trust Collateral Agent hereby authorizes the Servicer, and the Servicer agrees, to take any and all steps necessary to re-perfect such security interest on behalf of the Trust as
necessary because of the relocation of a Financed Vehicle or for any other reason. In the event that the assignment of a Receivable to the Trust is insufficient, without a notation on the related Financed Vehicle’s certificate of title, or
without fulfilling any additional administrative requirements under the laws of the state in which the Financed Vehicle is located, to perfect a security interest in the related Financed Vehicle in favor of the Trust, the Servicer hereby agrees that
the Seller’s designation as the secured party on the Lien Certificate is in its capacity as Servicer as agent of the Trust. 
  
 (b) Upon the occurrence of an Insurance Agreement Event of Default, the Insurer may (so long as an Insurer Default shall not have occurred and be
continuing) instruct the Servicer to take or cause to be taken, or, if an Insurer Default shall have occurred, upon the occurrence of a Servicer Termination Event, the Servicer shall take or cause to be taken such action as may, in the opinion of
counsel to the Controlling Party, be necessary to perfect or re-perfect the security interests in the Financed Vehicles securing the Receivables in the name of the Trust by amending the title documents of such Financed Vehicles or by such other
reasonable means as may, in the opinion of counsel to the Controlling Party, be necessary or prudent. 
  

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 UACC hereby agrees to pay all expenses related to such perfection or reperfection and to take all action
necessary therefor. In addition, prior to the occurrence of an Insurance Agreement Event of Default, the Controlling Party may instruct the Servicer to take or cause to be taken such action as may, in the opinion of counsel to the Controlling Party,
be necessary to perfect or re-perfect the security interest in the Financed Vehicles underlying the Receivables in the name of the Trust, including by amending the title documents of such Financed Vehicles or by such other reasonable means as may,
in the opinion of counsel to the Controlling Party, be necessary or prudent; provided, however, that if the Controlling Party requests that the title documents be amended prior to the occurrence of an Insurance Agreement Event of
Default, the out-of-pocket expenses of the Servicer in connection with such action shall be reimbursed to the Servicer by the Controlling Party. The Seller hereby appoints the Servicer as its attorney-in-fact to take any and all steps required to be
performed by the Seller pursuant to this Section 4.5(b) (it being understood that and agreed that the Servicer shall have no obligation to take such steps with respect to all perfection or reperfection, except as pursuant to the Basic Documents to
which it is a party and to which the Seller has paid all expenses), including execution of certificates of title or any other documents in the name and stead of the Seller and the Trust Collateral Agent hereby accepts such appointment. 

 
 SECTION 4.6. Covenants, Representations, and Warranties of
Servicer. By its execution and delivery of this Agreement, the Servicer makes the following representations, warranties and covenants on which the Trust Collateral Agent relies in accepting the Receivables, on which the Trustee relies in
authenticating the Notes and on which the Insurer relies in issuing the Note Policy. 
  
 (a) The Servicer covenants as follows: 
  
 (i) Liens in Force. The Financed Vehicle securing each Receivable shall not be released in whole or in part from the security interest granted by the Receivable, except upon payment in full of the Receivable or
as otherwise contemplated herein; 
  
 (ii) No
Impairment. The Servicer shall do nothing to impair the rights of the Trust or the Noteholders in the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies or the Other Conveyed Property except as otherwise expressly
provided herein; 
  
 (iii) No Amendments.
The Servicer shall not extend or otherwise amend the terms of any Receivable, except in accordance with Section 4.2; and 
  
 (iv) Restrictions on Liens. The Servicer shall not (i) create, incur or suffer to exist, or agree to create, incur or suffer to
exist, or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or existence of any Lien or restriction on transferability of the Receivables except for the Lien in favor of the Trust
Collateral Agent for the benefit of the Noteholders and Insurer, 
  

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 the Lien imposed by the Spread Account Agreement in favor of the Collateral Agent for the benefit of the
Trust Collateral Agent and Insurer, and the restrictions on transferability imposed by this Agreement or (ii) sign or file under the Uniform Commercial Code of any jurisdiction any financing statement which names the the Servicer as a debtor, or
sign any security agreement authorizing any secured party thereunder to file such financing statement, with respect to the Receivables, except in each case any such instrument solely securing the rights and preserving the Lien of the Trust
Collateral Agent, for the benefit of the Noteholders and the Insurer. 
  
 (b) UACC represents, warrants and covenants as of the Closing Date as to itself that the representations and warranties set forth on the Schedule of Representations attached hereto as Schedule C are true and correct. 
  
 SECTION 4.7. Purchase of Receivables Upon Breach of Covenant. Upon
discovery by any of the Servicer, the Insurer, a Responsible Officer of the Trust Collateral Agent, the Owner Trustee, a Responsible Officer of the Backup Servicer, a Responsible Officer of the Designated Backup Subservicer or a Responsible Officer
of the Trustee of a breach of any of the covenants set forth in Subsections (a), (b), (c) and (j) of Section 3.3 or in Sections 4.5(a) or 4.6 hereof, the party discovering such breach shall give prompt written notice to the others; provided,
however, that the failure to give any such notice shall not affect any obligation of UACC as Servicer under this Section; provided, further, that the Designated Backup Subservicer, so long as it has not been appointed Servicer
or subservicer, shall have no liability for a failure to give such notice. As of the second Accounting Date following its discovery or receipt of notice of any breach of any covenant set forth in Sections 4.5(a) or 4.6(a) which materially and
adversely affects the interests of the Noteholders or the Insurer in any Receivable (including any Liquidated Receivable) (or, at UACC’s election, the first Accounting Date so following) or the related Financed Vehicle, UACC shall, unless such
breach shall have been cured in all material respects, purchase from the Trust the Receivable affected by such breach and, on the related Determination Date, UACC shall pay the related Purchase Amount. It is understood and agreed that the obligation
of UACC to purchase any Receivable (including any Liquidated Receivable) with respect to which such a breach has occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy against UACC for such breach available to
the Insurer, the Noteholders, the Owner Trustee, the Backup Servicer, the Designated Backup Subservicer or the Trust Collateral Agent; provided, however, that UACC shall indemnify the Trust, the Backup Servicer, the Designated Backup
Subservicer, the Collateral Agent, the Custodian, the Insurer, the Owner Trustee, the Trust Collateral Agent, the Trustee and the Noteholders from and against all costs, expenses, losses, damages, claims and liabilities, including reasonable fees
and expenses of counsel, which may be asserted against or incurred by any of them as a result of third party claims arising out of the events or facts giving rise to such breach. Notwithstanding anything to the contrary contained herein, UACC will
not be required to repurchase Receivables due solely to the Servicer’s not having received Lien Certificates that have been properly applied for from the Registrar of Titles in the applicable states for such Receivables unless (i) such Lien
Certificates shall not have been received with respect to Receivables with Principal Balances which total more than 0.25% of the Aggregate Principal Balance as of the 180th day after the Closing Date, in which case UACC shall be required to repurchase a sufficient number of such Receivables to cause the aggregate Principal
Balances of the remaining Receivables for which no such Lien Certificate shall have been received to be no greater than 0.25% of the Aggregate 
  

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 Principal Balance as of such date or (ii) such Lien Certificates shall not have been received as of the 240th day after the Closing Date. This section shall survive the termination of this Agreement and the earlier removal or
resignation of the Trustee and/or the Trust Collateral Agent and/or the Backup Servicer and/or the Collateral Agent and/or the Custodian and/or the Designated Backup Subservicer. 
  
 SECTION 4.8. Total Servicing Fee; Payment of Certain Expenses by Servicer. On each Distribution Date, the Servicer
shall be entitled to receive out of the Collection Account the Base Servicing Fee and any Supplemental Servicing Fee for the related Collection Period (together, the “Servicing Fee”) pursuant to Section 5.7. The Servicer shall be
required to pay all expenses incurred by it in connection with its activities under this Agreement (including taxes imposed on the Servicer, expenses incurred in connection with distributions and reports made by the Servicer to Noteholders or the
Insurer and all other fees and expenses of the Owner Trustee, the Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Trust Collateral Agent, the Custodian or the Trustee, except taxes levied or assessed against the Trust,
and claims against the Trust in respect of indemnification, which taxes and claims in respect of indemnification against the Trust are expressly stated to be for the account of UACC). The Servicer shall be liable for the fees and expenses of the
Owner Trustee, the Backup Servicer, the Designated Backup Subservicer, the Trust Collateral Agent, the Trustee, the Custodian, the Collateral Agent and the Independent Accountants. Notwithstanding the foregoing, if the Servicer shall not be UACC, a
successor to UACC as Servicer including the Backup Servicer or the Designated Backup Subservicer permitted by Section 9.3 shall not be liable for taxes levied or assessed against the Trust or claims against the Trust in respect of indemnification,
or the fees and expenses referred to above. 
  
 SECTION 4.9.
Servicer’s Certificate. No later than 10:00 a.m. Eastern time on the 10th calendar day of each month,
the Servicer shall deliver (facsimile delivery being acceptable) to the Trustee, the Owner Trustee, the Trust Collateral Agent, the Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Insurer and each Rating Agency a
Servicer’s Certificate executed by a Responsible Officer of the Servicer containing among other things, (i) all information necessary to enable the Trust Collateral Agent to make any withdrawal and deposit required by Section 5.5 and to make
the distributions required by Section 5.7(b), (ii) a listing of all Purchased Receivables and Sold Receivables purchased by the Servicer or sold by the Trust as of the related Accounting Date, identifying the Receivables so purchased by the Servicer
or sold by the Trust, (iii) all information necessary to enable the Backup Servicer (or the Designated Backup Subservicer, as the case may be) to verify the items specified in Section 4.13(a)(iii), (iv) all information necessary to enable the Trust
Collateral Agent to send the statements to Noteholders and the Insurer required by Section 5.10, and (v) all information necessary to enable the Trust Collateral Agent to reconcile the aggregate cash flows, the Collection Account for the related
Collection Period and Distribution Date, including the accounting required by Section 5.10. Receivables purchased by the Servicer or by the Seller on the related Accounting Date and each Receivable which became a Liquidated Receivable or which was
paid in full during the related Collection Period shall be identified by account number (as set forth in the Schedule of Receivables). In addition to the information set forth in the preceding sentence, the Servicer’s Certificate shall also
contain the following information: (a) the Delinquency Ratio, Monthly Extension Rate and Cumulative Net Loss Ratio (as such terms are defined herein or in the Spread Account Agreement) for the related Collection Period; (b) 
  

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 whether any Trigger Event has occurred as of such Determination Date; (c) whether any Trigger Event that may have
occurred as of a prior Determination Date is deemed cured as of such Determination Date; and (d) whether to the knowledge of the Servicer an Insurance Agreement Event of Default has occurred. 
  
 SECTION 4.10. Annual Statement as to Compliance, Notice of Servicer
Termination Event. 
  
 (a) The Servicer shall deliver to the
Trustee, the Owner Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Insurer and the Rating Agencies, on or before February 28 of each year, beginning on February 28, 200__, an officer’s
certificate signed by any Responsible Officer of the Servicer, dated as of December 31 (or other applicable date) of such year, stating (i) its responsibility for assessing compliance with the servicing criteria applicable to it as set forth in Item
1122(d) of Regulation AB (17 CFR 229.1122(d)), (ii) that it used the criteria set forth in Item 1122(d) of Regulation AB (17 CFR 229.1122(d)) to assess compliance with the applicable servicing criteria, (iii) its assessment of compliance with the
applicable servicing criteria as of and for the immediately preceding fiscal year, including a disclosure of any material instance of noncompliance identified by the Servicer, (iv) that a registered public accounting firm has issued an attestation
report on its assessment of compliance with the applicable servicing criteria as of and for the immediately preceding fiscal year; (v) that a review of the activities of the Servicer during the preceding 12-month period (or such other period as
shall have elapsed from the Closing Date to the date of the first such certificate) and of its performance under this Agreement has been made under such officer’s supervision, and (vi) to such officer’s knowledge, based on such review, the
Servicer has fulfilled all its obligations under this Agreement throughout such period, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof.

  
 (b) The Servicer shall deliver to the Trustee, the Owner
Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Insurer, the Collateral Agent and each Rating Agency, promptly after having obtained knowledge thereof, but in no event later than two (2) Business Days
thereafter, written notice in an officer’s certificate of any event which with the giving of notice or lapse of time, or both, would become a Servicer Termination Event under Section 9.1. The Servicer shall deliver to the Trustee, the Owner
Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Insurer, the Collateral Agent, the Seller and each Rating Agency promptly after having obtained knowledge thereof, but in no event later than two (2)
Business Days thereafter, written notice in an officer’s certificate of any event which with the giving of notice or lapse of time, or both, would become a Servicer Termination Event under any other clause of Section 9.1. 
  
 SECTION 4.11. Annual Independent Accountants’ Report. The
Servicer shall cause a firm of nationally recognized independent certified public accountants (the “Independent Accountants”), who may also render other services to the Servicer or to the Seller, to deliver to the Trustee, the Owner
Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Insurer and each Rating Agency, on or before February 28 of each year, beginning on February 28, 200 , with respect to the twelve months ended the
immediately preceding December 31 (or other applicable date) (or such other period as shall have elapsed 
  

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 from the Closing Date to the date of such certificate), an attestation report (the “Accountants’
Report”) in compliance with Item 1122(b) of Regulation AB (17 CFR 229.1122(b)), addressed to the Board of Directors of the Servicer, to the Trustee, the Owner Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup
Subservicer and to the Insurer, providing information as required by Item 1122(b) of Regulation AB (17 CFR 229.1122(b)), and a statement to the effect that such firm has audited the books and records of the Servicer and that (1) such audit was made
in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as such firm considered necessary in the circumstances; (2) the firm is independent of the
Seller and the Servicer within the meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants, and (3) includes a report on the application of agreed upon procedures to three randomly selected
Servicer’s Certificates including the delinquency, default and loss statistics required to be specified therein noting whether any exceptions or errors in the Servicer’s Certificates were found. 
  
 In the event such independent public accountants require the Trust
Collateral Agent, Trustee, the Servicer, Backup Servicer or Designated Backup Subservicer to agree to the procedures to be performed by such firm in any of the reports required to be prepared pursuant to this Section 4.11, the Servicer shall direct
the Trust Collateral Agent, Trustee, the Backup Servicer and Designated Backup Subservicer in writing to so agree; it being understood and agreed that the Trust Collateral Agent, Trustee, Backup Servicer and Designated Backup Subservicer will
deliver such letter of agreement in conclusive reliance upon the direction of the Servicer, and the Trust Collateral Agent, Trustee, Backup Servicer and Designated Backup Subservicer have not made any independent inquiry or investigation as to, and
shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures. 
  
 SECTION 4.12. Access to Certain Documentation and Information Regarding Receivables. The Servicer shall provide to representatives of the Trustee,
the Owner Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer and the Insurer reasonable access to the documentation regarding the Receivables. In each case, such access shall be afforded without charge but
only upon reasonable request and during normal business hours. Nothing in this Section shall affect the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding the Obligors, and the failure of the
Servicer to provide access as provided in this Section as a result of such obligation shall not constitute a breach of this Section. 
  
 SECTION 4.13. Monthly Tape. 
  
 (a) On or before the seventh calendar day, of each month, the Servicer will deliver to the Trust Collateral Agent, the Insurer, the Backup Servicer and
the Designated Backup Subservicer a computer tape and a diskette (or any other electronic transmission acceptable to the Trust Collateral Agent, the Insurer and the Backup Servicer) in a format acceptable to the Trust Collateral Agent, the Insurer
and the Backup Servicer containing the information with respect to the Receivables as of the preceding Accounting Date necessary for preparation of the Servicer’s Certificate relating to the immediately preceding Determination Date and
necessary to review the application of collections as provided in Section 5.4 (the “Monthly Tape”). The Backup Servicer shall cause the Designated Backup Subservicer to use such tape or diskette (or other electronic 
  

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 transmission acceptable to the Trust Collateral Agent and the Backup Servicer) to (i) confirm that the Servicer’s
Certificate is complete on its face or note discrepancies, (ii) confirm or note discrepancies that such tape, diskette or other electronic transmission is in readable form, (iii) calculate and confirm or note discrepancies regarding (A) the
aggregate amount distributable as principal on the related Distribution Date to each Class of Notes; (B) the aggregate amount distributable as interest on the related Distribution Date to each Class of Notes; (C) any amounts distributable on the
related Distribution Date which are to be paid with funds (y) withdrawn from the Spread Account, or (z) drawn under the Note Policy; (D) the outstanding principal amount of each Class of Notes after giving effect to all distributions made pursuant
to clause (A), above; (E) the Note Pool Factor for each Class of Notes after giving effect to all distributions made pursuant to clause (A), above; (F) the aggregate Noteholders’ Interest Carryover Amount on such Distribution Date after giving
effect to all distributions made pursuant to clause (B) above; (G) the Monthly Extension Rate; (H) the Delinquency Ratio; and (I) the Cumulative Net Loss Ratio. The Backup Servicer shall cause the Designated Backup Subservicer to provide a letter to
the Controlling Party and to the Trustee that it has verified the Servicer’s Certificate in accordance with this Section and shall notify the Servicer and the Controlling Party of any discrepancies, in each case, on or before the fifth Business
Day following the Distribution Date. In the event that the Designated Backup Subservicer reports any discrepancies, the Servicer and the Backup Servicer shall attempt to reconcile such discrepancies prior to the next succeeding Distribution Date,
but in the absence of a reconciliation, the Servicer’s Certificate shall control for the purpose of calculations and distributions with respect to the next succeeding Distribution Date. In the event that the Designated Backup Subservicer and
the Servicer are unable to reconcile discrepancies with respect to a Servicer’s Certificate by the next succeeding Distribution Date, the Servicer shall cause the Independent Accountants, at the Servicer’s expense, to audit the
Servicer’s Certificate and, prior to the last day of the month after the month in which such Servicer’s Certificate was delivered, reconcile the discrepancies. The effect, if any, of such reconciliation shall be reflected in the
Servicer’s Certificate for such next succeeding Determination Date. In addition, upon the occurrence of a Servicer Termination Event the Servicer shall, if so requested by the Controlling Party, deliver to the Backup Servicer or any replacement
Servicer its Collection Records and its Monthly Records within 15 days after demand therefor and a computer tape containing as of the close of business on the date of demand all of the data maintained by the Servicer in computer format in connection
with servicing the Receivables. Other than the duties specifically set forth in this Agreement, the Backup Servicer shall have no obligations hereunder, including, without limitation, to supervise, verify, monitor or administer the performance of
the Servicer. The Backup Servicer shall have no liability for any actions taken or omitted by the Servicer. 
  
 The Designated Backup Subservicer shall have no liability for the failure to perform any duty if such failure results from its failure to receive in a
timely manner the Monthly Tape or any other information reasonably required by it to perform its obligations, and the Designated Backup Subservicer shall have no liability for any error or omission in the Servicer’s Certificate or any other
data confirmed by it, such certificates and data being the sole responsibility of the Servicer or the other Person supplying such data. 
  
 (b) The Servicer shall deliver to the Designated Backup Subservicer the Monthly Tape on or before the seventh calendar day of each month. The Backup
Servicer shall cause such Designated Backup Subservicer to load such Monthly Tapes into its computer system in the 
  

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 format in which they were received (it being understood that such loading shall not include boarding or other
manipulation of the data) and to certify to the Trust Collateral Agent that (i) it can access and read the data and (ii) the summary totals for each category of information provided in such computer tapes conforms with the summary totals for such
categories of information as reflected in the books and records of the Servicer. Other than the duties specifically set forth in this Agreement, the Designated Backup Subservicer shall have no obligations hereunder, including, without limitation, to
supervise, verify, monitor or administer the performance of the Servicer. The Designated Backup Subservicer shall have no liability for any actions taken or omitted by the Servicer. 
  
 SECTION 4.14. Servicer Renewal. 
  
 The Servicer covenants and agrees to act as Servicer until the earlier of (a) the Notes and Certificates are paid in full
or (b) a Servicer Termination Event occurs. 
  
 So long as the
Insurer is the Controlling Party, the Insurer hereby covenants and agrees to appoint the Servicer to act as Servicer under this Agreement for an initial term, commencing on the Closing Date and ending on December 31, 2006, which term shall be
subject to automatic extension for successive quarterly terms ending on each successive March 31, June 30, September 30 and December 31 until the Controlling Party gives a notice to the Indenture Trustee and Trust Collateral Agent that it has
elected not to continue the retention of the Servicer, effective as of the first day of the next following quarterly term (a “Servicer Non-Renewal Notice”). To be effective, a Servicer Non-Renewal Notice must be delivered not later than
fifteen (15) calendar days prior to the first day of the next quarterly term. The Servicer hereby agrees that, as of the date hereof and until the effective date of any Servicer Non-Renewal Notice, the Servicer shall become bound, for the initial
term beginning on the Closing Date and until the effective date of any Servicer Non-Renewal Notice timely delivered, to continue as the Servicer subject to and in accordance with the other provisions of this Agreement. 
  
 SECTION 4.15. Fidelity Bond and Errors and Omissions Policy. The
Servicer has obtained, and shall continue to maintain in full force and effect, a Fidelity Bond and Errors and Omissions Policy of a type and in such amount as is customary for servicers engaged in the business of servicing automobile receivables.

  
 ARTICLE V 
  
 Trust Accounts; Distributions; 
 Statements to Noteholders 
  
 SECTION 5.1. Establishment of Trust Accounts. 
  
 (a) (i) The Trust Collateral Agent, on behalf of the Noteholders and the Insurer, shall establish and maintain in its own name an Eligible Deposit
Account (the “Collection Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Trust Collateral Agent, in trust, on behalf of the Noteholders and the Insurer. The
Collection Account shall initially be established with the Trust Collateral Agent. 
  

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 (ii) The Trust Collateral Agent, on behalf of the Noteholders, shall establish and maintain in its own
name an Eligible Deposit Account (the “Note Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Trust Collateral Agent, in trust, on behalf of the
Noteholders and the Insurer. The Note Distribution Account shall initially be established with the Trust Collateral Agent. 
  
 (b) Funds on deposit in the Collection Account and the Note Distribution Account (collectively, the “Trust Accounts”) shall be invested
by the Trust Collateral Agent (or any custodian with respect to funds on deposit in any such account) in Eligible Investments selected in writing by the Servicer (pursuant to standing instructions or otherwise). All such Eligible Investments shall
be held by or on behalf of the Trust Collateral Agent for the benefit of the Noteholders and the Insurer, as applicable. Other than as permitted by the Rating Agencies and the Insurer, funds on deposit in any Trust Account shall be invested in
Eligible Investments that will mature so that such funds will be available at the close of business on the Business Day immediately preceding the following Distribution Date. Funds deposited in a Trust Account on the day immediately preceding a
Distribution Date upon the maturity of any Eligible Investments are required to be invested overnight. All Eligible Investments will be held to maturity. 
  
 (c) All investment earnings of moneys deposited in the Trust Accounts shall be deposited (or caused to be deposited), pursuant to the monthly
Servicer’s Certificate, on each Distribution Date by the Trust Collateral Agent in the Collection Account, and any loss resulting from such investments shall be charged to such account. The Servicer will not direct the Trust Collateral Agent to
make any investment of any funds held in any of the Trust Accounts unless the security interest granted and perfected in such account will continue to be perfected in such investment, in either case without any further action by any Person, and, in
connection with any direction to the Trust Collateral Agent to make any such investment, if requested by the Trust Collateral Agent, the Servicer shall deliver to the Trust Collateral Agent an Opinion of Counsel, acceptable to the Trust Collateral
Agent, to such effect. 
  
 (d) The Trust Collateral Agent shall
not in any way be held liable by reason of any insufficiency in any of the Trust Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Trust Collateral Agent’s negligence or bad faith
or its failure to make payments on such Eligible Investments issued by the Trust Collateral Agent, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. 
  
 (e) If (i) the Servicer shall have failed to give investment directions in
writing for any funds on deposit in the Trust Accounts to the Trust Collateral Agent by 1:00 p.m. Eastern Time (or such other time as may be agreed by the Trust and Trust Collateral Agent) on any Business Day; or (ii) a Default or Event of Default
shall have occurred and be continuing with respect to the Notes but the Notes shall not have been declared due and payable, or, if such Notes shall have been declared due and payable following an Event of Default, amounts collected or receivable
from the Trust Property are being applied as if there had not been such a declaration; then the Trust Collateral Agent shall, to the fullest extent practicable, invest and reinvest funds in 
  

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 the Trust Accounts in the investment described in clause (d) of the definition of Eligible Investments; provided that the
Trust Collateral Agent shall not be liable for any loss or absence of income resulting from such investments. 
  
 (f) (i) The Trust Collateral Agent shall possess all right, title and interest in all funds on deposit from time to time in the Trust Accounts and in all
proceeds thereof for the benefit of the Noteholders and the Insurer and all such funds, investments, proceeds and income shall be part of the Owner Trust Estate. Except as otherwise provided herein, the Trust Accounts shall be under the sole
dominion and control of the Trust Collateral Agent for the benefit of the Noteholders, as the case may be, and the Insurer. If, at any time, any of the Trust Accounts ceases to be an Eligible Deposit Account, the Trust Collateral Agent (or the
Servicer on its behalf) shall within five Business Days (or such longer period as to which each Rating Agency and the Insurer may consent) establish a new Trust Account as an Eligible Deposit Account and shall transfer any cash and/or any
investments to such new Trust Account. In connection with the foregoing, the Servicer agrees that, in the event that any of the Trust Accounts are not accounts with the Trust Collateral Agent, the Servicer shall notify the Trust Collateral Agent in
writing promptly upon any of such Trust Accounts ceasing to be an Eligible Deposit Account. 
  
 (ii) With respect to the Trust Account Property: 
  
 (A) any Trust Account Property that is held in deposit accounts shall be held solely in the Eligible Deposit Accounts; and, except as
otherwise provided herein, each such Eligible Deposit Account shall be subject to the exclusive custody and control of the Trust Collateral Agent, and the Trust Collateral Agent shall have sole signature authority with respect thereto; 

 
 (B) any Trust Account Property that constitutes Physical
Property shall be delivered to the Trust Collateral Agent in accordance with paragraph (a) of the definition of “Delivery” and shall be held, pending maturity or disposition, solely by the Trust Collateral Agent or a financial
intermediary (as such term is defined in Section 8-313(4) of the UCC) acting solely for the Trust Collateral Agent; 
  
 (C) any Trust Account Property that is a book-entry security held through the Federal Reserve System pursuant to Federal book-entry
regulations shall be delivered in accordance with paragraph (b) of the definition of “Delivery” and shall be maintained by the Trust Collateral Agent, pending maturity or disposition, through continued book-entry registration of
such Trust Account Property as described in such paragraph; and 
  
 (D) any Trust Account Property that is an “uncertificated security” under Article 8 of the UCC and that is not governed by clause (C) above shall be delivered to the Trust Collateral Agent in
accordance with paragraph (c) of the definition of “Delivery” and shall be maintained by the Trust Collateral Agent, pending maturity or disposition, through continued registration of the Trust Collateral Agent’s (or its
nominee’s) ownership of such security. 
  

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 SECTION 5.2. [Reserved] 
  
 SECTION 5.3. Certain Reimbursements to the Servicer. The Servicer will be entitled to be reimbursed from amounts on
deposit in the Collection Account with respect to a Collection Period for amounts previously deposited in the Collection Account but later determined by the Servicer to have resulted from mistaken deposits or postings or checks returned for
insufficient funds. The amount to be reimbursed hereunder shall be paid to the Servicer on the related Distribution Date pursuant to Section 5.7(b)(ii) upon certification by the Servicer of such amounts and the provision of such information to the
Trust Collateral Agent and the Insurer as may be necessary in the opinion of the Insurer to verify the accuracy of such certification; provided, however, that the Servicer must provide such clarification within 12 months of such
mistaken deposit, posting, or returned check. In the event that the Insurer has not received evidence satisfactory to it of the Servicer’s entitlement to reimbursement pursuant to this Section, the Insurer shall (unless an Insurer Default shall
have occurred and be continuing) give the Trust Collateral Agent notice in writing to such effect, following receipt of which the Trust Collateral Agent shall not make a distribution to the Servicer in respect of such amount pursuant to Section 5.7,
or if the Servicer prior thereto has been reimbursed pursuant to Section 5.7, the Trust Collateral Agent shall withhold such amounts from amounts otherwise distributable to the Servicer on the next succeeding Distribution Date. 
  
 SECTION 5.4. Application of Collections. All collections for the
Collection Period shall be applied by the Servicer as follows: 
  
 With respect to each Receivable (other than a Purchased Receivable or a Sold Receivable), payments by or on behalf of the Obligor, (other than Supplemental Servicing Fees with respect to such Receivable, to the extent collected) shall be
applied to interest and principal in accordance with the method applicable to the Receivable. 
  
 All amounts collected that are payable to the Servicer as Supplemental Servicing Fees hereunder shall be deposited in the Collection Account and paid to the Servicer in accordance with Section 5.7(b). 
  
 SECTION 5.5. Withdrawals from Spread Account. 
  
 (a) In the event that the Servicer’s Certificate with respect to any
Determination Date shall state that there is a Spread Account Claim Amount then on the Spread Account Claim Date immediately preceding the related Distribution Date, the Trust Collateral Agent shall deliver to the Collateral Agent, the Owner
Trustee, the Trustee, the Insurer and the Servicer, by hand delivery or facsimile transmission, a written notice (a “Deficiency Notice”) specifying the Spread Account Claim Amount for such Distribution Date and the Spread Account
Claim Amount, if any. Such Deficiency Notice shall direct the Collateral Agent to remit such Spread Account Claim Amount (to the extent of the funds available to be distributed pursuant to the Spread Account Agreement) to the Trust Collateral Agent
for deposit in the Collection Account on the related Distribution Date. 
  

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 Any Deficiency Notice shall be delivered by 10:00 am, Eastern time, on the second Business Day preceding
such Distribution Date. 
  
 (b) [Reserved]. 
  
 (c) The amounts distributed by the Collateral Agent to the Trust Collateral
Agent pursuant to a Deficiency Notice shall be deposited by the Trust Collateral Agent into the Collection Account pursuant to Section 5.6. 
  
 SECTION 5.6. Additional Deposits. 
  
 (a) The Servicer or the Seller, as applicable, shall deposit or cause to be deposited in the Collection Account on the Determination Date on which such
obligations are due the aggregate Purchase Amount with respect to Purchased Receivables and the aggregate Sale Amounts with respect to Sold Receivables. On the Business Day prior to each Distribution Date, the Trust Collateral Agent shall remit to
the Collection Account any amounts delivered to the Trust Collateral Agent by the Collateral Agent. 
  
 (b) The proceeds of any purchase or sale of the assets of the Trust described in Section 10.1 hereof shall be deposited in the Collection Account.

  
 SECTION 5.7. Distributions. 
  
 (a) [Reserved]. 
  
 (b) On each Distribution Date, the Trust Collateral Agent shall (based
solely on the information contained in the Servicer’s Certificate delivered with respect to the related Determination Date) distribute the following amounts from the Collection Account unless otherwise specified, to the extent of the sources of
funds stated to be available therefor, and in the following order of priority: 
  
 (i) from the Available Funds, to the Servicer (or, if the Designated Backup Subservicer shall be appointed successor servicer or
subservicer to the Servicer, to such Person), the Base Servicing Fee and any Supplemental Servicing Fee for the related Collection Period and, to any successor Servicer (or, if the Designated Backup Subservicer shall be appointed successor servicer
or subservicer to the Servicer, to such Person), transition fees not to exceed $[500,000] (including boarding fees) in the aggregate; 
  
 (ii) from the Available Funds, to each of the Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup
Subservicer, the Custodian and the Owner Trustee, their respective accrued and unpaid fees and out-of-pocket expenses and any accrued and unpaid fees and out-of-pocket expenses of the Trust Collateral Agent, including the fees and expenses of its
counsel (in each case, to the extent such fees or expenses have not been previously paid by the Servicer and provided that such fees and expenses shall not exceed (w) $[100,000] in the aggregate in any calendar year to the Owner Trustee, (x)
$[175,000] in the aggregate in any calendar year to the Trust Collateral Agent, the Backup Servicer, the Custodian and the Trustee, collectively and (y) $[75,000] in the aggregate in any calendar year to the Designated Backup Subservicer);

  

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 (iii) from the Available Funds to the Note Distribution Account, the Noteholders’
Interest Distributable Amount; 
  
 (iv) from the
Available Funds to the Note Distribution Account, the Noteholders’ First Principal Distributable Amount; 
  
 (v) from the Available Funds, to the Insurer, the Premium (as defined in the Insurance Agreement) and, so long as no Insurer Default has
occurred and is continuing, to the extent of any amounts owing to the Insurer under the Insurance Agreement and not paid; 
  
 (vi) from the Available Funds, to the Spread Account, an amount, if necessary, required to increase the amount therein to the Spread
Account Initial Deposit; 
  
 (vii) from the
Available Funds to the Note Distribution Account, the Noteholders’ Second Principal Distributable Amount; 
  
 (viii) from Available Funds, to the Insurer, so long as an Insurer Default has occurred and is continuing, the amounts described in
clause (v) above, excluding the Premium, as defined in the Insurance Agreement; 
  
 (ix) from the Available Funds, to the Spread Account, an amount, if necessary, required to increase the amount therein to the Requisite
Amount; 
  
 (x) from the Available Funds, to
each of the Servicer, the Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer and the Owner Trustee, their respective accrued and unpaid fees and expenses and any accrued and unpaid fees and expenses of the
Trust Collateral Agent (in each case, to the extent such fees or expenses have not been previously paid pursuant to clauses (i) and (ii) above) and any additional fees of a successor servicer; 
  
 (xi) to the Class A-3 Notes, additional amounts as
described in Section 10.1 herein; and 
  
 (xii)
from Available Funds, any remaining Available Funds to the Collateral Agent for deposit in the Spread Account; 
  
 provided, however, that, (A) following an acceleration of the Notes pursuant to the Indenture or, (B) if an Insurer Default shall have occurred and be continuing and an Event of Default pursuant to
Section 5.1(i), 5.1(ii), 5.1(iv), 5.1(v) or 5.1(vi) of the Indenture shall have occurred and be continuing, or (C) the receipt of Insolvency Proceeds pursuant to Section 10.1(b), amounts deposited in the Note Distribution Account (including any such
Insolvency Proceeds) shall be paid to the Noteholders, pursuant to Section 5.6 of the Indenture. 
  

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 (c) On each Distribution Date, the Trust Collateral Agent shall (based solely on the information
contained in the Servicer’s Certificate delivered with respect to the related Determination Date, unless the Insurer shall have notified the Trust Collateral Agent in writing of any errors or deficiencies with respect thereto) distribute from
the Collection Account the Additional Funds Available in accordance with the priorities set forth in Section 5.7(b) or as may be directed by the Insurer in writing on the Business Day prior to such Distribution Date with respect to that portion of
the Additional Funds Available constituting Insurer Optional Deposits and the Trustee shall deposit in the Note Distribution Account any Insured Payments (as defined in the Note Policy) due on such Distribution Date, which amount shall be applied
solely to the payment of amounts then due and unpaid on the Notes in accordance with the priorities set forth in Section 5.8(a) hereof or Section 5.6 of the Indenture, as applicable. 
  
 (d) In the event that the Collection Account is not able to be held with the Trust Collateral Agent, the Servicer or the
Trust Collateral Agent shall instruct and cause such institution to make all deposits and distributions pursuant to Sections 5.7(b) and 5.7(c) on the related Distribution Date. 
  
 SECTION 5.8. Note Distribution Account. 
  
 (a) On each Distribution Date (based solely on the information contained in the Servicer’s Certificate) the Trust
Collateral Agent shall distribute all amounts on deposit in the Note Distribution Account to Noteholders in respect of the Notes to the extent of amounts due and unpaid on the Notes for principal and interest in the following amounts and in the
following order of priority: 
  
 (i) accrued and
unpaid interest on the Notes; provided that if there are not sufficient funds in the Note Distribution Account to pay the entire amount of accrued and unpaid interest then due on each Class of Notes, the amount in the Note Distribution
Account shall be applied to the payment of such interest on each Class of Notes pro rata on the basis of the amount of accrued and unpaid interest due on each Class of Notes; 
  
 (ii) The Noteholders’ First Principal Distributable Amount and the Noteholders’ Second Principal
Distributable Amount shall be distributed as follows: 
  
 (1) to the Holders of the Class A-1 Notes with the total amount paid out on each Distribution Date until the outstanding principal amount of the Class A-1 Notes has been reduced to zero; 
  
 (2) to the Holders of the Class A-2 Notes with the total
amount paid out on each Distribution Date until the outstanding principal amount of the Class A-2 Notes has been reduced to zero; 
  
 (3) to the Holders of the Class A-3 Notes, with the total amount paid out on each Distribution Date until the outstanding principal
amount of the Class A-3 Notes has been reduced to zero. 
  
 (b)
On each Distribution Date, the Trust Collateral Agent shall send to each Noteholder the statement provided to the Trust Collateral Agent by the Servicer pursuant to Section 5.10 hereof on such Distribution Date. 
  

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 (c) In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to a Noteholder, such tax shall reduce the amount otherwise distributable to the Noteholder in accordance with this Section. The Trust Collateral Agent is hereby authorized and directed to retain from amounts otherwise distributable to the
Noteholders sufficient funds for the payment of any tax attributable to the Trust (but such authorization shall not prevent the Trust Collateral Agent from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if
permitted by law, pending the outcome of such proceedings). The amount of any withholding tax imposed with respect to a Noteholder shall be treated as cash distributed to such Noteholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a non-US Noteholder), the Trust Collateral Agent may in its sole discretion withhold such amounts in
accordance with this clause (c). In the event that a Noteholder wishes to apply for a refund of any such withholding tax, the Trust Collateral Agent shall reasonably cooperate with such Noteholder in making such claim so long as such Noteholder
agrees to reimburse the Trust Collateral Agent for any out-of-pocket expenses (including legal fees and expenses) incurred. 
  
 (d) Distributions required to be made to Noteholders on any Distribution Date shall be made to each Noteholder of record on the preceding Record Date
either by (i) wire transfer, in immediately available funds, to the account of such Holder at a bank or other entity having appropriate facilities therefore, if such Noteholder shall have provided to the Note Registrar appropriate written
instructions at least five Business Days prior to such Distribution Date and such Holder’s Notes in the aggregate evidence a denomination of not less than $1,000,000 or (ii) by check mailed to such Noteholder at the address of such holder
appearing in the Note Register. Notwithstanding the foregoing, the final distribution in respect of any Note (whether on the Final Scheduled Distribution Date or otherwise) will be payable only upon presentation and surrender of such Note at the
office or agency maintained for that purpose by the Note Registrar pursuant to Section 2.4 of the Indenture. 
  
 (e) Subject to Section 5.1 and this section, monies received by the Trust Collateral Agent hereunder need not be segregated in any manner except to the
extent required by law and may be deposited under such general conditions as may be prescribed by law, and the Trust Collateral Agent shall not be liable for any interest thereon. 
  
 SECTION 5.9. [Reserved] 
  
 SECTION 5.10. Statements to Noteholders. 
  
 (a) On or prior to each Distribution Date, the Trust Collateral Agent shall provide each Noteholder of record (with a copy to the Insurer and the Rating
Agencies) a copy of the Servicer’s Certificate which shall contain the following information as to the Notes to the extent applicable: 
  
 (i) the amount of such distribution allocable to principal of each Class of Notes; 
  

 45 

 (ii) the amount of such distribution allocable to interest on or with respect to each
Class of Notes; 
  
 (iii) the amount of such
distribution payable out of amounts withdrawn from the Spread Account or pursuant to a claim on the Note Policy; 
  
 (iv) the Pool Balance as of the close of business on the last day of the preceding Collection Period; 
  
 (v) the aggregate outstanding principal amount of each
Class of the Notes and the Note Pool Factor for each such Class after giving effect to payments allocated to principal reported under (i) above; 
  
 (vi) the amount of the Servicing Fee paid to the Servicer with respect to the related Collection Period and/or due but unpaid with
respect to such Collection Period or prior Collection Periods, as the case may be; 
  
 (vii) the Noteholders’ Interest Carryover Amount; 
  
 (viii) the amount of the aggregate Realized Losses, if any, for the second preceding Collection Period;

  
 (ix) the aggregate Purchase Amounts for
Receivables, if any, that were repurchased by the Servicer in such period; and 
  
 (x) the aggregate Sale Amounts for Sold Receivables, if any, that were sold by the Trust in such period. 
  
 Each amount set forth pursuant to paragraph (i), (ii), (iii), (vi) and (vii) above shall be
expressed as a dollar amount per $1,000 of the initial principal balance of the Notes (or Class thereof). 
  
 (b) The Trust Collateral Agent will make available each month to each Noteholder the statements referred to in Section 5.10(a) above (and certain other
documents, reports and information regarding the Receivables provided by the Servicer from time to time) via the Trust Collateral Agent’s internet website with the use of a password provided by the Trust Collateral Agent. The Trust Collateral
Agent’s internet website will be located at www.tss.db.com/invr or at such other address as the Trust Collateral Agent shall notify the Noteholders from time to time. For assistance with regard to this service, Noteholders can call the Trust
Collateral Agent’s Corporate Trust Office at (800) 735-7777. The Trust Collateral Agent shall have the right to change the way the statements referred to in Section 5.10(a) above are distributed in order to make such distribution more
convenient and/or more accessible to the parties entitled to receive such statements. The Trust Collateral Agent shall provide notification of any such change to all parties entitled to receive such statements in the manner described in Section 12.3
hereof, Section 11.4 of the Indenture or Section 11.5 of the Indenture, as appropriate. 
  
 SECTION 5.11. Optional Deposits by the Insurer. The Insurer shall at any time, and from time to time, with respect to a Distribution Date, have the option (but shall not be 
  

 46 

 required, except in accordance with the terms of the Note Policy) to deliver amounts no later than 12:00 noon Eastern
time on such Distribution Date to the Trust Collateral Agent for deposit into the Collection Account for any of the following purposes: (i) to provide funds in respect of the payment of fees or expenses of any provider of services to the Trust with
respect to such Distribution Date, or (ii) to include such amount to the extent that without such amount a draw would be required to be made on the Note Policy. 
  

ARTICLE VI 
  
 The Note Policy 
  
 SECTION 6.1. Claims Under Note Policy. 
  
 (a) In the event that the Trust Collateral Agent has delivered a Deficiency Notice with respect to any Determination Date pursuant to Section 5.5 hereof, the Trust Collateral Agent shall on the related Draw Date
determine the Policy Claim Amount for the related Distribution Date. If the Policy Claim Amount for such Distribution Date is greater than zero, the Trustee shall, to the extent it has received sufficient information to make such determinations,
furnish to the Insurer no later than 10:00 am Eastern time on the related Draw Date a completed Notice of Claim (as defined in (b) below) in the amount of the Policy Claim Amount. Amounts paid by the Insurer pursuant to a claim submitted under this
Section shall be deposited by the Trustee into the Note Distribution Account for payment to Noteholders on the related Distribution Date. 
  
 (b) Any notice delivered by the Trustee to the Insurer in the form attached as Exhibit A to the Note Policy pursuant to subsection 6.1(a) shall specify
the Policy Claim Amount claimed under the Note Policy and shall constitute a “Notice of Claim” under the Note Policy. In accordance with the provisions of the Note Policy, the Insurer is required to pay to the Trustee the Policy
Claim Amount properly claimed thereunder by 12:00 noon., New York time, on the later of (i) the second Business Day following receipt on a Business Day of the Notice of Claim, and (ii) the applicable Distribution Date. Any payment made by the
Insurer under the Note Policy shall be applied solely to the payment of the Notes, and for no other purpose. 
  
 (c) The Trustee shall (i) receive as attorney-in-fact of each Noteholder any Policy Claim Amount from the Insurer and (ii) deposit the same in the Note
Distribution Account for distribution to Noteholders. Any and all Policy Claim Amounts disbursed by the Trustee or the Trust Collateral Agent from claims made under the Note Policy shall not be considered payment by the Trust or from the Spread
Account with respect to such Notes, and shall not discharge the obligations of the Trust with respect thereto. The Insurer shall, to the extent it makes any payment with respect to the Notes, become subrogated to the rights of the recipients of such
payments to the extent of such payments. Subject to and conditioned upon any payment with respect to the Notes by or on behalf of the Insurer, the Trustee shall assign to the Insurer all rights to the payment of interest or principal with respect to
the Notes which are then due for payment to the extent of all payments made by the Insurer, and the Insurer may exercise any option, vote, right, power or the like with respect to the Notes to the extent that it has made payment pursuant to the Note
Policy. To evidence such subrogation, the Note Registrar shall 
  

 47 

 note the Insurer’s rights as subrogee upon the register of Noteholders. The foregoing subrogation shall in all cases
be subject to the rights of the Noteholders to receive all Insured Payments (as defined in the Note Policy) in respect of the Notes. 
  
 (d) The Trustee and the Trust Collateral Agent shall keep a complete and accurate record of all funds deposited by the Trustee on behalf of the Insurer
into the Note Distribution Account with respect to the Note Policy and the allocation of such funds to payment of interest on and principal paid in respect of any Note. The Insurer shall have the right to inspect such records at reasonable times
upon seven Business Day’s prior notice to the Trust Collateral Agent or the Trustee. 
  
 (e) The Trustee shall be entitled to enforce on behalf of the Noteholders the obligations of the Insurer under the Note Policy. Notwithstanding any other provision of this Agreement or any Basic Document, the
Noteholders are not entitled to institute proceedings directly against the Insurer. 
  
 SECTION 6.2. Preference Claims Under Note Policy. 
  
 (a) In the event that the Trustee has received a certified copy of a final, non-appealable order of the appropriate court that any payment paid on a Note has been avoided in whole or in part as a preference payment
under applicable bankruptcy law pursuant to a final nonappealable order of a court having competent jurisdiction, the Trustee shall so notify the Insurer, shall comply with the provisions of the Note Policy to obtain payment by the Insurer of such
avoided payment, and shall, at the time it provides notice to the Insurer, notify Holders of the Notes by mail that, in the event that any Noteholder’s payment is so recoverable, such Noteholder will be entitled to payment pursuant to the terms
of the Note Policy. The Trust Collateral Agent and the Trustee shall furnish to the Insurer its records evidencing the payments of principal of and interest on Notes, if any, which have been made by the Trust Collateral Agent or the Trustee and
subsequently recovered from Noteholders, and the dates on which such payments were made. Pursuant to the terms of the Note Policy, the Insurer will make such payment on behalf of the Noteholder to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the order and not to the Trust Collateral Agent, the Trustee or any Noteholder directly (unless a Noteholder has previously paid such payment to the receiver, conservator, debtor-in-possession or trustee in bankruptcy,
in which case the Insurer will make such payment to the Trustee for distribution to such Noteholder upon proof of such payment reasonably satisfactory to the Insurer). 
  
 (b) The Trust Collateral Agent or the Trustee shall promptly notify the Insurer of any proceeding or the institution of any
action (of which a Responsible Officer of the Trust Collateral Agent has actual knowledge) seeking the avoidance as a preferential transfer under applicable bankruptcy, insolvency, receivership, rehabilitation or similar law of any distribution made
with respect to the Notes (a “Note Preference Claim”). Each Noteholder, by its purchase of Notes, the Trustee and the Trust Collateral Agent hereby agree that so long as an Insurer Default shall not have occurred and be continuing,
the Insurer may at any time during the continuation of any proceeding relating to a Note Preference Claim direct all matters relating to such Note Preference Claim, including, without limitation, (i) the direction of any appeal of any order relating
to any Note Preference Claim and (ii) the posting of any surety, supersedeas or 
  

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 performance bond pending any such appeal at the expense of the Insurer, but subject to reimbursement as provided in the
Insurance Agreement. In addition, and without limitation of the foregoing, as set forth in Section 6.1(c), the Insurer shall be subrogated to, and each Noteholder, the Trustee and the Trust Collateral Agent hereby delegate and assign, to the fullest
extent permitted by law, the rights of the Trustee and each Noteholder in the conduct of any proceeding with respect to a Note Preference Claim, including, without limitation, all rights of any party to an adversary proceeding action with respect to
any court order issued in connection with any such Note Preference Claim. 
  
 SECTION 6.3. Surrender of Note Policy. The Trustee shall surrender the Note Policy to the Insurer for cancellation upon payment in full of the Notes. 
  
 ARTICLE VII 
  
 The Seller 
  
 SECTION 7.1. Representations of Seller. The Seller makes the following representations on which the Insurer shall be deemed to have relied in
executing and delivering the Note Policy and on which the Trust is deemed to have relied in acquiring the Receivables and on which the Trustee, Collateral Agent, Trust Collateral Agent and Backup Servicer, the Designated Backup Subservicer may rely.
The representations speak as of the execution and delivery of this Agreement and as of the Closing Date, in the case of Receivables, and shall survive the sale of the Receivables to the Trust and the pledge thereof to the Trust Collateral Agent
pursuant to the Indenture. 
  
 (a) [Reserved]. 

 
 (b) Organization and Good Standing. The Seller has been duly
organized and is validly existing as a corporation in good standing under the laws of the State of California, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is
currently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire, own and sell the Receivables and the Other Conveyed Property transferred to the Trust. 
  
 (c) Due Qualification. The Seller is duly qualified to do business as
a foreign corporation in good standing and has obtained all necessary licenses and approvals in all jurisdictions where the failure to do so would materially and adversely affect Seller’s ability to transfer the Receivables and the Other
Conveyed Property to the Trust pursuant to this Agreement, or the validity or enforceability of the Receivables and the Other Conveyed Property or to perform Seller’s obligations hereunder and under the Seller’s Basic Documents.

  
 (d) Power and Authority. The Seller has the power and
authority to execute and deliver this Agreement and its Basic Documents and to carry out its terms and their terms, respectively; the Seller has full power and authority to sell and assign the Receivables and the Other Conveyed Property to be sold
and assigned to and deposited with the Trust by it and has duly authorized such sale and assignment to the Trust by all necessary corporate action; and the execution, delivery and performance of this Agreement and the Seller’s Basic Documents
have been duly authorized by the Seller by all necessary corporate action. 
  

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 (e) Valid Sale, Binding
Obligations. This Agreement effects a valid sale, transfer and assignment of the Receivables and the Other Conveyed Property, enforceable against the Seller and creditors of and purchasers from the Seller; and this Agreement and the
Seller’s Basic Documents, when duly executed and delivered, shall constitute legal, valid and binding obligations of the Seller enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a
proceeding in equity or at law. 
  
 (f) No Violation. The
consummation of the transactions contemplated by this Agreement and the Basic Documents and the fulfillment of the terms of this Agreement and the Basic Documents shall not conflict with, result in any breach of any of the terms and provisions of or
constitute (with or without notice, lapse of time or both) a default under the certificate of incorporation or by-laws of the Seller, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Seller is a party or by which
it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement, or violate any law, order,
rule or regulation applicable to the Seller of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or any of its properties. 
  
 (g) No Proceedings. There are no proceedings or investigations
pending or, to the Seller’s knowledge, threatened against the Seller, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (A) asserting
the invalidity of this Agreement or any of the Basic Documents, (B) seeking to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the Basic Documents, (C) seeking any
determination or ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement or any of the Basic Documents, or (D) seeking to adversely affect the
federal income tax or other federal, state or local tax attributes of the Notes. 
  
 (h) No Consents. The Seller is not required to obtain the consent of any other party or any consent, license, approval or authorization, or registration or declaration with, any governmental authority, bureau
or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement which has not already been obtained. 
  
 (i) True Sale. The Receivables are being transferred with the intention of removing them from the Seller’s estate pursuant to Section 541 of
the Bankruptcy Code, as the same may be amended from time to time. 
  
 (j) Chief Executive Office. The chief executive office of the Seller is at 6525 Morison Boulevard, Suite 318, Charlotte, North Carolina 28211. 
  

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 SECTION 7.2. Corporate Existence. During the term of this Agreement, the Seller will keep in full
force and effect its existence, rights and franchises as a corporation under the laws of the jurisdiction of its incorporation and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall
be necessary to protect the validity and enforceability of this Agreement, the Basic Documents and each other instrument or agreement necessary or appropriate to the proper administration of this Agreement and the transactions contemplated hereby.

  
 SECTION 7.3. Liability of UACC; Indemnities. UACC shall
be liable in accordance herewith only to the extent of the obligations specifically undertaken by UACC under this Agreement. 
  
 (a) UACC shall indemnify, defend and hold harmless the Trust, the Owner Trustee, Trustee, Seller, Backup Servicer, Designated Backup Subservicer,
including in its capacity as successor Servicer or as subservicer to the Servicer, Collateral Agent, Insurer, Custodian and Trust Collateral Agent and the officers, directors, employees and agents thereof from and against any taxes that may at any
time be asserted against any such Person with respect to the transactions contemplated in this Agreement and any of the Basic Documents (except any income taxes arising out of fees paid to the Owner Trustee, the Trust Collateral Agent, the Trustee
and the Insurer and except any taxes to which the Owner Trustee, the Trust Collateral Agent or the Trustee may otherwise be subject to, without regard to the transactions contemplated hereby), including any sales, gross receipts, general
corporation, tangible personal property, privilege or license taxes (but in the case of the Trust, not including any taxes asserted with respect to federal or other income taxes arising out of distributions on the Notes) and costs and expenses in
defending against the same. 
  
 (b) UACC shall indemnify, defend
and hold harmless the Trust, the Owner Trustee, Trustee, Seller, Backup Servicer, Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, Collateral Agent, Insurer, Custodian and Trust
Collateral Agent and the officers, directors, employees and agents thereof and the Noteholders from and against any loss, liability or expense incurred by reason of (i) UACC’s willful misfeasance, bad faith or negligence in the performance of
its duties under this Agreement, or by reason of reckless disregard of its obligations and duties under this Agreement and (ii) UACC’s or the Trust’s violation of federal or state securities laws in connection with the offering and sale of
the Notes. 
  
 (c) UACC shall indemnify, defend and hold harmless
the Owner Trustee, Trustee, Seller, Trust Collateral Agent, Collateral Agent, Custodian, Backup Servicer, Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, and the officers, directors,
employees and agents thereof from and against any and all costs, expenses, losses, claims, damages and liabilities arising out of, or incurred in connection with the acceptance or performance of the trusts and duties set forth herein and in the
Basic Documents except to the extent that such cost, expense, loss, claim, damage or liability shall be due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Owner Trustee, Trustee, Trust Collateral Agent,
Collateral Agent, Custodian, Backup Servicer and Designated Backup Subservicer, respectively. 
  

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 Indemnification under this Section shall survive the resignation or removal of the Owner Trustee, the
Trustee, the Seller, the Custodian, the Backup Servicer, the Designated Backup Subservicer, the Collateral Agent or the Trust Collateral Agent and the termination of this Agreement or the Indenture or the Trust Agreement, as applicable, and shall
include reasonable fees and expenses of counsel and other expenses of litigation. If UACC shall have made any indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments are made thereafter shall collect any of
such amounts from others, such Person shall promptly repay such amounts to UACC, without interest. 
  
 SECTION 7.4. Merger or Consolidation of, or Assumption of the Obligations of, Seller. Any Person (a) into which the Seller may be merged or
consolidated, (b) which may result from any merger or consolidation to which the Seller shall be a party or (c) which may succeed to the properties and assets of the Seller substantially as a whole, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Seller under this Agreement, shall be the successor to the Seller hereunder without the execution or filing of any document or any further act by any of the parties to this
Agreement; provided, however, that (i) the Seller shall have received the written consent of the Insurer prior to entering into any such transaction, (ii) immediately after giving effect to such transaction, no Servicer Termination
Event, and no event which, after notice or lapse of time, or both, would become a Servicer Termination Event, shall have happened and be continuing, (iii) the Seller shall have delivered to the Owner Trustee, the Trust Collateral Agent, the
Collateral Agent, the Trustee and the Insurer an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction have been complied with, (iv) the Rating Agency Condition shall have been satisfied with respect to such transaction and (v) the Seller shall have delivered to the Owner
Trustee, the Trust Collateral Agent, the Collateral Agent, the Trustee and the Insurer an Opinion of Counsel stating that, in the opinion of such counsel, either (A) all financing statements and continuation statements and amendments thereto have
been executed and filed that are necessary fully to preserve and protect the interest of the Trust Collateral Agent, the Owner Trustee and the Trustee, respectively, in the Receivables and reciting the details of such filings or (B) no such action
shall be necessary to preserve and protect such interest. Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses (i), (ii), (iii), (iv) and (v) above shall be conditions to
the consummation of the transactions referred to in clauses (a), (b) or (c) above. 
  
 SECTION 7.5. Limitation on Liability of Seller and Others. The Seller and any director, officer or employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters arising under any Basic Document. The Seller shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement, and that in its opinion may involve it in any expense or liability. 
  
 SECTION 7.6. Ownership of the Certificates or Notes. The Seller and any Affiliate thereof may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have if it were not the Seller or an Affiliate 
  

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 thereof, except as expressly provided herein or in any Basic Document. Notes or Certificates so owned by the Seller or
such Affiliate shall have an equal and proportionate benefit under the provisions of the Basic Documents, without preference, priority, or distinction as among all of the Notes or Certificates; provided, however, that any Notes or
Certificates owned by the Seller or any Affiliate thereof, during the time such Notes or Certificates are owned by them, shall be without voting rights for any purpose set forth in the Basic Documents and will not be entitled to the benefits of the
Note Policy. The Seller shall notify the Owner Trustee, the Trustee, the Trust Collateral Agent and the Insurer with respect to any other transfer of any Certificate. 
  
 ARTICLE VIII 
  
 The Servicer 
  
 SECTION 8.1. Representations of Servicer. The Servicer makes the following representations on which the Insurer shall be deemed to have relied in
executing and delivering the Note Policy and on which the Trust is deemed to have relied in acquiring the Receivables. The representations speak as of the execution and delivery of this Agreement and as of the Closing Date, in the case of the
Receivables, and shall survive the sale of the Receivables to the Trust and the pledge thereof to the Trust Collateral Agent pursuant to the Indenture. 
  
 (a) [Reserved]; 
  
 (b) Organization and Good Standing. The Servicer has been duly organized and is validly existing and in good standing under the laws of its
jurisdiction of organization, with power, authority and legal right to own its properties and to conduct its business as such properties are currently owned and such business is currently conducted, and had at all relevant times, and now has, power,
authority and legal right to enter into and perform its obligations under this Agreement; 
  
 (c) Due Qualification. The Servicer is duly qualified to do business as a foreign corporation in good standing and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership
or lease of property or the conduct of its business (including the servicing of the Receivables as required by this Agreement) requires or shall require such qualification; 
  
 (d) Power and Authority. The Servicer has the power and authority to execute and deliver this Agreement and its
Basic Documents and to carry out its terms and their terms, respectively, and the execution, delivery and performance of this Agreement and the Servicer’s Basic Documents have been duly authorized by the Servicer by all necessary corporate
action; 
  
 (e) Binding Obligation. This Agreement and the
Servicer’s Basic Documents shall constitute legal, valid and binding obligations of the Servicer enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other
similar laws affecting the enforcement of creditors’ rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law;

  

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 (f) No Violation. The consummation of the transactions contemplated by this Agreement and the
Servicer’s Basic Documents, and the fulfillment of the terms of this Agreement and the Servicer’s Basic Documents, shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice
or lapse of time) a default under, the articles of incorporation or bylaws of the Servicer, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Servicer is a party or by which it is bound, or result in the creation
or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement, or violate any law, order, rule or regulation applicable to the
Servicer of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or any of its properties; 
  
 (g) No Proceedings. There are no proceedings or investigations
pending or, to the Servicer’s knowledge, threatened against the Servicer, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Servicer or its properties (A)
asserting the invalidity of this Agreement or any of the Basic Documents, (B) seeking to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the Basic Documents, or (C) seeking
any determination or ruling that might materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement or any of the Basic Documents or (D) seeking to adversely affect
the federal income tax or other federal, state or local tax attributes of the Notes; 
  
 (h) No Consents. The Servicer is not required to obtain the consent of any other party or any consent, license, approval or authorization, or registration or declaration with, any governmental authority, bureau
or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement which has not already been obtained. 
  
 SECTION 8.2. Liability of Servicer, Backup Servicer and Designated Backup Subservicer; Indemnities. 
  
 (a) The Servicer (in its capacity as such) shall be liable hereunder only
to the extent of the obligations in this Agreement specifically undertaken by the Servicer and the representations made by the Servicer. 
  
 (b) The Servicer shall defend, indemnify and hold harmless the Trust, the Trustee, the Seller, the Trust Collateral Agent, the Owner Trustee, the
Custodian, the Backup Servicer, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, the Collateral Agent, the Insurer, their respective officers, directors, agents and employees, and
the Noteholders from and against any and all costs, expenses, losses, damages, claims and liabilities, including reasonable fees and expenses of counsel and expenses of litigation arising out of or resulting from the use, ownership or operation by
the Servicer or any Affiliate thereof of any Financed Vehicle; 
  
 (c) The Servicer (when the Servicer is UACC) shall indemnify, defend and hold harmless the Trust, the Trustee, the Seller, the Trust Collateral Agent, the Custodian, the Owner Trustee, the Backup Servicer, the Designated Backup Subservicer,
including in its 
  

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 capacity as successor Servicer or as subservicer to the Servicer, the Collateral Agent, the Insurer, their respective
officers, directors, agents and employees and the Noteholders from and against any taxes that may at any time be asserted against any of such parties with respect to the transactions contemplated in this Agreement, including, without limitation, any
sales, gross receipts, tangible or intangible personal property, privilege or license taxes (but not including any federal or other income taxes, including franchise taxes asserted with respect to, and as of the date of, the sale of the Receivables
and the Other Conveyed Property to the Trust or the issuance and original sale of the Notes) and costs and expenses in defending against the same; 
  
 The Servicer (when the Servicer is not UACC) shall indemnify, defend and hold harmless the Trust, the Trustee, the Trust Collateral Agent, the Custodian,
the Owner Trustee, the Backup Servicer, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, the Collateral Agent, the Insurer, their respective officers, directors, agents and
employees and the Noteholders from and against any taxes with respect to the sale of Receivables in connection with servicing hereunder that may at any time be asserted against any of such parties with respect to the transactions contemplated in
this Agreement, including, without limitation, any sales, gross receipts, tangible or intangible personal property, privilege or license taxes (but not including any federal or other income taxes, including franchise taxes asserted with respect to,
and as of the date of, the sale of the Receivables and the Other Conveyed Property to the Trust or the issuance and original sale of the Notes) and costs and expenses in defending against the same; and 
  
 (d) The Servicer shall indemnify, defend and hold harmless the Trust, the
Trustee, the Trust Collateral Agent, the Custodian, the Owner Trustee, the Backup Servicer, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, the Collateral Agent, the Insurer,
their respective officers, directors, agents and employees and the Noteholders from and against any and all costs, expenses, losses, claims, damages, and liabilities (including reasonable fees and expenses of counsel and expenses of litigation, if
any) to the extent that such cost, expense, loss, claim, damage, or liability arose out of, or was imposed upon the Trust, the Trustee, the Owner Trustee, the Trust Collateral Agent, the Custodian, the Backup Servicer, the Designated Backup
Subservicer, the Collateral Agent, the Insurer or the Noteholders by reason of the breach of this Agreement by the Servicer, the negligence, willful misfeasance, or bad faith of the Servicer in the performance of its duties under this Agreement or
by reason of reckless disregard of its obligations and duties under this Agreement. 
  
 (e) UACC shall indemnify, defend and hold harmless the Trust, the Trustee, the Trust Collateral Agent, the Custodian, the Owner Trustee, the Backup Servicer, the Designated Backup Subservicer, including in its
capacity as successor Servicer or as subservicer to the Servicer, the Collateral Agent, the Insurer, their respective officers, directors, agents and employees and the Noteholders from and against any loss, liability or expense incurred by reason of
the violation by Servicer, Seller or Trust of federal or state securities laws in connection with the registration or the sale of the Notes; provided, that UACC shall not indemnify the Insurer for the disclosure under the captions “The
Insurer” and “The Policy” in the Prospectus Supplement; provided, further, that UACC shall not indemnify the Underwriter for the Underwriter’s Information in the Prospectus Supplement. This section shall survive the
termination of this Agreement, or the earlier removal or resignation of the Trustee, the Trust Collateral Agent, the Custodian, the Backup Servicer, the Designated Backup Subservicer or the Collateral Agent. 
  

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 (f) UACC shall indemnify the Trustee, the Owner Trustee, the Trust Collateral Agent, the Custodian, the
Backup Servicer, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, and the Collateral Agent, and the respective officers, directors, agents and employees thereof against any and all
loss, liability or expense, (other than overhead and expenses incurred in the normal course of business) incurred by each of them in connection with the acceptance or administration of the Trust and the performance of their duties under the Basic
Documents other than if such loss, liability or expense was incurred by the Trustee, the Owner Trustee, the Custodian, the Backup Servicer or the Trust Collateral Agent or the Designated Backup Subservicer as a result of any such entity’s
willful misfeasance, bad faith or negligence. 
  
 (g)
Indemnification under this Article shall include, without limitation, reasonable fees and expenses of counsel and expenses of litigation. If the Servicer has made any indemnity payments pursuant to this Article and the recipient thereafter collects
any of such amounts from others, the recipient shall promptly repay such amounts collected to the Servicer, without interest. Notwithstanding anything contained herein to the contrary, any indemnification payable by the Servicer to the Backup
Servicer or the Designated Backup Subservicer, to the extent not paid by the Servicer, shall be paid solely from the Spread Account in accordance with the terms of the Spread Account Agreement. 
  
 (h) When the Trustee, the Trust Collateral Agent, the Custodian, the
Collateral Agent, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, or the Backup Servicer incurs expenses after the occurrence of a Servicer Termination Event specified in Section
9.1(d) or (e) with respect to the Servicer, the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 
  
 The provisions of this Section 8.2 shall survive the resignation of the
Trustee, Trust Collateral Agent, Collateral Agent, Custodian, Owner Trustee, Backup Servicer and Designated Backup Subservicer and the termination of this Agreement. 
  
 SECTION 8.3. Merger or Consolidation of, or Assumption of the Obligations of the Servicer, Designated Backup Subservicer
or Backup Servicer. 
  
 (a) UACC shall not merge or
consolidate with any other person, convey, transfer or lease substantially all its assets as an entirety to another Person, or permit any other Person to become the successor to UACC’s business unless, after the merger, consolidation,
conveyance, transfer, lease or succession, the successor or surviving entity shall be capable of fulfilling the duties of UACC contained in this Agreement and shall be consented to by the Controlling Party in writing, and, if an Insurer Default
shall have occurred and be continuing, shall be an Eligible Servicer. Any corporation (i) into which UACC may be merged or consolidated, (ii) resulting from any merger or consolidation to which UACC shall be a party, (iii) which acquires by
conveyance, transfer, or lease substantially all of the assets of UACC, or (iv) succeeding to the business of UACC, in any of the foregoing cases shall execute an 
  

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 agreement of assumption to perform every obligation of UACC under this Agreement and, whether or not such assumption
agreement is executed, shall be the successor to UACC under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement, anything in this Agreement to the contrary
notwithstanding; provided, however, that nothing contained herein shall be deemed to release UACC from any obligation. UACC shall provide notice of any merger, consolidation or succession pursuant to this Section to the Owner Trustee,
the Trust Collateral Agent, the Noteholders, the Insurer and each Rating Agency. Notwithstanding the foregoing, UACC shall not merge or consolidate with any other Person or permit any other Person to become a successor to UACC’s business,
unless (x) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section 4.6 shall have been breached (for purposes hereof, such representations and warranties shall speak as of the date of the
consummation of such transaction) and no event that, after notice or lapse of time, or both, would become an Insurance Agreement Event of Default shall have occurred and be continuing, (y) UACC shall have delivered to the Owner Trustee, the Trust
Collateral Agent, Trustee, Backup Servicer, the Designated Backup Subservicer and Collateral Agent, the Rating Agencies and the Insurer an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or
succession and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with, and (z) UACC shall have delivered to the Owner
Trustee, the Trust Collateral Agent, the Trustee, the Collateral Agent, the Rating Agencies and the Insurer an Opinion of Counsel, stating in the opinion of such counsel, either (A) all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary to preserve and protect the interest of the Trust in the Receivables and the Other Conveyed Property and reciting the details of the filings or (B) no such action shall be necessary to preserve
and protect such interest. 
  
 (b) Any corporation (i) into which
the Backup Servicer or the Designated Backup Subservicer, as the case may be, may be merged or consolidated, (ii) resulting from any merger or consolidation to which the Backup Servicer or the Designated Backup Subservicer respectively shall be a
party, (iii) which acquires by conveyance, transfer or lease substantially all of the assets of the Backup Servicer or the Designated Backup Subservicer, respectively, or (iv) succeeding to the business of the Backup Servicer or the Designated
Backup Subservicer, respectively, in any of the foregoing cases shall execute an agreement of assumption to perform every obligation of the Backup Servicer or the Designated Backup Subservicer, as the case may be, under this Agreement and, whether
or not such assumption agreement is executed, shall be the successor to the Backup Servicer or the Designated Backup Subservicer, respectively, under this Agreement without the execution or filing of any paper or any further act on the part of any
of the parties to this Agreement, anything in this Agreement to the contrary notwithstanding; provided, however, that nothing contained herein shall be deemed to release the Backup Servicer or the Designated Backup Subservicer from any obligation.

  
 SECTION 8.4. Limitation on Liability of Servicer,
Designated Backup Subservicer, Backup Servicer and Others. 
  
 (a) None of UACC, the Designated Backup Subservicer, including in its capacity as successor Servicer or as subservicer to the Servicer, the Backup Servicer nor any of the directors or officers or employees or agents of UACC, the Designated
Backup Subservicer, 
  

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 the Backup Servicer, The Trust Collateral Agent, the Collateral Agent or the Custodian shall be under any liability to
the Trust or the Noteholders, except as provided in this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement; provided, however, that this provision shall not protect UACC, the
Designated Backup Subservicer, the Backup Servicer or any such person against any liability that would otherwise be imposed by reason of a breach of this Agreement or willful misfeasance, bad faith or negligence (excluding errors in judgment) in the
performance of duties; provided further that this provision shall not affect any liability to indemnify the Trustee, the Trust Collateral Agent, the Collateral Agent, the Custodian, and the Owner Trustee for costs, taxes, expenses, claims,
liabilities, losses or damages paid by the Trustee, the Trust Collateral Agent, the Collateral Agent, the Custodian and the Owner Trustee, in their individual capacities. UACC, the Designated Backup Subservicer, the Backup Servicer and any director,
officer, employee or agent of UACC, the Designated Backup Subservicer or Backup Servicer may rely in good faith on the written advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any
matters arising under this Agreement. 
  
 (b) Unless acting as
Servicer hereunder, the Backup Servicer shall not be liable for any obligation of the Servicer contained in this Agreement or for any errors of the Servicer contained in any computer tape, certificate or other data or document delivered to the
Backup Servicer hereunder or on which the Backup Servicer must rely in order to perform its obligations hereunder, and the Owner Trustee, the Trustee, the Trust Collateral Agent, the Custodian, the Collateral Agent, the Backup Servicer, the
Designated Backup Subservicer, the Seller and the Insurer and the Noteholders shall look only to the Servicer to perform such obligations. Unless acting as Servicer hereunder, the Designated Backup Subservicer shall not be liable for any obligation
of the Servicer contained in this Agreement or for any error of the Servicer contained in any computer tape, certificate or other data or document delivered in connection with the Basic Documents, and the Owner Trustee, the Trustee, the Trust
Collateral Agent, the Custodian, the Collateral Agent, the Backup Servicer, the Seller, the Insurer and the Noteholders shall look only to the Servicer to perform such obligations. The Backup Servicer, Designated Backup Subservicer, including in its
capacity as successor Servicer or as subservicer to the Servicer, Trust Collateral Agent, the Collateral Agent, the Trustee, the Owner Trustee and the Custodian shall have no responsibility and shall not be in default hereunder or incur any
liability for any failure, error, malfunction or any delay in carrying out any of their respective duties under this Agreement if such failure or delay results from the Backup Servicer or the Designated Backup Subservicer acting in accordance with
information prepared or supplied by a Person other than itself (or contractual agents) or the failure of any such other Person to prepare or provide such information. The Backup Servicer shall have no responsibility, shall not be in default and
shall incur no liability for (i) any act or failure to act of any third party (other than its contractual agents), including the Servicer or the Controlling Party, (ii) any inaccuracy or omission in a notice or communication received by the Backup
Servicer from any third party (other than its contractual agents), (iii) the invalidity or unenforceability of any Receivable under applicable law, (iv) the breach or inaccuracy of any representation or warranty made with respect to any Receivable,
or (v) the acts or omissions of any successor Backup Servicer. The Designated Backup Subservicer shall have no responsibility, shall not be in default and shall incur no liability for (i) any act or failure to act of any third party (other than its
contractual agents), including the Servicer (other than when CenterOne is the Servicer), the Backup Servicer, or the Controlling Party, (ii) any inaccuracy or omission in a notice, certificate or communication 
  

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 received by the Designated Backup Subservicer from any third party (whether or not the Designated Backup Subservicer has
confirmed, verified or otherwise reviewed such data), (iii) the invalidity or unenforceability of any Receivable under applicable law, (iv) the breach or inaccuracy of any representation or warranty made with respect to any Receivable or the
Servicer (other than when CenterOne is the Servicer), or (v) the acts or omissions of any other Designated Backup Subservicer. 
  
 SECTION 8.5. Delegation of Duties. 
  
 (a) The Servicer, including the Designated Backup Subservicer as successor Servicer or as subservicer to the Servicer, may delegate duties under this
Agreement to an Affiliate with the prior written consent of the Insurer (unless an Insurer Default shall have occurred and be continuing), the Trust Collateral Agent, the Trust, the Designated Backup Subservicer and the Backup Servicer. The
Servicer, including the Designated Backup Subservicer as successor Servicer or as subservicer to the Servicer, also may at any time perform through sub-contractors the specific duties of (i) repossession of Financed Vehicles, (ii) tracking Financed
Vehicles’ insurance and (iii) pursuing the collection of deficiency balances on certain Liquidated Receivables, in each case, without the consent of the Insurer and may perform other specific duties through such sub-contractors in accordance
with Servicer’s customary servicing policies and procedures, with the prior consent of the Insurer; provided, however, that no such delegation or sub-contracting duties by the Servicer shall relieve the Servicer of its
responsibility with respect to such duties. So long as no Insurer Default shall have occurred and be continuing neither UACC or any party acting as Servicer hereunder shall appoint any subservicer hereunder without the prior written consent of the
Insurer, the Trustee, the Designated Backup Subservicer and the Backup Servicer. 
  
 (b) If UACC is not the Servicer, such Servicer may delegate any of its duties and obligations hereunder to the Designated Backup Subservicer or one or more other subservicers pursuant to a sub-servicing agreement in
form and substance approved by the Insurer (unless an Insurer Default shall have occurred and be continuing), the Trust Collateral Agent, the Trust and the Backup Servicer. Notwithstanding the foregoing, the Servicer shall be liable for the fees and
expenses of its delegates (other than the fees and expenses of the Designated Backup Subservicer which are paid under Section 5.7(b)(ii)) and remain primarily liable for the performance of the duties and obligations so delegated and each of the
Insurer (unless an Insurer Default shall have occurred and be continuing), the Trust Collateral Agent, the Trust and the Backup Servicer shall have the right to look solely to the Servicer for performance. 
  
 (c) The Backup Servicer may delegate duties under this Agreement to one or
more Designated Backup Subservicers with the prior written consent of the Insurer (unless an Insurer Default shall have occurred and be continuing), the Trust Collateral Agent and the Trust. The Backup Servicer hereby appoints CenterOne as the
initial Designated Backup Subservicer, CenterOne hereby accepts such appointment and each of Insurer, the Trust Collateral Agent, the Trust and the Backup Servicer hereby consents to such appointment. Each of the Backup Servicer, the Designated
Backup Subservicer, the Insurer, the Trust Collateral Agent and the Trust acknowledge that in the event that the Backup Servicer becomes the Servicer hereunder, the Backup Servicer may appoint the Designated Backup Subservicer as its subservicer
under 
  

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 this Agreement to service the Receivables and the Designated Backup Subservicer shall service the Receivables, subject to
the terms, conditions and modifications contained in Schedule D, and in that event, the rights, duties, obligations and liabilities of the Designated Backup Subservicer as subservicer or Servicer under this Agreement shall be modified as provided in
Schedule D. The Backup Servicer may terminate the appointment of any Designated Backup Subservicer only upon the prior written consent of the Insurer (unless an Insurer Default shall have occurred and be continuing), the Trust Collateral Agent and
the Trust. 
  
 SECTION 8.6. Servicer, the Designated Backup
Subservicer and Backup Servicer Not to Resign. Subject to the provisions of Section 8.3, neither the Servicer nor the Backup Servicer shall resign from the obligations and duties imposed on it by this Agreement as Servicer, the Designated Backup
Subservicer or Backup Servicer except upon a determination that by reason of a change in legal requirements the performance of its duties under this Agreement would cause it to be in violation of such legal requirements in a manner which would have
a material adverse effect on the Servicer, the Designated Backup Subservicer or the Backup Servicer, as the case may be, and the Insurer (so long as an Insurer Default shall not have occurred and be continuing) or a Note Majority (if an Insurer
Default shall have occurred and be continuing) does not elect to waive the obligations of the Servicer, the Designated Backup Subservicer or the Backup Servicer, as the case may be, to perform the duties which render it legally unable to act or to
delegate those duties to another Person. Any such determination permitting the resignation of the Servicer, the Designated Backup Subservicer or Backup Servicer shall be evidenced by an Opinion of Counsel to such effect delivered and acceptable to
the Trust Collateral Agent, the Owner Trustee and the Insurer (unless an Insurer Default shall have occurred and be continuing). No resignation of the Servicer shall become effective until, so long as no Insurer Default shall have occurred and be
continuing, the Backup Servicer or an entity acceptable to the Insurer shall have assumed the responsibilities and obligations of the Servicer or, if an Insurer Default shall have occurred and be continuing, the Backup Servicer or a replacement
Servicer that is an Eligible Servicer shall have assumed the responsibilities and obligations of the Servicer. No resignation of the Backup Servicer or the Designated Backup Subservicer shall become effective until, so long as no Insurer Default
shall have occurred and be continuing, an entity acceptable to the Insurer shall have assumed the responsibilities and obligations of the Backup Servicer or the Designated Backup Subservicer or, if an Insurer Default shall have occurred and be
continuing, a Person that is an Eligible Servicer shall have assumed the responsibilities and obligations of the Backup Servicer or the Designated Backup Subservicer; provided, however, that (i) in the event a successor Backup Servicer
or Designated Backup Subservicer as the case may be is not appointed within 60 days after the Backup Servicer or the Designated Backup Subservicer has given notice of its resignation and has provided the Opinion of Counsel required by this Section,
the Backup Servicer or the Designated Backup Subservicer as the case may be may petition a court for its removal, and (ii) the Backup Servicer or the Designated Backup Subservicer may resign with the written consent of the Insurer; provided,
however, that, with regard to clause (i) above, the Designated Backup Subservicer, acting solely in its capacity as Designated Backup Subservicer under this Agreement and prior to its being appointed subservicer or Servicer under this
Agreement, may resign as Designated Backup Subservicer rather than petitioning the court for its removal. 
  

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 ARTICLE IX 
  
 Default 
  
 SECTION 9.1. Servicer Termination Event. For purposes of this Agreement, each of the following shall constitute a “Servicer Termination
Event”: 
  
 (a) Any failure by the Servicer to deposit
to the Collection Account any amount required to be deposited therein or to purchase any Receivable required to be purchased by it. 
  
 (b) Failure by the Servicer to deliver to the Trust Collateral Agent and (so long as an Insurer Default shall not have occurred and be continuing) the
Insurer the Servicer’s Certificate by the Determination Date; 
  
 (c) Failure on the part of the Servicer duly to observe or perform any other covenants or agreements of the Servicer set forth in this Agreement or under any other Basic Documents to which it is a party, which failure (i) materially and
adversely affects the rights of Noteholders (determined without regard to the availability of funds under the Note Policy), or of the Insurer (unless an Insurer Default shall have occurred and be continuing), and (ii) continues unremedied for a
period of 30 days after the earlier of (x) knowledge thereof by the Servicer, or (y) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Trust Collateral Agent or the
Insurer (or, if an Insurer Default shall have occurred and be continuing, by any Noteholder); 
  
 (d) The entry of a decree or order for relief by a court or regulatory authority having jurisdiction in respect of the Servicer or United Pan Am Financial Corp. in an involuntary case under the federal bankruptcy
laws, as now or hereafter in effect, or another present or future, federal bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or United
Pan Am Financial Corp. or of any substantial part of its property or ordering the winding up or liquidation of the affairs of the Servicer or United Pan Am Financial Corp. and the continuance of any such decree or order unstayed and in effect for a
period of 60 consecutive days or the commencement of an involuntary case under the federal bankruptcy laws, as now or hereinafter in effect, or another present or future federal or state bankruptcy, insolvency or similar law and such case is not
dismissed within 60 days; or 
  
 (e) The commencement by the
Servicer or United Pan Am Financial Corp. of a voluntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future, federal or state, bankruptcy, insolvency or similar law, or the consent by the Servicer
or United Pan Am Financial Corp. to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Servicer or of any substantial part of its property or the making by
the Servicer or United Pan Am Financial Corp. of an assignment for the benefit of creditors or the failure by the Servicer or United Pan Am Financial Corp. generally to pay its debts as such debts become due or the taking of corporate action by the
Servicer or United Pan Am Financial Corp. in furtherance of any of the foregoing; or 
  

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 (f) Any representation, warranty or statement of the Servicer made in this Agreement or any certificate,
report or other writing delivered pursuant hereto shall prove to be incorrect in any material respect as of the time when the same shall have been made, and the incorrectness of such representation, warranty or statement has a material adverse
effect on the Trust, the Insurer or the Noteholders and, within 30 days after knowledge thereof by the Servicer or after written notice thereof shall have been given to the Servicer by the Trust Collateral Agent or the Insurer (or, if an Insurer
Default shall have occurred and be continuing, a Noteholder), the circumstances or condition in respect of which such representation, warranty or statement was incorrect shall not have been eliminated or otherwise cured; or 
  
 (g) So long as an Insurer Default shall not have occurred and be continuing,
an Insurance Agreement Event of Default occurs; 
  
 (h) So long
as an Insurer Default shall not have occurred and be continuing, the Insurer shall have delivered a Servicer Non-Renewal Notice pursuant to Section 4.14; 
  
 (i) A claim is made under the Note Policy; 
  
 (j) Any failure by the Servicer to deliver to the Trustee for distribution to Noteholders any proceeds or payment required to be so delivered that
continues unremedied for a period of two Business Days (or one Business Day with respect to Purchase Amounts) after knowledge thereof by the Servicer or after written notice thereof shall have been given to the Servicer by the Trustee or the
Insurer; or 
  
 (j) The occurrence of a Level 3 Trigger Event, as
defined in the Spread Account Agreement. 
  
 SECTION 9.2.
Consequences of a Servicer Termination Event. If a Servicer Termination Event shall occur and be continuing, the Insurer (or, if an Insurer Default shall have occurred and be continuing either the Trust Collateral Agent (to the extent it has
knowledge thereof) or a Note Majority), by notice given in writing to the Servicer (and to the Trust Collateral Agent if given by the Insurer or the Noteholders) may terminate all of the rights and obligations of the Servicer under this Agreement.
On or after the receipt by the Servicer of such written notice or upon termination of the term of the Servicer, all authority, power, obligations and responsibilities of the Servicer under this Agreement, whether with respect to the Notes, the
Certificates or the Other Conveyed Property or otherwise, automatically shall pass to, be vested in and become obligations and responsibilities of the Backup Servicer, which shall cause the Designated Backup Subservicer to assume the duties pursuant
to Section 8.5(c), (or such other replacement Servicer appointed by the Controlling Party); provided, however, that the replacement Servicer shall have no liability with respect to any obligation which was required to be performed by
the terminated Servicer prior to the date that the replacement Servicer becomes the Servicer or any claim of a third party based on any alleged action or inaction of the terminated Servicer. The replacement Servicer is authorized and empowered by
this Agreement to execute and deliver, on behalf of the terminated Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to 
  

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 complete the transfer and endorsement of the Receivables and the Other Conveyed Property and related documents to show
the Trust as lienholder or secured party on the related Lien Certificates, or otherwise. The terminated Servicer agrees to cooperate with the Controlling Party and the replacement Servicer in effecting the termination of the responsibilities and
rights of the terminated Servicer under this Agreement, including, without limitation, the transfer to the replacement Servicer for administration by it of all cash amounts that shall at the time be held by the terminated Servicer for deposit, or
have been deposited by the terminated Servicer, in the Collection Account or thereafter received with respect to the Receivables and the delivery to the replacement Servicer of all Receivable Files, Monthly Records and Collection Records and a
computer tape in readable form as of the most recent Business Day containing all information necessary to enable the replacement Servicer or a replacement Servicer to service the Receivables and the Other Conveyed Property. The terminated Servicer
shall grant the Trust Collateral Agent, the replacement Servicer and the Controlling Party reasonable access to the terminated Servicer’s premises at the terminated Servicer’s expense. 
  
 SECTION 9.3. Appointment of Successor. 
  
 (a) On and after the time the Servicer receives a notice of termination
pursuant to Section 9.2 or upon the resignation of the Servicer pursuant to Section 8.6; (i) the Backup Servicer (unless the Controlling Party shall have exercised its option pursuant to Section 9.3(b) to appoint an alternate replacement Servicer)
shall be the successor in all respects to the Servicer, in its capacity as servicer under this Agreement and the Insurance Agreement and the transactions set forth or provided for in this Agreement, and shall be subject to all the rights,
responsibilities, restrictions, duties, liabilities and termination provisions relating thereto placed on the Servicer by the terms and provisions of this Agreement or the Insurance Agreement except as otherwise stated herein. The Trust Collateral
Agent and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. If a replacement Servicer is acting as Servicer hereunder, it shall be subject to termination under Section 9.2
upon the occurrence of any Servicer Termination Event applicable to it as Servicer. 
  
 (b) The Controlling Party may exercise at any time its right to appoint as Backup Servicer or Designated Backup Subservicer or as successor to the Servicer a Person other than the Person serving as Backup Servicer or
the Designated Backup Subservicer at the time, and (without limiting its obligations under the Note Policy) shall have no liability to the Trust Collateral Agent, the Servicer, the Seller, the Person then serving as Backup Servicer, the Designated
Backup Subservicer, any Noteholders or any other Person if it does so; provided, however, that at the time of such transfer, the outstanding fees, expenses and indemnities of the current Backup Servicer and the Designated Backup Subservicer shall be
paid in full. Notwithstanding the above, if the Backup Servicer or the Designated Backup Subservicer shall be legally unable or unwilling to act as Servicer, and an Insurer Default shall have occurred and be continuing, the Backup Servicer, the
Designated Backup Subservicer, the Trust Collateral Agent or a Note Majority may petition a court of competent jurisdiction to appoint any Eligible Servicer as the successor to the Servicer. Pending appointment pursuant to the preceding sentence,
the Backup Servicer shall act as replacement Servicer unless it is legally unable to do so, in which event the outgoing Servicer shall continue to act as Servicer until a successor has been appointed and accepted such appointment. Subject to Section
8.6, no provision of this Agreement shall be construed as relieving the Backup Servicer of its obligation to succeed as 
  

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 replacement Servicer upon the termination of the Servicer pursuant to Section 9.2 or the resignation of the Servicer
pursuant to Section 8.6. If upon the termination of the Servicer pursuant to Section 9.2 or the resignation of the Servicer pursuant to Section 8.6, the Controlling Party appoints a replacement Servicer other than the Backup Servicer, the Backup
Servicer shall not be relieved of its duties as Backup Servicer hereunder. 
  
 (c) Any replacement Servicer shall be entitled to such compensation (whether payable out of the Collection Account or otherwise) as the Servicer would have been entitled to under this Agreement if the Servicer had not
resigned or been terminated hereunder or such other compensation as agreed to by the Insurer in writing. If any replacement Servicer is appointed as a result of the Backup Servicer’s refusal (in breach of the terms of this Agreement) to act as
Servicer although it is legally able to do so, the Insurer and such replacement Servicer may agree on reasonable additional compensation to be paid to such replacement Servicer; provided, however, it being understood and agreed that
the Insurer shall give prior notice to the Backup Servicer with respect to the appointment of such successor and the payment of additional compensation, if any. If, any replacement Servicer is appointed for any reason other than the Backup
Servicer’s refusal to act as Servicer although legally able to do so, the Backup Servicer shall not be liable for any Servicing Fee, additional compensation or other amounts to be paid to such replacement Servicer in connection with its
assumption and performance of the servicing duties described herein. 
  
 (d) Notwithstanding anything contained in this Agreement to the contrary, the Backup Servicer is authorized to accept and rely on all of the accounting records (including computer records) and work of the prior Servicer relating to the
Receivables (collectively, the “Predecessor Servicer Work Product”) without any audit or other examination thereof, and the Backup Servicer shall have no duty, responsibility, obligation or liability for the acts and omissions of the prior
Servicer. If any error, inaccuracy, omission or incorrect or non-standard practice or procedure (collectively, “Errors”) exist in any Predecessor Servicer Work Product and such Errors make it materially more difficult to service or should
cause or materially contribute to the Backup Servicer making or continuing any Errors (collectively, “Continuing Errors”), the Backup Servicer shall have no duty, responsibility, obligation or liability for such Continuing Errors;
provided, however, that the Backup Servicer agrees to use its best efforts to prevent further Continuing Errors. In the event that the Backup Servicer becomes aware of Errors or Continuing Errors, it shall, with the prior consent of
the Controlling Party use its best efforts to reconstruct and reconcile such data as is commercially reasonable to correct such Errors and Continuing Errors and to prevent future Continuing Errors. The Backup Servicer shall be entitled to recover
its costs thereby expended in accordance with Section 3.03 of the Spread Account Agreement. 
  
 SECTION 9.4. Notification to Noteholders. Upon any termination of, or appointment of a successor to, the Servicer, the Designated Backup Subservicer or the Backup Servicer, the Trust Collateral Agent shall give
prompt written notice thereof to each Noteholder and to the Rating Agencies. 
  
 SECTION 9.5. Waiver of Past Defaults. So long as no Insurer Default shall have occurred and be continuing, the Insurer (or, if an Insurer Default shall have occurred and be continuing, the Note Majority) may,
on behalf of all Noteholders, waive any default by the 
  

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 Servicer, the Designated Backup Subservicer or the Backup Servicer in the performance of its obligations hereunder and
its consequences. Upon any such waiver of a past default, such default shall cease to exist, and any Servicer Termination Event arising therefrom shall be deemed to have been remedied for every purpose of this Agreement and the Basic Documents. No
such waiver shall extend to any subsequent or other default or impair any right consequent thereto. 
  
 ARTICLE X 
  
 Termination 
  
 SECTION 10.1. Optional Purchase
of All Receivables. 
  
 (a) On the last day of any
Collection Period as of which the Pool Balance shall be less than or equal to 10% of the Original Pool Balance, the Servicer shall have the option to purchase the Owner Trust Estate, other than the Trust Accounts (with the consent of the Insurer if
such purchase would result in a claim on the Note Policy or would result in any amount owing to the Insurer under the Insurance Agreement remaining unpaid); provided, however, that the amount to be paid for such purchase (as set forth
in the following sentence) shall be sufficient to pay the full amount of principal and interest then due and payable on the Class A-3 Notes then outstanding, and amounts due and unpaid to the Insurer under the Insurance Agreement and amounts due to
the Trustee, the Trust Collateral Agent, the Collateral Agent, the Backup Servicer, the Custodian, the Designated Backup Subservicer and the Owner Trustee hereunder or under the Trust Agreement. To exercise such option, the Servicer shall deposit
pursuant to Section 5.6 in the Collection Account an amount equal to the aggregate Purchase Amount for the Receivables (including Liquidated Receivables), plus the appraised value of any other property held by the Trust, such value to be determined
by an appraiser mutually agreed upon by the Servicer, the Insurer (as the Controlling Party) and the Trust Collateral Agent or such amount as the Servicer, Insurer and Trust Collateral Agent may mutually agree, and shall succeed to all interests in
and to the Trust. 
  
 If the Servicer does not exercise its
rights with respect to the optional purchase on the first Distribution Date that the optional purchase is permitted, the Class A-3 Notes will be paid additional amounts on future Distribution Dates, equal to the product of (i) one twelfth, (ii)
0.50% and (iii) the outstanding principal balance on the Class A-3 Notes as of such Distribution Date pursuant to clause (xi) under Section 5.7 herein. The Policy does not guarantee payment of any additional amounts that become due to the Class A-3
Notes pursuant to the immediately preceding sentence. 
  
 (b)
Upon any sale of the assets of the Trust pursuant to Section 8.1 of the Trust Agreement, the Servicer shall instruct the Trust Collateral Agent to deposit the proceeds from such sale after all payments and reserves therefrom (including the expenses
of such sale) have been made (the “Insolvency Proceeds”) in the Collection Account. 
  
 (c) Notice of any termination of the Trust shall be given by the Servicer to the Owner Trustee, the Trustee, the Backup Servicer, the Designated Backup
Subservicer, the Trust Collateral Agent, the Collateral Agent, the Custodian, the Insurer and the Rating Agencies as soon as practicable after the Servicer has received notice thereof. 
  

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 (d) Following the satisfaction and discharge of the Indenture and the payment in full of the principal
of and interest on the Notes, the Certificateholders will succeed to the rights of the Noteholders hereunder. 
  
 ARTICLE XI 
  
 Administrative Duties of the Servicer 
  
 SECTION
11.1. Administrative Duties. 
  
 (a) Duties with
Respect to the Indenture. The Servicer shall perform all its duties and the duties of the Trust under the Indenture. In addition, the Servicer shall consult with the Owner Trustee as the Servicer deems appropriate regarding the duties of the
Trust under the Indenture. The Servicer shall monitor the performance of the Trust and shall advise the Owner Trustee when action is necessary to comply with the Trust’s duties under the Indenture. The Servicer shall prepare for execution by
the Trust or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to the Indenture. In
furtherance of the foregoing, the Servicer shall take all necessary action that is the duty of the Trust to take pursuant to the Indenture, including, without limitation, pursuant to Sections 2.7, 3.5, 3.6, 3.7, 3.9, 3.10, 3.17, 5.1, 5.4, 7.3, 8.3,
9.2, 9.3, 11.1 and 11.15 of the Indenture. 
  
 (b) Duties with
Respect to the Trust. 
  
 (i) In addition to
the duties of the Servicer set forth in this Agreement or any of the Basic Documents, the Servicer shall perform such calculations and shall prepare for execution or shall cause the timely preparation by other appropriate Persons and it shall
execute all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and
federal tax and securities laws (including any filings required pursuant to the Sarbanes-Oxley Act of 2002 or any rule or regulation promulgated thereunder), and at the request of the Owner Trustee shall take all appropriate action that it is the
duty of the Trust to take pursuant to this Agreement or any of the Basic Documents, including, without limitation, pursuant to Sections 2.6 and 2.11 of the Trust Agreement. In accordance with the directions of the Trust or the Owner Trustee, the
Servicer shall administer, perform or supervise the performance of such other activities in connection with the Collateral (including the Basic Documents) as are not covered by any of the foregoing provisions and as are expressly requested by the
Trust or the Owner Trustee and are reasonably within the capability of the Servicer. 
  
 (ii) Notwithstanding anything in this Agreement or any of the Basic Documents to the contrary, the Servicer shall be responsible for
promptly notifying the Owner Trustee and the Trust Collateral Agent in the event that any withholding tax is 
  

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 imposed on the Trust’s payments (or allocations of income) to an Owner (as defined in the Trust
Agreement) as contemplated by this Agreement. Any such notice shall be in writing and specify the amount of any withholding tax required to be withheld by the Owner Trustee or the Trust Collateral Agent pursuant to such provision. 
  
 (iii) Notwithstanding anything in this Agreement or the
Basic Documents to the contrary, the Servicer shall be responsible for performance of the duties of the Trust set forth in Section 5.1(a) and (b) of the Trust Agreement with respect to, among other things, accounting and reports to Owners (as
defined in the Trust Agreement); provided, however, that once prepared by the Servicer the Owner Trustee shall retain responsibility for the distribution of the Schedule K-1s necessary to enable the Certificateholder to prepare its
federal and state income tax returns. 
  
 (iv)
The Servicer shall perform the duties of the Servicer specified in Section 9.2 of the Trust Agreement required to be performed in connection with the resignation or removal of the Owner Trustee, and any other duties expressly required to be
performed by the Servicer under this Agreement or any of the Basic Documents. 
  
 (v) In carrying out the foregoing duties or any of its other obligations under this Agreement, the Servicer may enter into transactions
with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Trust and shall be, in the Servicer’s opinion,
no less favorable to the Trust in any material respect. 
  
 (c)
Tax Matters. The Servicer shall prepare and file, on behalf of the Seller, all tax returns, tax elections, financial statements and such annual or other reports attributable to the activities engaged in by the Trust as are necessary for
preparation of tax reports, including without limitation forms 1099. All tax returns will be signed by the Seller. 
  
 (d) Non-Ministerial Matters. With respect to matters that in the reasonable judgment of the Servicer are non-ministerial, the Servicer shall not
take any action pursuant to this Article unless within a reasonable time before the taking of such action, the Servicer shall have notified the Owner Trustee, the Trustee and the Insurer of the proposed action and the Owner Trustee and, with respect
to items (A), (B), (C) and (D) below, the Trustee shall not have withheld consent or provided an alternative direction. For the purpose of the preceding sentence, “non-ministerial matters” shall include: 
  
 (A) the amendment of or any supplement to the Indenture;

  
 (B) the initiation of any claim or lawsuit
by the Trust and the compromise of any action, claim or lawsuit brought by or against the Trust (other than in connection with the collection of the Receivables); 
  
 (C) the amendment, change or modification of this Agreement or any of the Basic Documents; 
  
 (D) the appointment of successor Note Registrars, successor
Paying Agents and successor Trustees pursuant to the Indenture or the 
  

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 appointment of replacement Servicers or the consent to the assignment by the Note Registrar, Paying
Agent or Trustee of its obligations under the Indenture; and 
  
 (E) the removal of the Trustee or the Trust Collateral Agent. 
  
 (e) Exceptions. Notwithstanding anything to the contrary in this Agreement, except as expressly provided herein or in the other Basic Documents, the Servicer, in its capacity hereunder, shall not be obligated
to, and shall not, (1) make any payments to the Noteholders or Certificateholders under the Basic Documents, (2) sell the Trust Estate pursuant to Section 5.5 of the Indenture, (3) take any other action that the Trust directs the Servicer not to
take on its behalf or (4) in connection with its duties hereunder assume any indemnification obligation of any other Person. Notwithstanding that UACC may no longer be the Servicer hereunder, UACC shall continue to perform the duties and obligations
of the Servicer under this Section 11.1. 
  
 (f) The Backup
Servicer, the Designated Backup Subservicer (including in its capacity as successor Servicer or subservicer) or any replacement Servicer shall not be responsible for any obligations or duties of the servicer under this Section 11.1. 
  
 SECTION 11.2. Records. The Servicer shall maintain appropriate books
of account and records relating to services performed under this Agreement, which books of account and records shall be accessible for inspection by the Trust and the Insurer at any time during normal business hours. 
  
 SECTION 11.3. Additional Information to be Furnished to the Trust. The
Servicer shall furnish to the Trust and the Insurer from time to time such additional information regarding the Collateral as the Trust and the Insurer shall reasonably request. 
  
 SECTION 11.4. Reporting Requirements of the Commission and Indemnification. 
  
 (a) In order to comply with any rules adopted by the Securities and
Exchange Commission, notwithstanding any other provision of this Agreement, the Servicer shall (i) agree to such modifications and enter into such amendments to this Agreement as may be necessary, in the judgment of the Seller and its counsel, to
comply with any rules promulgated by the Commission and any interpretations thereof by the staff of the Commission (collectively, “SEC Rules”) and (ii) promptly upon request provide to the Seller for inclusion in any periodic report
required to be filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) such items of information regarding this Agreement and matters related to the Servicer, including as applicable (by way of example and not
limitation), a description of any material litigation or governmental action or proceeding involving the Servicer or its affiliates (collectively, the “Servicer Information”), provided, that such information shall be required to be
provided by the Servicer only to the extent that such shall be determined by the Seller and its counsel to be necessary to comply with any SEC Rules. 
  
 (b) The Servicer hereby agrees to indemnify and hold harmless the Seller, its respective officers and directors and each person, if any, who controls the
Seller within the meaning of Section 15 of the Securities Act of 1933, as amended (the “Act”), or Section 20 of the Exchange Act, from and against any and all losses, claims, expenses, damages or liabilities to 
  

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 which the Seller, its respective officers or directors and any such controlling person may become subject under the Act
or otherwise, as and when such losses, claims, expenses, damages or liabilities are incurred, insofar as such losses, claims, expenses, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Servicer Information or arise out of, or are based upon, the omission or alleged omission to state therein any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, and will reimburse the Seller, its respective officers and directors and any such controlling person for any legal or other expenses reasonably incurred by
it or any of them in connection with investigating or defending any such loss, claim, expense, damage, liability or action, as and when incurred; provided, however, that the Servicer shall be liable only insofar as such untrue statement or alleged
untrue statement or omission or alleged omission relates solely to the information in the Servicer Information furnished to the Seller by or on behalf of the Servicer specifically in connection with this Agreement. 
  
 (c) The Servicer (for so long as UACC is the Servicer) shall, at its
expense, timely execute and cause to be prepared and filed with the Commission all periodic reports required to be filed with respect to the Trust under the provisions of the Exchange Act, and the rules and regulations of the Commission thereunder.
The Seller shall cooperate in any reasonable request made by the Servicer in connection with such filings. 
  
 ARTICLE XII 
  
 Miscellaneous Provisions 
  
 SECTION 12.1.
Amendment. 
  
 (a) This Agreement may be amended from
time to time by the parties hereto, with the consent of the Trustee (which consent may not be unreasonably withheld), with the prior written consent of the Insurer (so long as no Insurer Default has occurred and is continuing) but without the
consent of any of the Noteholders, to cure any ambiguity, to correct or supplement any provisions in this Agreement, to comply with any changes in the Code, or to make any other provisions with respect to matters or questions arising under this
Agreement which shall not be inconsistent with the provisions of this Agreement or the Insurance Agreement; provided, however, that if an Insurer Default has occurred and is continuing, such action shall not materially adversely affect
the interests of the Insurer. 
  
 This Agreement may also be
amended from time to time by the parties hereto, with the consent of the Insurer, the consent of the Trustee, and, if an Insurer Default has occurred and is continuing, with the consent of the Holders of Notes evidencing not less than a majority of
the outstanding principal amount of the Notes for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders; provided,
however, that no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made for the benefit of the
Noteholders or (b) reduce the aforesaid percentage of the outstanding principal 
  

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 amount of the Notes, the Holders of which are required to consent to any such amendment, without the consent of the
Holders of all the outstanding Notes of each class affected thereby; provided, further, that if an Insurer Default has not occurred and is continuing, such action shall not materially adversely affect the interest of the Insurer.

  
 In order to comply with any rules adopted by the Commission,
this Agreement may be amended from time to time by the parties hereto, with the consent of the Trustee and the Insurer, so long as an Insurer Default has not occurred and is occurring (which consent may not be unreasonably withheld), without the
consent of any of the Noteholders, as may be necessary, in the judgment of the Seller and its counsel, pursuant to Section 11.4, to comply with any rules promulgated by the Commission and any interpretations thereof by the staff of the Commission.

  
 Promptly after the execution of any such amendment or
consent, the Trust Collateral Agent shall furnish written notification of the substance of such amendment or consent to each Noteholder and the Rating Agencies. No such amendment will be permitted if, as a result, any Rating Agency would lower its
publicly issued rating on any class of the Notes then outstanding. 
  
 It shall not be necessary for the consent of Noteholders pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents (and any other consents of Noteholders provided for in this Agreement) and of evidencing the authorization of any action by Noteholders shall be subject to such reasonable requirements as the Trustee or the Owner
Trustee, as applicable, may prescribe. 
  
 Prior to the execution
of any amendment to this Agreement, the Owner Trustee and the Trustee, Trust Collateral Agent, Collateral Agent, Designated Backup Subservicer and Backup Servicer shall be entitled to receive and conclusively rely upon an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this Agreement and the Opinion of Counsel referred to in Section 12.2(h)(1) has been delivered. The Owner Trustee, the Trust Collateral Agent, the Designated Backup Subservicer, the
Backup Servicer and the Trustee may, but shall not be obligated to, enter into any such amendment which affects the Trust’s, the Owner Trustee’s, the Trust Collateral Agent’s, the Designated Backup Subservicer’s, the Backup
Servicer’s or the Trustee’s, as applicable, own rights, duties or immunities under this Agreement or otherwise. 
  
 (b) Notwithstanding anything to the contrary contained in Section 12.1(a) above, the provisions of the Agreement relating to (i) the Spread Account
Agreement, the Spread Account, the Specified Spread Account Requirement, a Trigger Event or any component definition of a Trigger Event and (ii) any additional sources of funds which may be added to the Spread Account or uses of funds on deposit in
the Spread Account may be amended in any respect by the Servicer, the Insurer and the Collateral Agent (the consent of which shall not be withheld or delayed with respect to any amendment that does not adversely affect the Collateral Agent) without
the consent of, or notice to, the Noteholders. 
  

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 SECTION 12.2. Protection of Title to Trust. 
  
 (a) The Seller shall execute and file such financing statements and cause
to be executed and filed such continuation statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Trust and the interests of the Trust Collateral Agent in the
Receivables and in the proceeds thereof. The Seller shall deliver (or cause to be delivered) to the Insurer, the Owner Trustee and the Trust Collateral Agent file-stamped copies of, or filing receipts for, any document filed as provided above, as
soon as available following such filing. 
  
 (b) Neither the
Seller nor the Servicer shall change its name, identity or corporate structure in any manner that would, could or might make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading within
the meaning of 9-506 of the UCC, unless it shall have given the Insurer, the Owner Trustee, the Trust Collateral Agent, the Backup Servicer and the Trustee at least five days’ prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or continuation statements. Promptly upon such filing, the Seller or the Servicer, as the case may be, shall deliver an Opinion of Counsel in form and substance reasonably
satisfactory to the Insurer, stating either (A) all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Trust and the Trust Collateral Agent in the
Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) no such action shall be necessary to preserve and protect such interest. 
  
 (c) Each of the Seller and the Servicer shall have an obligation to give the
Insurer, the Owner Trustee, the Trust Collateral Agent and the Trustee at least 60 days’ prior written notice of any relocation of its principal executive office or jurisdiction of organization if, as a result of such relocation, the applicable
provisions of the UCC would require the filing of any amendment of any previously filed financing or continuation statement or of any new financing statement and shall promptly file any such amendment or new financing statement. The Servicer shall
at all times maintain (i) each office from which it shall service Receivables within the United States of America or Canada, and (ii) its principal executive office within the United States of America. 
  
 (d) The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or
recoveries on (or with respect to) each Receivable and the amounts from time to time deposited in the Collection Account in respect of such Receivable. 
  
 (e) The Servicer shall maintain its computer systems so that, from and after the time of sale under this Agreement of the Receivables to the Trust, the
Servicer’s master computer records (including any backup archives) that refer to a Receivable shall indicate clearly the interest of the Trust in such Receivable and that such Receivable is owned by the Trust. Indication of the Trust’s
interest in a Receivable shall be deleted from or modified on the Servicer’s computer systems when, and only when, the related Receivable shall have been paid in full or repurchased. 
  

 71 

 (f) If at any time the Seller or the Servicer shall propose to sell, grant a security interest in or
otherwise transfer any interest in automotive receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser, lender or other transferee computer tapes, records or printouts (including any
restored from backup archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold and is owned by the Trust. 
  
 (g) Upon request, the Servicer shall furnish to the Insurer, the Owner Trustee or to the Trustee, within five Business
Days, a list of all Receivables (by contract number and name of Obligor) then held as part of the Trust, together with a reconciliation of such list to the Schedule of Receivables and to each of the Servicer’s Certificates furnished before such
request indicating removal of Receivables from the Trust. 
  
 (h)
UACC shall deliver to the Insurer, the Backup Servicer, the Owner Trustee and the Trustee: 
  
 (1) promptly after the execution and delivery of this Agreement and, if required pursuant to Section 12.1, of each amendment, an Opinion
of Counsel stating that, in the opinion of such Counsel, in form and substance reasonably satisfactory to the Insurer, either (A) all financing statements and continuation statements have been executed and filed that are necessary fully to preserve
and protect the interest of the Trust and the Trustee in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) no such action shall be necessary to preserve and
protect such interest; and 
  
 (2) within 90
days after the beginning of each calendar year beginning with the first calendar year beginning more than three months after the Cutoff Date, an Opinion of Counsel, dated as of a date during such 90-day period, stating that, in the opinion of such
counsel, either (A) all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Trust and the Trustee in the Receivables, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are given, or (B) no such action shall be necessary to preserve and protect such interest. 
  
 Each Opinion of Counsel referred to in clause (1) or (2) above shall specify any action necessary (as of the date of such
opinion) to be taken in the following year to preserve and protect such interest. 
  
 SECTION 12.3. Notices. All demands, notices and communications upon or to the Seller, the Servicer, the Owner Trustee, the Trustee or the Rating Agencies under this Agreement shall be in writing, personally
delivered, or mailed by certified mail, return receipt requested, federal express or similar overnight courier service, and shall be deemed to have been duly given upon receipt 
  

 72 

	(a)	in the case of the Seller to UPFC Auto Receivables Corp., 3990 Westerly Place, Suite 200, Newort Beach, California 92660, Attention: Garland Koch; 

  

	(b)	in the case of the Servicer to United Auto Credit Corporation, 3990 Westerly Place, Suite 200, Newport Beach, California 92660, Attention: Garland Koch; 

  

	(c)	in the case of the Trust or the Owner Trustee, at the Corporate Trust Office of the Owner Trustee; 

  

	(d)	in the case of the Trustee, the Backup Servicer, the Collateral Agent or the Trust Collateral Agent, at the Corporate Trust Office; 

  

	(e)	in the case of the Designated Backup Subservicer, CentreOne Financial Services LLC, 190 Jim Moran Boulevard, Deerfield Beach, Florida 33442, Attention: President;

  

	(f)	in the case of the Insurer,
                                        
                ,
                                        
            ,
                                , Attention:
                            ; email:
                                        
                         (in each case in which notice or other communication to the Insurer refers to a claim on the Note
Policy, a Deficiency Notice pursuant to Section 5.5 of this Agreement or with respect to which failure on the part of the Insurer to respond shall be deemed to constitute consent or acceptance, then a copy of such notice or other communication
should also be sent to the attention of each of the General Counsel and shall be marked to indicate “URGENT MATERIAL ENCLOSED”); 

  

	(g)	in the case of Moody’s, to Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York 10007; and 

  

	(h)	in the case of Standard & Poor’s, to Standard & Poor’s Ratings Group, 55 Water Street, New York, New York 10041, Attention: Asset Backed Transaction Oversight
Department, servicer_reports@sandp.com 

  
 Any notice required or
permitted to be mailed to a Noteholder shall be given by first class mail, postage prepaid, at the address of such Holder as shown in the Note Register. Any notice so mailed within the time prescribed in the Agreement shall be conclusively presumed
to have been duly given, whether or not the Noteholder shall receive such notice. 
  
 SECTION 12.4. Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 7.4 and 8.4 and as provided in the provisions of this Agreement concerning the resignation of the Servicer, this Agreement may not be assigned by the Seller or the Servicer without the prior written
consent of the Owner Trustee, the Trust Collateral Agent, the Backup Servicer, the Designated Backup Subservicer, the Trustee and the Insurer (or if an Insurer Default shall have occurred and be continuing the Holders of Notes evidencing not less
than 66 2/3% of the principal amount of the outstanding Notes). 
  
 SECTION 12.5. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the parties hereto, the Trustee, the Insurer and the 
  

 73 

 Noteholders, as third-party beneficiaries. The Insurer and its successors and assigns shall be a third-party beneficiary
to the provisions of this Agreement, and shall be entitled to rely upon and directly enforce such provisions of this Agreement so long as no Insurer Default shall have occurred and be continuing. Except as expressly stated otherwise herein, any
right of the Insurer to direct, appoint, consent to, approve of, or take any action under this Agreement, shall be a right exercised by the Insurer in its sole and absolute discretion. The Insurer may disclaim any of its rights and powers under this
Agreement (but not its duties and obligations under the Note Policy) upon delivery of a written notice to the Owner Trustee. Nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein. 
  
 SECTION 12.6. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. 
  
 SECTION 12.7. Separate
Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

  
 SECTION 12.8. Headings. The headings of the various
Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
  
 SECTION 12.9. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND THIS AGREEMENT AND ALL MATTERS ARISING OUT OF OR RELATING IN
ANY WAY TO THIS AGREEMENT SHALL BE, GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  
 SECTION 12.10. Assignment to Trustee. The Seller hereby acknowledges
and consents to any mortgage, pledge, assignment and grant of a security interest by the Trust to the Trust Collateral Agent pursuant to the Indenture for the benefit of the Noteholders of all right, title and interest of the Trust in, to and under
the Receivables listed in Schedule A hereto and/or the assignment of any or all of the Trust’s rights and obligations hereunder to the Trust Collateral Agent. 
  
 SECTION 12.11. Nonpetition Covenants. 
  
 (a) Notwithstanding any prior termination of this Agreement, the Servicer, Backup Servicer, Designated Backup Subservicer
and the Seller shall not, prior to the date which is one year and one day after the termination of this Agreement with respect to the Trust, acquiesce, petition or otherwise invoke or cause the Trust to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Trust under 
  

 74 

 any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Trust or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Trust. 
  
 (b) Notwithstanding any prior termination of this Agreement, the Servicer, Backup Servicer, Designated Backup Subservicer
shall not, prior to the date that is one year and one day after the termination of this Agreement with respect to the Seller, acquiesce to, petition or otherwise invoke or cause the Seller to invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Seller under any federal or state bankruptcy, insolvency or similar law, appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator, or other similar official of the
Seller or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller. 
  
 SECTION 12.12. Limitation of Liability of Owner Trustee and Trustee. 
  
 (a) Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by Wells Fargo
Delaware Trust Company not in its individual capacity but solely in its capacity as Owner Trustee of the Trust and in no event shall Wells Fargo Delaware Trust Company in its individual capacity or, except as expressly provided in the Trust
Agreement, as Owner Trustee have any liability for the representations, warranties, covenants, agreements or other obligations of the Trust hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which
recourse shall be had solely to the assets of the Trust. For all purposes of this Agreement, in the performance of its duties or obligations hereunder or in the performance of any duties or obligations of the Trust hereunder, the Owner Trustee shall
be subject to, and entitled to the benefits of, the terms and provisions of Articles V, VI and VII of the Trust Agreement. 
  
 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed and delivered by Deutsche Bank Trust Company Americas,
not in its individual capacity but solely as Trust Collateral Agent, Custodian and Backup Servicer and in no event shall Deutsche Bank Trust Company Americas, have any liability for the representations, warranties, covenants, agreements or other
obligations of the Trust hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Trust. 
  
 (c) In no event shall Deutsche Bank Trust Company Americas, in any of its
capacities hereunder, be deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory Trust Statute, common law, or the Trust Agreement. 
  

 75 

 SECTION 12.13. Independence of the Servicer. For all purposes of this Agreement, the Servicer
shall be an independent contractor and shall not be subject to the supervision of the Trust, the Trust Collateral Agent, Designated Backup Subservicer and Backup Servicer or the Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by this Agreement or the Trust Agreement, the Servicer shall have no authority to act for or represent the Trust or the Owner Trustee in any way and shall not otherwise be deemed
an agent of the Trust or the Owner Trustee. 
  
 SECTION 12.14.
No Joint Venture. Nothing contained in this Agreement (i) shall constitute the Servicer and either of the Trust or the Owner Trustee as members of any partnership, joint venture, association, syndicate, unincorporated business or other
separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others.

  
 SECTION 12.15. Benefits of Sale and Servicing
Agreement. The Insurer and its successors and assigns shall be a third-party beneficiary to the provisions of this Sale and Servicing Agreement, and shall be entitled to rely upon and directly enforce such provisions of this Sale and Servicing
Agreement so long as no Insurer Default shall have occurred and be continuing. 
  
 SECTION 12.16. State Business Licenses. The Servicer or the Certificateholder shall prepare and instruct the Trust to file each state business license (and any renewal thereof) required to be filed under
applicable state law without further consent or instruction from the Instructing Party (as defined in the Trust Agreement), including a Sales Finance Company Application (and any renewal thereof) with the Pennsylvania Department of Banking,
Licensing Division, and a Financial Regulation Application (and any renewal thereof) with the Maryland Department of Labor, Licensing and Regulation. 
  
 SECTION 12.17. Additional Liability. In no event shall the Trustee, the Trust Collateral Agent, the Custodian, the Backup Servicer and the
Designated Backup Subservicer, including in its capacity as successor Servicer or subservicer of the Servicer, be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost
profits, even if the Trustee, the Trust Collateral Agent, the Custodian, the Backup Servicer and the Designated Backup Subservicer, including in its capacity as successor Servicer or subservicer of the Servicer, have been advised of the likelihood
of such loss or damage and regardless of the form of action. 
  
 In no event shall the Trustee, the Trust Collateral Agent, the Collateral Agent, the Custodian, the Backup Servicer and the Designated Backup Subservicer, including in its capacity as successor Servicer or subservicer of the Servicer, be
liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Agreement. 
  

 76 

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

			
	UPFC AUTO RECEIVABLES TRUST 2006-    
		
	By:	 	 WELLS FARGO DELAWARE TRUST
 COMPANY, not in its
individual capacity but
 solely as Owner Trustee on behalf of the Trust

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	UPFC AUTO RECEIVABLES CORP., Seller
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 UNITED AUTO CREDIT CORPORATION,
 Servicer

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS,

	
	not in its individual capacity but solely as Trust Collateral Agent, Custodian and Backup Servicer
		
	By:	 	  

	Name:	 	 
	Title:	 	 

			
	 CENTERONE FINANCIAL SERVICES LLC,
 Designated
Backup Subservicer

		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 [Sale and
Servicing Agreement] 

 SCHEDULE A 
  

SCHEDULE OF RECEIVABLES 
  

 Sch-A-1 

 SCHEDULE B 
  

Location of Receivables Files 
 _______________________________ 
  
 The Receivables are
located at the offices of the Custodian listed below. 
  
 1761 East
St. Andrew Place 
 Santa Ana, California 92705 
  

 Sch-B-1 

 SCHEDULE C 
  

Schedule of Servicer’s Representations 
  
 Representations and Warranties Regarding the Receivables: 
  
 1. Security Interest in Financed Vehicle. To the extent that the transfer under this Agreement is deemed to be other than a sale, this Agreement,
and all filings under this Agreement, creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the Trust Collateral Agent, which security interest is prior to all other Liens, and is
enforceable as such as against creditors of and purchasers from the Seller. The Trust owns and has good and marketable title to the Receivables free and clear of any Lien (other than the Lien in favor of the Trust Collateral Agent), claim or
encumbrance of any Person. 
  
 2. All Filings Made. The
Trust has taken all steps necessary to perfect the Trust Collateral Agent’s security interest in the property securing the Receivables, provided that, if not done as of the Closing Date, the Trust will cause, within ten days of the Closing
Date, the filing of all appropriate financing statements in the proper filing office in the State of Delaware under applicable law in order to perfect the security interest in the Receivables granted to the Trust Collateral Agent hereunder.

  
 3. No Impairment. The Trust has not done anything to
convey any right to any Person that would result in such Person having a right to payments due under the Receivable or otherwise to impair the rights of the Security Insurer, the Trustee, the Trust Collateral Agent and the Noteholders in any
Receivable or the proceeds thereof. Other than the security interest granted to the Trust Collateral Agent pursuant to this Indenture, the Trust has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the
Receivables. The Trust has not authorized the filing of and is not aware of any financing statements against the Trust that include a description of collateral covering the Receivables other than any financing statement relating to the security
interest granted to the Trust Collateral Agent hereunder or that has been terminated. The Trust is not aware of any judgment or tax lien filings against it. The Receivables do not have any marks or notations indicating that they have been pledged by
the Seller to any person other than the Trust. 
  
 4. Chattel
Paper. The Receivables constitute tangible chattel paper within the meaning of the applicable UCC as in effect in the States of California, Florida, New York, Delaware, Nevada and Minnesota. 
  
 5. Good Title. Immediately prior to the pledge of the Receivables to
the Trust Collateral Agent pursuant to this Indenture, the Trust was the sole owner thereof and had good and indefeasible title thereto, free of any Lien and, upon execution and delivery of this Agreement, the Trust shall have good and indefeasible
title to and will be the sole 
  

 Sch-C-1 

 owner of such Receivables, free of any Lien. No Dealer or Third-Party Lender has a participation in, or
other right to receive, proceeds of any Receivable. The Trust has not taken any action to convey any right to any Person that would result in such Person having a right to payments received under the related Insurance Policies or the related Dealer
Agreements, Auto Loan Purchase and Sale Agreements, Dealer Assignments or Third-Party Lender Assignments or to payments due under such Receivables. 
  
 6. Possession of Original Copies. The Servicer, as custodian on behalf of the Trust, has in its possession all original copies of the contracts
that constitute or evidence the Receivable. 
  

 Sch-C-2 

 SCHEDULE D 
  

TERMS AND CONDITIONS OF 
 DESIGNATED
BACKUP SUBSERVICER 
  
 In the event that the Backup Servicer shall be
appointed the successor Servicer or CenterOne shall be appointed the successor Servicer or as subservicer of the Servicer, the following terms, conditions, and modifications to the Sale and Servicing Agreement shall apply; provided, that all
modifications made to the Sale and Servicing Agreement on behalf of CenterOne shall apply to the Backup Servicer unless otherwise noted: 
  
 CenterOne shall submit a written transition and servicing plan to the Insurer (that is acceptable to the Insurer) by December 31, 2006. Upon the notice to
CenterOne that it shall be appointed as Servicer or subservicer, CenterOne shall develop a reasonable transition plan and shall be granted a reasonable period of time, which shall not exceed 90 days, to implement such plan and assume the obligations
of the Servicer and the servicing of the Receivables in accordance with its customary servicing procedures, including a reasonable period of time to hire required personnel, load and configure the necessary information onto its computer systems,
establish necessary cash management procedures, locate and contact the obligors to redirect payments, and any other transition related item required or reasonably necessary to perform its obligations as Servicer or subservicer. 
  
 CenterOne shall service the Receivables in its own name from centralized
locations using its own personnel and properties and shall have no liability arising from or responsibility for the personnel or properties of any other or predecessor Servicer. All powers, rights and authorities granted to the Servicer are hereby
granted to CenterOne and each of its Affiliates and agents as are necessary, appropriate or convenient to perform its functions as Servicer or subservicer. If CenterOne shall be a subservicer, the Servicer shall deliver to CenterOne copies of all
information delivered to or by it in its capacity as Servicer, and CenterOne’s obligations and liabilities shall be solely to the Servicer and not to any other party or Person. Any provision requiring CenterOne to use best efforts shall require
only reasonable efforts with respect thereto. 
  
 The level of
servicing performance provided by CenterOne is based on and subject to CenterOne maintaining an average of not greater than 375 collection accounts per dedicated full-time equivalent collection associate, together with attendant supervisory
personnel ratios in accordance with CenterOne’s customary servicing policies. In the event that the Controlling Party desires to decrease the minimum average number of accounts per dedicated full-time equivalent servicing associate, the Base
Servicing Fee and Supplemental Servicing Fee or other compensation to CenterOne will be adjusted by the mutual agreement of CenterOne and the Controlling Party. In the event that CenterOne is appointed Servicer or subservicer to the Servicer, its
obligations under the Agreement as Designated Backup Subservicer shall terminate. 
  
 “Base Servicing Fee” means, with respect to CenterOne as Servicer or subservicer, with respect to any Collection Period, the sum of (1) the aggregate for each Receivable of the greater of (a) the Servicing
Fee Rate times the Principal Balance of that Receivable as of the opening of business on the first day of such Collection Period times one twelfth and (b) $15.00 and (2) the expenses of CenterOne incurred in that Collection Period. 

 “Additional Base Servicing Fee” means, the excess, if any, of the Base Servicing Fee calculated
using $20.00 in clause (b) of the definition thereof over the Base Servicing Fee calculated using $15.00 in clause (b) thereof. The Additional Base Servicing Fee will be paid pursuant to clause (x) of Section 5.7(b) of the Agreement. 
  
 Notwithstanding Section 4.1, CenterOne shall not be required to service the
Receivables in accordance with the second sentence of Section 4.1, but rather CenterOne shall service the Receivables with reasonable care, using that degree of skill and attention that CenterOne exercises with respect to all comparable automobile
receivables that it services for itself and others. CenterOne shall have no obligation to monitor the status of any Insurance Policy. 
  
 Notwithstanding Section 4.2(a) or any other provision of the Basic Documents, CenterOne shall have no responsibility or obligation with respect to any
Dealer Agreement or Dealer Assignment, and shall have no obligation to enforce any provisions of those agreements. 
  
 CenterOne shall have no obligation or purchase any Receivables pursuant to Section 4.2(c) or any other provision of the Basic Documents; provided,
however, that CenterOne shall indemnify the Trust in an amount equal to the outstanding principal balance of the applicable Receivable or Receivables plus accrued and unpaid interest thereon which would have otherwise been repurchased
pursuant to Section 4.2(c); provided, further, that any future payments made on such Receivable or Receivables and any proceeds with respect to such Receivables, including any Liquidation Proceeds with respect to the related Financed
Vehicles, shall be used to reimburse CenterOne for any such indemnities paid pursuant to this clause. 
  
 Notwithstanding Section 4.3(a) or any other provision of the Basic Documents, CenterOne shall have no obligation to pursue any Dealer to realize upon a
Receivable, and the reimbursement of CenterOne’s fees and expenses incurred in repossessing, liquidating or repairing a Financed Vehicle will not be limited to the cash proceeds of such Financed Vehicle and shall be reimbursed on a monthly
basis similar to other expenses of CenterOne. In the event that CenterOne shall pay any personal property taxes assessed on repossessed Financed Vehicles, it shall be entitled to reimbursement of such amount on a monthly basis similar to other
expenses of CenterOne. Notwithstanding the foregoing, reimbursements under this paragraph shall be limited to Liquidation Proceeds received in the aggregate. 
  
 Section 4.3(b), (c), (d) and (e) shall not apply to CenterOne. 
  
 Annually and upon the occurrence of a Level 2 Trigger Event, the Designated Backup Subservicer shall be required to: (1) conduct a site visit at
UACC’s main office and (2) refresh its data mapping of the servicing system. 
  
 Within 5 Business Days after receiving notice from the Servicer of the occurrence of a Level 3 Trigger Event, the Designated Backup Subservicer shall provide to UACC revised payment instructions. 

 Section 4.4(a) and (e) shall not apply to CenterOne. Notwithstanding Section 4.4(d), in the event that
CenterOne shall sue to enforce or collect upon any Insurance Policy and it is held that CenterOne may not enforce an Insurance Policy on the grounds that it is not a real party in interest or a holder entitled to enforce the Insurance Policy, any
action taken by the Owner Trustee, the Trust Collateral Agent or any other person to enforce such Insurance Policy shall be the expense of the Trust and not the expense of CenterOne, CenterOne being entitled to reimbursement for any such expenses.

  
 Section 4.5(b) shall not apply to CenterOne. 
  
 Section 4.6(b) shall not apply to CenterOne. 
  
 Notwithstanding Section 4.8 or any other provision of the Basic Documents,
CenterOne shall be entitled to reimbursement for the expense incurred by it in connection with its activities under the Sale and Servicing Agreement, including taxes (other than taxes on its own income) and expenses incurred in connection with
distributions and reports made by the Servicer as described in Exhibit A to this Schedule D. CenterOne shall not be liable for any of the fees and expenses of the Owner Trustee, the Collateral Agent, the Backup Servicer, the Designated Backup
Subservicer, the Trust Collateral Agent, the Trustee, the Custodian, the Collateral Agent, any Independent Accountant or any other Person other than its personnel. 
  
 With respect to the annual independent accountants report pursuant to Section 4.11, the report (A) shall relate only to the
Receivables and CenterOne’s servicing of those Receivables, (B) the fees and expenses related thereto shall be reimbursable expenses of CenterOne, and (C) the independence of the accountants will be with respect to only CenterOne and its
affiliates, not the Seller or UACC. 
  
 Notwithstanding Section
5.1 or any other provision of the Basic Documents, CenterOne shall have no obligation or liability for failure to direct the form of investment in any account, establish any new Trust Account or notify any party if a Trust Account shall not be an
Eligible Trust Account. 
  
 Section 5.7(d) shall not apply to
CenterOne. 
  
 CenterOne hereby makes the representation and
warranty in Section 8.1(b); provided, that such representation and warranty in Section 8.1(b) shall be limited to those licenses and approvals the failure of which to maintain would have a material adverse effect on the ability of CenterOne to
perform its obligations under the Agreement, and representation and warranty contained in Section 8.1(g)(D) shall not apply to CenterOne. 
  
 CenterOne shall have no obligation or liability under Section 8.2(c). 
  
 Notwithstanding Section 8.6, in the event that (a) CenterOne is removed as Servicer or subservicer of the Servicer unless a
Servicer Termination Event with respect to CenterOne has occurred and is continuing or (b) all or substantially all of the Receivables are sold by the trust in connection with an Event of Default, CenterOne shall be entitled to a termination fee,
immediately payable in cash as part of the Base Servicing Fee, in an amount equal to six times the average monthly fee of CenterOne over the preceding four Collection Periods. 

 Notwithstanding Section 9.1, in the event that CenterOne shall be appointed the successor Servicer or
subservicer of the Servicer, each of the following shall constitute a “Servicer Termination Event” with respect to CenterOne: 
  

	 	1.	Any failure by CenterOne to deposit to the Collection Account any amount required to be deposited therein that continues unremedied for a period of two Business Days after knowledge
thereof by CenterOne or after written notice thereof shall have been given to CenterOne by the Trustee or the Insurer. 

  

	 	2.	Failure by CenterOne to deliver to the Trust Collateral Agent and (so long as an Insurer Default shall not have occurred and be continuing) the Insurer the Servicer’s
Certificate by the Determination Date that continues unremedied for a period of two Business Days; 

  

	 	3.	Failure on the part of CenterOne duly to observe or perform any other covenants or agreements of CenterOne set forth in this Agreement which failure (i) materially and adversely
affects the rights of Noteholders (determined without regard to the availability of funds under the Note Policy), or of the Insurer (unless an Insurer Default shall have occurred and be continuing), and (ii) continues unremedied for a period of 30
days after the earlier of (x) knowledge thereof by CenterOne, or (y) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to CenterOne by the Trust Collateral Agent or the Insurer (or, if an
Insurer Default shall have occurred and be continuing, by any Noteholder); 

  

	 	4.	The entry of a decree or order for relief by a court or regulatory authority having jurisdiction in respect of CenterOne in an involuntary case under the federal bankruptcy laws, as
now or hereafter in effect, or another present or future, federal bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of CenterOne or of any substantial
part of its property or ordering the winding up or liquidation of the affairs of CenterOne and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days or the commencement of an involuntary case under
the federal bankruptcy laws, as now or hereinafter in effect, or another present or future federal or state bankruptcy, insolvency or similar law and such case is not dismissed within 60 days; 

  

	 	5.	The commencement by CenterOne of a voluntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future, federal or state, bankruptcy,
insolvency or similar 

 law, or the consent by CenterOne to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of CenterOne or of any substantial part of its property or the making by CenterOne of an assignment for the benefit of creditors or the failure by CenterOne generally to pay its
debts as such debts become due or the taking of corporate action by CenterOne in furtherance of any of the foregoing; or 
  

	 	6.	Any representation, warranty or statement of CenterOne made in this Agreement or any certificate, report or other writing delivered pursuant hereto shall prove to be incorrect in
any material respect as of the time when the same shall have been made, and the incorrectness of such representation, warranty or statement has a material adverse effect on the Trust, the Insurer or the Noteholders and, within 30 days after
knowledge thereof by CenterOne or after written notice thereof shall have been given to CenterOne by the Trust Collateral Agent or the Insurer (or, if an Insurer Default shall have occurred and be continuing, a Noteholder), the circumstances or
condition in respect of which such representation, warranty or statement was incorrect shall not have been eliminated or otherwise cured in all material respects. 

  
 Article X shall not apply to CenterOne. 
  
 Section 11.4(a) shall not apply to CenterOne; provided, however, that CenterOne shall provide any information or
certificates to the Seller which the Seller is required to provide to the Commission. 

 EXHIBIT A TO SCHEDULE D 
  
 FEE SCHEDULE OF THE 
 DESIGNATED BACKUP SUBSERVICER 
  
 Fees 

 

					
	 Back-up Servicing
	  	 	    	 
			
	 Set-Up Fee:
	  	 	    	$2,500
			
	 Monthly Fee:
	  	the greater of	    	2.0 bsp or
	 	  	 	    	$1,000
			
	 Successor Servicing
	  	 	    	 
			
	 Boarding Fee/Expense
	  	 	    	$5.00 per contract
			
	 Monthly Fee:
	  	the greater of	    	300 bsp or
	 	  	 	    	$20.00 per contract
			
	 Monthly Servicing Fee:
	  	 	    	$5,000

  
 PASS THRU EXPENSES:

  
 Pass through expenses listed include but, are not limited
to the following items: 
  
 Back-up Servicing 
  

	 	•	 	Costs associated with due-diligence effort, including travel 

  

	 	•	 	Legal fees 

  
 Transition Period Servicing – (items related to the transfer of servicing from the branch offices to CenterOne’s centralized approach) 
  

	 	•	 	Travel 

  

	 	•	 	Document packaging and shipments 

  

	 	•	 	Obligor letters (welcome and good-bye) and mailing costs 

  
 Successor Servicing 
  

	 	•	 	Third party insurance or insurance tracking 

  

	 	•	 	Third-party audit fees 

  

	 	•	 	Legal fees 

  

	 	•	 	Statement and mailing costs 

  

	 	•	 	Costs related to repossession and liquidation processes (including the replevin process) 

  

	 	•	 	Costs related to the collection or preservation of active accounts (including third-party skip tracing and field calls) 

  

	 	•	 	Bankruptcy fees 

  

	 	•	 	Lockbox fees and bank charges 

  

	 	•	 	Boarding fee/expense 

 ASSUMPTIONS: 
  

	 	•	 	After the transition period, all administrative fees including but, not limited to late fees, NSF and Phone Pay fee income will be retained by CenterOne. 

 

	 	•	 	Monthly duties are limited to receiving a month-end file from UPFC and comparing the summarized results to the month-end servicer statement/certificate. 

  

	 	•	 	The Successor Servicing fee assumes a 375 to one collection account to collection associate ratio. Any additional presence required would need to be addressed through a different
fee arrangement. 

  

	 	•	 	CenterOne also recognizes that $5 of the $20 minimum servicing fee may be paid in a later spot in waterfall. 

 EXHIBIT A 
  

[RESERVED] 

 EXHIBIT B 
  

SERVICER’S CERTIFICATE 

 EXHIBIT C 
  

[Reserved] 

 EXHIBIT D 
  

FORM OF REQUEST FOR RELEASE 
  
 DATE: 
  
 TO: 
  

	RE:	REQUEST FOR RELEASE OF DOCUMENTS 

  
 In connection with your administration of the Receivables, we request the release of the Receivable File(s) described below. 
  
 Agreement Dated: 
 Series #: 
 Loan #: 
 Borrower
Name(s): 

	
	Reason for Document Request:________________________________________________________________________________________________________
	__________________________________________________________________________________________________________________________________

 __________________________________________________________________________________________________________________________________ 

	
	
	PLEASE DELIVER THE RECEIVABLE FILE(S) TO ___________________________________________________________________________________
	____________________________________________________________________________________________________________________________________

  
 “We hereby certify that all
amounts received or to be received in connection with such payments which are required to be deposited have been deposited as provided in the Sale and Servicing Agreement.” 
  

	
	  

	[Name of Servicer]
	Authorized Signature

  
 ******************************************************************************************************** 
  
 TO CUSTODIAN: Please acknowledge this request, and check off documents being enclosed with a copy of this form. You should retain this form for your files in accordance
with the terms of the Sale and Servicing Agreement. 
  

	Enclosed	Documents: 

  

	
	 Name
  

	
 Title
  

	
 DateForm of Insurance Agreement

 Exhibit 10.2 

  
                                 , 
 as Insurer 
  
 UPFC AUTO RECEIVABLES TRUST 2006-    , 
 as Issuing Entity

  
 UNITED AUTO CREDIT CORPORATION, 
 Individually and as Servicer 
  
 UPFC AUTO RECEIVABLES CORP., 
 as Seller,

  
 DEUTSCHE BANK TRUST COMPANY AMERICAS 
 as Indenture Trustee, Trust Collateral Agent, Collateral Agent and Backup Servicer, 
  
 INSURANCE AGREEMENT 
  
 $                     
 UPFC Auto Receivables Trust 2006-     
 Automobile Receivables Backed Notes 
 $                     Class A-1 Notes 
 $                     Class A-2 Notes 
 $                     Class A-3 Notes 
  
 Dated as of
                            , 2006 
  

 TABLE OF CONTENTS 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 ARTICLE II 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  

					
	Section 2.01.	  	Representations and Warranties of UACC, the Servicer and the Seller	  	7
	Section 2.02.	  	Affirmative Covenants of the Servicer, UACC and the Seller	  	11
	Section 2.03.	  	Negative Covenants of UACC, the Servicer and the Seller	  	18
	Section 2.04.	  	Representations and Warranties of the Trust	  	20
	Section 2.05.	  	Affirmative Covenants of the Trust	  	23
	Section 2.06.	  	Negative Covenants of the Trust	  	26
			
	 	  	ARTICLE III	  	 
			
	 	  	THE POLICIES; REIMBURSEMENT	  	 
			
	Section 3.01.	  	Issuance of the Note Policy	  	28
	Section 3.02.	  	Payment of Fees and Premium.	  	30
	Section 3.03.	  	Reimbursement and Additional Payment Obligation.	  	31
	Section 3.04.	  	Indemnification; Limitation of Liability.	  	33
	Section 3.05.	  	Payment Procedure	  	35
			
	 	  	ARTICLE IV	  	 
			
	 	  	FURTHER AGREEMENTS	  	 
			
	Section 4.01.	  	Effective Date; Term of the Insurance Agreement	  	35
	Section 4.02.	  	Further Assurances and Corrective Instruments.	  	36
	Section 4.03.	  	Obligations Absolute.	  	36
	Section 4.04.	  	Assignments; Reinsurance; Third-party Rights.	  	38
	Section 4.05.	  	Liability of the Insurer	  	39
	Section 4.06.	  	Parties Will Not Institute Insolvency Proceedings	  	39
	Section 4.07.	  	Trustee, Custodian, Trust Collateral Agent, Collateral Agent, Backup Servicer, Seller, Trust and Servicer To Join in Enforcement Action	  	39
	Section 4.08.	  	Subrogation	  	39
	Section 4.09.	  	Insurer’s Rights Regarding Actions, Proceedings or Investigations	  	39
			
	 	  	ARTICLE V	  	 
			
	 	  	DEFAULTS; REMEDIES	  	 
			
	Section 5.01.	  	Defaults	  	41
	Section 5.02.	  	Remedies; No Remedy Exclusive.	  	43

 ARTICLE VI 
  
 MISCELLANEOUS 
  

					
	Section 5.03.	  	Waivers.	  	44
	Section 6.01.	  	Amendments, Etc	  	45
	Section 6.02.	  	Notices	  	45
	Section 6.03.	  	Severability	  	46
	Section 6.04.	  	Governing Law	  	47
	Section 6.05.	  	Consent to Jurisdiction.	  	47
	Section 6.06.	  	Consent of the Insurer	  	47
	Section 6.07.	  	Counterparts	  	47
	Section 6.08.	  	Headings	  	48
	Section 6.09.	  	Trial by Jury Waived	  	48
	Section 6.10.	  	Limited Liability	  	48
	Section 6.11.	  	Limitation of Indenture Trustee, Trust Collateral Agent, the Collateral Agent and Backup Servicer Liability	  	48
	Section 6.12.	  	No Recourse to Trustee	  	48
	Section 6.13.	  	Entire Agreement	  	49
	Section 6.14.	  	No Partnership	  	49

  

 ii 

 INSURANCE AGREEMENT 
  
 INSURANCE AGREEMENT (this “Insurance Agreement”), dated as of
                        , 2006 by and among UPFC AUTO RECEIVABLES TRUST 2006-    , as
Trust (the “Trust”), UNITED AUTO CREDIT CORPORATION, individually (“UACC”) and in its capacity as Servicer under the Sale and Servicing Agreement described below (together with its permitted successors and
assigns, the “Servicer”), UPFC AUTO RECEIVABLES CORP., as Seller (the “Seller”),
                                     (the
“Insurer”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee (in such capacity, the “Trustee”), Trust Collateral Agent (in such capacity, the “Trust Collateral Agent” ),
Collateral Agent (in such capacity, the “Collateral Agent”) and as Backup Servicer (in such capacity, the “Backup Servicer”). 
  

WHEREAS, the Indenture dated as of
                            , 2006 relating to UPFC Auto Receivables Trust
2006-     Automobile Receivables Asset Backed Notes, $                     Class A-1 Notes,
$                     Class A-2 Notes and
$                     Class A-3 Notes, (the “Obligations”), between the Trust, the Trustee and the Trust Collateral Agent
(the “Indenture”) provides for, among other things, the issuance of asset backed notes representing debt obligations secured by the collateral pledged thereunder and the Insurer has agreed to issue a financial guarantee insurance
policy (the “Note Policy”) that guarantees certain payments on such notes; and 
  
 WHEREAS, the Insurer shall be paid an insurance premium pursuant to the Sale and Servicing Agreement and the details of such premium are set forth herein;
and 
  
 WHEREAS, UACC, the Servicer, the Seller and the Trust have
undertaken certain obligations in consideration of the Insurer’s issuance of the Note Policy; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 The terms defined in this Article I shall have the meanings provided herein for all purposes of this Insurance Agreement, unless the context clearly
requires otherwise, in both singular and plural form, as appropriate. Unless the context clearly requires otherwise, all capitalized terms used herein and not otherwise defined in this Article I shall have the meanings assigned to them in the
Sale and Servicing Agreement or the Indenture, as applicable. All words used herein shall be construed to be of such gender or number as the circumstances require. This “Insurance Agreement” shall mean this Insurance Agreement as a whole
and as the same may, from time to time hereafter, be amended, supplemented or modified. The words “herein,” “hereby,” “hereof,” “hereto,” “hereinabove” and “hereinbelow,” and words of
similar import, refer to this Insurance Agreement as a whole and not to any particular paragraph, clause or other subdivision hereof, unless otherwise specifically noted. 

 “Business Day” means any day other than (a) a Saturday or a Sunday (b) a day
on which the Insurer is closed or (c) 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 is located
are authorized or obligated by law or executive order to close. 
  
 “Cash Balance” means, as of any date, the sum of UPFC’s unencumbered cash plus its Cash Equivalents. 
  
 “Cash Equivalents” means, as of any date, UPFC’s cash on hand and any investments described in the definition of Eligible
Investments in the Sale and Servicing Agreement. 
  
 “Change of Control” means a change resulting when any Unrelated Person or any Unrelated Persons, acting together, that would constitute a Group together with any Affiliates or Related Persons thereof (in each case also
constituting Unrelated Persons) shall at any time either (i) Beneficially Own more than 50% of the aggregate voting power of all classes of Voting Stock of UPFC or (ii) succeed in having sufficient of its or their nominees elected to the
board of directors of UPFC such that such nominees when added to any existing director remaining on the board of directors of UPFC after such election who is an Affiliate or Related Person of such Person or Group, shall constitute a majority of the
board of directors of UPFC. As used herein, (a) “Beneficially Own” shall mean “beneficially own” as defined in Rule 13d-3 of the Exchange Act, or any successor provision thereto; provided, however, that, for purposes of this
definition, a Person shall not be deemed to Beneficially Own securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates until such tendered securities are accepted for
purchase or exchange; (b) “Group” shall mean a “group” for purposes of Section 13(d) of the Exchange Act; (c) “Unrelated Person” shall mean at any time any Person other than UPFC or any of its
subsidiaries and other than any trust for any employee benefit plan of UPFC or any of its subsidiaries; (d) “Related Person” shall mean any other Person owning (1) 5% or more of the outstanding common stock of such Person or
(2) 5% or more of the Voting Stock of such Person; and (e) “Voting Stock” of any Person shall mean the capital stock or other indicia of equity rights of such Person which at the time has the power to vote for the election of one
or more members of the board of directors (or other governing body) of such Person. 
  
 “Code” means the Internal Revenue Code of 1986, including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
  
 “Collateral Agent” means Deutsche Bank Trust Company
Americas, a New York banking corporation, as collateral agent under the Spread Account Agreement, and any successor to the collateral agent under the Spread Account Agreement. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Consolidated Total Adjusted Equity” of any Person means,
with respect to any fiscal quarter, the sum of (i) the total shareholders’ equity of such Person and its consolidated subsidiaries that, in accordance with GAAP, is reflected on the consolidated balance sheet of such Person and its
consolidated subsidiaries for such fiscal quarter and (ii) the outstanding 
  

 2 

 principal amount of subordinated debt of such person including trust preferred securities (which in the case of UPFC
shall be on terms acceptable to the Insurer (it being understood that the subordinated debt currently outstanding is on such acceptable terms), minus the aggregate amount of such Person’s intangible assets, including without limitation,
goodwill, franchises, licenses, patents, trademarks, tradenames, copyrights and service marks. 
  
 “Consolidated Total Funded Debt” of any Person means, with respect to any fiscal quarter, (i) all obligations of such Person and its consolidated subsidiaries (whether “on balance
sheet” or “off balance sheet”) for borrowed money, excluding repurchase agreements and all obligations of such Person and its consolidated subsidiaries evidenced by bonds, debentures, notes or other similar instruments and
(ii) all obligations evidenced by bonds, debentures, notes or other similar instruments issued in respect of any securitization transaction sponsored by such Person, regardless of whether included on the balance sheet of such Person and its
consolidated subsidiaries in accordance with GAAP excluding trust preferred securities. 
  
 “Date of Issuance” means the date on which the Note Policy is issued as specified therein. 
  
 “Default” means any event which results, or which with the giving of notice or the lapse of time or both would result, in an Insurance
Agreement Event of Default. 
  
 “Default Insurance
Premium” shall have the meaning set forth in the Premium Letter. 
  
 “GAAP” means United States generally accepted accounting principles. 
  
 “Financial Statements” means, with respect to UPFC, the consolidated balance sheets and the statements of income, retained earnings and
cash flows and the notes thereto which have been provided to the Insurer. 
  
 “Indebtedness” means, with respect to any Person at any time, (a) indebtedness or liability of such Person for borrowed money whether or not evidenced by bonds, debentures, notes or other
instruments, or for the deferred purchase price of property or servicer (including trade obligations); (b) obligations of such Person as lessee under leases which should have been or should be, in accordance with GAAP, recorded as capital
leases; (c) current liabilities of such Person in respect of unfunded vested benefits under plans covered by Title IV of ERISA; (d) obligations issued for or liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations of such Person under any guarantees, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person or otherwise to assure a creditor against loss; (g) obligations of such Person secured by any Lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person under any interest rate or currency exchange agreement. 
  
 “Indemnification Agreement” means the Indemnification Agreement dated as of
                            , 2006 among the Insurer, UACC and Deutsche Bank Securities, as
Underwriter. 
  

 3 

 “Indenture” means the Indenture dated
                            , 2006 between the Trust, the Trust Collateral Agent and the Trustee as
the same may be amended or supplemented from time to time in accordance with the terms thereof. 
  
 “Insolvency Law” means any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors. 
  
 “Insurance
Agreement Event of Default” means any event of default specified in Section 5.01 hereof. 
  
 “Insurer Default” has the meaning set forth in the Sale and Servicing Agreement. 
  
 “Investment Company Act” means the Investment Company Act of
1940, including, unless the context otherwise requires, the rules and regulations thereunder, as amended. 
  
 “Trust Secured Parties” has the meaning set forth in the Indenture. 
  
 “Late Payment Rate” means the lesser of (a) the greater of (i) the Prime Rate plus 2% from time
to time (any change in such rate of interest to be effective on the date such change is published) and (ii) the then applicable highest rate of interest on the Notes and (b) the maximum rate permissible under applicable usury or similar
laws limiting interest rates. The Late Payment Rate shall be computed on the basis of a 360 day year for the actual number of days elapsed for such period. The Late Payment Rate shall be calculated by the Insurer and evidenced by a certificate of
the Insurer delivered to the Trustee. 
  
 “Leverage
Ratio” means, with respect to any fiscal quarter, the ratio of (i) the Consolidated Total Funded Debt of UPFC, divided by (ii)(a) the Consolidated Total Adjusted Equity of UPFC plus (b) the cumulative amount of stock repurchased
from                             , 2006 to date. 
  
 “Liabilities” shall have the meaning ascribed to such term
in Section 3.04(a) hereof. 
  
 “Lien” means,
as applied to the property or assets (or the income or profits therefrom) of any Person, in each case whether the same is consensual or nonconsensual or arises by contract, operation of law, legal process or otherwise: (a) any mortgage, lien,
pledge, hypothecation, assignment, deposit arrangement, preference priority or other security agreement of preferential arrangement, attachment, charge, lease, conditional sale or other title retention agreement, or other security interest or
encumbrance of any kind; or (b) any arrangement, express or implied, under which such property or assets are transferred, sequestered or otherwise identified for the purpose of subjecting or making available the same for the payment of debt or
performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person. 
  
 “Losses” means (a) any actual out-of-pocket loss paid by the Insurer or its respective parents, subsidiaries and Affiliates or any
shareholder, director, officer, employee, agent or any “controlling person” (as such term is used in the Securities Act) of any of the foregoing and (b) 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). 
  

 4 

 “Material Adverse Change” means, in respect of any Person, a material adverse change in
(a) the business, financial condition, results of operations or properties of such Person or (b) the ability of such Person to perform its obligations under any of the Transaction Documents. 
  
 “Moody’s” means Moody’s Investors Service, a
Delaware corporation, and any successor thereto, and, if such corporation shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized rating
agency designated by the Insurer. 
  
 “Obligor”
means the original obligor under each Receivable, including any guarantor of such obligor and their respective successors. 
  
 “Offering Document” means the Prospectus dated
                            , 2006, the Preliminary Prospectus Supplement thereto dated
                            , 2006 and the Prospectus Supplement thereto dated
                            , 2006, each of the Trust in respect of the Obligations (and any amendment
or supplement thereto) and any other offering document in respect of the Obligations prepared by UACC, the Servicer, the Seller or the Trust that makes reference to the Note Policy. 
  
 “Opinion Facts and Assumptions” means the facts and assumptions contained in the insolvency opinion dated
                            , 2006 by McKee Nelson LLP and the officer’s certificates attached as
exhibits thereto insofar as they relate to the Seller, the Trust and UACC. 
  
 “Ordinary Insurance Premium” shall have the meaning set forth in the Premium Letter. 
  
 “Owner Trustee” means Wells Fargo Delaware Trust Company, a Delaware limited purpose trust company, as Owner Trustee under the Trust
Agreement, and any successor Owner Trustee under the Trust Agreement. 
  
 “Person” means an individual, joint stock company, trust, unincorporated association, joint venture, corporation, business or owner trust, limited liability company, partnership or other organization or entity (whether
governmental or private). 
  
 “Premium” means the
Ordinary Insurance Premium and the Default Insurance Premium, payable in accordance with Section 3.02 hereof. 
  
 “Premium Letter” means the Premium Letter Agreement among the Insurer, UACC, the Trust, the Trustee and the Trust Collateral Agent dated
                            , 2006. 
  
 “Prime Rate” means the fluctuating rate of interest as published from time to time in the New York, New
York edition of The Wall Street Journal, under the caption “Money Rates” as the “prime rate”. The Prime Rate shall change when and as such published prime rate changes. 
  
 “Sale Agreement” means the Sale Agreement dated as of
                            , 2006 between UACC and the Seller, pursuant to which the Seller acquired
the Receivables, as such Agreement may be amended from time to time. 
  

 5 

 “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of
                            , 2006 between the Trust, the Seller, the Servicer, the Backup Servicer,
the Trust Collateral Agent and CenterOne Financial Services LLC, as Designated Backup Subservicer, as the same may be amended or supplemented from time to time in accordance with the terms thereof. 
  
 “Securities Act” means the Securities Act of 1933,
including, unless the context otherwise requires, the rules and regulations thereunder, as amended from time to time. 
  
 “Securities Exchange Act” means the Securities Exchange Act of 1934, including, unless the context otherwise requires, the rules and
regulations thereunder, as amended from time to time. 
  
 “Security Documents” means the Indenture, the Trust Agreement, the Sale and Servicing Agreement, the Purchase Agreement, the Sale Agreement and any ancillary documents executed or filed to evidence or perfect the security
interest of the Trust Collateral Agent for the benefit of the Trust Secured Parties. 
  
 “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor thereto, and, if such corporation shall for any reason no longer perform the functions
of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized rating agency designated by the Insurer. 
  
 “Term of the Insurance Agreement” shall be determined as provided in Section 4.01 hereof. 
  
 “Transaction” means the transactions contemplated by the
Transaction Documents, including the transactions described in the Transaction Documents. 
  
 “Transaction Documents” means this Insurance Agreement, the Indemnification Agreement, the Indenture, the Trust Agreement, the Sale and Servicing Agreement, the Sale Agreement, the Underwriting
Agreement, the Premium Letter, the Spread Account Agreement and the Obligations. 
  
 “Trust Agreement” means the Amended and Restated Trust Agreement dated as of
                            , 2006 between the Seller and the Owner Trustee, as the same may be
amended or supplemented from time to time in accordance with the terms thereof. 
  
 “Trust Collateral Agent” means Deutsche Bank Trust Company Americas, a New York banking corporation, as trust collateral agent under the Indenture, and any successor to the Trust Collateral Agent
under the Indenture. 
  
 “Trustee” means Deutsche
Bank Trust Company Americas, a New York banking corporation, as Trustee under the Indenture, and any successor Trustee under the Indenture. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939, including, unless the context otherwise requires, the rules and regulations
thereunder, as amended from time to time. 
  

 6 

 “Underwriter” means Deutsche Bank Securities Inc. 
  
 “Underwriting Agreement” means the Underwriting Agreement
between the Underwriter and the Seller with respect to the offer and sale of the Obligations, as the same may be amended from time to time. 
  
 “UPFC” means United Auto PanAm Financial Corporation, and its successors. 
  
 ARTICLE II 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 2.01. Representation and Warranties of UACC, the Servicer and the Seller. UACC, the Servicer and the Seller represent,
warrant and covenant as of the Date of Issuance, each as to those matters relating to itself, as follows: 
  
 (a) Due Organization and Qualification. UACC, the Servicer and the Seller is a corporation, duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization. Each of UACC, the Servicer is duly qualified to do business, is in good standing and has obtained all licenses, permits, charters, registrations and approvals (together,
“approvals”) necessary for the conduct of its business as currently conducted and as described in the Offering Document and the performance of its obligations under the Transaction Documents in each jurisdiction in which the failure
to be so qualified or to obtain such approvals would render any Transaction Document unenforceable in any respect or would have a material adverse effect upon the Transaction, the Note Owners or the Insurer. 
  
 (b) Power and Authority. Each of UACC, the
Servicer and the Seller has all necessary power and authority to conduct its business as currently conducted and, as described in the Offering Document, to execute, deliver and perform its obligations under the Transaction Documents and to
consummate the Transaction. 
  
 (c) Due
Authorization. The execution, delivery and performance of the Transaction Documents by UACC, the Servicer and the Seller have been duly authorized by all necessary action and do not require any additional approvals or consents of, or other
action by or any notice to or filing with, any Person, including, without limitation, any governmental entity or the Servicer’s, UACC’s or the Seller’s stockholders, which have not previously been obtained or given by the Servicer,
UACC or the Seller. 
  
 (d)
Noncontravention. None of the execution and delivery of the Transaction Documents by UACC, the Servicer or the Seller, the consummation of the transactions contemplated thereby or by the Offering Document or the satisfaction of the
terms and conditions of the Transaction Documents: 
  
 (i) conflicts with or results in any breach or violation of any provision of the organizational documents of the Servicer, UACC or the Seller or any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
currently in effect having applicability to the Servicer, UACC or the Seller or any 
  

 7 

 of their properties, including regulations issued by an administrative agency or other governmental
authority having supervisory powers over the Servicer, UACC or the Seller; 
  
 (ii) constitutes a default (or an event which, with the giving of notice or the passage of time, or both, would constitute a default) by the Servicer, UACC or the Seller under or a breach of any provision of any loan
agreement, mortgage, indenture or other agreement or instrument to which the Servicer, UACC or the Seller is a party or by which any of its or their respective properties, which are individually or in the aggregate material to the Servicer, UACC or
the Seller, is or may be bound or affected; or 
  
 (iii) results in or requires the creation of any lien upon or in respect of any assets of the Servicer, UACC or the Seller, except as contemplated by the Transaction Documents. 
  
 (e) Legal Proceedings. There is no action, proceeding or investigation by or before any court,
governmental or administrative agency or arbitrator against or affecting the Servicer, UACC, the Seller or any of its or their subsidiaries, or any properties or rights of the Servicer, UACC, the Seller or any of its or their subsidiaries, pending
or, to the Servicer’s, UACC’s or the Seller’s knowledge after reasonable inquiry, threatened, which in any case could reasonably be expected to result in a Material Adverse Change with respect to UACC, the Servicer or the Seller.

  
 (f) No Defaults. Each of the
Servicer, UACC and the Seller is not in default under or with respect to any of its respective contractual obligations in any respect which could have a material adverse effect on the rights, interests or remedies of the Insurer hereunder or under
the other Transaction Documents or on its ability to perform its obligations hereunder or under the other Transaction Documents to which it is a party. No Default has occurred and is continuing. 
  
 (g) Valid and Binding Obligations. The
Obligations, when executed, authenticated and issued in accordance with the Indenture, and the Transaction Documents (other than the Obligations), when executed and delivered by the Servicer, the Seller and UACC will constitute the legal, valid and
binding obligations of the Servicer, UACC, the Seller and the Trust, as applicable, enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors’ rights generally and general equitable principles and public policy considerations as to rights of indemnification for violations of federal securities laws. None of the Servicer, UACC or the Seller will at any
time in the future deny that the Transaction Documents constitute the legal, valid and binding obligations of the Servicer, UACC, the Seller or the Trust, as applicable. 
  
 (h) No Consents. No consent, license, approval or authorization from, or registration, filing
or declaration with, any regulatory body, administrative agency, or other governmental instrumentality, nor any consent, approval, waiver or notification of 
  

 8 

 any creditor, lessor or other nongovernmental person, is required in connection with the execution,
delivery and performance by each of the Servicer, UACC and the Seller of any of the Transaction Documents to which it is a party, except (in each case) such as have been obtained and are in full force and effect or the failure of which to be
obtained could not reasonably be expected to result in a Material Adverse Change with respect to the Servicer, UACC, the Seller or the Transaction. 
  
 (i) Financial Statements. The Financial Statements of UPFC., copies of which have been furnished to the Insurer by UACC,
(i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition and results of operations of UPFC, as of the dates and for the periods indicated
and (iii) have been prepared in accordance with generally accepted accounting principles consistently applied, except as noted therein (subject as to interim statements to normal year-end adjustments). Since the date of the most recent
Financial Statements, there has been no Material Adverse Change in respect of UPFC, UACC, the Seller or the Servicer. Except as disclosed in the Financial Statements, UPFC, UACC, the Seller and the Servicer are not subject to any contingent
liabilities or commitments that, individually or in the aggregate, have a material possibility of causing a Material Adverse Change in respect of UPFC, UACC, the Seller and the Servicer. 
  
 (j) Compliance With Law, Etc. No practice, procedure or policy employed, or proposed to be
employed, by the Servicer, UACC or the Seller in the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to any of them that, if enforced, could reasonably be expected to result in a Material Adverse
Change with respect to the Servicer, UACC or the Seller. The Servicer, UACC and the Seller are not in breach of or in default under any applicable law or administrative regulation of its respective jurisdiction of organization, or any department,
division, agency or instrumentality thereof or of the United States or any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement or other instrument to which the Servicer, UACC or the Seller is a party or
is otherwise subject which, if enforced, would have a material adverse effect on the ability of the Servicer, UACC or the Seller, as the case may be, to perform its respective obligations under the Transaction Documents. 
  
 (k) Taxes. The Servicer, UACC and the Seller
and the Servicer’s, UACC’s, the Seller’s parent company or companies have filed prior to the date hereof all federal and state tax returns that are required to be filed and paid all taxes, including any assessments received by them
that are not being contested in good faith, to the extent that such taxes have become due. 
  
 (l) Accuracy of Information. None of the Transaction Documents, the Offering Document or any documents, agreements,
instruments, schedules, certificates, statements, cash flow schedules, number runs or other writings or data relating to the Receivables, the operations of the Servicer, UACC or the Seller (including servicing or origination of loans) or the
financial condition of the Servicer, UACC or the Seller (collectively, the “Documents”), as amended, supplemented or superseded, furnished to the Insurer by the Servicer, UACC or the Seller contains any statement of a material fact

  

 9 

 by the Servicer, UACC or the Seller which was untrue or misleading in any material adverse respect when
made. None of the Servicer, UACC or the Seller has any knowledge of circumstances that could reasonably be expected to cause a Material Adverse Change with respect to the Servicer, UACC or the Seller. Since the furnishing of the Documents, there has
been no change or any development or event involving a prospective change known to the Servicer, UACC or the Seller that would render any of the Documents untrue or misleading in any material respect. 
  
 (m) Compliance With Securities Laws. The offer
and sale of the Obligations comply in all material respects with all requirements of law, including all registration requirements of applicable securities laws. Without limitation of the foregoing, the Offering Document does not contain any untrue
statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; provided, however, that no representation is made with
respect to the information in the Offering Document set forth under the heading “THE INSURER” or the consolidated financial statements of the Insurer incorporated by reference in the Offering Document. Each of the Transaction Documents
conforms in all material respects to the representative descriptions thereof, if any, contained in the Offering Document. Neither the offer nor the sale of the Obligations has been or will be in violation of the Securities Act or any other federal
or state securities laws. None of the Trust, the Trust Agreement or the Indenture is required to be registered as an “investment company” under the Investment Company Act. 
  
 (n) Transaction Documents. Each of the representations and warranties of the Servicer, UACC
and the Seller contained in the Transaction Documents is true and correct in all material respects, and the Servicer, UACC and the Seller hereby make each such representation and warranty to, and for the benefit of, the Insurer as if the same were
set forth in full herein. 
  
 (o) Solvency;
Fraudulent Conveyance. The Servicer, UACC and the Seller are solvent and will not be rendered insolvent by the Transaction and, after giving effect to the Transaction, none of the Servicer, UACC or the Seller will be left with an
unreasonably small amount of capital with which to engage in its business, nor does the Servicer, UACC or the Seller intend to incur, or believe that it has incurred, debts beyond its ability to pay as they mature. None of the Servicer, UACC or the
Seller contemplates the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Servicer, UACC or the Seller or any of
their assets. The amount of consideration being received by the Trust upon the sale of the Obligations to the Underwriter constitutes reasonably equivalent value and fair consideration for the interest in the Receivables securing the Obligations.
UACC is not transferring the Receivables to the Seller, the Seller is not transferring the Receivables to the Trust, the Trust is not pledging the Receivables to the Trustee and the Trust is not selling the Obligations to the Underwriter, as
provided in the Transaction Documents, with any intent to hinder, delay or defraud any of the Seller’s or UACC’s creditors. 
  

 10 

 (p) Principal Place of Business. 
  
 (i) The principal place of business of UACC, the Servicer
and the Sellef is located in Newport Beach, California and UACC, the Servicer and the Seller are each a corporation organized under the laws of the State of California. “United Auto Credit Corporation” is the correct legal name of UACC,
and the Servicer indicated on the public records of UACC’s and the Servicer’s jurisdiction of organization which shows UACC and the Servicer to be organized. “UPFC Auto Receivables Corp.” is the correct legal name of the Seller
indicated on the public records of the Seller’s jurisdiction of organization which shows the Seller to be organized. 
  
 (a) Opinion Facts and Assumptions. The Opinion Facts and Assumptions insofar as they relate to the Seller and UACC are true
and correct as of the Date of Issuance. 
  
 Section 2.02.
Affirmative Covenants of the Servicer, UACC, the Seller. The Servicer, UACC and the Seller hereby agree that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing:

  
 (a) Compliance With Agreements and
Applicable Laws. The Servicer, UACC and the Seller shall not be in default under the Transaction Documents and shall comply with all material requirements of any law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award (including, without limitation, any fiscal and accounting rule or regulation and any foreign or domestic law, rule or regulation) applicable to it. None of the Servicer, UACC or the Seller shall agree to any amendment to or modification of
the terms of any Transaction Documents unless the Insurer shall have given its prior written consent. In addition, each of the Servicer, UACC and the Seller shall provide the Insurer with written notice promptly upon becoming aware of any breach by
it of any provision of any Transaction Document; and to the extent any action is to be taken by the Servicer, UACC or the Seller under any Transaction Document to which it is a party at the direction of the Insurer, the Servicer, UACC or the Seller
shall promptly take such action in accordance with such direction. 
  
 (b) Corporate Existence. The Servicer, its successors and assigns, UACC, its successors and assigns and the Seller, its successors and assigns shall maintain their corporate or statutory trust existence
and shall at all times continue to be duly organized under the laws of their respective jurisdictions of organization and duly qualified and duly authorized (as described in section 2.01(a), (b) and (c) hereof) and shall conduct its
business in accordance with the terms of its certificate or articles of incorporation, bylaws and organizational documents. 
  
 (c) Financial Statements; Accountants’ Reports; Other Information. The Servicer, UACC and the Seller shall keep or
cause to be kept in reasonable detail books and records of account of their assets and business, including, but not limited to, books and records relating to the Transaction. The Servicer and the Seller shall furnish or cause to be furnished to the
Insurer: 
  

 11 

 (i) Annual Financial Statements. As soon as available, and in any event within
120 days after the close of each fiscal year of UACC, the audited consolidated balance sheets of UACC, and its subsidiaries as of the end of such fiscal year and the related audited consolidated statements of income, changes in
shareholders’ equity and cash flows for such fiscal year, all in reasonable detail and stating in comparative form the respective figures for the corresponding date and period in the preceding fiscal year, prepared in accordance with generally
accepted accounting principles, consistently applied, and accompanied by the audit opinion of UACC’s independent accountants (which shall be nationally recognized independent public accounting firms) and by the certificate specified in
Section 2.02(e) hereof. 
  
 (ii)
Quarterly Financial Statements. As soon as available, and in any event within 60 days after each of the first three fiscal quarters of each fiscal year of UACC, the unaudited consolidated balance sheets of UACC and its subsidiaries as of
the end of such fiscal quarter and the related unaudited consolidated statements of income, changes in shareholders’ equity and cash flows for such fiscal quarter, all in reasonable detail and stating in comparative form the respective figures
for the corresponding date and period in the preceding fiscal year, prepared in accordance with generally accepted accounting principles consistently applied and accompanied by the certificate specified in Section 2.02(e) hereof. 
  
 (iii) Initial and Continuing Reports. On or before
the Closing Date, the Servicer will provide the Insurer a copy of the magnetic tape to be delivered to the Trust Collateral Agent, the Backup Servicer and the Designated Backup Subservicer on the Closing Date, setting forth, as to each Receivable,
the information (as of the close of business on the prior day) required under the definition of “Schedule of Receivables” at Section 1.1 of the Sale and Servicing Agreement. Thereafter, the Servicer shall deliver to the Insurer the
reports required by Section 4.9 of the Sale and Servicing Agreement pursuant to the terms of Section 4.9 of the Sale and Servicing Agreement. 
  
 (iv) Computer Diskette. Upon request of the Insurer, the Servicer will deliver to the Insurer on a quarterly basis a computer
diskette containing a summary of the information provided to the Insurer pursuant to clause (iii) of this Section 2.02(c) and also containing information similar to the information provided in the Schedule of Receivables and the
Supplements delivered to the Collateral Agent pursuant to the Sale and Servicing Agreement and described in Schedule A of the Sale and Servicing Agreement. 
  
 (v) Certain Information. Upon the reasonable request of the Insurer, the Servicer and the Seller
shall promptly provide copies of any requested proxy statements, financial statements, reports and registration statements which the Servicer or the Seller files with, or delivers to, the Commission or any national securities exchange. 

 

 12 

 (vi) Other Information. Promptly upon receipt thereof, copies of all schedules,
financial statements or other similar reports delivered to or by the Servicer or the Seller pursuant to the terms of the Transaction Documents and, promptly upon request, such other data as the Insurer may reasonably request. 
  
 All financial statements specified in clause (i) of
this Section 2.02(c) shall be furnished in consolidated form for UPFC and all its subsidiaries in the event UPFC shall consolidate its financial statements with its subsidiaries. 
  
 The Insurer agrees that it and its agents, accountants and attorneys shall keep confidential all financial
statements, reports and other information delivered by the Servicer pursuant to this Section 2.02(c) to the extent provided in Section 2.02(f) hereof. 
  
 (d) Monthly Compliance Certificate. The Servicer shall deliver to the Insurer, on the 7th
Business Day of each month a certificate signed by an officer of UACC: 
  
 (i) Stating UPFC’s Consolidated Total Adjusted Equity and Leverage Ratio as of the end of the most recently ended fiscal quarter; 
  
 (ii) Stating the minimum Cash Balance as of the end of the most recently ended fiscal quarter; 

 
 (iii) stating the amount of committed and in good
standing warehouse facilities maintained by UACC; 
  
 (iv) listing each of the Insurance Agreement Events of Default and indicating whether or not each Insurance Agreement Event of Default has occurred; 
  

(v) stating the three month rolling average recovery rate used in calculating the Minimum Sale Price with respect to Sold Receivables
for the prior month and stating the Minimum Sale Price with respect all Sold Receivables sold during the prior month; and 
  
 (vi) identifying (A) the aggregate principal balance of all Receivables purchased by the Servicer on the related Accounting Date,
(B) the aggregate principal balance of all Receivables which became Liquidated Receivables during the related Collection Period or (C) the aggregate principal balance of all Receivables which were paid in full during the related Collection
Period. 
  
 (e) Compliance
Certificate. UACC and the Servicer shall deliver to the Insurer, concurrently with the delivery of the financial statements required pursuant to Section 2.02(c)(i) and (ii) hereof, one or more certificates signed by an officer of
UACC and an officer of the Servicer authorized to execute such certificates on behalf of UACC and the Servicer stating that: 
  
 (i) a review of the Servicer’s performance under the Transaction Documents during such period has been made under such officer’s
supervision; 
  

 13 

 (ii) to the best of such individual’s knowledge following reasonable inquiry, no
Default or Insurance Agreement Event of Default has occurred or, if a Default or Insurance Agreement Event of Default has occurred, specifying the nature thereof and, if the Servicer has a right to cure pursuant to Section 9.1 of the Sale and
Servicing Agreement, stating in reasonable detail (including, if applicable, any supporting calculations) the steps, if any, being taken by the Servicer to cure such Default or Insurance Agreement Event of Default or to otherwise comply with the
terms of the agreement to which such Default or Insurance Agreement Event of Default relates; 
  
 (iii) the attached financial statements submitted in accordance with Section 2.02(c)(i) or (ii) hereof, as the case may be, are
complete and correct in all material respects and present fairly the financial condition and results of operations of UACC and the Servicer as of the dates and for the periods indicated, in accordance with generally accepted accounting principles
consistently applied; and 
  
 (iv) the Servicer
has in full force and effect a blanket fidelity bond (or direct surety bond) and an errors and omissions insurance policy in accordance with the terms and requirements of Section 4.15 of the Sale and Servicing Agreement. 
  
 (f) Access to Records; Discussions With Officers and
Accountants. On an annual basis, or upon the occurrence of a Material Adverse Change, a Default or an Insurance Agreement Event of Default UACC, the Servicer and the Seller shall, upon the request of the Insurer, permit the Insurer or its
authorized agents and the Backup Servicer: 
  
 (i) to inspect the books and records of UACC, the Servicer and the Seller as they may relate to the Obligations or the Collateral, the obligations of UACC, the Servicer or the obligations of the Seller under the Transaction Documents, and
the Transaction; 
  
 (ii) to discuss the affairs,
finances and accounts of UACC, the Servicer or the Seller with the chief operating officer and the chief financial officer of the Servicer or of the Seller, as the case may be; and 
  
 (iii) to discuss the affairs, finances and accounts of UACC, the Servicer or the Seller with UACC’s,
the Servicer’s or the Seller’s independent accountants, provided that an officer of UACC, the Servicer or the Seller shall have the right to be present during such discussions. 
  
 Such inspections and discussions shall be conducted during normal business hours and shall not unreasonably
disrupt the business of UACC, the Servicer or the Seller. The books and records of UACC shall be maintained at the address of UACC designated 
  

 14 

 herein for receipt of notices, unless UACC shall otherwise advise the parties hereto in writing. The
books and records of the Seller shall be maintained at the address of the Seller designated herein for receipt of notices, unless the Seller shall otherwise advise the parties hereto in writing. The books and records of the Servicer shall be
maintained at the address of the Servicer designated herein for receipt of notices, unless the Servicer shall otherwise advise the parties hereto in writing. 
  

The Insurer agrees that it and its shareholders, directors, agents, accountants and attorneys shall keep confidential any matter of
which it becomes aware through such inspections or discussions (unless readily available from public sources), except as may be otherwise required by regulation, law or court order or requested by appropriate governmental authorities or as necessary
to preserve its rights or security under or to enforce the Transaction Documents, provided that the foregoing shall not limit the right of the Insurer to make such information available to its Affiliates, regulators, securities rating agencies,
reinsurers, credit and liquidity providers, counsel and accountants. 
  
 (g) Notice of Material Events. UACC, the Servicer and the Seller shall be obligated (which obligation shall be satisfied as to each if performed by UACC, the Servicer or the Seller) promptly to inform
the Insurer in writing of the occurrence of any of the following to the extent any of the following relate to it: 
  
 (i) the submission of any claim or the initiation or threat of any legal process, litigation or administrative or judicial investigation
or rule making or disciplinary proceeding in any federal, state or local court or before any arbitration board, or any such proceeding threatened by any governmental body or agency, that has a reasonable likelihood of being adversely determined and
(A) if so determined, could have a material adverse effect on the Servicer, the Seller, the Custodian, the Note Owners or the Insurer, (B) would be required to be disclosed to the Commission or to UACC’s, the Servicer’s or the
Seller’s shareholders or (C) would result in a Material Adverse Change with respect to UACC, the Servicer or the Seller; 
  
 (ii) any change in the location of the Servicer’s or the Seller’s principal office or any change in the location of
Servicer’s or the Seller’s books and records; 
  
 (iii) the occurrence of any Default or Insurance Agreement Event of Default or of any Material Adverse Change; 
  
 (iv) the commencement of any proceedings by or against UACC, the Servicer or the Seller under any applicable bankruptcy, reorganization,
liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any proceeding in which a receiver, liquidator, conservator, trustee or similar official shall have been, or may be, appointed or requested for UACC, the
Servicer or the Seller or any of its or their assets; or 
  
 (v) the receipt of notice (A) of any claim or order by any taxing authority that taxes are owed by UACC or any of its subsidiaries, the Servicer or 
  

 15 

 the Seller, as applicable, or (B) that any withholding taxes are to be imposed on any Collateral or
the Obligations (as payment to be received thereunder, as applicable). 
  
 (vi) the receipt of notice that (A) UACC, the Servicer or the Seller is being placed under regulatory supervision, (B) any license, permit, charter, registration or approval necessary for the conduct of
UACC’s, the Servicer’s or the Seller’s business is to be or may be suspended or revoked, or (C) UACC, the Servicer or the Seller is to cease and desist any practice, procedure or policy employed by UACC, the Servicer or the
Seller in the conduct of its business, which, in any such case, may result in a Material Adverse Change with respect to UACC, the Servicer or the Seller or would have a material adverse effect on the Owners or the Insurer. 
  
 (h) Financing Statements and Further
Assurances. The Servicer shall, at its own expense, promptly take, or cause to be taken, such actions as may be necessary to (or as may be requested by the Insurer and, in the reasonable judgment of the Insurer, are necessary or desirable)
(i) create and maintain the Indenture as a valid and perfected Lien covering the Collateral and (ii) fully preserve and protect the perfected first priority security interest of the Trust Collateral Agent for the benefit of the Trust
Secured Parties in, and all rights of the Trust Collateral Agent for the benefit of the Trust Secured Parties with respect to, the Collateral, including, without limitation, the execution and filing of all necessary financing statements or other
instruments, and any amendments or continuation statements relating thereto, necessary to be kept and filed in such manner and in such places as may be required by law to preserve, protect and perfect fully the Lien of the Trust Collateral Agent for
the benefit of the Trust Secured Parties with respect to the Collateral. In addition, each of the Servicer and the Seller agrees to cooperate with S&P and Moody’s in connection with any review of the Transaction that may be undertaken by
S&P or Moody’s after the date hereof and to provide all information reasonably requested by S&P or Moody’s. In the event that a successor servicer is appointed pursuant to the Sale and Servicing Agreement, the transition costs and
expenses incurred by such successor servicer shall be paid in accordance with Section 5.7(b) of the Sale and Servicing Agreement. 
  
 (i) Maintenance of Licenses. UACC, the Servicer and the Seller, respectively, or any successors thereof shall maintain or
cause to be maintained all licenses, permits, charters and registrations which are material to the conduct of its business. 
  
 (j) Redemption of Obligations. UACC, the Servicer and the Seller shall instruct the Trustee, upon redemption or payment in
full of the Obligations pursuant to the Indenture or otherwise, to furnish to the Insurer a notice of such redemption and, upon a redemption or payment in full of the Obligations, to surrender the Note Policy to the Insurer for cancellation.

  
 (k) Disclosure Document. Each
Offering Document delivered with respect to the Obligations shall clearly disclose that the Note Policy is not covered by the property/casualty insurance security fund specified in Article 76 of the New York Insurance Law. 
  

 16 

 (l) Servicing of Receivables. The Servicer shall perform such actions with
respect to the Receivables as are required by or provided in the Sale and Servicing Agreement. The Servicer will provide the Insurer with written notice of any change or amendment to any Transaction Document as currently in effect. 
  
 (m) Maintenance of Security Interest. On or
before each November 1, beginning in 2006 so long as any of the Obligations are outstanding, the Servicer shall furnish to the Insurer and the Trust Collateral Agent an officers’ certificate either stating that such action has been taken
with respect to the recording, filing, rerecording and refiling of any financing statements and continuation statements as is necessary to maintain the interest of the Trust Collateral Agent created by the Indenture with respect to the Collateral
and reciting the details of such action or stating that no such action is necessary to maintain such interests. Such officers’ certificate shall also describe the recording, filing, rerecording and refiling of any financing statements and
continuation statements that will be required to maintain the interest of the Trust Collateral Agent in the Collateral until the date such next officers’ certificate is due. The Servicer will use its best efforts to cause any necessary
recordings or filings to be made with respect to the Collateral. 
  
 (n) Closing Documents. The Servicer shall provide or cause to be provided to the Insurer a loose transcript of the Transaction Documents and the Offering Document and an executed original copy of each
document executed in connection with the Transaction within 60 days after the date of closing. Upon the request of the Insurer, the Servicer shall provide or cause to be provided to the Insurer a copy of each of the Transaction Documents on
computer diskette, in a format acceptable to the Insurer. 
  
 (o) Preference Payments. With respect to any Preference Amount (as defined in the Note Policy), the Servicer shall provide to the Insurer upon the request of the Insurer: 
  
 (i) a certified copy of the final nonappealable order of a
court having competent jurisdiction ordering the recovery by a trustee in bankruptcy as voidable preference amounts included in previous distributions under Section 5.7 of the Sale and Servicing Agreement to any Owner pursuant to the United
States Bankruptcy Code, 11 U.S.C. §§ 101 et seq., as amended (the “Bankruptcy Code”); 
  
 (ii) an opinion of counsel satisfactory to the Insurer, and upon which the Insurer shall be entitled to rely, stating that such order is
final and is not subject to appeal; 
  
 (iii) an
assignment in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all rights and claims of the Servicer, the Trustee and any Note Owner relating to or arising under the Receivable against the debtor which made
such preference payment or otherwise with respect to such preference amount; and 
  

 17 

 (iv) appropriate instruments to effect (when executed by the affected party) the
appointment of the Insurer as agent for the Trustee and any Owner in any legal proceeding relating to such preference payment being in a form satisfactory to the Insurer. 
  
 (p) Third-Party Beneficiary. UACC, the Servicer and the Seller each agree that the Insurer
shall have all rights of a third-party beneficiary in respect of the Transaction Documents and each of them hereby incorporates and restates its representations, warranties and covenants as set forth therein for the benefit of the Insurer.

  
 (q) Incorporation of Covenants.
UACC, the Servicer and the Seller each agree to comply with their respective covenants set forth in the Transaction Documents and hereby incorporate such covenants by reference as if each were set forth herein. 
  
 (r) Replacement Servicer. If servicing
is transferred from the Servicer to a replacement Servicer pursuant to Article IX of the Sale and Servicing Agreement, then in the event that the fees and expenses of a replacement servicer or any transition costs relating to the transfer of
servicing from the Servicer to the replacement servicer exceed the amounts payable to such Servicer under the Sale and Servicing Agreement, UACC shall promptly pay such fees, expenses or transition costs. 
  
 (s) Credit Reporting. UACC and the Servicer
agree to report each Obligor’s credit files to all three nationally recognized credit reporting agencies in a timely manner. 
  
 Section 2.03. Negative Covenants of UACC, the Servicer and the Seller. UACC, the Servicer and the Seller hereby agree that
during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
  
 (a) Impairment of Rights. None of UACC, the Servicer and the Seller shall (i) take any action, or fail to take any
action, if such action or failure to take action may result in a material adverse change as described in clause (b) of the definition of Material Adverse Change with respect to UACC, the Servicer or the Seller, or may interfere with the
enforcement of any rights of the Insurer under or with respect to the Transaction Documents; (ii) waive or alter any rights with respect to the Collateral (or any agreement or instrument relating thereto), other than as contemplated by the
Transaction Documents; (iii) take any action, or fail to take any action, if such action or failure to take action may interfere with the enforcement of any rights of the Trust Collateral Agent for the benefit of the Trust Secured Parties with
respect to the Collateral; (iv) fail to pay any tax, assessment, charge or fee with respect to the Collateral, or fail to defend any action, if such failure to pay or defend may adversely affect the priority or enforceability of the Trust
Collateral Agent’s first priority perfected security interest in the Collateral or any of UACC’s, the Servicer’s or the Seller’s, as applicable, right, title or interest in the Collateral except as expressly set forth in the
Transaction Documents; or (v) permit the 
  

 18 

 validity or effectiveness of the Obligations or the Transaction Documents to be impaired, or permit the
Lien of the Indenture to be amended, hypothecated, subordinated, terminated or discharged. UACC, the Servicer or the Seller shall give the Insurer written notice of any such action or failure to act on the earlier of (A) the date upon which any
publicly available filing or release is made with respect to such action or failure to act or (B) promptly prior to the date of consummation of such action or failure to act. UACC, the Servicer and the Seller shall furnish to the Insurer all
information requested by it that is reasonably necessary to determine compliance with this Section (a). 
  
 (b) Adverse Selection Procedure. UACC, the Servicer and the Seller shall not use any adverse selection procedure in
selecting Receivables to be transferred to the Trust Collateral Agent from the outstanding Receivables that qualify under the Indenture or the Sale and Servicing Agreement for inclusion in the Collateral. 
  
 (c) Waiver, Amendments, Etc. None of UACC, the
Servicer or the Seller shall waive, modify or amend, or consent to any waiver, modification or amendment of, any of the terms, provisions or conditions of any of the Transaction Documents without the prior written consent of the Insurer. 

 
 (d) Bankruptcy Proceedings. UACC shall not
institute against, or join any other person in instituting against the Servicer or the Seller, as applicable, or any affiliate thereof, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any
bankruptcy or similar law, for one year and a day after the expiration of the Term of the Insurance Agreement. 
  
 (e) Preservation of Collateral. Without the consent of the Insurer, none of UACC, the Servicer or the Seller shall take any
action, or fail to take any action with respect to any item of Collateral, including (but not limited to) any amendment of the terms and conditions of the Collateral or any consent to any waiver of rights or to any other action under or in respect
of any Collateral unless such action conforms to any requirements with respect thereto set forth in the Transaction Documents. 
  
 (f) Security Interests. None of UACC, the Servicer or the Seller shall permit the Lien of the Trust Collateral Agent for the
benefit of the Trust Secured Parties not to constitute a valid first priority perfected security interest in the Collateral securing amounts due to the Trust Collateral Agent for the benefit of the Trust Secured Parties as set forth in the
Transaction Documents. 
  
 (g)
Enforcement. None of UACC, the Servicer or the Seller shall take any action, or fail to take any action, if such action or failure to take such action may interfere with the enforcement of the rights of the Insurer and the Trust
Collateral Agent on behalf of the Trust Secured Parties under the agreements or instruments related to any of the Collateral. 
  
 (h) Insolvency of the Seller. The Seller shall not consent to any involuntary case or proceeding seeking liquidation,
rehabilitation, reorganization, conservation or other relief with respect to its debts under any Insolvency Law, consent to any such relief 
  

 19 

 or the taking possession by any such official in an involuntary case or other proceeding commenced
against the Seller or answer or consent seeking liquidation, rehabilitation, reorganization, conservation or other relief under any applicable Insolvency Law. 
  

(i) Exempt from Investment Company Registration. None of UACC, the Servicer or the Seller shall take any action, or
permit the taking of any action, that would require any of UACC, the Servicer, the Seller or the Trust to register as an “investment company” under the Investment Company Act. 
  
 (j) Offering Documents. None of UACC, the Servicer or the Seller shall make any untrue
statement of a material fact in the Offering Document or in any amendment or supplement thereto, or omit to state any material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not
misleading as of the Date of Issuance or as of the date of such Offering Document or amendment or supplement (as applicable). 
  
 (k) Insurer Information. None of UACC, the Servicer or the Seller shall include in any Offering Document or other document
prepared and distributed in connection with the issuance of the Obligations (other than Insurer Information in documents required to be filed with the Commission), or any other correspondence or communications relating to the Transaction, any
information concerning the Insurer or the Note Policy that is not supplied or consented to in writing by the Insurer expressly for inclusion therein. 
  
 (l) Receivables; Charge-off Policy. Except as otherwise permitted in the Indenture or Sale and Servicing Agreement, the
Servicer and the Seller shall not materially alter or amend any Receivable, their respective collection policies or their respective charge-off policies in a manner that materially adversely affects the Insurer unless the Insurer shall have
previously given its consent, which consent shall not be withheld unreasonably. 
  
 Section 2.04. Representations and Warranties of the Trust. As of the Date of Issuance, the Trust represents, warrants and covenants as follows: 
  
 (a) Due Organization and Qualification. The
Trust is a statutory trust and is duly organized and validly existing under the laws of its jurisdiction of organization. The Trust is duly qualified to do business and has obtained all licenses, permits, charters, registrations and approvals
(together, “approvals”) necessary for the conduct of its business as currently conducted and as described in the Offering Document and the performance of its obligations under the Transaction Documents to which it is a party, in
each jurisdiction in which the failure to be so qualified or to obtain such approvals would render any Transaction Document to which it is a party unenforceable in any respect or would have a material adverse effect upon the Transaction, the Note
Owners or the Insurer. 
  
 (b) Power and
Authority. The Trust has all necessary power and authority to conduct its business as currently conducted and, as described in the Offering Document, to execute, deliver and perform its obligations under the Transaction Documents to which it
is a party and to consummate the Transaction. 
  

 20 

 (c) Due Authorization. The execution, delivery and performance of the
Transaction Documents by the Trust have been duly authorized by all necessary action and do not require any additional approvals or consents, or other action by or any notice to or filing with any Person, including, without limitation, any
governmental entity or the Trust’s certificateholders, which have not previously been obtained or given by the Trust. 
  
 (d) Noncontravention. Neither the execution and delivery of the Transaction Documents by the Trust, the consummation of the
Transaction contemplated thereby or by the Offering Document nor the satisfaction of the terms and conditions of the Transaction Documents: 
  
 (i) conflicts with or results in any breach or violation of any provision of the Trust Agreement or any law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award currently in effect having applicability to the Trust or any of its properties, including regulations issued by an administrative agency or other governmental authority having supervisory
powers over the Trust; 
  
 (ii) constitutes a
default (or an event which, with the giving of notice or the passage of time, or both, would constitute a default) by the Trust under or a breach of any provision of any loan agreement, mortgage, indenture or other agreement or instrument to which
the Trust is a party or by which any of its properties, which are individually or in the aggregate material to the Trust, is or may be bound or affected; or 
  
 (iii) results in or requires the creation of any lien upon or in respect of any assets of the Trust except as contemplated by the
Transaction Documents. 
  
 (e) Legal
Proceedings. There is no action, proceeding or investigation by or before any court, governmental or administrative agency or arbitrator against or affecting the Trust or any properties or rights of the Trust pending or, to the Trust’s
knowledge after reasonable inquiry, threatened, which, in any case, could reasonably be expected to result in a Material Adverse Change with respect to the Trust. 
  
 (f) Valid and Binding Obligations. The Obligations, when executed, authenticated and issued in
accordance with the Indenture and the Transaction Documents (other than the Obligations), when executed and delivered by the Trust, will constitute the legal, valid and binding obligations of the Trust enforceable in accordance with their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equitable principles and public policy considerations as to rights
of indemnification for violations of federal securities laws. The Trust will not at any time in the future deny that the Transaction Documents constitute the legal, valid and binding obligations of the Trust. 
  

 21 

 (g) Compliance With Law, Etc. No practice, procedure or policy employed, or
proposed to be employed, by the Trust in the conduct of its business violates any law, regulation, judgment, agreement, order or decree applicable to it that, if enforced, could reasonably be expected to result in a Material Adverse Change with
respect to the Trust. The Trust is not in breach of or default under any applicable law or administrative regulation of its jurisdiction of organization, or any department, division, agency or instrumentality thereof or of the United States or
any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement or other instrument to which the Trust is a party or is otherwise subject which, if enforced, would have a material adverse effect on the ability of
the Trust, to perform its obligations under the Transaction Documents. 
  
 (h) Compliance With Securities Laws. The offer and sale of the Obligations comply in all material respects with all requirements of law, including all registration requirements of applicable securities
laws. Without limitation of the foregoing, the Offering Document does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in light of the circumstances under
which they were made, not misleading; provided, however, that no representation is made with respect to the information in the Offering Document set forth under the heading “THE INSURER” or the consolidated financial statements of the
Insurer incorporated by reference in the Offering Document. Neither the offer nor the sale of the Obligations has been or will be in violation of the Securities Act or any other federal or state securities laws. 
  
 (i) Taxes. The Trust has filed prior to the
date hereof all federal and state tax returns that are required to be filed and paid all taxes, including any assessments received by them that are not being contested in good faith, to the extent that such taxes have become due, except for any
failures to file or pay that, individually or in the aggregate, would not result in a Material Adverse Change with respect to the Trust. 
  
 (j) Transaction Documents. Each of the representations and warranties of the Trust contained in the Transaction Documents is
true and correct in all material respects, and the Trust 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; provided that the remedy for any breach of this
paragraph shall be limited to the remedies specified in the related Transaction Document or in this Insurance Agreement. 
  
 (k) Solvency. The Trust is solvent and will not be rendered insolvent by the Transaction and, after giving
effect to the Transaction, the Trust will not be left with an unreasonably small amount of capital with which to engage in its respective business, nor does the Trust intend to incur, or believe that it has incurred, debts beyond its ability to pay
as they mature. The Trust does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of the Trust or any
of its assets. 
  

 22 

 (l) Principal Place of Business. The principal place of business of the
Trust is located in Wilmington, Delaware and the Trust is a statutory trust organized under the laws of the State of Delaware. “UPFC Auto Receivables Trust 2006-__” is the correct legal name of the Trust indicated on the public records of
the Trust’s jurisdiction of organization which shows the Trust to be organized. 
  
 (m) Investment Company Act. The Trust is not an “investment company,” or an “affiliated person” of, or
“promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act. The Trust is not required to be registered as an “investment company” under the
Investment Company Act. 
  
 (n) No
Consents. No authorization or approval or other action by, and no notice to or filing with, any Person, including, without limitation, any governmental entity or regulatory body, is required for the due execution, delivery and performance by
the Trust of the Transaction Documents or any other material document or instrument to be delivered thereunder, except (in each case) such as have been obtained or the failure of which to be obtained would not be reasonably likely to have a material
adverse effect on the Transaction. 
  
 (o)
No Event of Default. There is no event of default on the part of the Trust under any agreement involving financial obligations which would materially adversely impact the financial condition or operations of the Trust or its
obligations under any document associated with this Transaction. 
  
 (p) Opinion Facts and Assumptions. The opinion Facts and Assumptions insofar as they relate to the Trust are true and correct as of the Date of Issuance. 
  
 Section 2.05. Affirmative Covenants of the Trust. The Trust hereby
agrees that during the Term of the Insurance Agreement, unless the Insurer shall otherwise expressly consent in writing: 
  
 (a) Compliance With Agreements and Applicable Laws. The Trust shall not be in default under the Transaction Documents and
shall comply with all material requirements of any law, rule or regulation applicable to it. The Trust shall not agree to any material amendment to or modification of the terms of any Transaction Documents unless the Insurer shall have given its
prior written consent. 
  
 (b) Maintain
Existence. The Trust and its successors and assigns shall maintain its existence and shall at all times continue to be duly organized under the laws of its jurisdiction and duly qualified and duly authorized and shall conduct its business in
accordance with the terms of its organizational documents. 
  
 (c) Notice of Material Events. The Trust shall be obligated promptly to inform the Insurer in writing of the occurrence of any of the following to the extent any of the following relate to it and to the
extent that it receives actual notice of the occurrence of any of the following events: 
  

 23 

 (i) the submission of any claim or the initiation or threat of any legal process,
litigation or administrative or judicial investigation, or rule making or disciplinary proceeding by or against the Trust that (A) could be required to be disclosed to the Commission or to the Trust’s owners or (B) could result in a
Material Adverse Change with respect to the Trust or the promulgation of any proceeding or any proposed or final rule which would result in a Material Adverse Change with respect to the Trust; 
  
 (ii) any change in the location of the Trust’s
principal office, jurisdiction of organization, legal name as indicated on the public records of the Trust’s jurisdiction of organization which shows the Trust’s to be organized, or any change in the location of the Trust’s books and
records; 
  
 (iii) the occurrence of any Default
or Insurance Agreement Event of Default or of any Material Adverse Change; 
  
 (iv) the commencement of any proceedings by or against the Trust under any applicable bankruptcy, reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any
proceeding in which a receiver, liquidator, conservator, trustee or similar official shall have been, or may be, appointed or requested for the Trust or any of its assets; or 
  
 (v) the receipt of notice that (A) the Trust is being placed under regulatory supervision, (B) any
license, permit, charter, registration or approval necessary for the conduct of the Trust’s business is to be, or is reasonably likely to be suspended or revoked, or (C) the Trust is to cease and desist any practice, procedure or policy
employed by the Trust in the conduct of its business, and such cessation may result in a Material Adverse Change with respect to the Trust. 
  
 (d) Financing Statements and Further Assurances. To the extent provided in the Indenture, the Trust will cause to be filed
all necessary financing statements or other instruments, and any amendments or continuation statements relating thereto, necessary to be kept and filed in such manner and in such places as may be required by law to preserve and protect fully the
interest of the Trustee. The Trust shall, upon the request of the Insurer, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, within 30 days of such request, such amendments hereto and such
further instruments and take such further action as may be reasonably necessary to effectuate the intention, performance and provisions of the Transaction Documents to which it is a party. In addition, the Trust agrees to cooperate with S&P and
Moody’s in connection with any review of the Transaction that may be undertaken by S&P and Moody’s after the date hereof. 
  
 (e) Maintenance of Licenses. The Trust, or any successors thereof, shall maintain all licenses, permits, charters and
registrations which are material to the conduct of its business. 
  

 24 

 (f) Third-Party Beneficiary. The Trust agrees that the Insurer shall have
all rights of a third-party beneficiary in respect of each Transaction Document and hereby incorporates and restates its representations, warranties and covenants as set forth therein for the benefit of the Insurer. 
  
 (g) Tax Matters. The Trust will take all
actions necessary to ensure that the Trust is treated as a disregarded entity for federal tax purposes, and not as an association (or publicly traded partnership), taxable as a corporation. 
  
 (h) Financial Statements; Accountants’ Reports;
Other Information. The Trust shall keep or cause to be kept in reasonable detail books and records of account of its assets and business, including, but not limited to, books and records relating to the Transaction. The Trust shall furnish
or cause to be furnished to the Insurer promptly upon receipt thereof, copies of all schedules, financial statements or other similar reports delivered to or by the Trust pursuant to the terms of the Transaction Documents, which are not otherwise
required to be delivered to the Insurer by the Trust or another party to such Transaction Documents, and, promptly upon request, such other data as the Insurer may reasonably request. 
  
 (i) Special Purpose Entity. 
  
 (i) The Trust shall conduct its business solely in its own name through its duly authorized members,
managers, officers or agents so as not to mislead others as to the identity of the company with which those others are concerned, and particularly will use its best efforts to avoid the appearance of conducting business on behalf of any other entity
or that the assets of the Trust are available to pay the creditors of any other entity. Without limiting the generality of the foregoing, all oral and written communications, including, without limitation, letters, invoices, purchase orders,
contracts and statements, will be made solely in the name of the Trust. 
  
 (ii) The Trust shall maintain records and books of account separate from those of all other entities. 
  
 (iii) Operating expenses and liabilities of the Trust shall be paid from its own funds. 
  
 (iv) The Trust shall use its best efforts to maintain an
arm’s-length relationship with all other entities. 
  
 (v) On or before April 30 of each year commencing April 30, 2007, the Trust shall deliver to the Insurer a report of independent public accountants in a form acceptable to the Insurer setting forth the
results of certain agreed upon procedures (with the Insurer) to verify the compliance of the Trust with the covenants set forth in this clause (i). 
  

 25 

 (j) Access to Records; Discussions With Officers and Accountants. On an
annual basis, or upon the occurrence of a Material Adverse Change, the Trust shall, upon the request of the Insurer, at its expense, permit the Insurer or its authorized agents: 
  
 (i) to inspect the books and records of the Trust as they may relate to the Obligations, the obligations of
the Trust under the Transaction Documents, and the Transaction; 
  
 (ii) to discuss the affairs, finances and accounts of the Trust; and 
  
 (iii) to discuss the affairs, finances and accounts of the Trust with the Trust’s independent accountants, provided that a
representative of the Seller or the Trust shall have the right to be present during such discussions. 
  
 Such inspections and discussions shall be conducted during normal business hours and shall not unreasonably disrupt the business of the
Trust. The books and records of the Trust will be maintained at the address of the Trust designated herein for receipt of notices, unless the Trust shall otherwise advise the parties hereto in writing. 
  
 The Insurer agrees that it and its shareholders, directors,
agents, accountants and attorneys shall keep confidential any matter of which it becomes aware through such inspections or discussions (unless readily available from public sources), except as may be otherwise required by regulation, law or court
order or requested by appropriate governmental authorities or as necessary to preserve its rights or security under or to enforce the Transaction Documents, provided that the foregoing shall not limit the right of the Insurer to make such
information available to its regulators, securities rating agencies, reinsurers, credit and liquidity providers, counsel and accountants. 
  
 (k) Redemption of Securities. The Trust shall cause the Trustee, upon the redemption of the Notes pursuant to the Indenture
or otherwise, to furnish to the Insurer a notice of such redemption, and upon a redemption or other payment of all of the Notes and the expiration of the Term of the Note Policy, to surrender the Note Policy to the Insurer for cancellation.

  
 (l) Disclosure Document. Each
Offering Document delivered with respect to the Obligations shall clearly disclose that the Note Policy is not covered by the property/casualty insurance security fund specified in Article 76 of the New York Insurance Law. 
  
 Section 2.06. Negative Covenants of the Trust. The Trust hereby
agrees that during the Term of the Insurance Agreement, unless the Security Insurer shall otherwise expressly consent in writing: 
  
 (a) Impairment of Rights. The Trust shall not take any action, or fail to take any action, if such action or failure to take
action is reasonably likely to result in a material adverse change as described in clause (b) of the definition of Material Adverse Change with respect to the Trust, or is reasonably likely to interfere with the enforcement of any rights of the
Insurer under or with respect to the Transaction Documents. The 
  

 26 

 Trust shall give the Insurer written notice of any such action or failure to act on the earlier of:
(i) the date upon which any publicly available filing or release is made with respect to such action or failure to act or (ii) promptly prior to the date of consummation of such action or failure to act. The Trust shall furnish to the
Insurer all information requested by it that is reasonably necessary to determine compliance with this paragraph. 
  
 (b) Waiver, Amendments, Etc. Except in accordance with the Transaction Documents, the Trust shall not waive, modify or
amend, or consent to any waiver, modification or amendment of, any of the terms, provisions or conditions of the Transaction Documents without the consent of the Insurer. Except upon the prior written consent of the Insurer, the Trust shall not
allow the modification or amendment, nor consent to any modification or amendment of the Certificate of Trust issued pursuant to the Trust Agreement. 
  
 (c) Restrictions on Liens. The Trust shall not, except as contemplated by the Transaction Documents, (i) create,
incur or suffer to exist, or agree to create, incur or suffer to exist, or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or existence of any lien or restriction on
transferability of the Receivables or any other Collateral or (ii) sign, file or authorize the filing under the Uniform Commercial Code of any jurisdiction any financing statement which names the Trust as a debtor, or sign any security
agreement authorizing any secured party thereunder to file such financing statement, with respect to the Receivables or any other Collateral. 
  
 (d) Successors. The Trust shall not remove or replace, or cause to be removed or replaced, the Servicer, the Trustee,
the Trust Collateral Agent, the Collateral Agent or the Owner Trustee without the prior written consent of the Insurer. 
  
 (e) Subsidiaries. The Trust shall not form, or cause to be formed, any subsidiaries. 
  
 (f) No Mergers. The Trust shall not
consolidate with or merge into any Person or transfer all or any material amount of its assets to any Person, liquidate or dissolve except as permitted by the Trust Agreement and as contemplated by the Transaction Documents and with the prior
written consent of the Insurer. 
  
 (g)
Other Activities. The Trust shall not (i) sell, pledge, transfer, exchange or otherwise dispose of any of its assets except as expressly permitted under the Transaction Documents; or (ii) engage in any business or activity
except as contemplated by the Transaction Documents and as permitted by the Trust Agreement. 
  
 (h) Trust Agreement. The Trust shall not amend the Trust Agreement without the prior written consent of the Insurer.

  

 27 

 ARTICLE III 
  
 THE POLICIES; REIMBURSEMENT 
  

Section 3.01. Issuance of the Note Policy. The Insurer agrees to issue the Note Policy on the Closing Date subject to satisfaction
of the conditions precedent set forth below: 
  
 (a) Payment of Initial Premium and Expenses. The Insurer shall have been paid, by UACC, that portion of a nonrefundable Premium payable on the Date of Issuance, and UACC shall agree to reimburse or pay directly other fees and
expenses identified in Section 3.02 hereof as payable. 
  
 (b) Transaction Documents. The Insurer shall have received a fully executed copy of the Premium Letter and a copy of each of the Transaction Documents and the Offering Document, in form and substance
satisfactory to the Insurer, duly authorized, executed and delivered by each party thereto. 
  
 (c) Certified Documents and Resolutions. The Insurer shall have received a copy of (i) the Trust Certificate of the
Trust, (ii) the certificate or articles of incorporation and bylaws or other organizational documents of the Servicer and the Seller, (iii) the resolutions of the Seller’s board of directors authorizing the sale of the Receivables,
and (iv) the resolutions of the applicable governing body of each of UACC, the Seller, the Servicer and the Designated Backup Subservicer in form and substance satisfactory to the Insurer, authorizing the execution, delivery and performance of
UACC, the Seller, the Servicer and the Designated Backup Subservicer of the Transaction Documents and the transactions contemplated thereby, in each case certified by the Secretary, an Assistant Secretary, a Director, as applicable (which
certificate shall state that such constitutive documents and resolutions are in full force and effect without modification on the Date of Issuance and that shareholder consent to the execution, delivery and performance of such documents is not
necessary). 
  
 (d) Incumbency
Certificate. The Insurer shall have received a certificate of the Secretary or an Assistant Secretary of the Servicer, the Seller and the Designated Backup Subservicer certifying the names and signatures of the officers of the Servicer, the
Seller and the Designated Backup Subservicer authorized to execute and deliver the Transaction Documents. 
  
 (e) Representations and Warranties; Certificate. The representations and warranties of the Servicer and the Seller set forth
or incorporated by reference in this Insurance Agreement shall be true and correct as of the Date of Issuance as if made on the Date of Issuance, and the Insurer shall have received a certificate of appropriate officers of the Servicer and the
Seller to that effect. 
  
 (f) Opinions of
Counsel. The Insurer shall have received opinions of counsel addressed to the Insurer in respect of the Servicer, the Trust, the Seller, the Trustee, the Trust Collateral Agent, the Collateral Agent, Backup Servicer and the Designated Backup
Subservicer concerning the Transaction Documents and the Transaction in form and 
  

 28 

 substance reasonably satisfactory to the Insurer addressing certain corporate matters, tax matters,
bankruptcy, perfection and priority of security interest and such other matters as the Insurer may reasonably request. 
  
 (g) Approvals, Etc. The Insurer shall have received true and correct copies of all approvals, licenses and consents
(including governmental consents), if any, including, without limitation, any required approval of the shareholders of UACC, the Servicer and the Seller, required in connection with the Transaction. 
  
 (h) No Litigation, Etc. No suit, action or
other proceeding, investigation or injunction, or final judgment relating thereto, shall be pending or threatened before any court or governmental agency in which it is sought to restrain or prohibit or to obtain damages or other relief in
connection with the Transaction Documents or the consummation of the Transaction. 
  
 (i) Legality. No statute, rule, regulation or order shall have been enacted, entered or deemed applicable by any government
or governmental or administrative agency or court that would make the transactions contemplated by any of the Transaction Documents illegal or otherwise prevent the consummation thereof. 
  
 (j) Issuance of Ratings. The Insurer shall have received confirmation that the rating on the
Obligations without regard to the Note Policy will be at least “BBB” by S&P and “Baa2” by Moody’s and that the Obligations, when issued, will be rated “AAA” by S&P and “Aaa” by Moody’s.

  
 (k) Filings and Recordings. The
Insurer shall have received evidence satisfactory to it of the delivery of the Collateral as of the Date of Issuance to the Trust free and clear of any Liens and in accordance with the Sale and Servicing Agreement and the Indenture, the filing
and/or recording in all applicable jurisdictions (or such filing and/or recording having been provided for in a manner satisfactory to the Insurer) of all documents, including, without limitation, duly executed and delivered copies of the Security
Documents, financing statements, termination statements and other appropriate instruments, in form and substance satisfactory to the Insurer, as may be necessary in the opinion of the Insurer to perfect the first priority security interest created
by the Security Documents, and all taxes, fees and other charges payable in connection with such execution, delivery, recording and filing shall have been paid. 
  
 (l) No Default. No Default or Insurance Agreement Event of Default shall have occurred.

  
 (m) Additional Items. The
Insurer shall have received such other documents, instruments, approvals or opinions requested by the Insurer or its counsel as may be reasonably necessary to effect the Transaction, including, but not limited to, evidence satisfactory to the
Insurer and its counsel that the conditions precedent, if any, in the Transaction Documents have been satisfied. 
  

 29 

 (n) Conform to Documents. The Insurer and its counsel shall have determined
that all documents, certificates and opinions to be delivered in connection with the Obligations conform to the terms of the Transaction Documents. 
  
 (o) Compliance. UACC, the Seller, the Servicer, the Custodian, Trustee, the Trust Collateral Agent, the Collateral Agent,
the Backup Servicer, the Designated Backup Subservicer, the Trust and the Owner Trustee shall each be, as of the Date of Issuance, in compliance with the terms of the Transaction Documents to which it is a party and the Insurer shall have received
evidence satisfactory to it that the Policy and all interest, fees, charges and other sums collected and to be collected in connection therewith and paid to the Insurer will not be usurious under applicable law. 
  
 (p) Satisfaction of Conditions of the Underwriting
Agreement. All conditions in the Underwriting Agreement relating to the Underwriter’s obligation to purchase the Obligations shall have been satisfied. 
  
 (q) Satisfaction of Conditions in the Transaction Documents. All conditions contained in the
Transaction Documents shall have been satisfied. 
  
 (r) Underwriting Agreement. The Insurer shall have received copies of each of the documents, and shall be entitled to rely on each of the documents, required to be delivered to the Underwriter pursuant to the Underwriting
Agreement. 
  
 (s) Receipt. The
Insurer shall have received a certificate or other written confirmation of the Trust Collateral Agent attesting to (i) the receipt of the Collateral required to be delivered as of the Date of Issuance and (ii) the Trust Collateral
Agent’s establishment of the Collection Account and the Note Distribution Account. 
  
 (t) Establishment of Spread Account. The Insurer shall have received a certificate or the written confirmation of the
Collateral Agent attesting to the establishment of the Spread Account. 
  
 Section 3.02. Payment of Fees and Premium. 
  
 (a) Legal and Accounting Fees. UACC shall pay or cause to be paid, on the Date of Issuance, legal fees and disbursements incurred by the Insurer in connection with the issuance of the Note Policy and any
fees of the Insurer’s auditors, in each case in accordance with the terms of the Premium Letter. Any fees of the Insurer’s auditors payable in respect of any amendment or supplement to the Offering Document or any other Offering Document
incurred after the Date of Issuance shall be paid by UACC on demand. 
  
 (b) Premium. In consideration of the issuance by the Insurer of the Note Policy, the Insurer shall be entitled to receive the Premium as and when due in accordance with the terms of the Premium Letter
first, from the Trust pursuant to the Sale and Servicing Agreement, and second, to the extent the amounts in subclause first are not sufficient, directly from the Servicer. The Premium shall be calculated according to the
Premium Letter for the amount due on each Distribution Date. The Premium paid 
  

 30 

 hereunder or under the Sale and Servicing Agreement shall be nonrefundable without regard to whether the
Insurer makes any payment under the Note Policy or any other circumstances relating to the Obligations or provision being made for payment of the Obligations prior to maturity. The Servicer and the Trust shall make all payments of Premium to be made
by them by wire transfer to an account designated from time to time by the Insurer by written notice to the Servicer and the Trust. Although the Premium is fully earned by the Insurer as of the Date of Issuance, the Premium shall be payable in
periodic installments as provided in the Premium Letter. The Premium for each period shall be calculated on the basis of a 360 day year consisting of twelve 30-day months. Anything herein or in any of the Transaction Documents notwithstanding, upon
the occurrence of an Event of Default, the entire outstanding balance of further installments of the Premium shall be immediately due and payable as provided in the Premium Letter. 
  
 Section 3.03. Reimbursement and Additional Payment Obligation. 
  
 (a) In accordance with the priorities established in
Section 5.7 of the Sale and Servicing Agreement, the Insurer shall be entitled to (i) reimbursement for any payment made by the Insurer under the Note Policy, which reimbursement shall be due and payable on the date that any amount is to
be paid pursuant to a Payment Notice (as defined in the Note Policy), in an amount equal to the amount to be so paid and all amounts previously paid that remain unreimbursed, together with interest on any and all amounts remaining unreimbursed (to
the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the Late Payment Rate,
(ii) payment or reimbursement of any other amounts owed to the Insurer hereunder together with interest thereon at a rate equal to the Late Payment Rate, (iii) reimbursement for any payments made by the Insurer with respect to the fees and
expenses of a replacement servicer or with respect to any transition costs relating to the transfer of servicing from the Servicer to the replacement servicer together with interest thereon at a rate equal to the Late Payment Rate and (iv) all
costs and expenses of the Insurer in connection with any action, proceeding or investigation affecting the Trust, or the Collateral or the rights or obligations of the Insurer hereunder or under the Note Policy or the Transaction Documents,
including (without limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, together with interest thereon at a rate equal to the Late Payment Rate. 
  
 (b) Notwithstanding anything in Section 3.03(a) to the
contrary, the Servicer agrees to reimburse the Insurer as follows: (i) from UACC, for payments made under the Note Policy, arising as a result of (A) the Servicer’s failure to deposit into the Collection Account any amount required to
be so deposited pursuant to the Indenture, the Sale and Servicing Agreement or any other Transaction Document, (B) Servicer’s failure to repurchase any Receivable required to be repurchased pursuant to Section 4.7 of the Sale and
Servicing Agreement or (C) for payments made under the Note Policy arising as a result of UACC’s failure to repurchase any Receivable required to be repurchased pursuant to Section 3.4 of the Sale Agreement, in each case together with
interest on any and all amounts remaining unreimbursed (to the extent permitted by law, if in respect to any unreimbursed amounts representing interest) from the date such amounts became due 
  

 31 

 until paid in full (after, as well as, before judgment), at a rate of interest equal to the Late Payment
Rate, together with interest on any all amounts remaining unreimbursed (to the extent permitted by law, if in respect of any unreimbursed amounts representing interest) from the date such amounts became due until paid in full (after, as well as,
before judgment), at a rate of interest equal to the Late Payment Rate. 
  
 (c) UACC, the Servicer and the Trust agree to pay to the Insurer as follows: any and all charges, fees, costs and expenses that the Insurer may reasonably pay or incur, including, but not limited to, attorneys’
and accountants’ fees and expenses, in connection with (i) any accounts established to facilitate payments under the Note Policy to the extent the Insurer has not been immediately reimbursed on the date that any amount is paid by the
Insurer under the Note Policy, (ii) the enforcement, defense or preservation of any rights in respect of any of the Transaction Documents, including defending, monitoring or participating in any litigation or proceeding (including any
insolvency or bankruptcy proceeding in respect of any Transaction participant or any affiliate thereof) relating to any of the Transaction Documents, any party to any of the Transaction Documents, in its capacity as such a party, or the Transaction,
(iii) any amendment, consent, waiver or other action with respect to, or related to, any Transaction Document, whether or not executed or completed, (iv) the foreclosure against, sale or other disposition of any collateral securing any
obligations under any of the Transaction Documents, or pursuit of any other remedies under any of the Transaction Documents, to the extent such costs and expenses are not recovered from such foreclosure, sale or other disposition, (v) any
review or approval by the Insurer in connection with the delivery of any additional or substitute collateral under any of the Transaction Documents if the consent of the Insurer is expressly required under the Transaction Documents in connection
therewith, (vi) any action taken by the Insurer to cure an event of default (other than an Insurer Default) (or to mitigate the effect of an event of default) under any of the Transaction Documents, or (iv) preparation of bound volumes of
the Transaction documents; costs and expenses shall include a reasonable allocation of compensation and overhead attributable to the time of employees of the Insurer spent in connection with the actions described in clause (ii) above, and
the Insurer reserves the right to charge a reasonable fee as a condition to executing any waiver or consent proposed in respect of any of the Transaction Documents. Such amounts shall be payable within 60 days of the receipt by UACC, the Servicer or
the Trust of an invoice therefore. 
  
 (d) UACC,
the Servicer and the Trust agree to pay to the Insurer as follows: interest on any and all amounts described in subsections (b), (c), (e) and (f) of this Section 3.03 from the date payable or paid by such party until payment
thereof in full, and interest on any and all amounts described in Section 3.02 hereof from the date due until payment thereof in full, in each case payable to the Insurer at the Late Payment Rate per annum. 
  
 (e) UACC, the Servicer and the Trust agree to pay to the
Insurer as follows: any payments made by the Insurer on behalf of, or advanced to the Servicer, the Custodian, the Collateral Agent, the Trustee, the Trust Collateral Agent, the Backup Servicer, the Seller or the Trust, respectively, including,
without limitation, any amounts payable by the Servicer the Seller or the Trust or otherwise pursuant to the Obligations or 
  

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 any other Transaction Documents, including, without limitation, payments, if any, made by the Insurer
with respect to retitling of the title documents relating to the Financed Vehicles pursuant to Section 4.5 of the Sale and Servicing Agreement. 
  
 (f) Following termination of the Indenture pursuant to Section 4.1 thereof, the Servicer agrees to reimburse the Insurer for any
Insured Payments required to be made pursuant to the Note Policy subsequent to the date of such termination. 
  
 All such amounts are to be immediately due and payable without demand in full, except as otherwise provided herein, without any
requirement on the part of the Insurer to seek reimbursement from any other sources of indemnity thereof or to allocate expenses to other transactions benefiting therefrom. 
  
 Section 3.04. Indemnification; Limitation of Liability. 
  
 (a) In addition to any and all rights of indemnification or
any other rights of the Insurer pursuant hereto, the other Transaction Documents or under law or in equity, UACC and the Servicer and any successors thereto, jointly and severally, agree to pay, and to protect, indemnify and save harmless, the
Insurer and its officers, directors, shareholders, employees, agents and each person, if any, who controls the Insurer within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act (each, an
“Indemnified Party”) from and against any and all claims, Losses, liabilities (including penalties), actions, suits, judgments, demands, damages, costs or reasonable expenses (including, without limitation, fees and expenses of
attorneys, consultants and auditors and reasonable costs of investigations) or obligations whatsoever paid by the Insurer (herein collectively referred to as “Liabilities”) of any nature arising out of or relating to the
transactions contemplated by the Transaction Documents by reason of: 
  
 (i) any untrue statement or alleged untrue statement of a material fact contained in the Offering Document or in any amendment or supplement thereto or in any preliminary offering document, or arising out of or based
upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such Liabilities arise out of or are based upon any such untrue
statement or omission or allegation thereof based upon information set forth in the Offering Document under the caption “THE INSURER,” or in the financial statements of the Insurer, including any information in any amendment or supplement
to the Offering Document furnished by the Insurer in writing expressly for use therein that amends or supplements such information (all such information being referred to herein as “Insurer Information”); 
  
 (ii) to the extent not covered by clause (i) above, any
act or omission of UACC, the Seller or the Servicer, or the allegation thereof, in connection with the offering, issuance, sale or delivery of the Obligations or relating to the Transaction Documents; 
  

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 (iii) the misfeasance or malfeasance of, or negligence or theft committed by, any
director, officer, employee or agent of UACC, the Servicer, the Seller or the Trust; 
  
 (iv) the violation by UACC, the Trust, the Seller or the Servicer of any federal or state securities, banking or antitrust laws, rules or
regulations in connection with the issuance, offer and sale of the Obligations or the transactions contemplated by the Transaction Documents; 
  
 (v) the violation by UACC, the Trust, the Seller or the Servicer of any federal or state laws, rules or regulations relating to the
Transaction or the origination of the Receivables, including, without limitation, any consumer protection, lending and disclosure laws and any laws with respect to the maximum amount of interest permitted to be received on account of any loan of
money or with respect to the Receivables; 
  
 (vi) the breach by UACC, the Seller or the Servicer of any of its obligations under this Insurance Agreement or any of the other Transaction Documents; and 
  
 (vii) the breach by UACC, the Servicer or the Seller of any representation or warranty on the part of, UACC,
the Servicer or the Seller contained in the Transaction Documents or in any certificate or report furnished or delivered to the Insurer thereunder. 
  
 This indemnity provision shall survive the termination of this Insurance Agreement and shall survive until the statute of limitations has
run on any causes of action which arise from one of these reasons and until all suits filed as a result thereof have been finally concluded. 
  
 (b) UACC, the Servicer and the Seller agree to indemnify the Trust and the Insurer for any and all Liabilities that have been incurred due
to any claim, counterclaim, rescission, setoff or defense asserted by an Obligor under any Receivable subject to the Federal Trade Commission regulations provided in 16 C.F.R. Part 433. 
  
 (c) UACC and the Servicer agree to indemnify and hold harmless the Trust and the Insurer for any and all
Liabilities incurred due to (i) any agreement or acquiescence by the Servicer and the Seller to any reduction, rebate, rescheduling or delay of any payments due and owing by any Obligor under any Receivable based upon an agreement on the part
of the Servicer and the Seller to make or rebate any future payments on such Receivable, (ii) any agreement on the part of the Servicer and the Seller to make or rebate any future payments on any Receivable or (iii) any settlement of any
judicial proceeding or any claim, action or proceeding of any regulatory body. 
  
 (d) Any party which proposes to assert the right to be indemnified under this Section 3.04 will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of which a claim is to be made against UACC or the Servicer under this Section 3.04, notify UACC or the Servicer of the commencement 
  

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 of such action, suit or proceeding, enclosing a copy of all papers served. In case any action, suit or
proceeding shall be brought against any indemnified party and it shall notify UACC or the Servicer of the commencement thereof, UACC or the Servicer shall be entitled to participate in, and, to the extent that it shall wish, to assume the defense
thereof, with counsel satisfactory to such indemnified party, and after notice from UACC or the Servicer to such indemnified party of its election so to assume the defense thereof, UACC, the Servicer or the Seller shall not be liable to such
indemnified party for any legal or other expenses other than reasonable costs of investigation subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel
in any such action the defense of which is assumed by UACC or the Servicer in accordance with the terms of this subsection (d), but the fees and expenses of such counsel shall be at the expense of such indemnified party unless the employment of
counsel by such party has been authorized by UACC. UACC or the Servicer shall not be liable for any settlement of any action or claim effected without its consent. 
  
 Section 3.05. Payment Procedure. In the event of any payment by the Insurer, UACC, the Trustee, the Trust Collateral
Agent, the Collateral Agent, the Backup Servicer, the Seller and the Servicer agree to accept the voucher or other evidence of payment as prima facie evidence of the propriety thereof and the liability therefor to the Insurer. All payments to be
made to the Insurer under this Insurance Agreement shall be made to the Insurer in lawful currency of the United States of America in immediately available funds to the account number provided in the Premium Letter before 1:00 p.m. (New York,
New York time) on the date when due or as the Insurer shall otherwise direct by written notice to the other parties hereto. In the event that the date of any payment to the Insurer or the expiration of any time period hereunder occurs on a day which
is not a Business Day, then such payment or expiration of time period shall be made or occur on the next succeeding Business Day with the same force and effect as if such payment was made or time period expired on the scheduled date of payment or
expiration date. Payments to be made to the Insurer under this Insurance Agreement shall bear interest at the Late Payment Rate from the date when due to the date paid. 
  
 ARTICLE IV 
  
 FURTHER AGREEMENTS 
  
 Section 4.01. Effective Date; Term of the Insurance Agreement. This Insurance Agreement shall take effect on the Date of Issuance and
shall remain in effect until the later of (a) such time as the Insurer is no longer subject to a claim under the Note Policy and the Note Policy shall have been surrendered to the Insurer for cancellation and (b) all amounts payable to the
Insurer by the Servicer or the Seller or from any other source under the Transaction Documents and all amounts payable under the Obligations have been paid in full and any period during which any such payment to the Insurer could have been avoided
in whole or in part as a preference payment under applicable bankruptcy, insolvency, receivership or similar law shall have expired; provided, however, that the provisions of Sections 3.02, 3.03, 3.04, 4.03 and 4.06 hereof shall survive any
termination of this Insurance Agreement. 
  

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 Section 4.02. Further Assurances and Corrective Instruments. 
  
 (a) Excepting at such times as (i) an Insurer Default
shall exist and be continuing and (ii) no amounts are owed pursuant to the Insurance Agreement, none of the Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer or the Seller shall grant any waiver of
rights under any of the Transaction Documents to which any of them is a party without the prior written consent of the Insurer, and any such waiver without the prior written consent of the Insurer shall be null and void and of no force or effect.

  
 (b) To the extent permitted by law, the
Servicer, the Seller or the Trust agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered within 10 days of such amendment, such amendments hereto and such further instruments
and take such further action as may be required in the Insurer’s reasonable judgment to effectuate the intention of or facilitate the performance of this Insurance Agreement or the other Transaction Documents. 
  
 Section 4.03. Obligations Absolute. 
  
 (a) The obligations of UACC, the Servicer, the Seller and
the Trust hereunder shall be absolute and unconditional and shall be paid or performed strictly in accordance with this Insurance Agreement under all circumstances irrespective of: 
  
 (i) any lack of validity or enforceability of, or any amendment or other modifications of, or waiver with
respect to any of the Transaction Documents, the Obligations or the Note Policy; 
  
 (ii) any exchange or release of any other obligations hereunder; 
  
 (iii) the existence of any claim, setoff, defense, reduction, abatement or other right that UACC, the
Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller, the Trust, the Custodian or the Owner Trustee may have at any time against the Insurer or any other Person; 
  
 (iv) any document presented in connection with the Note
Policy proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (v) any payment by the Insurer under the Note Policy against presentation of a certificate or other document that does not strictly comply
with terms of the Note Policy; 
  
 (vi) any
failure of UACC, the Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller, the Trust, or the Custodian to receive the proceeds from the sale of the Obligations; 
  
 (vii) any breach by UACC, the Servicer, the Trustee, the
Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller, the Trust, the Custodian or the Owner Trustee of any representation, warranty or covenant contained in any of the Transaction Documents; 
  

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 (viii) any other circumstances, other than payment in full, which might otherwise
constitute a defense available to, or discharge of UACC, the Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller, the Trust, the Custodian or the Owner Trustee in respect of any Transaction
Document; 
  
 (ix) the bankruptcy or insolvency
of the Insurer or any other party; 
  
 (x) any
default or alleged default of the Insurer under the Note Policy; or 
  
 (xi) the inaccuracy or alleged inaccuracy of any payment upon which a claim under the Note Policy is based. 
  
 (b) UACC, the Servicer, the Seller and the Trust and any and all others who are now or may become liable for all or part of the
obligations of UACC, the Servicer, the Seller and the Trust under this Insurance Agreement agree to be bound by this Insurance Agreement and (i) to the extent permitted by law, waive and renounce any and all redemption and exemption rights and
the benefit of all valuation and appraisement privileges against the indebtedness and obligations evidenced by any Transaction Document or by any extension or renewal thereof; (ii) waive presentment and demand for payment, notices of nonpayment
and of dishonor, protest of dishonor and notice of protest; (iii) waive all notices in connection with the delivery and acceptance hereof and all other notices in connection with the performance, default or enforcement of any payment hereunder,
except as required by the Transaction Documents; (iv) waive all rights of abatement, diminution, postponement or deduction, or any defense other than payment, or any right of setoff or recoupment arising out of any breach under any of the
Transaction Documents by any party thereto or any beneficiary thereof, or out of any obligation at any time owing to the Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller, the Trust or the
Custodian; (v) agree that its liabilities hereunder shall, except as otherwise expressly provided in this Section 4.03, be unconditional and without regard to any setoff, counterclaim or the liability of any other Person for the payment
hereof; (vi) agree that any consent, waiver or forbearance hereunder with respect to an event shall operate only for such event and not for any subsequent event; (vii) consent to any and all extensions of time that may be granted by the
Insurer with respect to any payment hereunder or other provisions hereof and to the release of any security at any time given for any payment hereunder, or any part thereof, with or without substitution, and to the release of any Person or entity
liable for any such payment; and (viii) consent to the addition of any and all other makers, endorsers, guarantors and other obligors for any payment hereunder, and to the acceptance of any and all other security for any payment hereunder, and
agree that the addition of any such obligors or security shall not affect the liability of the parties hereto for any payment hereunder. 
  
 (c) Nothing herein shall be construed as prohibiting the Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the
Backup Servicer, the Seller, the Trust and the Custodian from pursuing any rights or remedies it may have against any other Person in a separate legal proceeding. 
  

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 Section 4.04. Assignments; Reinsurance; Third-party Rights. 
  
 (a) This Insurance Agreement shall be a continuing
obligation of the parties hereto and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. None of UACC, the Servicer, the Trustee, the Collateral Agent, the Trust Collateral
Agent, the Backup Servicer, the Seller or the Trust may assign its rights under this Insurance Agreement, or delegate any of its duties hereunder, without the prior written consent of the Insurer, except to a successor or assign that is permitted by
the Indenture. Any assignment made in violation of this Insurance Agreement shall be null and void. 
  
 (b) The Insurer shall have the right to give participations in its rights under this Insurance Agreement and to enter into contracts of
reinsurance with respect to the Note Policy upon such terms and conditions as the Insurer may in its discretion determine; provided, however, that no such participation or reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Note Policy. 
  
 (c) In addition, the Insurer shall be entitled to assign or pledge to any bank or other lender providing liquidity or credit with respect to the Transaction or the obligations of the Insurer in connection therewith any rights of the Insurer
under the Transaction Documents or with respect to any real or personal property or other interests pledged to the Insurer, or in which the Insurer has a security interest, in connection with the Transaction. 
  
 (d) Except as provided herein with respect to participants
and reinsurers, nothing in this Insurance Agreement shall confer any right, remedy or claim, express or implied, upon any Person, including, particularly, any Owner, other than the Insurer against UACC, the Servicer, the Trustee, the Collateral
Agent, the Trust Collateral Agent, the Backup Servicer, the Seller or the Trust, and all the terms, covenants, conditions, promises and agreements contained herein shall be for the sole and exclusive benefit of the parties hereto and their
successors and permitted assigns. Neither the Trustee nor any Owner shall have any right to payment from any Premiums paid or payable hereunder or under the Sale and Servicing Agreement or from any other amounts paid by UACC, the Servicer, the
Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller or the Trust pursuant to Section 3.02, 3.03 or 3.04 hereof. 
  
 (e) The Servicer, the Trustee, the Collateral Agent, the Trust Collateral Agent, the Backup Servicer, the Seller and the Trust agree that
the Insurer shall have all rights of a third-party beneficiary in respect of the Indenture and each other Transaction Document to which it is not a signing party and hereby incorporate and restate their representations, warranties and covenants as
set forth therein for the benefit of the Insurer. 
  

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 Section 4.05. Liability of the Insurer. Neither the Insurer nor any of its officers,
directors or employees shall be liable or responsible for (a) the use that may be made of the Note Policy by the Trustee or the Trust Collateral Agent or for any acts or omissions of the Trustee or the Trust Collateral Agent in connection
therewith, (b) the validity, sufficiency, accuracy or genuineness of documents delivered to the Insurer in connection with any claim under the Note Policy, or of any signatures thereon, even if such documents or signatures should in fact prove
to be in any or all respects invalid, insufficient, fraudulent or forged or (c) any acts or omissions to act of UACC, the Seller, the Servicer, the Trust, the Trustee, the Trust Collateral Agent, the Collateral Agent, the Backup Servicer, the
Owner Trustee or any other person in connection with the Collateral. In furtherance and not in limitation of the foregoing, the Insurer (or its Fiscal Agent) may accept documents that appear on their face to be in order, without responsibility for
further investigation. 
  
 Section 4.06. Parties
Will Not Institute Insolvency Proceedings. So long as this Agreement is in effect, and for one year following its termination, none of the parties hereto will file any involuntary petition or otherwise institute any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other proceedings under any federal or state bankruptcy or similar law against the Trust or the Seller. 
  
 Section 4.07. Trustee, Custodian, Trust Collateral Agent, Collateral Agent, Backup Servicer, Seller, Trust and
Servicer To Join in Enforcement Action. To the extent necessary to enforce any right of the Insurer in or remedy of the Insurer under any Receivable, the Trust Collateral Agent, the Collateral Agent, the Trustee, Backup Servicer, Trust,
Seller and Servicer agree to join in any action initiated by the Trust or the Insurer for the protection of such right or exercise of such remedy. 
  
 Section 4.08. Subrogation. To the extent of any payments under the Note Policy, the Insurer shall be fully subrogated to any
remedies against the Seller or the Servicer or in respect of the Receivables available to the Trustee or the Trust Collateral Agent under the Indenture and Sale and Servicing Agreement. The Trustee and the Trust Collateral Agent acknowledge such
subrogation and, further, agree to execute such instruments prepared by the Insurer and to take such reasonable actions as requested by the Insurer as are necessary to evidence such subrogation and to perfect the rights of the Insurer to receive any
moneys paid or payable under the Indenture or Sale and Servicing Agreement. 
  
 Section 4.09. Insurer’s Rights Regarding Actions, Proceedings or Investigations. Until the Obligations have been paid in full, all amounts owed to the Insurer have been paid in full, this Insurance
Agreement has terminated and the Note Policy has been returned to the Insurer for cancellation, the following provisions shall apply, it being expressly understood that none of the following costs shall be borne by the Trustee: 
  
 (a) Notwithstanding anything contained herein or in the
other Transaction Documents to the contrary, the Insurer shall have the right to participate in, to direct the enforcement or defense of, and, at the Insurer’s sole option, to institute or assume the defense of, any action, proceeding or
investigation that could adversely affect the Trust or the Collateral or the rights or obligations of the Insurer hereunder or under the Note Policy or the Transaction Documents, including (without limitation) any insolvency or 
  

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 bankruptcy proceeding in respect of UACC, the Seller, the Trust or any affiliate thereof. Following
notice to the Trustee, the Trust Collateral Agent and the Owner Trustee the Insurer shall have the exclusive right to determine, in its sole discretion, the actions necessary to preserve and protect the Collateral. All costs and expenses of the
Insurer in connection with such action, proceeding or investigation, including (without limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, shall be included in amounts reimbursable to the
Insurer under Section 5.7 of the Sale and Servicing Agreement. 
  
 (b) In connection with any action, proceeding or investigation that could adversely affect the Collateral or the Trust or the rights or obligations of the Insurer hereunder or under the Note Policy or the Transaction
Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of UACC, the Seller, the Trust or any affiliate thereof, the Trustee, the Trust Collateral Agent and the Trust hereby agree to cooperate with, and to take
such action as reasonably directed by, the Insurer, including (without limitation) entering into such agreements and settlements as the Insurer shall direct, in its sole discretion without the consent of the Noteholders. The Trustee’s and the
Trust’s reasonable out-of-pocket costs and expenses (including attorneys’ fees and expenses) with respect to any such action shall be reimbursed pursuant to Section 5.7 of the Sale and Servicing Agreement. 
  
 (c) The Trust, the Trust Collateral Agent and the Trustee
hereby agree to provide to the Insurer prompt written notice of any action, proceeding or investigation that names the Trust, the Owner Trustee, the Trust Collateral Agent or the Trustee on behalf of the Secured Parties as a party or that involves
the Trust or the Collateral or the rights or obligations of the Insurer hereunder or under the Note Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of UACC, the Seller, the Trust
or any affiliate thereof of which it has actual knowledge. 
  
 (d) Notwithstanding anything contained herein or in any of the other Transaction Documents to the contrary, none of the Trust, the Trustee nor the Trust Collateral Agent shall, without the Insurer’s prior written
consent, with such consent not to be unreasonably withheld, or unless directed by the Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation affecting the Collateral or the Trust or the rights
or obligations of the Insurer hereunder or under the Note Policy or the Transaction Documents. 
  
 (e) The Trustee agrees that the Insurer shall have such rights as set forth in this Section, which are in addition to any rights of the
Insurer pursuant to the other provisions of the Transaction Documents, that the rights set forth in this Section may be exercised by the Insurer, in its sole discretion, without the need for the consent or approval of the Trust, the Trust Collateral
Agent, or the Trustee, notwithstanding any other provision contained herein or in any of the other Transaction Documents, and that nothing contained in this Section shall be deemed to be an obligation of the Insurer to exercise any of the rights
provided for herein. 
  

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 ARTICLE V 
  

DEFAULTS; REMEDIES 
  
 Section 5.01. Defaults. The occurrence of any of the following events shall constitute an Insurance Agreement Event of Default hereunder:

  
 (a) (i) any failure by the Servicer or, so
long as any Affiliate of UACC is the Servicer, any Affiliate of UACC to deliver to the Trustee for distribution to Noteholders any proceeds or payment required to be so delivered under the terms of the Sale and Servicing Agreement or other
Transaction Documents that continues unremedied for a period of two Business Days (or one Business Day with respect to payments of Purchase Amounts) after written notice is received by the Servicer from the Trustee or (unless an Insurer Default
shall have occurred and be continuing) the Insurer or after discovery of such failure by an officer of the Servicer or (ii) any failure by UACC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the
Custodian, the Owner Trustee or the Trust to pay when due any amount payable by UACC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Owner Trustee or the Trust hereunder or under any
Transaction Document and such failure continues for the length of any cure period contained in the related Transaction Document; 
  
 (b) (i) UACC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Owner Trustee,
the Backup Servicer or the Trust shall have asserted that any of the Transaction Documents to which it is a party is not valid and binding on the parties thereto; or (ii) any court, governmental authority or agency having jurisdiction over any
of the parties to any of the Transaction Documents or any property thereof shall find or rule that any material provision of any of the Transaction Documents is not valid and binding on the parties thereto; 
  
 (c) any representation or warranty made by UACC, the
Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Owner Trustee, the Backup Servicer or the Trust under any of the Transaction Documents, or in any certificate or report furnished under any of
the Transaction Documents, shall prove to be untrue, incorrect or incomplete in any material respect and such untrue representation or warranty is not cured within any applicable grace period contained in the applicable Transaction Document;

  
 (d) UACC, the Servicer, the Seller, the Trust
Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Owner Trustee, the Backup Servicer, the Custodian or the Trust shall fail to perform or observe any other covenant or agreement contained in any of the Transaction Documents
(except for the obligations described under Section 5.1(a), (b), (c) or (l) in this Section 5.01) and such failure shall continue for a period of 10 days after written notice given UACC, the Servicer, the
Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Owner Trustee, the Backup Servicer, the Custodian or the Trust as applicable; 
  

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 (e) UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral
Agent, the Trustee, the Custodian, the Backup Servicer or the Trust shall fail to pay its debts generally as they come due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of
creditors, or shall institute any proceeding seeking to adjudicate UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer or the Trust insolvent or seeking a
liquidation, or shall take advantage of any Insolvency Act, or shall commence a case or other proceeding naming UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer
or the Trust as debtor under any Insolvency Act, or a case or other proceeding against UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer or the Trust under any
Insolvency Act shall be instituted against such Person seeking liquidation of such Person and such Person shall fail to take appropriate action resulting in the withdrawal or dismissal of such proceeding within 30 days or there shall be appointed or
UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer or the Trust shall consent to, or acquiesce in, the appointment of a receiver, liquidator, conservator, trustee
or similar official in respect of itself or the whole or any substantial part of its properties or assets or UACC, UPFC, the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer or
the Trust shall take any corporate action in furtherance of any of the foregoing; 
  
 (f) the organizational documents of the Trust shall have been amended, supplemented or otherwise modified without the written consent of
the Insurer; 
  
 (g) default in the payment of
(i) any interest on, or principal of, the Notes when the same becomes due and payable (without regard to any payments funded by amounts drawn under the Note Policy), (ii) any amount owing to the Insurer hereunder, including without
limitation, the Premium when the same becomes due and payable; 
  
 (h) the Trustee shall fail to have a valid perfected first priority security interest in the Indenture Collateral (or any portion thereof) other than tax liens, mechanics’ liens and any liens that attach to the
respective Indenture Collateral by operation of law as a result of an Obligor’s failure to pay its obligations; 
  
 (i) the occurrence of a material exception in the Accountant’s Report or any other review of servicing procedures pursuant to
Section 4.11 of the Sale and Servicing Agreement which may have a material adverse effect on the Noteholders or the Insurer, in the reasonable opinion of the Insurer, that remains uncured for 10 Business Days (provided that such cure period
does not apply if such material exception relates to another Event of Default hereunder with a shorter cure or grace period); 
  
 (j) UPFC’s annual audited financial statements are qualified in any manner; 
  
 (k) any litigation, claim, counterclaim or proceeding is
brought against the Servicer, the Seller, the Trust Collateral Agent, the Collateral Agent, the Trustee, the Custodian, the Backup Servicer or the Trust which, if determined adversely to any such party, would materially and adversely affects the
interest of the Noteholder or the Insurer; 
  

 42 

 (l) failure by the Servicer to deliver to the Trustee the Servicing Certificate for the
related Monthly Period, that continues unremedied for a period of five Business Days after the earlier to occur of (x) discovery by a responsible senior officer of the Servicer, or (y) the date on which written notice has been received by
a senior officer of the Servicer; 
  
 (m) a
Change in Control of the Servicer without the prior written consent of the Insurer; 
  
 (n) the occurrence or existence of a default, event of default or other similar condition or event (however described) in respect of UPFC
or any Affiliate of UPFC under one or more agreements or instruments relating to Indebtedness of $5,000,000 or more which has resulted in such Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such
agreements or instruments; 
  
 (o) the Trust
becomes taxable as an association (or publicly traded partnership) or taxable as a corporation for federal or state income tax purposes; 
  
 (p) the occurrence of any other “Event of Default” under the Indenture or Servicer Termination Event under the Transaction
Documents not set forth above in this Section 5.1; 
  
 (q) UPFC fails to maintain non-expired and committed line(s) of credit that are available to be drawn upon by UPFC in an aggregate amount of at least
$                         and such failure has continued for more than 120 days; 
  
 (r) the shadow rating on the Notes (without giving effect to
the Policy) provided by the Rating Agencies is reduced below Baa2/BBB by S&P or by Moody’s; 
  
 (s) Ray Thousand ceases to be the President and Chief Executive Officer of UPFC and any such replacement CEO has not been approved by the
Insurer; 
  
 (t) UPFC’s Consolidated Total
Adjusted Equity as of the end of any fiscal quarter shall be less than (a) $                     plus
(b)                     % of the future positive earnings (after
                            , 2006) less (c) any share repurchase amounts; 
  
 (u) UPFC records an operating loss on any quarterly or
annual financial statements in excess of                     % of Consolidated Total Adjusted Equity for any quarter; or 
  
 (v) the occurrence of a Level 3 Trigger Event. 

 
 Section 5.02. Remedies; No Remedy Exclusive. 
  
 (a) Upon the occurrence of an Insurance Agreement Event of
Default, the Insurer may exercise any one or more of the rights and remedies set forth below: 
  
 (i) exercise any rights and remedies under the Transaction Documents in accordance with the terms of the Transaction Documents or direct
the Trustee or the Trust Collateral Agent to exercise such remedies in accordance with the terms of the Transaction Documents; or 
  

 43 

 (ii) take whatever action at law or in equity as may appear necessary or desirable in its
judgment to collect the amounts then due under the Transaction Documents or to enforce performance and observance of any obligation, agreement or covenant of the Servicer, the Trustee, the Trust Collateral Agent, the Collateral Agent, the Backup
Servicer, the Seller, the Trust or the Custodian under the Transaction Documents. 
  
 (b) Unless otherwise expressly provided, no remedy herein conferred upon or reserved is intended to be exclusive of any other available
remedy, but each remedy shall be cumulative and shall be in addition to other remedies given under the Transaction Documents or existing at law or in equity. No delay or omission to exercise any right or power accruing under the Transaction
Documents upon the happening of any event set forth in Section 5.01 hereof shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the Insurer to exercise any remedy reserved to the Insurer in this Article, it shall not be necessary to give any notice other than such notice as may be required in this Article V. 
  
 (c) If any proceeding has been commenced to enforce any
right or remedy under this Insurance Agreement, and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Insurer, then and in every such case the parties hereto shall, subject to any
determination in such proceeding, be restored to their respective former positions hereunder, and, thereafter, all rights and remedies of the Insurer shall continue as though no such proceeding had been instituted. 
  
 Section 5.03. Waivers. 
  
 (a) No failure by the Insurer to exercise, and no delay by
the Insurer in exercising, any right hereunder shall operate as a waiver thereof. The exercise by the Insurer of any right hereunder shall not preclude the exercise of any other right, and the remedies provided herein to the Insurer are declared in
every case to be cumulative and not exclusive of any remedies provided by law or equity. 
  
 (b) The Insurer shall have the right, to be exercised in its complete discretion, to waive any Insurance Agreement Event of Default
hereunder, by a writing setting forth the terms, conditions and extent of such waiver signed by the Insurer and delivered to the Servicer, the Trustee, the Trust Collateral Agent, the Collateral Agent, the Backup Servicer, the Seller, the Trust or
the Custodian. Any such waiver may only be effected in writing duly executed by the Insurer, and no other course of conduct shall constitute a waiver of any provision hereof. Unless such writing expressly provides to the contrary, any waiver so
granted shall extend only to the specific event or occurrence which gave rise to the Insurance Agreement Event of Default so waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
  

 44 

 ARTICLE VI 
  

MISCELLANEOUS 
  
 Section 6.01. Amendments, Etc. This Insurance Agreement may be amended, modified or terminated only by written instrument or written
instruments signed by the parties hereto. The Servicer agrees to promptly provide a copy of any amendment to this Insurance Agreement to the Collateral Agent, S&P and Moody’s. No act or course of dealing shall be deemed to constitute an
amendment, modification or termination hereof. 
  
 Section 6.02.
Notices. All demands, notices and other communications to be given hereunder shall be in writing (except as otherwise specifically provided herein) and shall be mailed by registered mail or personally delivered or telecopied to
the recipient as follows: 
  

	 	(a)	To the Insurer: 

  
 ______________________ 
 ______________________ 
 ______________________ 
 Re:                      
 Attention:                      
 Telephone:                      
 Facsimile:                        
 E-mail:
                                        
     
  
 (in each case in which notice or
other communication to                      refers to an Insurance Agreement Event of Default, a claim on the Note Policy or with respect to
which failure on the part of the Insurer to respond shall be deemed to constitute consent or acceptance, then a copy of such notice or other communication should also be sent to the attention of each of the General Counsel and Surveillance and shall
be marked to indicate “URGENT MATERIAL ENCLOSED.”) 
  

	 	(b)	To the Seller: 

  
 UPFC Auto Receivables Corp. 
 3990 Westerly
Place, Suite 200 
 Newport Beach, California 92660 
 Attention: Garland Koch, CFO 
 Telephone: 949-224-1917 
 Facsimile: 949-224-1910 
  

 45 

	 	(c)	To UACC and the Servicer: 

  
 United Auto Credit Corporation 
 3990
Westerly Place, Suite 200 
 Newport Beach, California 92660 
 Attention: Garland Koch, CFO 
 Telephone: 949-224-1917 
 Facsimile: 949-224-1910 
  

	 	(d)	To the Collateral Agent, Trust Collateral Agent, Trustee and Backup Servicer: 

  

Deutsche Bank Trust Company Americas 
 Corporate Trust and Agency Services 
 60 Wall Street, 26th Floor 
 New York, New York 10005 
 Attention:
Structured Finance Services 
 Phone: 212-250-4772 
 Facsimile: 212-797-8606 
  

	 	(e)	To the Trust: 

  
 UPFC Auto Receivables Trust 2006-     
 c/o Wells Fargo Delaware Trust Company, 
 as Owner Trustee 
 919 N. Market Street, Suite 700 
 Wilmington
Delaware 19890 
 Attention: Corporate Trust Services 
 Telephone: 302-575-2004 
 Facsimile: 302-575-2006 
  
 With a copy to the attention of: 
  
 United Auto Credit Corporation 
 3990 Westerly Place, Suite 200 
 Newport
Beach, California 92660 
 Attention: Garland Koch, CFO 
 Telephone: 949-224-1917 
 Facsimile: 949-224-1910 
  
 With a copy to the Servicer at the address set forth above. 
  
 A party may specify an additional or different address or addresses by
writing mailed or delivered to the other parties as aforesaid. All such notices and other communications shall be effective upon receipt. 
  
 Section 6.03. Severability. In the event that any provision of this Insurance Agreement shall be held invalid or unenforceable by any
court of competent jurisdiction, the parties hereto agree that such holding shall not invalidate or render unenforceable any other provision hereof. The parties hereto further agree that the holding by any court of competent jurisdiction that any
remedy pursued by any party hereto is unavailable or unenforceable shall not affect in any way the ability of such party to pursue any other remedy available to it. 
  

 46 

 Section 6.04. Governing Law. THIS INSURANCE AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW PROVISIONS. 
  
 Section 6.05. Consent to Jurisdiction. 
  
 (a) The parties hereto hereby irrevocably submit to the jurisdiction of the United States District Court for the Southern District of
New York and any court in the State of New York located in the City and County of New York, and any appellate court from any thereof, in any action, suit or proceeding brought against it and to or in connection with any of the
Transaction Documents or the transactions contemplated thereunder or for recognition or enforcement of any judgment, and the parties hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may
be heard or determined in such New York state court or, to the extent permitted by law, in such federal court. The parties hereto agree that a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. To the extent permitted by applicable law, the parties hereto hereby waive and agree not to assert by way of motion, as a defense or otherwise in any such suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that the
related documents or the subject matter thereof may not be litigated in or by such courts. 
  
 (b) To the extent permitted by applicable law, the parties hereto shall not seek and hereby waive the right to any review of the judgment
of any such court by any court of any other nation or jurisdiction which may be called upon to grant an enforcement of such judgment. 
  
 (c) Except as provided in Section 4.06 herein, nothing contained in this Insurance Agreement shall limit or affect the Insurer’s
right to serve process in any other manner permitted by law or to start legal proceedings relating to any of the Transaction Documents against any party hereto or its or their property in the courts of any jurisdiction. 
  
 Section 6.06. Consent of the Insurer. In the event that
the consent of the Insurer is required under any of the Transaction Documents, the determination whether to grant or withhold such consent shall be made by the Insurer in its sole discretion without any implied duty towards any other Person.

  
 Section 6.07. Counterparts. This
Insurance Agreement may be executed in counterparts by the parties hereto, and all such counterparts shall constitute one and the same instrument. 
  

 47 

 Section 6.08. Headings. The headings of Articles and Sections and the Table of
Contents contained in this Insurance Agreement are provided for convenience only. They form no part of this Insurance Agreement and shall not affect its construction or interpretation. Unless otherwise indicated, all references to Articles and
Sections in this Insurance Agreement refer to the corresponding Articles and Sections of this Insurance Agreement. 
  
 Section 6.09. Trial by Jury Waived. Each party hereto hereby waives, to the fullest extent permitted by law, any right to a trial by
jury in respect of any litigation arising directly or indirectly out of, under or in connection with any of the Transaction Documents or any of the transactions contemplated thereunder. Each party hereto (a) certifies that no representative,
agent or attorney of any party hereto has represented, expressly or otherwise, that it would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it has been induced to enter into the Transaction
Documents to which it is a party by, among other things, this waiver. 
  
 Section 6.10. Limited Liability. No recourse under any Transaction Document shall be had against, and no personal liability shall attach to, any officer, employee, director, affiliate, trustee or shareholder of any party hereto, as
such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise in respect of any of the Transaction Documents, the Obligations or the Note Policy, it being expressly agreed and understood
that each Transaction Document is solely a corporate obligation of each party hereto, and that any and all personal liability, either at common law or in equity, or by statute or constitution, of every such officer, employee, director, affiliate or
shareholder for breaches by any party hereto of any obligations under any Transaction Document is hereby expressly waived as a condition of and in consideration for the execution and delivery of this Insurance Agreement. 
  
 Section 6.11. Limitation of Indenture Trustee, Trust Collateral Agent, the
Collateral Agent and Backup Servicer Liability. In no event shall the Trustee, the Trust Collateral Agent, the Collateral Agent and the Backup Servicer be liable for any indirect, special, punitive or consequential loss or damage of any
kind whatsoever, including but not limited to, lost profits, even if the Trustee, the Trust Collateral Agent, the Collateral Agent or the Backup Servicer has been advised of such loss or damage and regardless of the form of action. 
  
 In no event shall the Trustee, the Trust Collateral Agent, the Collateral
Agent and the Backup Servicer be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including but not limited to, acts of God, flood, war (whether declared or undeclared),
terrorism, fire, riot, embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Insurance Agreement. 
  
 Section 6.12. No Recourse to Trustee. It is expressly
understood and agreed by the parties hereto that (a) this Insurance Agreement is executed and delivered by Wells Fargo Delaware Trust Company, not individually or personally but solely as Trustee of the Trust, in the exercise of the powers and
authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Trust or Trustee is made and intended not as personal representations, undertakings and agreements by Wells Fargo
Delaware 
  

 48 

 Trust Company but is made and intended for the purpose of binding only the Trust, (c) nothing herein contained shall
be construed as creating any liability on Wells Fargo Delaware Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto
and by any Person claiming by, through or under the parties hereto and (d) under no circumstances shall Wells Fargo Delaware Trust Company be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the
breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust or Trustee under this Insurance Agreement or any other Transaction Documents. 
  
 Section 6.13. Entire Agreement. The Transaction Documents and the Note Policy set forth the entire agreement between
the parties with respect to the subject matter thereof, and this Insurance Agreement supersedes and replaces any agreement or understanding that may have existed between the parties prior to the date hereof in respect of such subject matter.

  
 Section 6.14. No Partnership. Nothing in this Insurance
Agreement or any other agreement entered into in connection with the Transaction shall be deemed to constitute the Insurer a partner, co-venturer or joint owner of property with any other entity. 
  
 [Remainder of page intentionally blank; signature page follows] 
  

 49 

 IN WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement, all as of the day and year
first above mentioned. 
  

			
	  

		
	By:	 	  

	Title:	 	  

	
	UNITED AUTO CREDIT CORPORATION,
	Individually and as Servicer
		
	By:	 	  

	Title:	 	  

	
	UPFC AUTO RECEIVABLES TRUST 2006-    , as Issuing Entity
		
	By:	 	 Wells Fargo Delaware Trust Company, not in its
 individual capacity but solely as Owner Trustee

		
	By:	 	  

	Title:	 	  

	
	UPFC AUTO RECEIVABLES CORP., as Seller
		
	By:	 	  

	Title:	 	  

  
 UPFC Auto Receivables Trust
2006-     
 Insurance Agreement Signature Page 

			
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS, not in
its individual capacity, but
 solely as Trustee, as Trust Collateral Agent, as
 Collateral Agent and as Backup Servicer

		
	By:	 	  

	Title:	 	  

  
 UPFC Auto Receivables Trust
2006-     
 Insurance Agreement Signature Page

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