Document:

Form of Series 2017-2 Indenture Supplement

 Exhibit 4.1 

FORM OF 
 SERIES 2017-2 
 INDENTURE SUPPLEMENT 

BETWEEN 
 ALLY MASTER
OWNER TRUST 
 ISSUING ENTITY 

AND 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 INDENTURE TRUSTEE 

DATED AS OF JUNE 28, 2017 

SERIES 2017-2 ASSET BACKED NOTES, 

CLASS A, CLASS B, CLASS C AND CLASS D 

AND 
 SERIES 2017-2 ASSET BACKED EQUITY NOTES 
 CLASS E 

 

 TABLE OF CONTENTS 

 

							
		 		  	 	Page	 
	 ARTICLE I CREATION OF SERIES 2017-2
NOTES
	  	 	2	 
	 SECTION 1.01
	 	Designation	  	 	2	 
	 SECTION 1.02
	 	Reopening of Class or Tranche of Notes	  	 	3	 
		
	 ARTICLE II DEFINITIONS
	  	 	3	 
	 SECTION 2.01
	 	Definitions	  	 	3	 
	 SECTION 2.02
	 	Other Definitional Provisions	  	 	22	 
		
	 ARTICLE III SERVICING FEE
	  	 	22	 
	 SECTION 3.01
	 	Servicing Compensation	  	 	22	 
		
	ARTICLE IV RIGHTS AND OBLIGATIONS OF SERIES 2017-2 NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	  	 	22	 
	 SECTION 4.01
	 	Collections and Allocations	  	 	22	 
	 SECTION 4.02
	 	Determination of Monthly Interest	  	 	23	 
	 SECTION 4.03
	 	Determination of Monthly Principal Amount	  	 	24	 
	 SECTION 4.04
	 	Application of Available Funds on Deposit in Note Defeasance Account, Collection Account and Other Sources	  	 	24	 
	 SECTION 4.05
	 	Series Charge-Offs	  	 	29	 
	 SECTION 4.06
	 	Reallocated Principal Collections	  	 	30	 
	 SECTION 4.07
	 	Excess Interest Collections	  	 	31	 
	 SECTION 4.08
	 	Shared Principal Collections	  	 	32	 
	 SECTION 4.09
	 	Reinstatement of Invested Amount	  	 	32	 
	 SECTION 4.10
	 	Note Distribution Account	  	 	33	 
	 SECTION 4.11
	 	Reserve Fund	  	 	34	 
	 SECTION 4.12
	 	Determination of LIBOR	  	 	35	 
	 SECTION 4.13
	 	Account Holder	  	 	36	 
	 SECTION 4.14
	 	Transfer Restrictions	  	 	36	 
	 SECTION 4.15
	 	Note Defeasance Account	  	 	39	 
	 SECTION 4.16
	 	FATCA	  	 	41	 
	 SECTION 4.17
	 	Asset Representations Review	  	 	41	 
	 SECTION 4.18
	 	Unfulfilled Repurchase Demands; Dispute Resolution	  	 	43	 
		
	ARTICLE V DELIVERY OF SERIES 2017-2 NOTES; DISTRIBUTIONS; REPORTS TO SERIES 2017-2 NOTEHOLDERS	  	 	47	 
	 SECTION 5.01
	 	Delivery and Payment for Series 2017-2 Notes	  	 	47	 
	 SECTION 5.02
	 	Distributions	  	 	47	 
	 SECTION 5.03
	 	Reports and Statements to Series 2017-2 Noteholders	  	 	49	 
	 SECTION 5.04
	 	Other Information to be Provided by the Indenture Trustee and the Owner Trustee	  	 	50	 

  
 i 

							
	 ARTICLE VI SERIES 2017-2 EARLY
AMORTIZATION EVENTS AND SERIES 2017-2 EVENTS OF DEFAULT
	  	 	51	 
	 SECTION 6.01
	 	Series 2017-2 Early Amortization Events	  	 	51	 
	 SECTION 6.02
	 	Series 2017-2 Events of Default	  	 	52	 
	 SECTION 6.03
	 	Acceleration of Maturity; Rescission and Annulment	  	 	54	 
		
	 ARTICLE VII REDEMPTION OF SERIES 2017-2
NOTES; SERIES LEGAL MATURITY; FINAL DISTRIBUTIONS
	  	 	55	 
	 SECTION 7.01
	 	Optional Redemption of Series 2017-2 Notes	  	 	55	 
	 SECTION 7.02
	 	Series Legal Maturity	  	 	55	 
		
	 ARTICLE VIII MISCELLANEOUS PROVISIONS
	  	 	57	 
	 SECTION 8.01
	 	Ratification of Agreement	  	 	57	 
	 SECTION 8.02
	 	Form of Delivery of Series 2017-2 Notes	  	 	57	 
	 SECTION 8.03
	 	Counterparts	  	 	57	 
	 SECTION 8.04
	 	Governing Law	  	 	57	 
	 SECTION 8.05
	 	Effect of Headings and Table of Contents	  	 	57	 
	 SECTION 8.06
	 	Notices	  	 	57	 
	 SECTION 8.07
	 	Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto hereby irrevocably and unconditionally:	  	 	58	 
	 SECTION 8.08
	 	U.S.A. PATRIOT Act	  	 	58	 
	 SECTION 8.09
	 	Compliance with Credit Risk Retention Rules	  	 	58	 
	 SECTION 8.10
	 	Limitation of Liability of Owner Trustee	  	 	58	 
			
	 EXHIBIT A
	 	Form of Note	  	 	A-1	 
	 EXHIBIT B
	 	Form of Monthly Statement	  	 	B-1	 
	 EXHIBIT C
	 	Servicing Criteria to be Addressed in Indenture Trustee’s	  			
		 	Assessment of Compliance	  	 	C-1	 

  

  
 ii 

 SERIES 2017-2 INDENTURE SUPPLEMENT, dated as of
June 28, 2017, by and between ALLY MASTER OWNER TRUST, a Delaware statutory trust, as Issuing Entity, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee. 

RECITALS 
 A. Section
2.1 of the Indenture provides, among other things, that the Issuing Entity and the Indenture Trustee may at any time and from time to time enter into an Indenture Supplement to authorize the issuance by the Issuing Entity of Notes in one or more
Series. 
 B. The parties to this Indenture Supplement, by executing and delivering this Indenture Supplement, are providing for the creation
of the Series 2017-2 Notes and specifying the Principal Terms thereof. 
 In consideration of the
mutual covenants and agreements contained in this Indenture Supplement, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

GRANTING CLAUSES 
 In
addition to the grant of the Indenture, the Issuing Entity hereby grants to the Indenture Trustee, for the exclusive benefit of the Holders of the Series 2017-2 Notes, all of the Issuing Entity’s right,
title and interest (whether now owned or hereafter acquired) in, to and under the following (collectively, the “Series Collateral”) with respect to the Series 2017-2: 

(i) all Collections on the Receivables allocated to the Series 2017-2 Notes; 

(ii) all Eligible Investments and all monies, instruments, securities, security entitlements, documents, certificates of
deposit and other property from time to time on deposit in or credited to the Series Accounts (including any subaccount thereof) and in all interest, proceeds, earnings, income, revenue, dividends and other distributions thereof (including any
accrued discount realized on liquidation of any investment purchased at a discount) other than Investment Proceeds with respect to the Note Defeasance Account; and 

(iii) all present and future claims, demands, causes of action and choses in action regarding any of the foregoing and all
payments on any of the foregoing and all proceeds of any nature whatsoever regarding any of the foregoing, including all proceeds of the voluntary or involuntary conversion thereof into cash or other liquid property and all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any kind and other forms of obligations and receivables, instruments and other property that at
any time constitute any part of or are included in the proceeds of any of the foregoing. 

 The foregoing grants are made in trust to secure (a) the Issuing Entity’s obligations
under the Series 2017-2 Notes equally and ratably without prejudice, priority or distinction between any Series 2017-2 Note and any other Series 2017-2 Notes, other than as expressly provided in this Indenture Supplement, (b) the payment of all other sums payable under the Series 2017-2 Notes, the Indenture and
this Indenture Supplement and (c) the compliance with the terms and conditions of the Series 2017-2 Notes, the Indenture and this Indenture Supplement, all as provided herein or therein. 

The Indenture Trustee, as indenture trustee on behalf of the Noteholders, hereby acknowledges the foregoing grants, accepts the trusts under
this Indenture Supplement in accordance with the provisions of this Indenture Supplement, and agrees to perform the duties herein required to the end that the interests of the Noteholders may be adequately protected. 

ARTICLE I 
 CREATION OF
SERIES 2017-2 NOTES 
 SECTION 1.01 Designation. 

(a) There is hereby created a Series of Notes to be issued by the Issuing Entity on the Closing Date pursuant to the Indenture and this
Indenture Supplement to be known as the “Series 2017-2 Asset Backed Notes” or the “Series 2017-2 Notes.” The Series 2017-2 Notes shall be issued in five Classes, the first shall be known as the “Series 2017-2 Floating Rate Asset Backed Notes, Class A,”
the second shall be known as the “Series 2017-2 Fixed Rate Asset Backed Notes, Class B,” the third shall be known as the “Series
2017-2 Fixed Rate Asset Backed Notes, Class C,” the fourth shall be known as the “Series 2017-2 Fixed Rate Asset Backed Notes,
Class D,” and the fifth shall be known as the “Series 2017-2 Asset Backed Equity Notes, Class E.” The Series
2017-2 Notes shall be due and payable on the Series 2017-2 Legal Maturity Date. 

(b) Series 2017-2 shall be a Nonoverconcentration Series. Series
2017-2 shall be in Excess Interest Sharing Group One and in Principal Sharing Group One. Series 2017-2 shall not be a Shared Enhancement Series or in an Interest
Reallocation Group. Series 2017-2 shall not be subordinated to any other Series. 
 (c) The Series 2017-2 Notes are “Notes” and this Indenture Supplement is an “Indenture Supplement” for all purposes under the Indenture. If any provision of the Series
2017-2 Notes or this Indenture Supplement conflicts with or is inconsistent with any provision of the Indenture, the provisions of the Series 2017-2 Notes or this
Indenture Supplement, as the case may be, shall control. 
 (d) Each term defined in Section 2.01 of this Indenture
Supplement relates only to Series 2017-2 and this Indenture Supplement and to no other Series or Indenture Supplements. 

(e) Notwithstanding anything to the contrary in the Indenture, the Series 2017-2 Notes, other than the
Class E Note, shall be issued in fully registered form in minimum amounts of $1,000 and in integral multiples of $1,000 in excess thereof (except that one Note from each such class may be issued in a different amount so long as such amount
exceeds $1,000); provided that the minimum amounts of the Series 2017-2 Notes, other than the Class E Note, shall be subject to the restrictions set forth in Section 4.14. The
Class E Note shall be issued in fully registered form in a principal amount equal to the Class E Note Principal Balance. The Class E Note will be issuable in a minimum denomination of 100% of the Class E Note Principal Balance.

  
 2 

 SECTION 1.02 Reopening of Class or Tranche of Notes. 

The Depositor may from time to time, with notice to the Rating Agencies but without notice to, or the consent of, the holders of a
Class or Tranche of Series 2017-2 Notes, create and issue additional Series 2017-2 Notes equal in rank to any Class or Tranche of Series 2017-2 Notes previously offered in all respects or in all respects except for the payment of interest accruing prior to the Issuance Date of such additional Series 2017-2
Notes in a Class or Tranche of Series 2017-2 Notes or except for the first payment of interest following the Issuance Date of such additional Series 2017-2 Notes in
a Class or Tranche of Series 2017-2 Notes. This is called a “reopening.” When issued, the additional Series 2017-2 Notes of a Class or Tranche
shall be equally and ratably entitled to the benefits of the Indenture and this Indenture Supplement applicable to those Series 2017-2 Notes with the other Outstanding Notes of that Class or Tranche
without preference, priority or distinction. These additional Series 2017-2 Notes may be consolidated and form a single Class or Tranche with the previously issued Series
2017-2 Notes and shall have the same terms as to status, redemption or otherwise as the previously issued Series 2017-2 Notes. 

ARTICLE II 
 DEFINITIONS

 SECTION 2.01 Definitions. 

Whenever used in this Indenture Supplement, the following words and phrases have the following meanings, and the definitions of such terms 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. 

AAA: The American Arbitration Association. 

AAA Rules: The AAA’s Commercial Arbitration Rules and Mediation Procedures in effect as of the Closing Date. 

Accumulation Period Factor: With respect to any Collection Period, a fraction: 

(a) the numerator of which is equal to the sum of the invested amounts of all outstanding Series in Principal Sharing Group One
(including the Invested Amount for Series 2017-2) as of the last day of the Revolving Period; and 

  
 3 

 (b) the denominator of which is equal to the sum of (i) the Invested Amount
as of the last day of the Revolving Period, plus (ii) the invested amounts as of the last day of the Revolving Period of all outstanding Series in Principal Sharing Group One (other than the Invested Amount for Series 2017-2) that are expected to be paying or accumulating principal during the period from such Collection Period to the Collection Period immediately preceding the Series 2017-2
Expected Maturity Date; 
 provided, however, that this definition may be changed at any time upon receipt by the Indenture
Trustee of an Officer’s Certificate from the Servicer that such change shall not have an Adverse Effect. 
 Accumulation Period
Length: Has the meaning specified in Section 4.04(h). 
 Additional Available Series Principal
Collections: With respect to any Distribution Date and the related Collection Period, an amount equal to any Available Series Interest Collections, Reserve Fund Available Amounts and Excess Interest Collections from other Series in the same
Excess Interest Sharing Group as the Series 2017-2 Notes that, as provided in Sections 4.04(a) and (b), are to be treated as Additional Available Series Principal Collections with respect to that
Distribution Date. 
 ADR Proceeding: Either an Arbitration or a Mediation. 

Annual Fee Cap: $75,000 with respect to the Owner Trustee and $125,000 in the aggregate with respect to all other parties. 

Arbitration: A binding arbitration proceeding with the AAA conducted pursuant to the rules set forth in the AAA Rules. 

Asset Representations Review: A review by the Asset Representations Reviewer as specified in the Asset Representations Review Agreement
of all Accounts classified as “programmed” or “no credit” designated to the Issuing Entity as of the applicable review date and the Receivables in those Accounts to determine whether such Accounts and Receivables satisfy the
representations and warranties set forth in Section 4.01(a) of the Pooling and Servicing Agreement as of the date specified in Section 4.01(a) of the Pooling and Servicing Agreement. 

Asset Representations Review Agreement: The Asset Representations Review Agreement, dated as of the date hereof, between the Issuing
Entity and the Asset Representations Reviewer, as amended, supplemented, restated or otherwise modified from time to time. 
 Asset
Representations Review Notice: Has the meaning specified in Section 4.17(d). 
 Asset Representations
Reviewer: Clayton Fixed Income Services LLC, as asset representations reviewer under the Asset Representations Review Agreement, or any successor asset representations reviewer under the Asset Representations Review Agreement. 

  
 4 

 Available Series Interest Collections: With respect to any Distribution Date, an amount
equal to the sum of (a) the Series Interest Collections with respect to such Distribution Date, plus (b) all interest and Investment Proceeds on Eligible Investments credited to the Reserve Fund and the Note Distribution Account
(net of losses and investment expenses) during the related Collection Period. 
 Available Series Principal Collections: With respect
to any date, an amount equal to the sum of (i) the Series Principal Collections for such date, plus (ii) any Shared Principal Collections with respect to other Series in Principal Sharing Group One (including any amounts on deposit
in the Excess Funding Account that are allocated to Series 2017-2 pursuant to the Indenture for application as Shared Principal Collections) for such date, plus (iii) if such date is also a Distribution
Date, the amount of any Additional Available Series Principal Collections remaining after application thereof pursuant to Section 4.04(f) being treated as Available Series Principal Collections on such date plus
(iv) the amounts, if any, withdrawn from the Excess Funding Account and applied pursuant to Section 4.04(g), minus (v) the amount of any Series Principal Collections being treated as Reallocated Principal
Collections pursuant to Section 4.06. 
 Average Class A Note Principal Balance: For any
period, an amount equal to the result of (a) the aggregate of the Class A Note Principal Balance for each day during that period divided by (b) the number of days in that period. 

Average Class B Note Principal Balance: For any period, an amount equal to the result of (a) the aggregate of
the Class B Note Principal Balance for each day during that period divided by (b) the number of days in that period. 
 Average
Class C Note Principal Balance: For any period, an amount equal to the result of (a) the aggregate of the Class C Note Principal Balance for each day during that period divided by (b) the number of days in that
period. 
 Average Class D Note Principal Balance: For any period, an amount equal to the result of (a) the
aggregate of the Class D Note Principal Balance for each day during that period divided by (b) the number of days in that period. 

Average Net Invested Amount: For any period, an amount equal to the result of (a) Net Invested Amount for each day during that
period divided by (b) the number of days in that period. 
 Back-up Servicing Fee
Rate: 0.0065% per annum or such other percentage (not to exceed 0.0065% without satisfaction of the Series 2017-2 Rating Agency Condition) as may be specified as such in the
Back-up Servicing Agreement. 

  
 5 

 Benefit Plan: An “employee benefit plan” as defined in Section 3(3) of
ERISA that is subject to the provisions of Title I of ERISA, a “plan” described in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code, or an entity whose underlying assets include “plan assets”
by reason of investment by an employee benefit plan or plan in such entity. 
 Bloomberg Screen BBAM Page: The display page currently
so designated on the Bloomberg Screen BBAM Page (or such other page as may replace such page in that service for the purpose of displaying comparable rates or prices). 

Class A Invested Amount: As of any date, an amount equal to (a) the Class A Note Principal Balance as of
such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class A Notes immediately before such date pursuant to Section 4.06 over
(ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class A Invested Amount to zero, minus (c) the excess, if any, of
(i) the cumulative amount of Series Charge-Offs allocable to the Class A Notes immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of reimbursements thereof pursuant to
Section 4.09 before that date, but limited to an amount that would reduce the Class A Invested Amount to zero. 

Class A Monthly Interest: Has the meaning specified in Section 4.02(a). 

Class A Note: Any one of the Series 2017-2 Floating Rate Asset Backed Notes,
Class A executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class A Note Initial Principal Balance: $250,000,000. 

Class A Note Interest Rate: With respect to any Interest Period, LIBOR for such Interest Period plus 0.34000% per
annum. 
 Class A Note Principal Balance: As of any date, the Class A Note Initial Principal Balance, minus
the aggregate amount of any principal payments made to the Class A Noteholders on or prior to such date. 

Class A Noteholder: The Person in whose name a Class A Note is registered in the Note Register. 

Class B Invested Amount: As of any date, an amount equal to (a) the Class B Note Principal Balance as of
such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class B Notes immediately before such date pursuant to Section 4.06 over
(ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class B Invested Amount to zero, minus (c) the excess, if
any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class B Notes immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative
amounts of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class B Invested Amount to zero. 

  
 6 

 Class B Monthly Interest: Has the meaning specified in
Section 4.02(c). 
 Class B Note: Any one of the Series
2017-2 Fixed Rate Asset Backed Notes, Class B executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class B Note Initial Principal Balance: $18,272,000. 

Class B Note Interest Rate: With respect to any Interest Period, 2.25% per annum. 

Class B Note Principal Balance: As of any date, the Class B Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class B Noteholders on or prior to such date. 
 Class B
Noteholder: The Person in whose name a Class B Note is registered in the Note Register. 
 Class C Invested
Amount: As of any date, an amount equal to (a) the Class C Note Principal Balance as of such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the
Class C Notes immediately before such date pursuant to Section 4.06 over (ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an
amount that would reduce the Class C Invested Amount to zero, minus (c) the excess, if any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class C Notes
immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that
would reduce the Class C Invested Amount to zero. 
 Class C Monthly Interest: Has the meaning specified in
Section 4.02(d). 
 Class C Note: Any one of the Series
2017-2 Fixed Rate Asset Backed Notes, Class C executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class C Note Initial Principal Balance: $13,289,000. 

Class C Note Interest Rate: With respect to any Interest Period, 2.49% per annum. 

Class C Note Principal Balance: As of any date, the Class C Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class C Noteholders on or prior to such date. 
 Class C
Noteholder: The Person in whose name a Class C Note is registered in the Note Register. 

  
 7 

 Class D Invested Amount: As of any date, an amount equal to
(a) the Class D Note Principal Balance as of such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class D Notes immediately before such date
pursuant to Section 4.06 over (ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class D
Invested Amount to zero, minus (c) the excess, if any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class D Notes immediately before such date pursuant to
Section 4.05(b) over (ii) the cumulative amounts of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class D Invested
Amount to zero. 
 Class D Monthly Interest: Has the meaning specified in
Section 4.02(e). 
 Class D Note: Any one of the Series
2017-2 Fixed Rate Asset Backed Notes, Class D executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class D Note Initial Principal Balance: $9,967,000. 

Class D Note Interest Rate: With respect to any Interest Period, 3.09% per annum. 

Class D Note Principal Balance: As of any date, the Class D Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class D Noteholders on or prior to such date. 
 Class D
Noteholder: The Person in whose name a Class D Note is registered in the Note Register. 
 Class E Invested
Amount: 
 (a) With respect to the Closing Date, $40,697,914, and 

(b) with respect to any subsequent date, an amount equal to 

(i) the Class E Invested Amount determined as of the immediately preceding Distribution Date (or, with respect to the
initial Distribution Date, the Class E Invested Amount as of the Closing Date); 
 (ii) minus (A) the amount
of Reallocated Principal Collections allocable to the Class E Notes pursuant to Section 4.06, if any, since the Distribution Date immediately preceding such date, but limited to an amount that would reduce the
Class E Invested Amount to zero, plus (B) the amount of reimbursements of Reallocated Principal Collections allocable to the Class E Notes pursuant to Section 4.09, if any, since the Distribution Date
immediately preceding such date; 

  
 8 

 (iii) minus (A) the amount of Series
Charge-Offs allocable to the Class E Notes pursuant to Section 4.05(b), if any, since the Distribution Date immediately preceding such date, but limited to an amount that would
reduce the Class E Invested Amount to zero, plus (B) the amount of reimbursements of Series Charge-Offs allocable to the Class E Notes pursuant to Section 4.09,
if any, since the Distribution Date immediately preceding such date; 
 (iv) minus an amount equal to the product of
(A) the Subordination Percentage and (B) the increase, if any, in the Series 2017-2 Excess Funding Amount since the Distribution Date immediately preceding such date; 

(v) plus an amount equal to the product of (A) the Subordination Percentage and (B) the decrease, if any, in
the Series 2017-2 Excess Funding Amount since the Distribution Date immediately preceding such date (to the extent that the Required Nonoverconcentration Pool Balance would not exceed the Nonoverconcentration
Pool Balance, any such excess to become Class E Invested Amount on the date and to the extent that such additions would not result in the Required Nonoverconcentration Pool Balance exceeding the Nonoverconcentration Pool Balance); 

(vi) plus an amount equal to the increase, if any, in the Required Class E Invested Amount as a result of a change
in the Subordination Factor since the Distribution Date immediately preceding such date (to the extent that the Required Nonoverconcentration Pool Balance would not exceed the Nonoverconcentration Pool Balance, any such excess to become Class E
Invested Amount on the date and to the extent that such additions would not result in the Required Nonoverconcentration Pool Balance exceeding the Nonoverconcentration Pool Balance); 

(vii) minus an amount equal to the decrease, if any, in the Required Class E Invested Amount as a result of a
change in the Subordination Factor since the Distribution Date immediately preceding such date; 
 (viii) plus the
amount of any Available Series Interest Collections treated as Additional Available Series Principal Collections on such date to ensure that the Class E Invested Amount as of such date is not less than the Required Class E Invested Amount
pursuant to Section 4.04(a)(ix); 
 (ix) minus the aggregate amount of any principal
payments made to the Class E Noteholders since the Distribution Date immediately preceding such date; 
 provided, however, that in no
event shall the Class E Invested Amount as of any date be more than the Required Class E Invested Amount as of such date; provided that the Depositor may at any time and from time to time increase the Class E Invested Amount by
allocating a portion of the Nonoverconcentration Certificate Interest thereto; provided such increase shall not cause the Required Nonoverconcentration Pool Balance to exceed the Nonoverconcentration Pool Balance

  
 9 

 
or cause the Nonoverconcentration Certificate Amount to be less than the Required Nonoverconcentration Certificate Amount. Notwithstanding the foregoing, the Depositor shall not be permitted to
increase the Class E Invested Amount without satisfaction of the Series 2017-2 Rating Agency Condition with respect to each Class of Series 2017-2 Notes in
connection therewith if such increase would result in the aggregate amount of all such increases, together with all amounts resulting from a discretionary increase in the Series 2017-2 Subordination Factor and
the Reserve Fund, exceeding 5.0% of the Note Principal Balance as of the date of such increase. 
 Class E Note:
Any one of the Series 2017-2 Asset Backed Equity Notes, Class E executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A.

 Class E Note Initial Principal Balance: $40,697,914. 

Class E Note Principal Balance: As of any date, the Class E Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class E Noteholders before such date; provided, however, that the Depositor, at any time and from time to time, may (A) in connection with an increase in the Class E
Invested Amount increase the Class E Note Principal Balance, but not in excess of the increase in the Class E Invested Amount or (B) decrease the Class E Note Principal Balance upon satisfaction of the Series 2017-2 Rating Agency Condition and obtaining written consent of all of the Class E Noteholders. 

Class E Noteholder: The Person in whose name a Class E Note is registered in the Note Register. 

Closing Date: June 28, 2017. 

Code: Internal Revenue Code of 1986, as amended. 

Consent Rating Agency: Has the meaning set forth in the Ratings Free Writing Prospectus. 

Controlled Accumulation Amount: The result of (a) the Note Principal Balance as of the last day of the Revolving Period (less the
aggregate amount, if any, already on deposit in the Note Distribution Account and the Note Defeasance Account to pay principal of the Series 2017-2 Notes as of the close of business on the last day of the
Revolving Period) divided by (b) the number of months in the Controlled Accumulation Period. 
 Controlled Accumulation Period:
Unless an Early Amortization Event has occurred prior thereto, the period beginning on the first day of the December 2018 Collection Period or such later date as is determined in accordance with Section 4.04(h) and ending
on the earlier to occur of (a) the close of business on the day immediately preceding the commencement of the Early Amortization Period and (b) the end of the Collection Period immediately preceding the Distribution Date on which the Note
Principal Balance shall be paid in full. 

  
 10 

 Controlled Deposit Amount: For any Collection Period with respect to the Controlled
Accumulation Period, an amount equal to the sum of (a) the Controlled Accumulation Amount for such Collection Period and (b) any Deficit Controlled Accumulation Amount for the immediately preceding Collection Period. 

Deficit Controlled Accumulation Amount: (a) for the Collection Period immediately preceding the Controlled Accumulation Period,
zero, and (b) for any Collection Period in the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such Collection Period over the aggregate amount deposited into the Note Distribution Account or the
Note Defeasance Account with respect to such Collection Period. 
 Determination Date: The tenth day of each calendar month, or if
such tenth day is not a Business Day, the next succeeding Business Day. 
 Distribution Date: July 17, 2017, and the 15th day of
each calendar month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 
 Downgrade Trigger: As
of the last day of any monthly period, the percentage of Accounts of Dealers located in the United States rated “programmed” or “no credit” as of the end of the most recent monthly period exceeds 13.85%. For purposes of this
definition, the percentage of Accounts of Dealers located in the United States rated “programmed” or “no credit” as of the end of any monthly period shall be equal to (a) the aggregate outstanding principal balance of
receivables in such Accounts that were rated “programmed” or “no credit” as of the last day of that monthly period, including any defaulted or charged-off Accounts that are then rated
“programmed” or “no credit,” divided by (b) the aggregate outstanding principal balance of all receivables in such Accounts as of the last day of that monthly period. 

Early Amortization Period: The period beginning on the first day on which an Early Amortization Event with respect to Series 2017-2 occurs and ending on the earlier to occur of (a) the end of the Collection Period immediately preceding the Distribution Date on which the Note Principal Balance shall be paid in full and (b) the
Series 2017-2 Legal Maturity Date. 
 ERISA: The Employee Retirement Income Security Act of
1974, as amended. 
 Excess Interest Collections: With respect to Series 2017-2, the meaning
specified in Section 4.07. 
 Exchange Act: U.S. Securities Exchange Act of 1934, as amended. 

FATCA: Sections 1471 through 1474 of the Code (or any amended or successor version) and any current or future regulations or official
interpretations thereof. 
 FATCA Withholding Tax: Any withholding or deduction pursuant to an agreement described in
Section 1471(b) of the Code or otherwise imposed pursuant to FATCA. 

  
 11 

 Fixed Series Percentage: With respect to any date, the percentage equivalent (not to
exceed 100%) of a fraction (a) the numerator of which is the Net Invested Amount as of such date or, if the Revolving Period is no longer in effect, as of the close of business on the last day of the Revolving Period and (b) the
denominator of which is the greater of (i) the Adjusted Nonoverconcentration Pool Balance as of the close of business on the last day of the immediately preceding Collection Period (or, in the case of the first Collection Period, the Closing
Date) and (ii) the sum of the numerators used to calculate the applicable fixed series percentages for allocating Nonoverconcentration Principal Collections to all outstanding Series (including Series
2017-2) with respect to such date. 
 Floating Series Percentage: With respect to any
Collection Period, the percentage equivalent (not to exceed 100%) of a fraction (a) the numerator of which is the Average Net Invested Amount for that Collection Period and (b) the denominator of which is the greater of (i) the
average of the Adjusted Nonoverconcentration Pool Balance for each day during such Collection Period and (ii) the sum of the numerators used to calculate the applicable floating series percentages for allocating Nonoverconcentration Interest
Collections to all outstanding Series (including Series 2017-2) with respect to such Collection Period. 

Indenture: The Indenture, dated as of February 12, 2010, between the Issuing Entity and the Indenture Trustee, as the same may be
amended, supplemented or otherwise modified from time to time. 
 Indenture Supplement: This Series
2017-2 Indenture Supplement, as the same may be amended, supplemented or otherwise modified from time to time. 

Initial Invested Amount: With respect to the Series 2017-2 Notes, the Initial Note Principal
Balance. 
 Initial Note Principal Balance: The sum of (a) the Class A Note Initial Principal Balance, plus
(b) the Class B Note Initial Principal Balance, plus (c) the Class C Note Initial Principal Balance, plus (d) the Class D Note Initial Principal Balance, plus (e) the Class E Note
Initial Principal Balance. 
 Insolvency Event of Default: With respect to the Series 2017-2,
any Event of Default specified in Sections 6.02(e) or (f). 
 Interest Collections Shortfall: Has, with respect to
Series 2017-2, the meaning specified in Section 4.07. 
 Interest
Period: With respect to any Distribution Date, the period from and including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) to but
excluding such Distribution Date. 
 Invested Amount: The sum of the Investor Invested Amount and the Class E Invested Amount.

  
 12 

 Investor Invested Amount: As of any date, the sum of the Class A Invested Amount, the
Class B Invested Amount, the Class C Invested Amount and the Class D Invested Amount, in each case, as of such date. 

Investor Note Principal Balance: As of any date of determination, the sum of the Class A Note Principal Balance, the Class B
Note Principal Balance, the Class C Note Principal Balance and the Class D Note Principal Balance, in each case, as of such date. 

Investor Notes: The Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes. 

LIBOR: With respect to any Interest Period, the London interbank offered rate for one-month
United States dollar deposits determined by the Indenture Trustee for such Interest Period pursuant to Section 4.12. 

LIBOR Determination Date: With respect to any Interest Period, the second London Business Day before the commencement of such Interest
Period. 
 London Business Day: Any day other than a Saturday, Sunday or any other day on which banks in London are required or
authorized to be closed for business. 
 Majority of Manufacturers: Two or more Manufacturers that the aggregate amount of all
Eligible Principal Receivables held by the Issuing Entity as of that date for which the related Vehicle Collateral Security is a Vehicle manufactured by one of those Manufacturers is 50.0% or more of the Pool Balance. 

Mediation: A non-binding mediation or arbitration proceeding with the AAA conducted pursuant to
the rules set forth in the AAA Rules. 
 Monthly Back-up Servicing Fee: With respect
to any Distribution Date on which the Back-up Servicing Agreement is in effect, an amount equal to one-twelfth (or, with respect to the first Distribution Date, the
number of days from the Series Cut-Off Date until the last day of the preceding Collection Period, calculated on the basis of a 360 day year of twelve 30-day months/360)
of the product of (i) the Back-up Servicing Fee Rate, (ii) the Floating Series Percentage for the related Collection Period and (iii) the Nonoverconcentration Pool Balance as of the close of
business on the last day of the immediately preceding Collection Period. 
 Monthly Interest: With respect to any Distribution Date,
the sum of (a) the Class A Monthly Interest for such Distribution Date, plus (b) the Class B Monthly Interest for such Distribution Date, plus (c) the Class C Monthly Interest for such Distribution Date,
plus (d) the Class D Monthly Interest for such Distribution Date. 
 Monthly Nonoverconcentration Defaulted Amount:
With respect to any Collection Period, the aggregate of Nonoverconcentration Defaulted Amounts for each day in that Collection Period. 

  
 13 

 Monthly Payment Rate: For any Collection Period, the percentage equivalent of a fraction
(a) the numerator of which is the Principal Collections for such Collection Period with respect to Principal Receivables arising under the Scheduled Accounts and (b) the denominator of which is the average daily aggregate principal balance
of all Principal Receivables arising under the Scheduled Accounts during such Collection Period. 
 Monthly Principal Amount: With
respect to any Collection Period, the aggregate amount required to be deposited into the Note Distribution Account or the Note Defeasance Account with respect to that Collection Period in respect of the Series
2017-2 Notes as determined pursuant to Section 4.03. 
 Monthly
Servicing Fee: With respect to any Distribution Date, an amount equal to one-twelfth (or, with respect to the first Distribution Date, the number of days from the Series
Cut-Off Date until the last day of the preceding Collection Period, calculated on the basis of a 360 day year of twelve 30-day months/360) of the product of (a) the
Servicing Fee Rate, (b) the Floating Series Percentage for the related Collection Period and (c) the Nonoverconcentration Pool Balance as of the close of business on the last day of the immediately preceding Collection Period. 

Monthly Statement: Has the meaning specified in Section 5.03(b). 

Net Invested Amount: With respect to the Series 2017-2 Notes as of any date of determination,
the sum of (a) the Net Investor Invested Amount as of such date and (b) the excess, if any, of (i) the Class E Invested Amount as of such date over (ii) the sum of (1) the Note Distribution Account Amount allocated to
pay principal of the Class E Notes, if any, on such date and (2) the amount on deposit in the Note Defeasance Account (excluding amounts representing Investment Proceeds) on that date allocated to pay principal of the Class E Notes,
if any, on such date. 
 Net Investor Invested Amount: With respect to the Investor Notes as of any date of determination, the
excess, if any, of (i) the Investor Invested Amount as of such date over (ii) the sum of (1) Note Distribution Account Amount allocated to pay principal of the Investor Notes, if any, on such date and (2) the amount on deposit in
the Note Defeasance Account (excluding amounts representing Investment Proceeds) on that date allocated to pay principal of the Investor Notes, if any, on such date. 

Note Defeasance Account: Has the meaning specified in Section 4.15(a). 

Note Distribution Account: Has the meaning specified in Section 4.10(a). 

Note Distribution Account Amount: On any date, an amount equal to the sum of (a) the amount on deposit in the Note Distribution
Account (excluding amounts representing Investment Proceeds) on that date and (b) the aggregate amount of outstanding Permitted Delayed Remittances with respect to the Note Distribution Account. 

  
 14 

 Note Principal Balance: As of any date of determination, the sum of the Investor Note
Principal Balance on such date and the Class E Note Principal Balance on such date. 
 Noteholder FATCA Information: With
respect to any Noteholder or holder of an interest in a Note, information sufficient to eliminate the imposition of, or determine the amount of, U.S. withholding tax under FATCA. 

Noteholder Tax Identification Information: With respect to any Noteholder or holder of an interest in a Note, properly completed and
signed tax certifications (generally, in the case of U.S. Federal Income Tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning
of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person that is not a “United States Person” within the meaning of
Section 7701(a)(30) of the Code). 
 Notice Rating Agency: Has the meaning set forth in the Ratings Free Writing Prospectus.

 Panel: As defined in Section 4.18(c)(iv)(2). 

Plan Fiduciary: Any fiduciary purchasing the Series 2017-2 Notes on behalf of a Benefit Plan.

 Principal Sharing Group One: Series 2017-2 and each other Series specified in the related
Indenture Supplements to be included in Principal Sharing Group One. 
 Principal Shortfall: With respect to Series 2017-2, the meaning specified in Section 4.08. 
 Rating Agency: Has the
meaning set forth in the Ratings Free Writing Prospectus. 
 Ratings Free Writing Prospectus: The issuer free writing prospectus, as
defined in Rule 433 of the Securities Act, filed by the Depositor on June 15, 2017, relating to the Series 2017-2 Notes. 

Reallocated Principal Collections: With respect to any Distribution Date, the amounts applied in accordance with
Section 4.06 in an amount not to exceed: 
 (a) with respect to amounts to be applied to pay
Monthly Servicing Fees, Monthly Back-up Servicing Fees and Class A Monthly Interest, the sum of the Class A Invested Amount, the Class B Invested Amount, Class C Invested Amount,
Class D Invested Amount and Class E Invested Amount for that Distribution Date (in each case, after giving effect to any change in that amount on that date); 

(b) with respect to amounts to be applied to pay Class B Monthly Interest, the sum of the Class B Invested Amount,
the Class C Invested Amount, the Class D Invested Amount and the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clause (a) above); 

  
 15 

 (c) with respect to amounts to be applied to pay Class C Monthly Interest,
the sum of the Class C Invested Amount, the Class D Invested Amount and the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clauses (a) and (b) above); and 

(d) with respect to amounts to be applied to pay Class D Monthly Interest, the sum of the Class D Invested Amount and
the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clauses (a), (b) and (c) above). 

Reassignment Amount: With respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (a) the Note Principal Balance on such Distribution Date, plus (b) the Monthly Interest for such Distribution Date, together with any Monthly Interest previously due but not paid to the Series 2017-2 Noteholders on prior Distribution Dates. 
 Regulation RR: The regulations contained in 17
C.F.R. Part 246. 
 Repurchase Response Notice: A notice delivered by the Indenture Trustee to a Noteholder or Note Owner indicating
that a Repurchase Request is unresolved. 
 Repurchase Request: Has the meaning specified in
Section 4.18(a). 
 Requesting Party: Has the meaning specified in
Section 4.18(b). 
 Required Accumulation Factor Number: A fraction, rounded upwards to the nearest whole
number, the numerator of which is one and the denominator of which is equal to the lowest Monthly Payment Rate on the Accounts, expressed as a decimal, for the 12 months preceding the date of such calculation; provided, however, that
this definition may be changed at any time upon receipt by the Indenture Trustee of an Officer’s Certificate from the Servicer that such change shall not have an Adverse Effect. 

Required Class E Invested Amount: As of any Distribution Date, the product of (i) the Subordination Percentage
and (ii) the excess, if any, of (A) (1) with respect to any Distribution Date occurring during the Controlled Accumulation Period or the Early Amortization Period, the Net Investor Invested Amount as of the last day of the Revolving
Period, and (2) with respect to any Distribution Date occurring during the Revolving Period, the Net Investor Invested Amount as of such Distribution Date, over (B) the Series 2017-2 Excess Funding
Amount on such date (after giving effect to any changes in such amount on such date). 
 Required Pool Percentage: 100%, except that
the Depositor may reduce this percentage so long as the Series 2017-2 Rating Agency Condition is satisfied with respect to the Series 2017-2 Notes, but without the
consent of any Noteholder or any other Person. 
 Reserve Fund: Has the meaning specified in
Section 4.11(a). 

  
 16 

 Reserve Fund Available Amount: With respect to any Distribution Date, the lesser of
(a) the amount on deposit in the Reserve Fund on such date (excluding any Investment Proceeds on amounts on deposit therein and before giving effect to any (i) deposit made or to be made therein pursuant to
Section 4.04(a) on such date or (ii) any withdrawal made or to be made therefrom pursuant to Section 4.04(b)(ii) on such date) and (b) the Reserve Fund Required Amount for such
Distribution Date. 
 Reserve Fund Deposit Amount: With respect to any Distribution Date, the excess, if any, of (a) the Reserve
Fund Required Amount for such Distribution Date, over (b) the Reserve Fund Available Amount for such Distribution Date. 

Reserve Fund Initial Amount: $1,661,130. 

Reserve Fund Required Amount: With respect to any Distribution Date, an amount equal to the product of Reserve Fund Required Percentage
and the Invested Amount as of such Distribution Date (after giving effect to any changes therein on such Distribution Date); provided, however, that the Depositor may, in its discretion, increase or, upon satisfaction of the Series 2017-2 Rating Agency Condition, decrease the Reserve Fund Required Amount. Notwithstanding the foregoing, the Depositor shall not be permitted to increase the Reserve Fund Required Amount in its discretion without
satisfaction of the Series 2017-2 Rating Agency Condition if such increase would result in the aggregate amount of all such increases, together with all amounts added to the Class E Invested Amount and
all amount resulting from a discretionary increase in the Class E Invested Amount or in the Subordination Factor, exceeding 5.0% of the Note Principal Balance as of the date of such increase. 

Reserve Fund Required Percentage: As of any date, 0.50%; provided, however, that in the event the Subordination Factor would otherwise
be required to increase as a result of a decrease in the Monthly Payment Rate in accordance with the definition of Subordination Factor, the Depositor may by delivering an Officer’s Certificate to the Indenture Trustee and the Rating Agencies
prior to the date such increase was to become effective, elect to increase the Reserve Fund Required Percentage in an amount in percentage points equal to (i) an additional 2.20% rather than increasing the Subordination Factor by 2.56% pursuant
to clause (i) of the first proviso of the definition of Subordination Factor, (ii) an additional 2.40% rather than increasing the Subordination Factor by 2.80% pursuant to clause (ii) of the first proviso of the definition of
Subordination Factor or (iii) an additional 2.65% rather than increasing the Subordination Factor by 3.09% pursuant to clause (iii) of the first proviso of the definition of Subordination Factor. In the event that the Depositor shall elect
to so increase the Reserve Fund Required Percentage rather than the Subordination Factor, any increase in the Monthly Payment Rate that otherwise would have resulted in a decrease in the Subordination Factor will alternatively result in a
corresponding decrease in the Reserve Fund Required Percentage to the extent that the Reserve Fund Required Percentage had been increased rather than making the corresponding increase in the Subordination Factor. The election of the Depositor to
increase the Reserve Fund Required Percentage rather than increasing the Subordination Factor shall be deemed not to be a discretionary increase. 

  
 17 

 Reserve Fund Trigger Amount: As of any date, an amount equal to the product of 0.50% and
the Invested Amount on such date (after giving effect to any changes therein on such date); provided, however, that, if the Reserve Fund Required Amount has been increased solely as a result of a decrease in the Three Month Average Payment Rate,
then with respect to that Distribution Date and each Distribution Date thereafter until the amount on deposit in the Reserve Fund equals the Reserve Fund Required Amount, the Reserve Fund Trigger Amount will equal $0. 

Revolving Period: The period beginning on the Closing Date and ending on the earlier of the close of business on the day immediately
preceding the date on which the Controlled Accumulation Period or the Early Amortization Period commences. 
 Series 2017-2: The Series of Notes, the Principal Terms of which are specified in this Indenture Supplement. 

Series 2017-2 Certificate Interest: The portion of the Certificate Interest representing the
right to receive the distributions allocated to the holders of the Certificate Interest pursuant to Section 4.04(a)(xiv), Section 4.11(d) and Section 4.11(e). 

Series 2017-2 Event of Default: Has the meaning specified in
Section 6.02. 
 Series 2017-2 Early Amortization Event: Has the
meaning specified in Section 6.01. 
 Series 2017-2 Excess Funding
Amount: As of any date of determination, the product of (a) the amount on deposit in the Excess Funding Account (excluding amounts representing Investment Proceeds) on such date, times (b) a fraction (i) the numerator of
which is the Net Invested Amount as of such date and (ii) the denominator of which is the sum of the net invested amounts of each outstanding Nonoverconcentration Series (including Series 2017-2) being
allocated a portion of the funds on deposit in the Excess Funding Account. 
 Series 2017-2
Expected Maturity Date: The June 2019 Distribution Date. 
 Series 2017-2 Insolvency Event of
Default: The Series 2017-2 Events of Default set forth in clauses (e) or (f) of Section 6.02. 

Series 2017-2 Issuing Entity Insolvency Event of Default: The Series 2017-2 Event of Default set forth in clause (f) of Section 6.02. 

Series 2017-2 Legal Maturity Date: The June 2021 Distribution Date. 

Series 2017-2 Note: A Class A Note, a Class B Note, a Class C Note, a
Class D Note or a Class E Note. 
 Series 2017-2 Noteholder: A Class A
Noteholder, a Class B Noteholder, a Class C Noteholder, a Class D Noteholder or a Class E Noteholder. 

  
 18 

 Series 2017-2 Noteholders’ Collateral: The
Noteholders’ Collateral for the Series 2017-2. 
 Series
2017-2 Note Owner: With respect to any Series 2017-2 Note issued as a Book Entry Note, the Person who is the beneficial owner of such Book Entry Note, as reflected
on the books of the related Clearing Agency, or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an Indirect Participant, in each case in accordance with the rules of such
Clearing Agency). 
 Series 2017-2 Private Notes: The Series
2017-2 Class B Notes, the Series 2017-2 Class C Notes, the Series 2017-2 Class D Notes and the Series 2017-2 Class E Notes. 
 Series 2017-2 Rating Agency
Condition: The condition that each of the Consent Rating Agencies with respect to the Series 2017-2 Notes shall have notified the Depositor, the Servicer and the Issuing Entity in writing that such action
shall not result in a downgrade, suspension or withdrawal of the then current rating of the Series 2017-2 Notes then rated by such Rating Agency; provided, however, that with respect to each Notice Rating
Agency, it shall be sufficient that such Notice Rating Agency shall be given prior written notice thereof. 
 Series Accounts: With
respect to Series 2017-2, the Note Distribution Account, the Note Defeasance Account, and the Reserve Fund. 

Series Charge-Offs: Has the meaning specified in Section 4.05.

 Series Collateral: Has the meaning specified in the granting clauses of this Indenture Supplement. 

Series Cut-Off Date: The close of business on May 31, 2017. 

Series Defaulted Amount: With respect to any Distribution Date, the amount of the Nonoverconcentration Defaulted Amount for the related
Collection Period allocated to the Series 2017-2 pursuant to Section 4.01(d). 

Series Defaulted Percentage: With respect to any Collection Period, the Floating Series Percentage. 

Series Interest Collections: With respect to any Distribution Date, the amount of Nonoverconcentration Interest Collections for the
related Collection Period (or, in the case of the initial Distribution Date, the period from the Series Cut-Off Date until the last day of the Collection Period preceding such Distribution Date) allocated to
the Series 2017-2 pursuant to Section 4.01(b). 
 Series Interest
Percentage: With respect to any Collection Period, the Floating Series Percentage. 

  
 19 

 Series Principal Collections: With respect to any date, the amount of the
Nonoverconcentration Principal Collections for that date allocated to the Series 2017-2 pursuant to Section 4.01(c). 

Series Principal Percentage: For any date, the Fixed Series Percentage. 

Series Required Certificate Amount: On any date, the product of (a) the excess, if any, of (i) the Required Pool Percentage
over (ii) 100% and (b) the Net Invested Amount on that date. 
 Shared Principal Collections: With respect to Series 2017-2, has the meaning specified in Section 4.08. 
 Significant
Manufacturer: As of any date, a Manufacturer that the aggregate amount of all Eligible Principal Receivables held by the Issuing Entity as of that date for which the related Vehicle Collateral Security is a Vehicle manufactured by such
Manufacturer is 35.0% (or, in the case of Chrysler, 25.0%) or more of the Pool Balance. 
 Special
Pass-Through Entity: A grantor trust, S corporation or partnership where more than 50% of the value of a beneficial owner’s interest in such pass-through entity is attributable to the pass-through entity’s interest in the Class B Note, Class C Note, and/or Class D Note, as applicable. 

Subordination Factor: As of any date, 12.25%; provided, however, that if on any Distribution Date, the Three Month
Average Payment Rate is (i) less than 25.00% but greater than or equal to 22.50%, (ii) less than 22.50% but greater than or equal to 20.00%, or (iii) less than 20.00%, then on such Distribution Date, the Subordination Factor shall be
increased by (i) 2.56% over what it would have been had the Three Month Average Payment Rate been greater than or equal to 25.00%, (ii) 2.80% over what it would have been had the Three Month Average Payment Rate been less than 25.00% but greater
than or equal to 22.50%, or (iii) 3.09% over what it would have been had the Three Month Average Payment Rate been less than 22.50% but greater than or equal 20.00%, respectively; provided, however, that if after any such increase in
the Subordination Factor, on any Distribution Date the Three Month Average Payment Rate as of such Distribution Date is, and the Three Month Average Payment Date with respect to each of the two prior Distribution Dates was, (i) greater than or
equal to 20.00% but less than 22.50%, (ii) greater than or equal to 22.50% but less than 25.00% or (iii) greater than or equal to 25.00%, then on such Distribution Date, the Subordination Factor shall be decreased by (i) 3.09% over what it
would have been had the Three Month Average Payment Rate been less than 20.00%, (ii) 2.80% over what it would have been had the Three Month Average Payment Rate been less than 22.50% but greater than or equal to 20.00% or (iii) 2.56% over what it
would have been had the Three Month Average Payment Rate been less than 25.00% but greater than or equal to 22.50%, respectively; provided, further, that the Depositor may, by delivering an Officer’s Certificate to the Indenture
Trustee and the Rating Agencies prior to the date such increase was to become effective, elect to increase the Reserve Fund Required Percentage by an additional amount in percentage points equal to 2.20%, 2.40%, or 2.65%, as applicable, pursuant to
the proviso in the 

  
 20 

 
definition of “Reserve Fund Required Percentage” rather than increasing the Subordination Factor by an additional 2.56%, 2.80%, or 3.09%, respectively. In addition, the Depositor may
(a) in its discretion increase the Subordination Factor, increasing the Subordination Percentage and thereby increasing the Class E Invested Amount and the Class E Principal Amount by an amount equal to the product of (i) the
increase in the Subordination Percentage and (ii) the excess, if any, of (A) the Net Invested Amount over (B) the Series 2017-2 Excess Funding Amount on such date (after giving effect to any
changes in such amount on such date); provided such increase shall not cause the Required Nonoverconcentration Pool Balance to exceed the Nonoverconcentration Pool Balance or cause the Nonoverconcentration Certificate Amount to be less than the
Required Nonoverconcentration Certificate Amount or (b) upon satisfaction of the Series 2017-2 Rating Agency Condition with respect to each Class of Series
2017-2 Notes in connection therewith, decrease the Subordination Factor, with corresponding decreases in the Subordination Percentage, the Class E Invested Amount and the Class E Principal Amount.
Notwithstanding the foregoing, the Depositor shall not be permitted to increase the Subordination Factor in its discretion without satisfaction of the Series 2017-2 Rating Agency Condition with respect to each
Class of Series 2017-2 Notes in connection therewith if such increase would result in the aggregate amount of all such increases, together with discretionary increases in the Class E Invested Amount
and the Reserve Fund, exceeding 5.0% of the Note Principal Balance as of the date of such increase. 
 Subordination Percentage: As
of any date, an amount (expressed as a percentage) equal to (a) the Subordination Factor divided by (b) the result of 100% minus the Subordination Factor. 

Third Party Due Diligence Provider: Any Person hired by an underwriter or the Seller to perform due diligence on the Accounts or the
Receivables in connection with the offer and sale of the Class A Notes. 
 Three Month Average Payment Rate: As of any
Distribution Date, the arithmetic average of the Monthly Payment Rate determined with respect to each of the three Collection Periods immediately preceding such Distribution Date. 

Verified Note Owner: A Series 2017-2 Note Owner that has provided the Indenture Trustee or the
Servicer, as applicable, with each of (i) a written certification that it is a beneficial owner of a specified Outstanding Amount of the Series 2017-2 Notes and (ii) a trade confirmation, an account
statement, a letter from a broker or dealer or other similar document showing that such Series 2017-2 Note Owner is a beneficial owner of such Outstanding Amount of the Series
2017-2 Notes. 
 Wholly-Owned Affiliate: Has the meaning specified in Regulation RR. 

  
 21 

 SECTION 2.02 Other Definitional Provisions. 

(a) Certain capitalized terms used but not otherwise defined in this Indenture Supplement shall have the respective meanings assigned to them
in Part I of Appendix A to the Trust Sale and Servicing Agreement, dated as of February 12, 2010 (the “Trust Sale and Servicing Agreement”), among Ally Master Owner Trust, Ally Wholesale Enterprises LLC, Ally
Bank, and Ally Financial Inc. (formerly GMAC Inc.) (including any successors or assigns thereto, “Ally Financial”), as amended, supplemented, restated or otherwise modified from time to time. 

(b) All references herein to “this Indenture Supplement” are to this Indenture Supplement as it may be amended, supplemented or
modified from time to time, and all references herein to Articles, Sections, subsections and exhibits are to Articles, Sections, subsections and exhibits of this Indenture Supplement unless otherwise specified. 

(c) All terms defined in this Indenture Supplement shall have the defined meanings when used in any certificate, notice, Note or other document
made or delivered pursuant hereto unless otherwise defined therein. 
 (d) The rules of construction set forth in Part II of
Appendix A to the Trust Sale and Servicing Agreement shall be applicable to this Indenture Supplement. 
 ARTICLE III 

SERVICING FEE 

SECTION 3.01 Servicing Compensation. 

The share of the Servicing Fee and the Back-up Servicing Fee, respectively, allocable to the Series 2017-2 Noteholders with respect to any Distribution Date is equal to the Monthly Servicing Fee and the Monthly Back-up Servicing Fee, respectively. The portion of the
Servicing Fee and Back-up Servicing Fee that is not allocable to the Series 2017-2 Noteholders shall be paid by the holders of the Certificate Interest or the
Noteholders of other Series (as provided in the related Indenture Supplements) and in no event shall the Issuing Entity, the Indenture Trustee or the Series 2017-2 Noteholders be liable for the share of the
Servicing Fee or the Back-up Servicing Fee to be paid by the holders of the Certificate Interest or the Noteholders of any other Series. 

ARTICLE IV 
 RIGHTS AND
OBLIGATIONS OF SERIES 2017-2 NOTEHOLDERS 
 AND ALLOCATION AND APPLICATION OF COLLECTIONS

 SECTION 4.01 Collections and Allocations. 

(a) Allocations to Series 2017-2. As provided in
Section 8.4(a) of the Indenture, Nonoverconcentration Interest Collections, Nonoverconcentration Principal Collections and Nonoverconcentration Defaulted Amounts shall be allocated to Series
2017-2 and then applied in accordance with this Article IV. No Overconcentration Interest Collections, Overconcentration Principal Collections or Overconcentration Defaulted Amounts shall be allocated
to the Series 2017-2. 

  
 22 

 (b) On each Determination Date beginning on the Determination Date in July 2017, the Servicer
shall allocate to the Series 2017-2 an amount of Nonoverconcentration Interest Collections for the related Collection Period (or, in the case of the initial Distribution Date, the prior Collection Period)
equal to the product of (i) the Series Interest Percentage for the related Collection Period, and (ii) the Nonoverconcentration Interest Collections for such Collection Period; provided, however, that for purposes of
calculating the Series Interest Percentage for this Section 4.01(b), the Series 2017-2 Notes shall be deemed to have been outstanding since the Series
Cut-Off Date. 
 (c) On each Business Day beginning on the Closing Date, the Servicer shall allocate
to the Series 2017-2 an amount of Nonoverconcentration Principal Collections for that date equal to the product of (i) the Series Principal Percentage for that date and (ii) the Nonoverconcentration
Principal Collections for that date. 
 (d) On each Determination Date beginning on the Determination Date in July 2017, the Servicer shall
allocate to the Series 2017-2 an amount of the Nonoverconcentration Defaulted Amount for the related Collection Period equal to the product of (i) the Series Defaulted Percentage for the related
Collection Period and (ii) the Monthly Nonoverconcentration Defaulted Amount for the related Collection Period. 
 SECTION 4.02
Determination of Monthly Interest. 
 (a) The amount of monthly interest due with respect to the Class A Notes for any
Distribution Date and the related Interest Period (the “Class A Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) a fraction, the numerator of which is the actual number
of days in the related Interest Period and the denominator of which is 360, times (ii) the Class A Note Interest Rate, times (iii) the Average Class A Note Principal Balance for the related Interest Period. 

(b) [Reserved]. 
 (c) The amount
of monthly interest due with respect to the Class B Notes for any Distribution Date and the related Interest Period (the “Class B Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the
product of (i) one-twelfth (or, in the case of the July 2017 Distribution Date, a fraction, the numerator of which is 17 and the denominator of which is 360), times (ii) the Class B Note
Interest Rate, times (iii) the Average Class B Note Principal Balance for the related Interest Period. 
 (d) The amount of
monthly interest due with respect to the Class C Notes for any Distribution Date and the related Interest Period (the “Class C Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product
of (i) one-twelfth (or, in the case of the July 2017 Distribution Date, a fraction, the numerator of which is 17 and the denominator of which is 360), times (ii) the Class C Note Interest Rate,
times (iii) the Average Class C Note Principal Balance for the related Interest Period. 

  
 23 

 (e) The amount of monthly interest due with respect to the Class D Notes for any
Distribution Date and the related Interest Period (the “Class D Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) one-twelfth (or,
in the case of the July 2017 Distribution Date, a fraction, the numerator of which is 17 and the denominator of which is 360), times (ii) the Class D Note Interest Rate, times (iii) the Average Class D Note Principal
Balance for the related Interest Period. 
 SECTION 4.03 Determination of Monthly Principal Amount. 

The aggregate amount of monthly principal to be deposited into the Note Defeasance Account or the Note Distribution Account with respect to any
Collection Period in the Controlled Accumulation Period or, if earlier, any Collection Period or portion thereof in the Early Amortization Period (the “Monthly Principal Amount”), shall be equal to the least of (a) the sum of
(i) the Available Series Principal Collections for each Business Day during such Collection Period, (ii) Additional Available Series Principal Collections for the related Distribution Date and (iii) any Series 2017-2 Excess Funding Amount with respect to such period, (b) for each Collection Period with respect to the Controlled Accumulation Period, the Controlled Deposit Amount for such Collection Period, and
(c) the Net Invested Amount (after taking into account any adjustments to be made on the related Distribution Date pursuant to Sections 4.05 and 4.06).  

SECTION 4.04 Application of Available Funds on Deposit in Note Defeasance Account, Collection Account and Other Sources. 

(a) On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee to apply by written instruction to the Indenture
Trustee, Available Series Interest Collections with respect to such Distribution Date, (x) on deposit in the Collection Account, and (y) solely to make the allocations, distributions or deposits specified in clauses (ii) through (v)
below, in the manner and order set forth therein, on deposit in the Note Defeasance Account (excluding amounts representing Investment Proceeds), in the following priority: 

(i) first, an amount equal to the Monthly Servicing Fee for such Distribution Date, together with any Monthly Servicing Fees
previously due but not paid to the Servicer on prior Distribution Dates, shall be distributed to the Servicer (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.4
of the Indenture); second, pro rata, an amount equal to the accrued and unpaid fees, expenses and indemnities owed to the Indenture Trustee, the Owner Trustee, the Administrator, the Asset Representations Reviewer, and any other fees or expenses of
the Issuing Entity payable by the Servicer or the Administrator (to the extent not paid by the Servicer, the Administrator or the Asset Representations Reviewer) shall be distributed to the Indenture Trustee, the Owner Trustee, the Administrator,
the Asset Representations Reviewer or the Person to whom such payment is owed, as applicable, provided that the amount distributed pursuant to this clause second shall not exceed the Annual Fee Cap in any calendar year; third, an amount equal
to the Monthly Back-up Servicing Fee for such Distribution Date, together with any Monthly Back-up Servicing Fees previously due but not paid to the Back-up Servicer on prior Distribution Dates, shall be distributed to the Back-up Servicer; 

  
 24 

 (ii) an amount equal to the Class A Monthly Interest for such Distribution
Date, together with any Class A Monthly Interest previously due but not paid to the Class A Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such
funds are not sufficient, the remainder shall be deposited into the Note Distribution Account from the Collection Account, for payment to the Class A Noteholders; 

(iii) an amount equal to the Class B Monthly Interest for such Distribution Date, together with any Class B Monthly
Interest previously due but not paid to the Class B Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such funds are not sufficient, the remainder shall
be deposited into the Note Distribution Account from the Collection Account, for payment to the Class B Noteholders; 

(iv) an amount equal to the Class C Monthly Interest for such Distribution Date, together with any Class C Monthly
Interest previously due but not paid to the Class C Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such funds are not sufficient, the remainder shall
be deposited into the Note Distribution Account from the Collection Account, for payment to the Class C Noteholders; 

(v) an amount equal to the Class D Monthly Interest for such Distribution Date, together with any Class D Monthly
Interest previously due but not paid to the Class D Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such funds are not sufficient, the remainder shall
be deposited into the Note Distribution Account from the Collection Account, for payment to the Class D Noteholders; 

(vi) an amount equal to the Series Defaulted Amount for such Distribution Date shall be treated as Additional Available Series
Principal Collections for such Distribution Date; 
 (vii) an amount equal to the sum of Series Charge-Offs that have not been previously reimbursed shall be treated as Additional Available Series Principal Collections for such Distribution Date; 

(viii) the amount equal to the sum of Reallocated Principal Collections that have not been previously reimbursed shall be
treated as Additional Available Series Principal Collections for such Distribution Date; 
 (ix) the amount necessary to
cause the Class E Invested Amount to not be less than the Required Class E Invested Amount shall be treated as Additional Available Series Principal Collections for such Distribution Date; 

  
 25 

 (x) an amount equal to the Reserve Fund Deposit Amount for such Distribution Date
shall be deposited into the Reserve Fund; 
 (xi) the amount required to repay the Servicer for all outstanding Servicer
Advances made in respect of the Series 2017-2 Notes shall be distributed to the Servicer (unless such amount has been netted against deposits into the Collection Account in accordance with
Section 8.4 of the Indenture); 
 (xii) pro rata, the amounts required to pay any remaining fees,
expenses, indemnities or other amounts required to be paid pursuant to clause second of subsection (i) above but not paid as a result of the proviso thereto, the amount required to reimburse the Back-up
Servicer for all unpaid Servicer Termination Costs in excess of the amounts reimbursed by funds from the Servicer Termination Costs Reserve Account and the amount required to reimburse the Back-up Servicer for
all unpaid amounts due to the Back-up Servicer pursuant to the Back-up Servicing Agreement shall be distributed to the applicable person; 

(xiii) an amount equal to the Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group One
shall be treated as Excess Interest Collections available from Series 2017-2 and applied to cover the Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group One; and 

(xiv) all remaining Available Series Interest Collections for such Distribution Date shall be deposited in the Certificate
Distribution Account for distribution to the holders of the Certificate in accordance with the Trust Agreement (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.4
of the Indenture), but only to the extent that such remaining amount is not otherwise required to be deposited into the Excess Funding Account or the Cash Collateral Account pursuant to Section 8.3 of the Indenture. 

(b) If Available Series Interest Collections with respect to any Distribution Date are insufficient to distribute or deposit the full amounts
required under Section 4.04(a), the Servicer shall apply, or direct the Indenture Trustee to apply by written instructions to the Indenture Trustee, on such Distribution Date available funds from the following sources in
the following order to make up any such shortfalls to the extent provided below: 
 (i) first, from Excess Interest
Collections available from other outstanding Series in Excess Interest Sharing Group One, but only to cover shortfalls in the distributions and deposits required under clauses (i) through (xi) of
Section 4.04(a) in that order; 
 (ii) second, from the Reserve Fund Available Amount, but only to
cover shortfalls in the distributions and deposits required under clauses (i) through (viii) of Section 4.04(a) in that order; 

  
 26 

 (iii) third, from the Reallocated Principal Collections for such Distribution
Date, but only to cover shortfalls in the distributions required under clauses (i) through (v) of Section 4.04(a) in that order; and 

(iv) fourth, from the Servicer to the extent that the Servicer, in its sole discretion, decides to make an advance, but only to
cover shortfalls in the distributions and deposits required under clauses (i) through (x) of Section 4.04(a) in that order, and only to the extent that the Servicer expects to recover such advances (each,
a “Servicer Advance”) pursuant to Section 4.04(a)(xi) on subsequent Distribution Dates. 
 (c) On
each Business Day with respect to the Revolving Period, the Servicer shall apply, or direct the Indenture Trustee to apply by written instruction to the Indenture Trustee, Available Series Principal Collections for such date as Shared Principal
Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

(d) On each Business Day with respect to the Controlled Accumulation Period, the Servicer shall apply, or direct the Indenture Trustee to apply
by written instruction to the Indenture Trustee, Available Series Principal Collections for such date to make the following distributions or deposits in the following priority: 

(i) first, an amount equal to the excess, if any, of (A) the Monthly Principal Amount for the related Collection Period
over (B) the amount previously deposited during that Collection Period for the payment of principal to the Noteholders shall be deposited into the Note Distribution Account or, if elected pursuant to Section 4.04(k),
the Note Defeasance Account, for payment of principal to the Noteholders; and 
 (ii) second, any remaining amounts shall be
treated as Shared Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

(e) On each Business Day with respect to the Early Amortization Period, the Servicer shall apply, or direct the Indenture Trustee to apply by
written instruction to the Indenture Trustee, Available Series Principal Collections for such date to make the following distributions or deposits in the following priority: 

(i) first, the amount necessary to reduce the Note Principal Balance to zero, but not more than the amount that would reduce
the Invested Amount to zero, shall be deposited into the Note Distribution Account or, if elected pursuant to Section 4.04(k), the Note Defeasance Account, for payment of principal to the Noteholders in accordance with
Section 5.02(b); and 
 (ii) second, any remaining amounts shall be treated as Shared Principal
Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

  
 27 

 (f) On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee to apply
by written instructions to the Indenture Trustee, Additional Available Series Principal Collections, if any, (i) first, to make the applications of Additional Available Series Principal Collections required pursuant to
Section 4.06, (ii) second, to make the deposits and distributions required to be made during the related Collection Period pursuant to Sections 4.04(c), (d) and (e) that have not otherwise been made as of
such Distribution Date, and (iii) third, any remaining Additional Available Series Principal Collections shall be treated as Available Series Principal Collections for such date. 

(g) On the first Business Day of the earlier to occur of the Controlled Accumulation Period and the Early Amortization Period, the Indenture
Trustee, acting in accordance with written instructions from the Servicer, shall withdraw from the Excess Funding Account and apply in accordance with Sections 4.04(d) or (e), as applicable, an amount equal to the lesser of
(i) the Series 2017-2 Excess Funding Amount for such date and (ii) the amount required to be deposited or distributed on that date pursuant to Section 4.04(d)(i) or
4.04(e)(i), as applicable that was not previously deposited or distributed on that date. 
 (h) The Controlled Accumulation Period is
scheduled to commence on the first day of the December 2018 Collection Period; provided, however, that, if the Accumulation Period Length (determined as described below) is less than six Collection Periods, the date on which the
Controlled Accumulation Period actually commences shall be delayed to the first day of the Collection Period that is the number of whole Collection Periods before the Series 2017-2 Expected Maturity Date at
least equal to the Accumulation Period Length and, as a result, the number of Collection Periods in the Controlled Accumulation Period shall at least equal the Accumulation Period Length. On or before each Determination Date beginning with the
Determination Date in the November 2018 Collection Period and ending when the Controlled Accumulation Period begins, the Servicer shall determine the “Accumulation Period Length” as of such Determination Date, which shall equal the
number of whole Collection Periods such that the sum of the Accumulation Period Factors for each Collection Period during such period shall be equal to or greater than the Required Accumulation Factor Number; provided, however, that
the Accumulation Period Length shall not be determined to be less than one Collection Period. If the number of whole Collection Periods remaining after such Determination Date and before the Series
2017-2 Expected Maturity Date is less than or equal to the Accumulation Period Length calculated as of such Determination Date, the Controlled Accumulation Period shall commence on the first day of the
following Collection Period; provided, however, if such number of Collection Periods is greater than such Accumulation Period Length, the commencement of the Controlled Accumulation Period shall be delayed until at least the next
Determination Date, at which time the Accumulation Period Length shall be recalculated as described above. 
 (i) All distributions that are
deposited by the Indenture Trustee into the Certificate Distribution Account for distribution to the holders of the Certificate pursuant to this Indenture Supplement shall be made in accordance with such written remittance instructions as may be
provided to the Indenture Trustee by the Depositor from time to time. 

  
 28 

 (j) Notwithstanding any other provision of this Indenture Supplement or the Indenture, if any
amount is required to be deposited into any Series Account or other account pursuant to this Indenture Supplement and all or part of the amount of such deposit is to be deposited into another account or otherwise distributed on that date, such
amount may be deposited directly into the applicable subsequent account or distributed directly to the applicable recipient without first being deposited into the initial Series Account or account. 

(k) Note Defeasance Account. With respect to each Collection Period, no later than 10:00 am Central time on any Business Day of such
Collection Period, including pursuant to Section 4.04(d) and (e), the Servicer, at the direction of the Depositor, shall and, the Servicer may (if Ally Financial or an Affiliate of Ally Financial is the Servicer), in its discretion, specify to
the Indenture Trustee an amount of Available Series Interest Collections and Available Series Principal Collections to be withdrawn from the Collection Account or, with respect to any amounts on deposit in the Note Distribution Account constituting
Available Series Principal Collections, the Note Distribution Account, and deposited into the Note Defeasance Account. With respect to any Collection Period, the aggregate of such amounts deposited into the Note Defeasance Account, as reasonably
calculated by the Servicer (i) with respect to each Collection Period (or portion thereof) that does not occur during a Controlled Accumulation Period or Early Amortization Period, shall not be in excess of the lesser of (1) Available
Series Interest Collections for such Collection Period plus Reallocated Principal Collections for the related Distribution Date less the Monthly Servicing Fee for such Collection Period and (2) the aggregate amount necessary to make the
allocations and distributions required by clauses (ii) through (v) of Section 4.04(a) and (ii) with respect to each Collection Period (or portion thereof) that occurs during a Controlled Accumulation Period or Early Amortization
Period, shall not be in excess of the lesser of (1) the aggregate of the Available Series Interest Collections for such Collection Period, plus the Available Series Principal Collections for such Collection Period, less the Monthly Servicing
Fee for such Collection Period and (2) the aggregate amount necessary to make the allocations and distributions required by (x) clauses (ii) through (v) of Section 4.04(a) and (y) Section 4.04(d) or 4.04(e), as
applicable, during such Collection Period. The Servicer shall not have any liability for any such calculation made in good faith. Any amount on deposit in the Note Defeasance Account on any Distribution Date (after giving effect to all deposits
therein or withdrawals therefrom on such Distribution Date) shall remain on deposit in the Note Defeasance Account for distribution on the next Distribution Date in accordance with this Indenture Supplement. 

(l) No later than 10:00 am Central time on each Business Day on which amounts are to be withdrawn from the Collection Account or the Note
Distribution Account and deposited into the Note Defeasance Account pursuant to Section 4.04(k), the Servicer shall notify the Indenture Trustee of the sources and amounts to be deposited in the Note Defeasance Account on such Business Day and
the Indenture Trustee shall transfer such amount from the Collection Account or the Note Distribution Account, as applicable, to the Note Defeasance Account. 

SECTION 4.05 Series Charge-Offs. 

(a) On each Determination Date, the Servicer shall calculate the Series Defaulted Amount, if any, for the related Distribution Date. If the
Series Defaulted Amount for any Distribution Date exceeds the sum of: 

  
 29 

 (i) the Available Series Interest Collections for such Distribution Date applied
to fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi); 
 (ii) the Excess Interest
Collections available from other outstanding Series in Excess Interest Sharing Group One for such Distribution Date applied to fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi) in accordance with
Section 4.04(b)(i); 
 (iii) the Reserve Fund Available Amount for such Distribution Date applied
to fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi) in accordance with Section 4.04(b)(ii) (after giving effect to the application of such amounts to items (i) through (v) in
Section 4.04(a)); and 
 (iv) the amount of Servicer Advances for such Distribution Date applied to
fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi) in accordance with Section 4.04(b)(iv); 

then, a “Series Charge-Off” in the amount of such excess shall exist for such Distribution
Date and shall reduce the Invested Amount. 
 (b) The reduction in the Invested Amount for such Distribution Date due to such Series Charge-Off shall be allocated as follows: 
 (i) first, the Class E Invested Amount
shall be reduced by the amount of such reduction until the Class E Invested Amount is reduced to zero; then 
 (ii)
second, the Class D Invested Amount shall be reduced by any remaining amount until the Class D Invested Amount is reduced to zero; then 

(iii) third, the Class C Invested Amount shall be reduced by any remaining amount until the Class C Invested Amount
is reduced to zero; then 
 (iv) fourth, the Class B Invested Amount shall be reduced by any remaining amount until the
Class B Invested Amount is reduced to zero; and then 
 (v) fifth, the Class A Invested Amount shall be reduced by
any remaining amount until the Class A Invested Amount is reduced to zero. 
 SECTION 4.06 Reallocated Principal
Collections. 
 On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee by written instruction to the
Indenture Trustee to apply, the portion of Reallocated Principal Collections specified in Section 4.04(b)(iii) from the following sources and in the following order of priority, (i) first, Additional Available Series
Principal Collections for that Distribution Date available in accordance with Section 4.04(f), (ii) second, Series Principal Collections for that date, (iii) third, amounts on deposit in the Note Defeasance Account (to
the extent such 

  
 30 

 
funds are used to cover shortfalls in the distributions required under clauses (ii) through (v) of Section 4.04(a)), and (iv) fourth, amounts on deposit in the
Note Distribution Account for the payment of principal (first for the Class E Notes, then for the Class D Notes, then for the Class C Notes, then for the Class B Notes and then for the Class A Notes), but not in excess of
the amounts specified in the definition of “Reallocated Principal Collections,” in accordance with Section 4.04(b)(iii). If, on any Distribution Date, Reallocated Principal Collections for such Distribution Date
are so applied, then the Invested Amount shall be reduced by the amount of such application and, if such amounts are from withdrawals from the Note Distribution Account or the Note Defeasance Account, those amounts shall be deemed not to have been
allocated or deposited into the Note Distribution Account or the Note Defeasance Account, as applicable, for purposes of this Indenture Supplement. The reduction in the Invested Amount for such Distribution Date due to the application of such
Reallocated Principal Collections shall be allocated as follows: 
 (a) first, the Class E Invested Amount shall be reduced by the
amount of such reduction until the Class E Invested Amount is reduced to zero; then 
 (b) second, the Class D Invested Amount
shall be reduced by any remaining amount until the Class D Invested Amount is reduced to zero; then 
 (c) third, the Class C
Invested Amount shall be reduced by any remaining amount until the Class C Invested Amount is reduced to zero; then 
 (d) fourth, the
Class B Invested Amount shall be reduced by any remaining amount until the Class B Invested Amount is reduced to zero; and then 

(e) fifth, the Class A Invested Amount shall be reduced by any remaining amount until the Class A Invested Amount is reduced to zero.

 SECTION 4.07 Excess Interest Collections. 

Subject to Section 8.05(b) of the Indenture, Excess Interest Collections with respect to the Excess Interest Sharing
Series in Excess Interest Sharing Group One for any Distribution Date shall be allocated to Series 2017-2 in an amount equal to the product of (i) the aggregate amount of Excess Interest Collections with
respect to all the Excess Interest Sharing Series in Excess Interest Sharing Group One for such Distribution Date and (ii) a fraction, the numerator of which is the Interest Collections Shortfall for Series
2017-2 for such Distribution Date and the denominator of which is the aggregate amount of Interest Collections Shortfalls for all the Excess Interest Sharing Series in Excess Interest Sharing Group One for
such Distribution Date. The “Interest Collections Shortfall” for Series 2017-2 for any Distribution Date shall equal the excess, if any, of (a) the full amount required to be paid,
without duplication, pursuant to clauses (i) through (xi) of Section 4.04(a) on such Distribution Date, over (b) the Available Series Interest Collections for such Distribution Date. The
maximum amount of “Excess Interest Collections” with respect to Series 2017-2 for any Distribution Date available for other Series in Excess Sharing Group One shall equal the excess, if any,
of (a) the Available Series Interest Collections for such Distribution Date over (b) the full amount required to be distributed, without duplication, pursuant to clauses (i) through (xi) of
Section 4.04(a) on such Distribution Date. 

  
 31 

 SECTION 4.08 Shared Principal Collections. 

Subject to Section 8.5(c) of the Indenture, the aggregate amount of Shared Principal Collections with respect to the
Principal Sharing Series in Principal Sharing Group One for any date shall be allocated to Series 2017-2 in an amount equal to the product of (i) the aggregate amount of Shared Principal Collections,
times (ii) a fraction, the numerator of which is the Principal Shortfall for Series 2017-2 for such date and the denominator of which is the aggregate amount of Principal Shortfalls for all the
Principal Sharing Series in Principal Sharing Group One for such date. The “Principal Shortfall” for Series 2017-2 shall equal (a) for any date in the Revolving Period, zero, (b) for
any date in the Controlled Accumulation Period, the amount to be deposited or distributed pursuant to Sections 4.04(d) over the amount previously deposited or distributed pursuant to that subsection, and (c) for any date in the Early
Amortization Period, the amount to be deposited or distributed pursuant to Section 4.04(e) over the amount previously deposited or distributed pursuant to that subsection. The “Shared Principal Collections” with respect
to Series 2017-2 for any date shall equal the excess, if any, of (a) the Available Series Principal Collections for such date (without giving effect to clause (ii) of the definition thereof)
over (b) the full amount required to be deposited or distributed, without duplication, pursuant to Sections 4.04(c), (d) or (e) on such date. 

SECTION 4.09 Reinstatement of Invested Amount. 

(a) The Invested Amount shall be reinstated on any Distribution Date by the amount of any Available Series Interest Collections that are
applied pursuant to Section 4.04(a)(vi), (vii), (viii) and (ix). This amount shall be applied as follows: 

(i) first, if the Class A Invested Amount has been reduced pursuant to Sections 4.05 or 4.06, to the
Class A Invested Amount until it equals the Class A Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account (excluding, in each case, amounts representing Investment
Proceeds) allocated to it; then 
 (ii) second, if the Class B Invested Amount has been reduced pursuant to Sections
4.05 or 4.06, to the Class B Invested Amount until it equals the Class B Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account (excluding amounts
representing Investment Proceeds) allocated to it; then 
 (iii) third, if the Class C Invested Amount has been reduced
pursuant to Sections 4.05 or 4.06, to the Class C Invested Amount until it equals the Class C Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account
(excluding, in each case, amounts representing Investment Proceeds) allocated to it; then 

  
 32 

 (iv) fourth, if the Class D Invested Amount has been reduced pursuant to
Sections 4.05 or 4.06, to the Class D Invested Amount until it equals the Class D Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account (excluding, in
each case, amounts representing Investment Proceeds) allocated to it; and then 
 (v) fifth, if the Class E Invested
Amount has been reduced pursuant to Sections 4.05 or 4.06, to the Class E Invested Amount until it equals the Required Class E Invested Amount. 

SECTION 4.10 Note Distribution Account. 

(a) The Servicer, for the benefit of the Noteholders, shall establish and maintain with the Indenture Trustee in the name of the Indenture
Trustee, on behalf of the Issuing Entity, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of the Noteholders (the
“Note Distribution Account”). The Indenture Trustee shall possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit
and other property from time to time on deposit in or credited to the Note Distribution Account and in all Investment Proceeds with respect thereto (including any accrued discount realized on liquidation of any investment purchased at a discount)
for the benefit of the Noteholders. Except as expressly provided in this Indenture Supplement and the Trust Sale and Servicing Agreement, the Servicer agrees that it has no right of setoff or banker’s lien against, and no right to otherwise
deduct from, any funds and other property held in the Note Distribution Account for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any Series Enhancer. The Indenture Trustee, at the written direction of the
Servicer, shall make deposits and withdrawals from the Note Distribution Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement. 

(b) Funds on deposit in the Note Distribution Account shall, at the written direction of the Servicer, be invested by the Indenture Trustee
(including a Securities Intermediary) in Eligible Investments selected by the Servicer. All such Eligible Investments shall be held by the Indenture Trustee or its nominee for the benefit of the Noteholders. The Indenture Trustee shall cause each
Eligible Investment to be delivered to it (including a Securities Intermediary) and credited to the Note Distribution Account. On each Distribution Date, all Investment Proceeds on deposit in the Note Distribution Account shall be treated as
Available Series Interest Collections with respect to the related Collection Period. The Indenture Trustee shall bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in accordance with this
Section 4.10(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Trust Sale and Servicing Agreement. 

  
 33 

 SECTION 4.11 Reserve Fund. 

(a) The Servicer, for the benefit of the Series 2017-2 Noteholders, shall establish and maintain with
the Indenture Trustee or its nominee in the name of the Indenture Trustee, on behalf of the Issuing Entity, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property
credited thereto are held for the benefit of the Series 2017-2 Noteholders (the “Reserve Fund”). The Indenture Trustee shall possess all right, title and interest in all Eligible Investments
and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Reserve Fund and in all interest, proceeds, earnings, income, revenue,
dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount) for the benefit of the Series 2017-2 Noteholders. Except as
expressly provided in this Indenture Supplement and the Trust Sale and Servicing Agreement, the Servicer agrees that it has no right of setoff or banker’s lien against, and no right to otherwise deduct from, any funds and other property held in
the Reserve Fund for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any Series Enhancer. The Indenture Trustee, at the written direction of the Servicer, shall make deposits to and withdrawals from the Reserve
Fund from time to time in the amounts and for the purposes set forth in this Indenture Supplement. 
 (b) Funds on deposit in the Reserve
Fund shall, at the written direction of the Servicer, be invested by the Indenture Trustee or its nominee (including the Securities Intermediary) in Eligible Investments. All such Eligible Investments shall be held by the Indenture Trustee or its
nominee for the benefit of the Series 2017-2 Noteholders. The Indenture Trustee shall cause each Eligible Investment to be delivered to it or its nominee (including a securities intermediary) and shall be
credited to the Reserve Fund. Funds on deposit in the Reserve Fund shall be invested in Eligible Investments. On each Distribution Date, all Investment Proceeds on deposit in the Reserve Fund shall be treated as Available Series Interest Collections
for such Distribution Date. The Indenture Trustee shall bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in accordance with this Section 4.11(b) nor for the selection
of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Trust Sale and Servicing Agreement. 

(c) The Reserve Fund initially shall be funded by the Depositor on the Closing Date in the amount of the Reserve Fund Initial Amount. After the
Closing Date, funds shall be deposited into the Reserve Fund as provided in Section 4.04(a)(x). The Depositor may at any time and from time to time make additional deposits into the Reserve Fund; provided,
however, the Depositor shall not be permitted to make any such discretionary deposit without satisfaction of the Series 2017-2 Rating Agency Condition with respect to each Class of Series 2017-2 Notes in connection therewith if such deposit, together with any discretionary increases in the Subordination Factor and the Class E Invested Amount, would result in the aggregate amount of all such
deposits and increases exceeding 5.0% of the Note Principal Balance as of the date of such deposit. 

  
 34 

 (d) If on any Distribution Date, after giving effect to all withdrawals from and deposits to the
Reserve Fund, the amount on deposit in the Reserve Fund (excluding amounts representing Investment Proceeds) exceeds the Reserve Fund Required Amount then in effect, the Indenture Trustee shall, at the written direction of the Servicer, distribute
such excess to the Owner Trustee for distribution to the holders of the Certificate Interest in accordance with the Trust Agreement. 
 (e)
Upon the earlier to occur of the date on which the Series 2017-2 Notes are paid in full and the Series 2017-2 Legal Maturity Date, any funds remaining in the Reserve
Fund, after giving effect to any deposits and withdrawals made therefrom on such date, shall be distributed to the Owner Trustee for distribution to the holders of the Certificate Interest in accordance with the Trust Agreement. The Reserve Fund
shall thereafter be deemed to have terminated for purposes of this Indenture Supplement. 
 SECTION 4.12 Determination of LIBOR.

 (a) On each LIBOR Determination Date, the Indenture Trustee shall determine LIBOR on the basis of the rate for deposits in United States
dollars for a one-month period which appears on Bloomberg Screen BBAM Page as of 11:00 a.m., London time, on such date. If such rate does not appear on such page (or such other page as may replace that page on
that service, or if such service is no longer offered, such other service for displaying LIBOR or comparable rates as may be selected by the Indenture Trustee after consultation with the Depositor), the rate shall be the One Month Reference Bank
Rate. The “One Month Reference Bank Rate” shall be determined on the basis of the rates at which deposits in U.S. dollars are offered by the reference banks (which shall be four major banks that are engaged in transactions in the
London interbank market, selected by the Indenture Trustee after consultation with the Depositor) as of 11:00 a.m., London time, on the applicable LIBOR Determination Date to prime banks in the London interbank market for a period of one month
commencing on such preceding Distribution Date in amounts approximately equal to the principal balance of the Series 2017-2 Notes. The Indenture Trustee shall request the principal London office of each of the
reference banks to provide a quotation of its rate. If at least two such quotations are provided, the rate shall be the arithmetic mean of the quotations, rounded upwards to the nearest one-sixteenth of one
percent. If on any such date fewer than two quotations are provided as requested, the rate shall be the arithmetic mean, rounded upwards to the nearest one-sixteenth of one percent, of the rates quoted by one
or more major banks in New York, selected by the Indenture Trustee after consultation with the Depositor, as of 11:00 a.m., New York time, on such date to leading European banks for U.S. dollar deposits for a period of one month commencing on such
applicable date in amounts approximately equal to the then outstanding principal balance of the Series 2017-2 Notes. If no such quotation can be obtained, the rate shall be LIBOR for the prior
Distribution Date. 

  
 35 

 (b) On each LIBOR Determination Date, the Indenture Trustee shall send to the Servicer, the
Issuing Entity and the Administrator, by facsimile or email transmission, notification of LIBOR for the following Interest Period. 
 (c) The
Servicer shall provide, in the Monthly Statement, the Class A Note Interest Rate, the Class B Note Interest Rate, the Class C Note Interest Rate and the Class D Note Interest Rate applicable to each Distribution Date. 

(d) Other than the determination of LIBOR as provided for herein, all other determinations and calculations provided for in this Indenture
Supplement shall be made by the Servicer. 
 SECTION 4.13 Account Holder. 

Notwithstanding 8.3(e)(i) or any other provision of the Indenture, it shall not be permissible to maintain a Designated Account in or move a
Designated Account to the corporate trust department of the Account Holder unless the Account Holder or any securities issued by the Account Holder have a long term debt rating from Standard & Poor’s of not less than “A”.

 SECTION 4.14 Transfer Restrictions. 

(a) The Class E Notes (or interests therein) may not be acquired by or for the account of (i) a Benefit Plan other than an insurance
company general account (as defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) whose underlying assets include less than 25% “plan assets”, who is not and is not an
affiliate of a person that has discretionary authority or control with respect to the assets of the Issuing Entity or provides investment advice for a fee (direct or indirect) with respect to the assets of the Issuing Entity, and for which the
purchase and holding of the Class E Notes is eligible for and satisfied all conditions for relief under PTCE 95-60 or (ii) an employee benefit plan or plan that is not subject to the provisions of
Title I of ERISA or Section 4975 of the Code if such acquisition would result in a non-exempt prohibited transaction under, or a non-exempt violation of, any
applicable law that is substantially similar to Title I of ERISA or Section 4975 of the Code. By accepting and holding a Class E Note (or interest therein), the Holder thereof and any related Note Owner shall each be deemed to have
represented and warranted that it is not, nor is it acquiring the Note for the account of either, (i) a Benefit Plan other than an insurance company general account (as defined in PTCE 95-60) whose
underlying assets include less than 25% “plan assets”, who is not and is not an affiliate of a person that has discretionary authority or control with respect to the assets of the Issuing Entity or provides investment advice for a fee
(direct or indirect) with respect to the assets of the Issuing Entity, and for which the purchase and holding of the Class E Notes is eligible for and satisfied all conditions for relief under PTCE 95-60
or (ii) an employee benefit plan or plan that is not subject to the provisions of Title I of ERISA or Section 4975 of the Code if such acquisition would result in a non-exempt prohibited transaction
under, or a non-exempt violation of, any applicable law that is substantially similar to Title I of ERISA or Section 4975 of the Code. By accepting and holding a Class A Note, Class B Note,
Class C Note or Class D Note 

  
 36 

 
(or interest therein), the Holder thereof and any related Note Owner shall be deemed to have represented and warranted that either (i) it is not, nor is it acquiring the Note for the account
of, a Benefit Plan or any other plan that is subject to any law that is substantially similar to Title I of ERISA or Section 4975 of the Code or (ii) the acquisition and holding of the Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a non-exempt violation of substantially similar law. In addition, Benefit
Plans may not acquire a Class A Note, Class B Note, Class C Note, or Class D Note at any time that such Note is rated below investment grade. By accepting and holding a Class A Note, Class B Note, Class C Note or
Class D Note (or interest therein), the Holder thereof and any related Note Owner shall each be deemed to have represented and warranted that its acquisition of such note is in compliance with the foregoing restriction. 

(b) By accepting and holding a Series 2017-2 Note (or interest therein), the Holder thereof and any
related Note Owner that is a Benefit Plan, including any Plan Fiduciary shall be deemed to have represented and warranted that: (i) the Depositor, the Sponsor, the Servicer, the Issuing Entity, the Owner Trustee, the Indenture Trustee,
the underwriters or any of their respective affiliates (collectively, the “Transaction Parties”) have not provided nor will provide advice with respect to the acquisition of the Series 2017-2
Notes by the Benefit Plan, other than to the Plan Fiduciary which is independent of the Transaction Parties, and the Plan Fiduciary either: (A) is a bank as defined in Section 202 of the Investment Advisers Act of 1940, as amended (the
“Advisers Act”), or similar institution that is regulated and supervised and subject to periodic examination by a U.S. state or U.S. federal agency, (B) is an insurance carrier which is qualified under the laws of more than one
U.S. state to perform the services of managing, acquiring or disposing of assets of an “employee benefit plan” as defined in Section 3(3) of ERISA or “plan” described in Section 4975 of the Code, (C) is an
investment adviser registered under the Advisers Act, or, if not registered an as investment adviser under the Advisers Act by reason of paragraph (1) of Section 203A of the Advisers Act, is registered as an investment adviser under the
laws of the U.S. state in which it maintains its principal office and place of business, (D) is a broker-dealer registered under the Exchange Act or (E) holds, or has under its management or control, total assets of at least U.S.
$50 million (provided that this clause (E) shall not be satisfied if the Plan Fiduciary is an individual directing his or her own individual retirement account or plan account or relative of such individual); (ii) the Plan Fiduciary is
capable of evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies, including the acquisition by the Benefit Plan of the Series 2017-2
Notes; (iii) the Plan Fiduciary is a “fiduciary” with respect to the Benefit Plan within the meaning of Section 3(21) of ERISA, Section 4975 of the Code, or both, and is responsible for exercising independent judgment in
evaluating the Benefit Plan’s acquisition of the Series 2017-2 Notes, (iv) none of the Transaction Parties has exercised any authority to cause the Benefit Plan to invest in the Series 2017-2 Notes or to negotiate the terms of the Benefit Plan’s investment in the Series 2017-2 Notes; and (v) the Plan Fiduciary has been informed by the Transaction
Parties: (x) that none of the Transaction Parties is undertaking to provide impartial investment advice or to give advice in a fiduciary capacity, and that no such entity has given investment advice or otherwise made a recommendation, in
connection with the Benefit Plan’s acquisition of the Series 2017-2 Notes and (y) of the existence and nature of the Transaction Parties’ financial interests in the Benefit Plan’s
acquisition of the Series 2017-2 Notes. 

  
 37 

 (c) The Series 2017-2 Private Notes will not be
registered under the Securities Act or the securities or blue sky laws of any other jurisdiction. Consequently, the Series 2017-2 Private Notes are not transferable other than pursuant to an exemption from the
registration requirements of the Securities Act and satisfaction of certain other provisions specified herein. No sale, pledge or other transfer of the Series 2017-2 Private Notes (or interest therein) may be
made by any Person unless either (i) such sale, pledge or other transfer is made to or by the Depositor, (ii) so long as the Series 2017-2 Private Notes are eligible for resale pursuant to Rule 144A
under the Securities Act, such sale, pledge or other transfer is made to a person whom the transferor “reasonably believes” within the meaning of Rule 144A under the Securities Act is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act (a “Qualified Institutional Buyer”) acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others also are Qualified Institutional
Buyers) to whom notice is given that the sale, pledge or transfer is being made in reliance on Rule 144A under the Securities Act, or (iii) such sale, pledge or other transfer is otherwise made in a transaction exempt from the registration
requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify to the Indenture Trustee and the Depositor in writing the facts surrounding
such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Depositor, and (B) the Indenture Trustee shall require a written opinion of counsel (which will not be at the expense of the Issuing
Entity, the Seller, the Depositor, the Servicer or the Indenture Trustee) satisfactory to the Depositor and the Indenture Trustee to the effect that such transfer will not violate the Securities Act. Neither the Depositor nor the Indenture Trustee
shall be obligated to register the Series 2017-2 Private Notes under the Securities Act, qualify the Series 2017-2 Private Notes under the securities laws of any state
or provide registration rights to any purchaser or holder thereof. 
 (d) Transfer of a Class E Note may only be made to a Person who is
a United States Person (within the meaning of Section 7701(a)(30) of the Internal Revenue Code). Any Person acquiring a Class E Note or an interest therein (i) shall not be deemed to have made the representations set forth in
Section 2.14 of the Indenture and (ii) other than the Depositor shall not acquire or hold such Class E Note or interest therein in the form of a Book Entry Note. 

(e) No sale, pledge or other transfer may be made to any one person of a Class E Note with a face amount of less than the amount
determined in accordance with Section 1.01(E) hereof (in order to prevent the Issuing Entity from being treated as a “publicly traded partnership” under Section 7704 of the Code), and, in the case of any
Person acting on behalf of one or more third parties (other than a bank (as defined in Section 3(a)(2) of the Securities Act) acting in its fiduciary capacity), for a Class E Note with a face amount of less than such amount for each such
third party. Any attempted transfer in contravention of the immediately preceding 

  
 38 

 
restriction will be void ab initio and the purported transferor will continue to be treated as the owner of the Class E Notes for all purposes. No Class E Note may be transferred
unless the transferor provides to the Indenture Trustee an opinion of independent counsel that the transfer will not cause the Issuing Entity to be treated as an association (or publicly traded partnership) taxable as a corporation for federal
income tax purposes. 
 (f) (i) A sale, pledge, or transfer of a Class B Note, Class C Note or Class D Note may only be made
to a Person who is a United State Person (within the meaning of Section 7701(a)(30) of the Internal Revenue Code). A Person other than the Depositor acquiring a Class B Note, Class C Note or Class D Note or an interest therein
shall be deemed to have made the representations set forth in Section 2.14 of the Indenture; and (ii) no sale, pledge, or transfer of a Class B Note, Class C Note or Class D Note shall be made
(x) to any one person with a face amount of less than 100% of the Class B Note Principal Balance, Class C Note Principal Balance or Class D Note Principal Balance, as applicable, or (y) to a Special Pass-Through Entity, in each case, unless (A) an opinion of counsel satisfactory to the Indenture Trustee and the Depositor that such sale, pledge, or transfer shall not cause the Issuing Entity to be treated
as an association (or publicly traded partnership) taxable as a corporation for federal income tax purposes shall have been delivered to the Indenture Trustee and the Depositor and (B) the Depositor shall have provided prior written approval;
provided, however, that the restrictions in this Section 4.14(e) shall not apply in the event counsel satisfactory to the Indenture Trustee and the Depositor has rendered an opinion to the effect that the
Class B Note, Class C Note or Class D Note to be sold, pledged, or transferred will be characterized as indebtedness for federal income tax purposes. Any attempted transfer in contravention of this
Section 4.14(e) will be void ab initio and the purported transferor will continue to be treated as the owner of, as applicable, the Class B Note, Class C Note or Class D Note for all purposes. 

SECTION 4.15 Note Defeasance Account. 

(a) The Indenture Trustee, for the benefit of the Series 2017-2 Noteholders, shall establish and
maintain in the name of the Indenture Trustee, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of the Series 2017-2 Noteholders (the “Note Defeasance Account”). The Indenture Trustee shall possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities,
securities entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Note Defeasance Account for the benefit of the Series 2017-2 Noteholders (other
than Investment Proceeds, which shall be for the benefit of the Indenture Trustee). Except as expressly provided in this Indenture Supplement, the Servicer agrees that it has no right of setoff or banker’s lien against, and no right to
otherwise deduct from, any funds and other property held in the Note Defeasance Account for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any Series Enhancer. The Indenture Trustee, at the written direction of
the Servicer, shall make deposits and withdrawals from the Note Defeasance Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement. 

  
 39 

 (b) Funds on deposit in the Note Defeasance Account shall, at the direction or election of the
Indenture Trustee, be invested by the Indenture Trustee (including the Securities Intermediary) in Eligible Investments that mature prior to the next Distribution Date selected by the Indenture Trustee. All such Eligible Investments shall be held by
the Indenture Trustee or its nominee for the benefit of the Series 2017-2 Noteholders. The Indenture Trustee shall cause each Eligible Investment to be delivered to it (including the Securities Intermediary)
and shall be credited to the Note Defeasance Account. Notwithstanding anything to the contrary in the Indenture, the Indenture Trustee shall be entitled to receive all Investment Proceeds on the Note Defeasance Account when and as paid without any
obligation to the Owner Trustee, the Servicer or the Depositor in respect thereof. The Indenture Trustee will have no obligation to deposit any such amount in any account established hereunder or the Indenture. Notwithstanding Sections 6.1(f)
and 8.3(f) of the Indenture, the Indenture Trustee shall be liable for any investment losses with respect to funds on deposit in the Note Defeasance Account. 

(c) All payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Note Defeasance
Account pursuant to this Indenture Supplement shall be made by the Indenture Trustee or by another Paying Agent from available funds on deposit in the Note Defeasance Account. 

(d) Upon the irrevocable deposit of any amount into the Note Defeasance Account pursuant to this Indenture Supplement, the Issuing Entity shall
have no further liability for, and shall be deemed to be discharged and released from its obligations with respect to, the Series 2017-2 Notes to the extent of the amount so deposited as such amounts are to be
applied to the payments of interest on and principal of the Series 2017-2 Notes in accordance with the priorities specified in this Indenture Supplement, and the Holders of the Series 2017-2 Notes shall have recourse and shall look solely to the Note Defeasance Account for the payment of such amounts. 

(e) All monies deposited with the Indenture Trustee in the Note Defeasance Account pursuant to this Indenture Supplement shall be held in trust
in a segregated trust account and (except for Investment Proceeds thereon) applied by the Indenture Trustee, in accordance with the provisions of the Series 2017-2 Notes and this Indenture Supplement, to the
payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of Series 2017-2 Notes for payment on or redemption of the Series
2017-2 Notes, and no amounts so withdrawn from the Note Defeasance Account for payments of Notes shall be paid over to the Issuing Entity. 

(f) The Indenture Trustee may, at such time as there are no Notes Outstanding, notify the Issuing Entity thereof in writing and withdraw and
retain any funds then on deposit in the Note Defeasance Account. 
 (g) Sections 8.3(f) and (g) of the Indenture shall not
apply to the Note Defeasance Account. 

  
 40 

 (h) The Note Defeasance Account shall constitute a “Note Distribution Account” solely
for purposes of Sections 2.7, 3.1, 3.3(b), and 10.1 of the Indenture. 
 SECTION 4.16 FATCA.

 Each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees to provide to the
Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or
holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements of the preceding sentence. 

SECTION 4.17 Asset Representations Review. 

(a) Within 90 days of publication that the Downgrade Trigger has been met or exceeded in the Monthly Statement, the Series 2017-2 Noteholder holders of 5% or more of the Outstanding Amount of Series 2017-2 Notes shall be entitled to demand in accordance with Section 12.4
of the Indenture that the Indenture Trustee conduct a vote of all Series 2017-2 Noteholders and Series 2017-2 Note Owners to determine whether to cause the Asset
Representations Reviewer to conduct an Asset Representations Review; provided that for the purpose of determining the holders of the Outstanding Amount of the Series 2017-2 Notes, any Notes held by Ally
Bank, Ally Financial or any of their Affiliates shall not be included in such calculation. 
 (b) Upon the direction of the requisite Series 2017-2 Noteholders or Series 2017-2 Note Owners set forth in Section 4.17(a), the Indenture Trustee shall cause the Note Depository to conduct a vote
of all Series 2017-2 Noteholders. The Indenture Trustee shall provide to the Servicer the voting instructions and procedures applicable to the Series 2017-2 Noteholders
to be included in the Monthly Statement related to the monthly period in which the Series 2017-2 Noteholders demand that a vote be conducted. Each Series 2017-2
Noteholder that elects to vote shall vote whether or not the Asset Representations Reviewer should be directed to conduct an Asset Representations Review. The Indenture Trustee will notify the Series 2017-2
Noteholders and Series 2017-2 Note Owners by posting a notice to vote on its website for at least 150 days after the filing of the Monthly Statement indicating that the Downgrade Trigger has been met or
exceeded, and the Series 2017-2 Noteholders and Series 2017-2 Note Owners shall be permitted to vote for at least 150 days after such filing. 

(c) In the event that a Series 2017-2 Note Owner exercises its right to vote such Series 2017-2 Note Owner’s beneficial interest, the Indenture Trustee shall verify that each such Series 2017-2 Note Owner is a Verified Note Owner and shall provide such
evidence to the Issuing Entity. The Note Depository shall provide to the Series 2017-2 Note Owners the voting instructions and procedures applicable to the Series 2017-2
Note Owners. 

  
 41 

 (d) If holders of a majority of the Series 2017-2 Notes
by Outstanding Amount voting pursuant to Section 4.17(b) vote to cause the Asset Representations Reviewer to conduct an Asset Representations Review, the Indenture Trustee shall provide a notice to the Administrator on
behalf of the Issuing Entity (the “Asset Representations Review Notice”), which shall promptly provide such Asset Representations Review Notice to the Depositor and the Servicer. The Depositor shall promptly deliver to the Seller
any Asset Representations Review Notice and the Servicer shall disclose on the Monthly Statement relating to the monthly period in which the Asset Representations Review commences that the Asset Representations Review has been initiated. Each of the
Depositor and the Issuing Entity agrees to cooperate with the Asset Representations Reviewer, the Servicer and the Seller with respect to any Asset Representations Review commenced in accordance with this Section 4.17. 

(e) The Indenture Trustee shall cooperate with the Asset Representations Reviewer in the event an Asset Representations Review is commenced
pursuant to Section 4.17(d) and shall provide the Asset Representations Reviewer with any documents or other information reasonably requested by the Asset Representations Reviewer in connection with the Asset
Representations Review. In accordance with Section 4.3 of the Trust Sale and Servicing Agreement and Sections 3(b) and (c) of the Custodian Agreement, the Servicer and the Custodian, respectively, shall provide the Asset Representations
Reviewer (if an Asset Representations Review Notice has been delivered) access to the documentation regarding the Receivables pursuant to the Trust Sale and Servicing Agreement and the Receivables Files and the related accounts, records and computer
systems maintained by the Custodian pursuant to the Custodian Agreement and release to the Asset Representations Reviewer any Receivable (and its related Receivables File) to the Asset Representations Reviewer to enable the Asset Representations
Reviewer to perform its obligations under the Asset Representations Review Agreement. 
 (f) If the Asset Representations Reviewer gives
notice of its intent to resign or the Administrator on behalf of the Issuing Entity terminates the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement or if a vacancy exists in the office of the Asset
Representations Reviewer for any reason (the Asset Representations Reviewer in such event being referred to herein as the retiring Asset Representations Reviewer), the Administrator on behalf of the Issuing Entity shall promptly appoint and
designate a successor Asset Representations Reviewer; provided, however that such successor Asset Representations Review shall not be an Affiliate of any of the Seller, the Administrator, the Depositor, the Issuing Entity, the
Servicer, any Third Party Due Diligence Provider, the Owner Trustee or the Indenture Trustee. The Administrator on behalf of the Issuing Entity shall deliver a written notice to the Depositor, the Servicer and the Seller of the acceptance of a
successor Asset Representations Reviewer. In the event that an Asset Representations Review has commenced at the time the retiring Asset Representations Reviewer resigns or a vacancy exists, the Administrator on behalf of the Issuing Entity shall
cause the retiring Asset Representations Reviewer to provide the successor Asset Representations Reviewer with any information relating to the Asset Representations Review. 

(g) The Seller shall (i) at all times while any Series 2017-2 Notes that have been registered
under the Securities Act or the securities laws of any other jurisdiction remain Outstanding, ensure that an Asset Representations Reviewer is appointed, (ii) cooperate with the Asset Representations Reviewer in creating procedures for a review
of the representations and 

  
 42 

 
warranties set forth in Section 4.01(a) of the Pooling and Servicing Agreement, (iii) provide the Asset Representations Reviewer with the Asset Representations Review Notice and
(iv) provide the Asset Representations Reviewer with reasonable access to the Seller’s offices and information databases upon the initiation of an Asset Representations Review. 

(h) Upon receipt of a final report from the Asset Representations Reviewer, the Seller and the Depositor shall review any Accounts and
Receivables with respect to which the Asset Representations Reviewer has determined that a breach of a representation or warranty set forth in Section 4.01(a) of the Pooling and Servicing Agreement has occurred and determine whether a
repurchase of such Receivables is required pursuant to Section 4.01(c) of the Pooling and Servicing Agreement or Section 2.5 of the Trust Sale and Servicing Agreement. The Series 2017-2 Noteholders
shall have the right to request from the Sponsor a copy of the final report prepared by the Asset Representations Reviewer. 

SECTION 4.18 Unfulfilled Repurchase Demands; Dispute Resolution. 

(a) Unfulfilled Repurchase Demands. If the Indenture Trustee receives a written request (which request from the Owner Trustee, the
Indenture Trustee, any Series 2017-2 Note Owner or any Series 2017-2 Noteholder shall set forth (i) each Account and Receivable that is subject to a Repurchase
Request, (ii) the specific representation or warranty contained in Section 4.01(c) of the Pooling and Servicing Agreement it alleges was breached, (iii) the loss that occurred as a result of such breach and (iv) the material and
adverse effect of such breach on the interests of the Issuing Entity and, with respect to a request from a Series 2017-2 Noteholder or a Series 2017-2 Note Owner, such
request shall initially be provided to the Indenture Trustee to repurchase a Receivable pursuant to Section 2.5 of the Trust Sale and Servicing Agreement) (each, a “Repurchase Request”), and the Depositor or the Seller does not
repurchase the Receivables related to such Repurchase Request within 180 days of the receipt of such Repurchase Request, the Indenture Trustee shall deliver a Repurchase Response Notice to the related 2017-2
Noteholder or 2017-2 Note Owner. 
 (b) In the event the Depositor fails to repurchase a Receivable
pursuant to Section 2.5 of the Trust Sale and Servicing Agreement, or fails to cause the Seller to repurchase a Receivable pursuant to Section 4.01(c) of the Pooling and Servicing Agreement, within 180 days of the delivery of the
Repurchase Request and such Repurchase Request has not been resolved, the alleged breach has not otherwise been cured or the related Receivable has not otherwise been repurchased, the party that provided the Repurchase Request pursuant to
Section 2.5 of the Trust Sale and Servicing Agreement (the “Requesting Party”) may refer the Repurchase Request to an ADR Proceeding, at its discretion, pursuant to Section 4.18(c) by filing in
accordance with AAA Rules and providing a notice to the Sponsor and the Depositor at securitization@ally.com, in the case of the Series 2017-2 Noteholders, or by contacting the Indenture Trustee in accordance
with Section 12.4 of the Indenture, in the case of the Series 2017-2 Note Owners; provided, however, that any such referral of a Repurchase Request shall be made
(i) within the applicable statute of limitations period and (ii) within 30 days of the delivery of the Repurchase Response Notice indicating that the related Repurchase Request has not been resolved; provided further that in
the event an Asset Representations Review has been completed and the Asset Representations Reviewer has determined that the representations and warranties related to an Account or a Receivable with respect to which a Repurchase Request has been made
have been satisfied, the Requesting Party may not refer such Repurchase Request to an ADR Proceeding. 

  
 43 

 (c) Dispute Resolution. 

(i) General. If a Requesting Party provides notice of a referral of a Repurchase Request to an ADR Proceeding, the
Depositor shall respond to such notice within 30 days and submit to the ADR Proceeding requested. Each ADR Proceeding shall take place in New York, New York. 

(ii) Confidentiality. Each ADR Proceeding, including the occurrence of such ADR Proceeding, the nature and amount of any
relief sought or granted and the results of any discovery taken in such ADR Proceeding, shall be kept strictly confidential by each of the Depositor and the Requesting Party, except as necessary in connection with a judicial challenge to or
enforcement of an award, or as otherwise required by law. 
 (iii) Mediation. If the Requesting Party chooses to refer
the Repurchase Request to Mediation, the following provisions shall apply: 
 (1) The Depositor and the Requesting Party shall agree on a
neutral mediator within 15 days of the acknowledgement of the notice set forth in Section 4.18(c)(i); provided, that the mediator shall satisfy each of the following conditions: 

a. the mediator shall be selected from a list of neutral mediators maintained by the AAA; 

b. the mediator shall be an attorney admitted to practice law in the State of New York; and 

c. the mediator shall be an attorney specializing in commercial litigation with at least 15 years of experience; 

provided, however, that if the Depositor and the Requesting Party do not agree on a mediator, a mediator shall be selected by the AAA
in accordance with AAA Rules for appointment of a mediator. 
 (2) The Mediation shall commence no later than 15 Business Days following
selection of a mediator, and shall conclude within 30 days of the start of Mediation. 
 (3) The Depositor and the Requesting Party shall
mutually agree upon the allocation of the expenses incurred in connection with the Mediation; provided, however, that if the Depositor and the Requesting Party do not agree on the allocation of expenses, the expenses shall be determined in
accordance with AAA Rules. 

  
 44 

 (4) If the Depositor and the Requesting Party fail to agree at the completion of the Mediation,
the Requesting Party may submit the Repurchase Request to Arbitration in accordance with Section 4.18(c)(iv) or may seek adjudication of the Repurchase Request in court. 

(iv) Arbitration. If the Requesting Party refers the Repurchase Request to Arbitration, the following provisions shall
apply: 
 (1) The Depositor shall provide a notice of the commencement of such Arbitration and instructions for other Series 2017-2 Noteholders or Series 2017-2 Note Owners to participate in such Arbitration to the Servicer for inclusion in the Monthly Statement. 

(2) The Repurchase Request shall be referred to a panel of three arbitrators (the “Panel”) to be selected as follows: 

a. the Requesting Party shall appoint one arbitrator to the panel within 5 Business Days of providing notice of its selection
of Arbitration; 
 b. the Depositor shall appoint one arbitrator to the panel within 5 Business Days of the Requesting Party
providing notice of its selection of Arbitration; and 
 c. the arbitrators selected pursuant to clauses a and
b will select a third arbitrator within 5 Business Days of the appointment of the second arbitrator; 
 provided, that each
arbitrator shall satisfy each of the following conditions: (i) the arbitrator shall be selected from a list of neutral arbitrators maintained by the AAA, (ii) the arbitrator shall be an attorney admitted to practice law in the State of New
York; and (iii) the arbitrator shall be an attorney specializing in commercial litigation with at least 15 years of experience. 
 (3)
The arbitrator will have the ability to to schedule, hear and determine any motions, including discovery motions, according to New York law, and will do so at the motion of any party. The following procedural time limits shall apply to the
Arbitration: 
 a. discovery shall be completed within 30 days of appointment of the third arbitrator; 

b. the evidentiary hearing on the merits shall commence no later than 60 days following the appointment of the third
arbitrator, and shall proceed for no more than 10 consecutive business days with equal time allotted to each side for the presentation of direct evidence and cross examination; and 

  
 45 

 c. the Panel shall render its decision on the Repurchase Request within 90 days
of the selection of the panel; 
 provided, that in each case, the Panel may modify such time limits if, based on the facts and
circumstances of the particular dispute, good cause exists, there is an unavoidable delay or with the consent of all of the parties. 
 (4)
The following limitations on the Arbitration proceeding shall apply: 
 a. each party shall be limited to two witness
depositions not to exceed five hours; 
 b. each party shall be limited to two interrogatories; 

c. each party shall be limited to one document request; and 

d. each party shall be limited to one request for admissions. 

provided, that in each case, the Panel may modify such time limits if, based on the facts and circumstances of the particular dispute,
good cause exists, there is an unavoidable delay or with the consent of all of the parties. 
 (5) Any briefs submitted in the Arbitration
shall be no more than 10 pages each and shall be limited to (i) initial statements of the case, (ii) discovery motions and (iii) a pre-hearing brief. 

(6) For Receivables on which the related Dealer has made at least 12 monthly payments, the burden of proof for an alleged breach of
representations and warranties shall be clear and convincing evidence of a breach and for all other Receivables, the burden of proof for an alleged breach shall be a preponderance of the evidence. 

(7) The Panel shall decide the Repurchase Request in accordance with this Agreement, including choice-of-law provisions, and the Pooling and Servicing Agreement, including the provisions set forth in Section 4.01(c) thereof. 

(8) The Panel shall not be permitted to award punitive or special damages. 

(9) The Panel shall determine the allocation of the expenses of the Arbitration between the Depositor and the Requesting Party. 

(10) Once the Panel makes a decision with respect to a Receivable, such decision shall be binding on the Interested Parties as to such
Receivable, and such Receivable may not be subject to an additional ADR Proceeding or court adjudication. 
 (11) Judgment on the
Panel’s award will be entered in any court having jurisdiction. 

  
 46 

 (d) The Seller hereby agrees to cooperate with the Interested Parties in any ADR Proceeding
commenced pursuant to this Section 4.18. The Purchaser hereby agrees to provide the Seller with the opportunity to exercise any rights of the Purchaser pursuant to this Section 4.18 with respect to
an ADR Proceeding to the extent a dispute relates to the representations and warranties of the Seller contained in Section 4.01(a) of the Pooling and Servicing Agreement. 

ARTICLE V 
 DELIVERY OF
SERIES 2017-2 NOTES; 
 DISTRIBUTIONS; REPORTS TO SERIES
2017-2 NOTEHOLDERS 
 SECTION 5.01 Delivery and Payment for Series 2017-2 Notes. 
 The Indenture Trustee shall authenticate the Series
2017-2 Notes in accordance with Section 2.2 of the Indenture. The Indenture Trustee shall deliver the Series 2017-2 Notes to the Issuing Entity
when so authenticated. 
 SECTION 5.02 Distributions. 

(a) On each Distribution Date, based solely on the information contained in the Monthly Statement, the Indenture Trustee shall distribute to
each Class A Noteholder, Class B Noteholder, Class C Noteholder and Class D Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture) such Class A
Noteholder’s, Class B Noteholder’s, Class C Noteholder’s and Class D Noteholder’s, respectively, pro rata share of the amounts allocated and available in the Note Distribution Account and the Note Defeasance
Account on such Distribution Date to pay interest on the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes, respectively, pursuant to this Indenture Supplement. 

(b) On the Series 2017-2 Expected Maturity Date and on each Distribution Date with respect to the Early
Amortization Period, based solely on the information contained in the Monthly Statement, from the amounts allocated during the related or any prior Collection Period or, with respect to Additional Available Series Principal Collections, on such or
any prior Distribution Date and available in the Note Distribution Account and the Note Defeasance Account on such Distribution Date to pay principal of the Series 2017-2 Notes pursuant to this Indenture
Supplement, the Indenture Trustee shall distribute: 
 (i) first, pro rata to each Class A Noteholder of record on the
related Record Date (other than as provided in Section 11.2 of the Indenture), principal of the Class A Notes until the Class A Notes have been paid in full, 

(ii) second, pro rata to each Class B Noteholder of record on the related Record Date (other than as provided in
Section 11.2 of the Indenture), principal of the Class B Notes until the Class B Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal with respect
to the Class B Notes unless the Class A Principal Balance is zero, 

  
 47 

 (iii) third, pro rata to each Class C Noteholder of record on the related
Record Date (other than as provided in Section 11.2 of the Indenture), principal of the Class C Notes until the Class C Notes have been paid in full, provided, however, that in no event shall any
amount be paid as principal with respect to the Class C Notes unless the Class A Principal Balance and the Class B Principal Balance are zero, 

(iv) fourth, pro rata to each Class D Noteholder of record on the related Record Date (other than as provided in
Section 11.2 of the Indenture), principal of the Class D Notes until the Class D Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal with respect
to the Class D Notes unless the Class A Principal Balance, the Class B Principal Balance and the Class C Principal Balance are zero, and 

(v) fifth, pro rata to each Class E Noteholder of record on the related Record Date (other than as provided in
Section 11.2 of the Indenture), principal of the Class E Notes until the Class E Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal with respect
to the Class E Notes unless the Class A Principal Balance, the Class B Principal Balance, the Class C Principal Balance and the Class D Principal Balance are zero. 

(c) The distributions to be made pursuant to this Section are subject to the provisions of Sections 2.5 of the Trust Sale and Servicing
Agreement, Section 11.2 of the Indenture and Section 7.01 of this Indenture Supplement. 

(d) Except as provided in Section 11.2 of the Indenture with respect to a final distribution, distributions to Series
2017-2 Noteholders hereunder shall be made by (i) wire transfer (to the account specified by the applicable Noteholder) or check mailed first class, postage prepaid to each Series 2017-2 Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2017-2 Notes registered in the name of the
nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without presentation or surrender of any Series 2017-2 Note or the making of any notation thereon.

 (e) The amount of all distributions and deposits that are required to be made by the Indenture Trustee on each Distribution Date pursuant
to this Section 5.02 shall be set forth in written instructions (which may be in the form of the Monthly Statement) provided by the Servicer to the Indenture Trustee no later than the second Business Day prior to the related Distribution Date.

 (f) Except with respect to the reimbursement of investment losses pursuant to Section 4.15(b), the Indenture
Trustee shall have no duty to make any deposits or distributions or any other payments under this Indenture Supplement unless and until it has sufficient cash to make such payments and it has received written instructions from the Servicer as to
such deposits, distributions and payments. 

  
 48 

 SECTION 5.03 Reports and Statements to Series
2017-2 Noteholders. 
 (a) The Indenture Trustee will make available each month to each Series 2017-2 Noteholder the statements referred to in Section 5.03(b) below (and certain other documents, reports and information regarding the Receivables provided by the Servicer form time to
time) via the Indenture Trustee’s website, with the use of a password provided by the Indenture Trustee. The Indenture Trustee’s website will be located at www.CTSLink.com or at such other address as the Indenture Trustee shall notify the
Series 2017-2 Noteholders from time to time. For assistance with regard to this service, the Series 2017-2 Noteholders can call the Indenture Trustee’s Corporate
Trust Office at (866) 846-4526. The Indenture Trustee shall have the right to change the way the statements referred to in Section 5.03(b) below are distributed in order to make such
distribution more convenient and/or more accessible to the parties entitled to receive such statements so long as such statements are only provided to the then current Series 2017-2 Noteholders. The Indenture
Trustee shall provide notification of any such change to all parties entitled to receive such statements in the manner described in Section 12.4, Section 12.5 or
Section 12.6 of the Indenture, as appropriate. 
 (b) No later than the second Business Day preceding each
Distribution Date, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee and, if Ally Financial or an Affiliate of Ally Financial is the Servicer, each Rating Agency (or, if Ally Financial or an Affiliate of Ally Financial is not
the Servicer, to the Depositor, who shall promptly provide such Monthly Statement to each Rating Agency) a statement substantially in the form of Exhibit B (the “Monthly Statement”) prepared by the Servicer; provided
that the Servicer may amend the form of Exhibit B from time to time. 
 (c) A copy of each statement or certificate provided
pursuant to Section 5.03(a) or (b) may be obtained by any Series 2017-2 Noteholder by a request in writing to the Servicer. 

(d) Within the prescribed period of time for tax reporting purposes after the end of each calendar year during the term of this Indenture
Supplement, the Indenture Trustee and the Administrator shall furnish (or cause to be furnished), to each Person who at any time during such calendar year shall have been a holder of record of Series 2017-2
Notes, and received any payment thereon, a statement containing such information as may be required by the Code and applicable Treasury Regulations to enable such Noteholder to prepare its federal income tax returns. 

(e) To the extent that Definitive Notes are issued hereunder, the Issuer represents that such Notes are debt instruments that are excluded from
the definition of “covered security” under Treasury Regulation 1.6045-1(a)(15) because the Definitive Notes are subject to Internal Revenue Code section 1272(a)(6). 

  
 49 

 SECTION 5.04 Other Information to be Provided by the Indenture Trustee and the Owner
Trustee. 
 (a) The Indenture Trustee agrees to deliver on or before March 1 of each year, a report signed by an authorized officer
of the Indenture Trustee regarding the Indenture Trustee’s assessment of compliance with the servicing criteria specified on Exhibit C, including disclosure of any material instance of
non-compliance identified by the Indenture Trustee (provided, that to the extent the Indenture Trustee identifies any material instance of non-compliance, the
Indenture Trustee shall disclose on its report whether such material instance of non-compliance relates to the Receivables or the Series 2017-2 Notes and whether and to
what extent the Indenture Trustee has instituted steps to remediate such material instance of non-compliance), for the preceding calendar year relating to the Indenture Trusee’s servicing platform with
respect to asset-backed securities that are backed by assets of the same type as the Receivables and including the Receivables. The Indenture Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information
regarding the Indenture Trustee which is required in order to enable the Depositor to comply with the provisions of Items 1104(e) and 1121(c) of Regulation AB and Rule 15Ga-1 under the Exchange Act as it
relates to the Indenture Trustee or to the Indenture Trustee’s obligations under this Indenture Supplement and the Indenture; provided that with respect to Rule 15Ga-1, and Items 1121(c) and
1104(e), the Indenture Trustee shall not be deemed a “securitizer” or an “issuer” under Regulation AB or under the Exchange Act. 

(b) The Indenture Trustee shall provide the Depositor with notification, as soon as practicable and in any event within five Business Days, of
(i) all demands communicated to the Indenture Trustee for the repurchase or replacement of any Receivable pursuant to Section 3.04(c), 4.01(c) or 4.02(c) of the Pooling and Servicing Agreement or
Section 2.5 or 3.1(c) of the Trust Sale and Servicing Agreement, as applicable, and (ii) all requests by Verified Note Owners to communicate with other Series 2017-2
Noteholders regarding the exercise of remedies pursuant to the Basic Documents. 
 (c) In addition to the information required by
Section 13.4(c) of the Indenture, the Indenture Trustee shall also provide such a description of any affiliation between the Indenture Trustee and the Asset Representations Reviewer. 

(d) The Owner Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information regarding the Owner
Trustee which is required in order to enable the Depositor to comply with the provisions of Items 1104(e) and 1121(c) of Regulation AB and Rule 15Ga-1 under the Exchange Act as it relates to the Owner Trustee
or to the Owner Trustee’s obligations under the Trust Agreement; provided that with respect to Rule 15Ga-1, and Items 1121(c) and 1104(e), the Owner Trustee shall not be deemed a
“securitizer” or an “issuer” under Regulation AB or under the Exchange Act; and provided further, that any such request shall be limited to information reasonably available to the Responsible Officers of the Owner Trustee. 

(e) The Owner Trustee shall provide the Depositor with notification, as soon as practicable and in any event within five Business Days, of all
demands communicated to a Responsible Officer of the Owner Trustee for the repurchase or replacement of any Receivable pursuant to Section 3.04(c), 4.01(c) or 4.02(c) of the Pooling and Servicing Agreement or
Section 2.5 or 3.1(c) of the Trust Sale and Servicing Agreement, as applicable; provided that any such request shall be limited to information reasonably available to the Responsible Officers of the Owner Trustee.

  
 50 

 ARTICLE VI 

SERIES 2017-2 EARLY AMORTIZATION EVENTS AND SERIES 2017-2
EVENTS OF DEFAULT 
 SECTION 6.01 Series 2017-2 Early Amortization Events. 

If any one of the following events occurs with respect to the Series 2017-2 Notes: 

(a) failure on the part of the Depositor, the Servicer or the Seller, as applicable, to duly observe or perform in any material respect any
other covenants or agreements of the Depositor, the Servicer or the Seller, as the case may be, set forth in the Trust Sale and Servicing Agreement or the Pooling and Servicing Agreement, which failure continues unremedied for a period of 60 days
after the date on which written notice of such failure, requiring the same to be remedied, shall have been given by the Indenture Trustee or the Owner Trustee to the Depositor, provided, however, that no Early Amortization Event shall
be deemed to occur if such failure results in the creation of Warranty Receivables or Administrative Receivables and such Warranty Receivables or Administrative Receivables are purchased by the Seller, the Depositor or the Servicer in accordance
with the Basic Documents; 
 (b) any representation or warranty made by the Seller in the Pooling and Servicing Agreement or the Depositor in
the Trust Sale and Servicing Agreement or any information contained on the Schedule of Accounts, (i) shall prove to have been incorrect in any material respect when made or when delivered, and shall continue to be incorrect in any material
respect for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Depositor by the Indenture Trustee or the Owner Trustee (at the direction of the
Certificateholders) and (ii) as a result of such incorrectness the interests of the Noteholders are materially and adversely affected, provided, however, that no Early Amortization Event shall be deemed to occur if such failure
results in the creation of Warranty Receivables or Administrative Receivables and such Warranty Receivables or Administrative Receivables are purchased by the Seller, the Depositor or the Servicer in accordance with the Basic Documents; 

(c) on any Distribution Date, the average of the Monthly Payment Rates for the three preceding Collection Periods is less than 17.50%; 

(d) the unpaid principal amount of Outstanding Series 2017-2 Notes (together with accrued and unpaid
interest thereon) shall have become immediately due and payable as a result of an Event of Default pursuant to Section 6.03 of this Indenture Supplement; 

(e) an Insolvency Event with respect to the Seller, the Depositor or the Servicer (or Ally Financial, if Ally Financial is not the Servicer);

 (f) on any Distribution Date, the amount on deposit in the Excess Funding Account exceeds 30.0% of the sum of the Net Invested Amounts of
all outstanding Series (including Series 2017-2), being determined as the average over the six Collection Periods immediately preceding the Distribution Date, or, if shorter, the period from the initial
issuance date through and including the last day of the immediately preceding Collection Period); 

  
 51 

 (g) the Issuing Entity or the Depositor is required to register under the Investment Company Act;

 (h) a Liquidation Event occurs with respect to a Significant Manufacturer or with respect to a Majority of Manufacturers; 

(i) on any Distribution Date, the Required Class E Invested Amount for such Distribution Date exceeds the Class E Invested Amount;

 (j) a failure by the Depositor to transfer to the Issuing Entity Receivables arising in connection with Additional Accounts within 15
Business Days after the date on which the Depositor is required to convey such Receivables pursuant to Section 2.7(a) of the Trust Sale and Servicing Agreement; 

(k) on any three consecutive Distribution Dates, the amount on deposit in the Reserve Fund is less than the Reserve Fund Required Amount; 

(l) on any Distribution Date, the Reserve Fund Required Amount for such Distribution Date exceeds the amount on deposit in the Reserve Fund by
more than the Reserve Fund Trigger Amount; or 
 (m) failure on the part of the Depositor, the Servicer or the Seller, as applicable, to pay
(or set aside for payment) all amounts required to be paid as principal on any Series 2017-2 Notes on the Series 2017-2 Expected Maturity Date; 

then, (i) in the case of any event described in clauses (a) or (b) above, after any applicable grace period, either the
Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of Series 2017-2 Notes by notice then given in writing to the Depositor and the Servicer (and to the Indenture Trustee if given
by the Series 2017-2 Noteholders) may declare that an Early Amortization Event with respect to the Series 2017-2 Notes (a “Series
2017-2 Early Amortization Event”) has occurred as of the date of such notice, and (ii) in the case of any event described in clauses (c) through (m) above, immediately and
without any notice or other action on the part of the Indenture Trustee or the Series 2017-2 Noteholders, a Series 2017-2 Early Amortization Event shall be deemed to
have occurred. 
 SECTION 6.02 Series 2017-2 Events of Default. 

For the purposes of this Indenture Supplement, “Event of Default” wherever used herein, means any one of the following events:

 (a) failure to pay any interest on any Investor Note as and when the same becomes due and payable, and such default shall continue
unremedied for a period of thirty-five (35) days; or 

  
 52 

 (b) except as set forth in Section 6.02(c) below, failure to pay any
instalment of the principal of any Investor Note as and when the same becomes due and payable, and such default continues unremedied for a period of thirty (30) days after there shall have been given, by registered or certified mail, written
notice thereof to the Issuing Entity and the Servicer by the Indenture Trustee or to the Issuing Entity, the Servicer and the Indenture Trustee by the Holders of not less than 25% of the Outstanding Amount of such Notes, a written notice specifying
such default and demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 
 (c) failure
to pay in full the Outstanding Amount attributable to the Series 2017-2 Notes on or prior to the Series 2017-2 Legal Maturity Date for such Notes; or 

(d) default in the observance or performance in any material respect of any covenant or agreement of the Issuing Entity made in the Indenture
or this Indenture Supplement in respect of the Series 2017-2 Notes (other than a covenant or agreement in respect of the Series 2017-2 Notes a default in the observance
or performance which is specifically dealt with elsewhere in this Section 6.02), which failure materially and adversely affects the rights of the Noteholders, and such default shall continue or not be cured for a
period of 30 days after there shall have been given, by registered or certified mail, to the Issuing Entity and the Servicer by the Indenture Trustee or to the Issuing Entity, the Servicer and the Indenture Trustee by the Holders of at least 25% of
the Outstanding Amount of the Series 2017-2 Notes, a written notice specifying such default and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 (e) the filing of an order for relief by a court having jurisdiction in the premises in respect of the Issuing Entity or any substantial
part of the Trust Estate in an involuntary case under the Bankruptcy Code, and such order shall have continued undischarged or unstayed for a period of 90 days; or the filing of a decree or order by a court having jurisdiction in the premises
approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of the Issuing Entity under any other Insolvency Law, and such decree or order shall have continued undischarged or unstayed for a period of 90
days; or the filing of a decree or order of a court having jurisdiction in the premises appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part of the Trust
Estate, or ordering the winding-up or liquidation of the Issuing Entity’s affairs, and such decree or order shall have continued undischarged and unstayed for a period of 90 consecutive days; or 

(f) the commencement by the Issuing Entity of a voluntary case under the Bankruptcy Code; or the filing of a petition or answer or consent by
the Issuing Entity seeking reorganization, arrangement, adjustment or composition under any other Insolvency Law, or consent to the filing of any such petition, answer or consent; or the consent by the Issuing Entity to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part of the Trust Estate, or the making by the Issuing Entity of an assignment for the benefit of
creditors, or the admission in writing of its inability to pay its debts generally as such debts become due. 
 The Issuing Entity shall
deliver to the Indenture Trustee within five Business Days after learning of the occurrence thereof, written notice in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become an Event
of Default under Section 6.02(d), its status and what action the Issuing Entity is taking or proposes to take with respect thereto. 

  
 53 

 SECTION 6.03 Acceleration of Maturity; Rescission and Annulment. 

(a) If an Event of Default, other than an Event of Default as a result of an Insolvency Event with respect to the Issuing Entity, should occur
and is continuing, then the Indenture Trustee may, or shall, at the direction of the Holders of at least a majority of the Outstanding Amount of the Series 2017-2 Notes, declare all the Series 2017-2 Notes to be immediately due and payable, by a notice in writing to the Issuing Entity and the Servicer (and to the Indenture Trustee if declared by such Noteholders) setting forth the Event or Events of
Default. If an Insolvency Event of Default occurs and is continuing, then the Series 2017-2 Notes shall immediately and without further action become due and payable, and the Indenture Trustee shall give a
notice to such effect in writing to the Issuing Entity (although failure to give such notice shall not affect the immediate acceleration of maturity). Upon any such declaration or automatic occurrence, the Revolving Period or the Controlled
Accumulation Period, as applicable, with respect to the Series 2017-2 Notes shall terminate, an Early Amortization Period shall commence and the unpaid principal amount of such Series 2017-2 Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable. 

(b) At any time after such acceleration of maturity has occurred pursuant to Section 6.03(a) and before a judgment or
decree for payment of the money due has been obtained by the Indenture Trustee as provided in Article V of the Indenture, the Holders of at least a majority of the Outstanding Amount of the Series
2017-2 Notes, by written notice to the Issuing Entity, the Servicer and the Indenture Trustee, may rescind and annul such acceleration and its consequences with respect to the Series 2017-2 Notes. No such rescission and annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereto; and provided, further, that if the Indenture Trustee
shall have proceeded to enforce any right under the Indenture and such proceedings shall have been discontinued or abandoned because of such rescission and annulment or for any other reason, or shall have been determined adversely to the Indenture
Trustee, then and in every such case, the Indenture Trustee, the Issuing Entity and the Noteholders, as the case may be, shall be restored to their respective former positions and rights hereunder and under the Indenture, and all rights, remedies
and powers of the Indenture Trustee, the Issuing Entity and the Noteholders, as the case may be, shall continue as though no such proceedings had been commenced. 

(c) If the Series 2017-2 Notes shall have been accelerated following an Event of Default, the Indenture
Trustee may exercise the remedies available to it as set forth in Article V of the Indenture. 
 (d) Any money or property collected
by the Indenture Trustee pursuant to this Section 6.03 following the acceleration of the maturities of the Series 2017-2 Notes (so long as such acceleration has not been rescinded or
annulled) shall be paid out or allocated in accordance with Section 5.4(b) of the Indenture; provided, that following the payment of the amounts due to the Indenture Trustee and the Owner Trustee pursuant to
Section 5.4(b)(i) of the Indenture, any money or property collected by the Indenture Trustee pursuant to this Section 6.03 shall be used to pay any accrued and unpaid fees, expenses and indemnities
owed to the Asset Representations Reviewer pursuant to the Asset Representations Review Agreement prior to the payments specified in Section 5.4(b)(ii) of the Indenture. 

  
 54 

 ARTICLE VII 

REDEMPTION OF SERIES 2017-2 NOTES; SERIES LEGAL MATURITY; FINAL DISTRIBUTIONS 

SECTION 7.01 Optional Redemption of Series 2017-2 Notes. 

(a) On any day occurring on or after the date on which the Note Principal Balance is reduced to 10% or less of the Initial Note Principal
Balance, the Servicer (if Ally Financial or an Affiliate of Ally Financial is the Servicer) shall have the option to purchase the Series 2017-2 Noteholders’ Collateral and thereby cause a redemption of
the Series 2017-2 Notes, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day. 
 (b) Upon any such election, the Servicer shall give the Depositor, the
Indenture Trustee, the Issuing Entity and, if applicable, other holders of the Certificate Interest at least 30 days prior written notice of the date on which the Servicer intends to exercise such optional redemption as well as the Reassignment
Amount and the Indenture Trustee shall provide notice to Holders of the Series 2017-2 Notes that it has received such notice from the Servicer. No later than 11:00 a.m. (New York City time) on such day the
Servicer shall deposit the Reassignment Amount into the Collection Account or, at the direction of the Depositor or the election of the Servicer in an amount not to exceed the interest and principal to be paid with respect to the Series 2017-2 Notes, the Note Defeasance Account, in immediately available funds. Such redemption option is subject to payment in full of the Reassignment Amount. Following such deposit into the Collection Amount or the
Note Defeasance Account, as applicable, in accordance with the foregoing, the Invested Amount of the Series 2017-2 Notes shall be deemed reduced to zero and the Series
2017-2 Noteholders shall be deemed to have no further interest in the Receivables. The Reassignment Amount shall be distributed as set forth in Section 7.02. 

SECTION 7.02 Series Legal Maturity. 

(a) The amount to be paid by the Depositor with respect to Series 2017-2 in connection with a
reassignment of the Noteholders’ Collateral pursuant to Section 2.5 of the Trust Sale and Servicing Agreement shall be the Reassignment Amount for the first Distribution Date following the Collection Period in which
the reassignment obligation arises under the Trust Sale and Servicing Agreement. With respect to the Reassignment Amount deposited into the Collection Account or the Note Defeasance Account, as applicable, pursuant to
Section 2.5 of the Trust Sale and Servicing Agreement or pursuant to Section 7.01 of this Indenture Supplement or the proceeds from any Foreclosure Remedy pursuant to
Section 5.4 of the Indenture, the Indenture Trustee shall, in accordance with the written direction of the Servicer, no later than 11:00 a.m. (New York City time) on the related Distribution Date, make deposits or
distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds first, from amounts on deposit in the
Note Defeasance Account and, to the extent the amounts on deposit in the Note Defeasance Account are insufficient to make such allocations, second, from available funds on deposit in the Collection Account, to make the following distributions or
deposits in the following priority: 

  
 55 

 (i) (A) the Class A Note Principal Balance on such Distribution Date shall
be distributed to the Indenture Trustee for payment to the Class A Noteholders and (B) an amount equal to the sum of (1) the Class A Monthly Interest for such Distribution Date and (2) any Class A Monthly Interest
previously due but not paid to the Class A Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class A Noteholders on such Distribution Date; 

(ii) (A) the Class B Note Principal Balance on such Distribution Date shall be distributed to the Indenture Trustee for
payment to the Class B Noteholders and (B) an amount equal to the sum of (1) the Class B Monthly Interest for such Distribution Date and (2) any Class B Monthly Interest previously due but not paid to the Class B
Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class B Noteholders on such Distribution Date; 

(iii) (A) the Class C Note Principal Balance on such Distribution Date shall be distributed to the Indenture Trustee for
payment to the Class C Noteholders and (B) an amount equal to the sum of (1) the Class C Monthly Interest for such Distribution Date and (2) any Class C Monthly Interest previously due but not paid to the Class C
Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class C Noteholders on such Distribution Date; 

(iv) (A) the Class D Note Principal Balance on such Distribution Date shall be distributed to the Indenture Trustee for
payment to the Class D Noteholders and (B) an amount equal to the sum of (1) the Class D Monthly Interest for such Distribution Date and (2) any Class D Monthly Interest previously due but not paid to the Class D
Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class D Noteholders on such Distribution Date; and 

(v) the Class E Note Principal Balance on such Distribution Date shall be distributed to the Indenture Trustee for payment
to the Class E Noteholders on such Distribution Date. 
 (b) Notwithstanding anything to the contrary in this Indenture Supplement, the
Indenture or the Trust Sale and Servicing Agreement, (i) all amounts distributed to the Indenture Trustee pursuant to Section 7.02(a) for payment to the Series 2017-2 Noteholders
shall be deemed distributed in full to the Series 2017-2 Noteholders on the date on which such funds are distributed to the Indenture Trustee pursuant to this Section and shall be deemed to be a final
distribution pursuant to Section 11.2 of the Indenture and (ii) in the event that the amounts available for final distribution to the Series 2017-2 Noteholders and to the
Noteholders of any other Series on any Distribution Date are less than the full amount required to be so distributed, the available amounts shall be allocated to each Series based on the respective amounts required to be distributed to each such
Series (including Series 2017-2) on such Distribution Date. 

  
 56 

 ARTICLE VIII 

MISCELLANEOUS PROVISIONS 

SECTION 8.01 Ratification of Agreement. 

As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by
this Indenture Supplement is to be read, taken and construed as one and the same instrument. 
 SECTION 8.02 Form of Delivery of
Series 2017-2 Notes. 
 The Series 2017-2 Notes shall be
delivered as Registered Notes as provided in Section 2.2 of the Indenture. 
 SECTION 8.03
Counterparts. 
 This Indenture Supplement may be executed in any number of counterparts, each of which so executed shall be deemed to
be an original, but all counterparts shall together constitute one and the same instrument. 
 SECTION 8.04 Governing Law. 

THIS INDENTURE SUPPLEMENT AND EACH SERIES 2017-2 NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICT OF LAW PROVISIONS THEREOF OR OF ANY OTHER JURISDICTION OTHER THAN SECTION 5-1401 AND SECTION
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 8.05 Effect of Headings and Table of Contents. 

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

SECTION 8.06 Notices. 

(a) If Standard & Poor’s is not a Rating Agency, the Issuing Entity (or the Servicer or Administrator on its behalf) shall
deliver all notices, requests, consents or other communications delivered to the Rating Agencies hereunder to Standard & Poor’s concurrently with the delivery thereof to the Rating Agencies. 

  
 57 

 (b) All notices, requests, reports, consents or other communications deliverable to the Rating
Agencies hereunder or under any other Basic Document by the Owner Trustee, the Issuing Entity or the Indenture Trustee shall instead be delivered to the Depositor, which shall promptly deliver such document to the Rating Agencies (which may be
delivered by posting such document to the website maintained by the Depositor for notifications to nationally recognized statistical rating organizations). 

SECTION 8.07 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto hereby irrevocably and unconditionally:

 (a) submits for itself and its property in any legal action relating to the Indenture, this Indenture Supplement or any other documents
executed and delivered in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the
Southern District of New York and appellate courts from any thereof; 
 (b) agrees that any such action may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of such action in any such court or that such action was brought in an inconvenient court and agrees not to plead or claim the same; and 

(c) waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of or relating to
the Indenture, this Indenture Supplement or the transactions contemplated hereby. 
 SECTION 8.08 U.S.A. PATRIOT
Act. 
 The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. PATRIOT Act, the Indenture
Trustee is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Indenture Trustee. The parties to this Indenture Supplement agree that they shall
provide the Indenture Trustee with such information as they may request in order for them to satisfy the requirements of the U.S.A. PATRIOT Act. 

SECTION 8.09 Compliance with Credit Risk Retention Rules. 

The Sponsor or a Wholly-Owned Affiliate of the Sponsor shall, to the extent required, retain an economic interest in the credit risk of the
securitized assets in accordance in all material respects with Regulation RR, including the restrictions on sale, pledging and hedging set forth therein. 

SECTION 8.10 Limitation of Liability of Owner Trustee. 

It is expressly understood that (i) this Indenture Supplement and each Series 2017-2 Note has been
executed by U.S. Bank Trust National Association, not in its individual capacity but solely as Owner Trustee on behalf of the Issuing Entity, (ii) each of the representations, undertakings and agreements herein or therein made on the part of
the Issuing Entity is made and 

  
 58 

 
intended not as a personal representation, undertaking or agreement by U.S. Bank Trust National Association but is made and intended for the purpose of binding only the Issuing Entity,
(iii) nothing herein contained shall be construed as creating any liability on U.S. Bank Trust National Association, individually or personally, to perform any covenant of the Issuing Entity 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 (iv) under no circumstances will U.S. Bank Trust National Association be personally liable for the
payment of any obligation, indebtedness or expenses of the Issuing Entity or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuing Entity under this Indenture Supplement or any
Series 2017-2 Note. In addition, in no event shall the Owner Trustee have any responsibility to monitor compliance with or enforce compliance with the Regulation RR or other rules or regulations relating to
risk retention. The Owner Trustee shall not be charged with knowledge of such rules, nor shall it be liable to any noteholder, certificateholder, the Depositor, the Servicer or other person for violation of such rules now or hereinafter in effect.
The Owner Trustee shall not be required to monitor, initiate or conduct any proceedings to enforce the obligations of the Trust, the Depositor, the Servicer or any other person with respect to any breach of representation or warranty under any Basic
Document and the Owner Trustee shall not have any duty to conduct any investigation as to the occurrence of any condition requiring the repurchase or substitution of any Receivable by any person pursuant to any Basic Document. For the avoidance of
doubt, the Owner Trustee shall not be responsible to evaluate the qualifications of any mediator or arbitrator, or be personally liable for paying the fees or expenses of any mediation or arbitration initiated by a Requesting Party, and under no
circumstances shall the Owner Trustee be personally liable for any expenses allocated to the Requesting Party in any dispute resolution proceeding. 

  
 59 

 IN WITNESS WHEREOF, the Issuing Entity and the Indenture Trustee have caused this Indenture Supplement to be duly
executed by their respective duly authorized officers, all as of the day and year first above written. 
  

			
	ALLY MASTER OWNER TRUST, as Issuing Entity
	
	By U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

		 	Name:
		 	Title:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee and Securities Intermediary
		
	By	 	  

		 	Name:
		 	Title:

  

			
	Acknowledged and Agreed, solely for purposes of Sections 5.04(d) and (e)
	
	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

		 	Name:
		 	Title:

  
 60 

			
	Acknowledged and Agreed, solely for purposes of Section 4.17
	
	ALLY FINANCIAL INC., as Administrator, Servicer and Custodian
		
	By	 	  

		 	Name:
		 	Title:

  
 61 

			
	Acknowledged and Agreed, solely for purposes of Section 8.09
	
	ALLY BANK, as Sponsor
		
	By	 	  

		 	Name:
		 	Title:

  

  
 62 

 EXHIBIT A 

FORM OF CLASS [A][B][C][D][E] NOTE 

[Unless this Class [A] Note is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.] 
 [This Class [B][C][D][E] Note has not and will not
be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the securities or blue sky laws of any State in the United States or any foreign securities laws. By its acceptance of this
Class [B][C][D][E] Note (or interest therein), the Holder of this Class [B][C][D][E] Note (or such interest), if other than the Depositor, is deemed to represent and warrant to the Depositor and the Indenture Trustee that it is a “Qualified
Institutional Buyer” as defined in Rule 144A under the Securities Act and is acquiring this Class [B][C][D][E] Note (or interest therein) for its own account (and not for the account of others) or as a fiduciary or agent for others (which
others also are Qualified Institutional Buyers) or has otherwise acquired an interest in the Class [B][C][D][E] Note in a transaction that is exempt from the registration requirements of the Securities Act.] 

[No sale, pledge or other transfer of this Class [B][C][D][E] Note (or interest therein) may be made by any Person unless either (i) such
sale, pledge or other transfer is made by or to the Depositor, (ii) at the time of such sale, pledge or other transfer, (A) this Class [B][C][D][E] Note is eligible for resale pursuant to Rule 144A under the Securities Act, and such sale,
pledge or other transfer is made to a person whom the transferor “reasonably believes” within the meaning of Rule 144A under the Securities Act is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act (a “Qualified Institutional Buyer”) acting for its own account or the accounts of other Qualified Institutional Buyers, and (B) the transferee is aware that the transferor of this Class [B][C][D][E] Note intends
to rely on the exemption from the registration requirements of the Securities Act provided by Rule 144A under the Securities Act, or (iii) such sale, pledge or other transfer is otherwise made in a transaction exempt from the registration
requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify to the Indenture Trustee and the Depositor in writing the facts surrounding
such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Depositor, and (B) the Indenture Trustee shall require a written opinion of counsel (which will not be at the expense of the Seller,
the Depositor, the Administrator, the Issuing Entity, the Servicer or the Indenture Trustee) satisfactory to the Depositor and the Indenture Trustee to the effect that such transfer will not violate the Securities Act and satisfaction of certain
other provisions specified herein.] 

  
 Ex. A-1 

 Each Noteholder or Note Owner, by acceptance of this Note (or interest therein), hereby covenant
and agree that by accepting the benefits of the Indenture such Noteholder or Note Owner shall not, prior to the date which is one year and one day after the termination of the Indenture with respect to the Issuing Entity and, with respect to the
Depositor, the Securities issued by each other trust formed by and each other financing by the Depositor, acquiesce, petition or otherwise invoke or cause the Depositor or the Issuing Entity to invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Depositor or the Issuing Entity under any Insolvency Law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Depositor or
the Issuing Entity or any substantial part of the property of either of them, or ordering the winding up or liquidation of the affairs of the Depositor or the Issuing Entity. 

Each Noteholder, by acceptance of this Note (or interest therein), covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 

(i) the Indenture Trustee or the Owner Trustee in its individual capacity; 

(ii) the Depositor or any other owner of a beneficial interest in the Issuing Entity; or 

(iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacity) and except that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 

  
 Ex. A-2 

 Except as expressly provided in the Basic Documents, none of the Seller, the Depositor, the
Servicer, the Indenture Trustee nor the Owner Trustee in their respective individual capacities, any owner of a beneficial interest in the Issuing Entity, nor any of their respective partners, owners, beneficiaries, agents, officers, directors,
employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of [or interest on], or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations and indemnifications have been made solely by the Issuing Entity. Each Noteholder by accepting this Note (or any interest
therein) acknowledges that such Noteholder’s Note (or interest therein) represents beneficial interests in the Issuing Entity only and does not represent interests in or obligations of the Depositor, the Servicer, the Administrator, the Owner
Trustee, the Indenture Trustee or any Affiliate thereof (other than the Issuing Entity) and no recourse, either directly or indirectly, may be had against such parties or their assets, except as may be expressly set forth or contemplated in the
Basic Documents. Each Noteholder by the acceptance of a Note (or beneficial interest therein) agrees that except as expressly provided in the Basic Documents, in the event of nonpayment of any amounts with respect to the Notes, it shall have no
claim against any of Depositor, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities, obligations and undertakings contained in the Indenture or in the Notes. 

If any of the foregoing covenants of a Noteholder is prohibited by, or declared illegal or otherwise unenforceable against or with respect to
any Noteholder under applicable law by any court or other authority of competent jurisdiction, and, as a result, a Noteholder is deemed to have an interest in any assets of the Depositor or any Affiliate of the Depositor other than the Issuing
Entity (“other assets”), each Noteholder or Note Owner by the acceptance of this Note (or beneficial interest therein), agrees that (i) its claim against any such other assets shall be, and hereby is, subject and subordinate in all
respects to the rights of other Persons to whom rights in the other assets have been expressly granted (“entitled Persons”), including to the payment in full of all amounts owing to such entitled Persons, and (ii) the covenant set
forth in the preceding clause (i) constitutes a “subordination agreement” within the meaning of, and subject to, Section 510(a) of the Bankruptcy Code. 

[The holder of this Note, by acceptance of this Note, and each holder of a beneficial interest therein, unless otherwise required by the
appropriate taxing authorities, agree to treat this Note as indebtedness of the Issuing Entity for applicable United States federal, state and local income and franchise tax purposes and any other taxes imposed upon, measured by or based upon gross
or net income.] 
 [Any holder of this Class [A][B][C][D] Note, by its acceptance of this Class [A][B][C][D] Note, shall be deemed to have
represented that either (a) it is not acquiring the Class [A][B][C][D] Note with the assets of (i) an employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended

  
 Ex. A-3 

 
(“ERISA”)) that is subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the
“Code”) which is subject to Section 4975 of the Code, (iii) an entity whose underlying assets are treated under regulations issued by the U.S. Department of Labor, as modified by Section 3(42) of ERISA, to include
plan assets by reason of investment by an employee benefit plan or a plan in such entity (each of clause (i) through (iii), a “Benefit Plan”) or (iv) any other plan that is subject to any law that is substantially similar
to Title I of ERISA or Section 4975 of the Code; or (b) the acquisition and holding of the Class [A][B][C][D] Note will not give rise to a non-exempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code or a non-exempt violation of any substantially similar applicable law. Benefit Plans may not acquire this Class [A][B][C][D] Note at any time that this Class [A][B][C][D]
Note is rated below investment grade. [Any holder of this Class [E] Note, by its acceptance of this Class [E] Note, shall be deemed to have represented that (a) it is not acquiring the Class [E] Note with the plan assets of (i) an employee
benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) that is subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1)
of the Internal Revenue Code of 1986, as amended (the “Code”) which is subject to Section 4975 of the Code, (iii) an entity whose underlying assets include plan assets by reason of investment by an employee benefit plan or
a plan in such entity (each of clause (i) through (iii), a “Benefit Plan”) other than an insurance company general account (as defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) whose underlying assets include less than 25% “plan assets”, who is not and is not an affiliate of a person that has discretionary authority or control with respect to the assets of the Issuing
Entity or provides investment advice for a fee (direct or indirect) with respect to the assets of the Issuing Entity, and for which the purchase and holding of the Class [E] Notes is eligible for and satisfied all conditions for relief under PTCE 95-60 or (iv) an employee benefit plan or plan that is not subject to the provisions of Title I of ERISA or Section 4975 of the Code if such acquisition would result in a
non-exempt prohibited transaction under, or a non-exempt violation of, any applicable law that is substantially similar to Title I of ERISA or Section 4975 of the
Code.] [Any holder of this Class [A][B][C][D][E] Note that is a Benefit Plan, including any fiduciary purchasing such Note on behalf of a Benefit Plan (a “Plan Fiduciary”), by its acceptance of this Class [A][B][C][D][E] Note shall be
deemed to have represented that: (i) the Depositor, the Sponsor, the Servicer, the Issuing Entity, the Owner Trustee, the Indenture Trustee, the underwriters or any of their respective affiliates (collectively, the “Transaction
Parties”) have not provided nor will provide advice with respect to the acquisition of this Class [A][B][C][D][E] Note by the Benefit Plan, other than to the Plan Fiduciary which is independent of the Transaction Parties, and the Plan
Fiduciary either: (A) is a bank as defined in Section 202 of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), or similar institution that is regulated and supervised and subject to periodic examination
by a U.S. state or U.S. federal agency, (B) is an insurance carrier which is qualified under the laws of more than one U.S. state to perform the services of managing, acquiring or disposing of assets of an

  
 Ex. A-4 

 
“employee benefit plan” as defined in Section 3(3) of ERISA or “plan” described in Section 4975 of the Code, (C) is an investment adviser registered under the
Advisers Act, or, if not registered an as investment adviser under the Advisers Act by reason of paragraph (1) of Section 203A of the Advisers Act, is registered as an investment adviser under the laws of the U.S. state in which it
maintains its principal office and place of business, (D) is a broker-dealer registered under the U.S. Securities Exchange Act of 1934, as amended or (E) holds, or has under its management or control, total assets of at least U.S.
$50 million (provided that this clause (E) shall not be satisfied if the Plan Fiduciary is an individual directing his or her own individual retirement account or plan account or relative of such individual); (ii) the Plan Fiduciary is
capable of evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies, including the acquisition by the Benefit Plan of this Class [A][B][C][D][E] Note; (iii) the Plan
Fiduciary is a “fiduciary” with respect to the Benefit Plan within the meaning of Section 3(21) of ERISA, Section 4975 of the Code, or both, and is responsible for exercising independent judgment in evaluating the Benefit
Plan’s acquisition of this Class [A][B][C][D][E] Note, (iv) none of the Transaction Parties has exercised any authority to cause the Benefit Plan to invest in this Class [A][B][C][D][E] Note or to negotiate the terms of the Benefit
Plan’s investment in this Class [A][B][C][D][E] Note; and (v) the Plan Fiduciary has been informed by the Transaction Parties: (x) that none of the Transaction Parties is undertaking to provide impartial investment advice or to give
advice in a fiduciary capacity, and that no such entity has given investment advice or otherwise made a recommendation, in connection with the Benefit Plan’s acquisition of this Class [A][B][C][D][E] Note and (y) of the existence and
nature of the Transaction Parties’ financial interests in the Benefit Plan’s acquisition of this Class [A][B][C][D][E] Note.] 

[Transfer of this Class E Note may only be made to a Person who is a United States Person (within the meaning of Section 7701(a)(30)
of the Internal Revenue Code). Any Person acquiring this Class E Note or an interest therein (i) shall not be deemed to have made the representations set forth in Section 2.14 of the Indenture and (ii) other than the Depositor
shall not acquire or hold this Class E Note or interest herein in the form of a Book Entry Note.] 
 [No sale, pledge or other transfer
may be made to any one person of a Class E Note with a face amount of less than the amount determined in accordance with Section 1.01(f) of the Indenture Supplement (in order to prevent the Issuing Entity from being
treated as a “publicly traded partnership” under Section 7704 of the Code, and, in the case of any Person acting on behalf of one or more third parties (other than a bank (as defined in Section 3(a)(2) of the Securities Act)
acting in its fiduciary capacity), for a Class E Note with a face amount of less than such amount for each such third party. Any attempted transfer in contravention of the immediately preceding restriction will be void ab initio and the
purported transferor will continue to be treated as the owner of the Class E Notes for all purposes. No Class E Note may be transferred unless the transferor provides to the Indenture Trustee an opinion of independent counsel that the
transfer will not cause the Issuing Entity to be treated as an association (or publicly traded partnership) taxable as a corporation for federal income tax purposes.] 

  
 Ex. A-5 

					
	 Registered
	  	$	                    	1 
	 No. R-__
	  	 	CUSIP No.                    	 
		  	 	ISIN No.            	 
		  	 	Common Code            	 

 ALLY MASTER OWNER TRUST 

SERIES 2017-2 [[FLOATING][FIXED] RATE ASSET BACKED][ASSET BACKED EQUITY] NOTE, CLASS [A][B][C][D][E]

 Ally Master Owner Trust (herein referred to as the “Issuing Entity”), a Delaware statutory trust governed by the
Trust Agreement, dated as of February 12, 2010, for value received, hereby promises to pay to ___________________________, or registered assigns, subject to the following provisions, the principal sum of ________________________________
______________ DOLLARS, or such greater or lesser amount as determined in accordance with the Indenture and the Indenture Supplement (each referred to herein), on the June 2021 Distribution Date (the “Series 2017-2 Legal Maturity Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement. Beginning on July 17, 2017, and on each Distribution Date thereafter until the
principal amount of this Note is paid in full, the Issuing Entity shall pay interest on the unpaid principal amount of this Note at an annual rate equal to the Class [A][B][C][D] Note Interest Rate, as determined pursuant to the Indenture
Supplement. Interest on this Note shall begin accruing from June 28, 2017 (the “Closing Date”) and shall be payable in arrears on each Distribution Date, computed on the basis of a
360-day year and [the actual number of days elapsed][twelve 30-day months]. The principal of this Note shall be paid in the manner specified on the reverse hereof. 

The principal of [and interest] on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication
hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

  

	1 	[This Class [A][B][C][D] Note may be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof.][This Class E Asset Backed Equity Note may be issued only in denominations equal to the
Class E Note Principal Balance.] 

  
 Ex. A-6 

 IN WITNESS WHEREOF, the Issuing Entity has caused this Note to be duly executed. 

 

			
	ALLY MASTER OWNER TRUST, as Issuing Entity
	
	By U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

		 	Name:
		 	Title:

 Dated: 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes described in the within-mentioned Indenture. 

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee
		
	By	 	  

		 	Authorized Officer

  
 Ex. A-7 

 ALLY MASTER OWNER TRUST 

SERIES 2017-2 [[FLOATING][FIXED] RATE ASSET BACKED][ASSET BACKED 

EQUITY] NOTE, CLASS [A][B][C][D][E] 

Summary of Terms and Conditions 

This Note is one of a duly authorized issue of Notes of the Issuing Entity, designated as the Series
2017-2 [[Floating][Fixed] Rate] Asset Backed Notes (the “Notes”), issued under the Indenture, dated as of February 12, 2010 (the “Indenture”), between the Issuing Entity
and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2017-2 Indenture Supplement, dated as of June 28, 2017 (the
“Indenture Supplement” and, together with the Indenture, the “Series Agreement”), and representing the right to receive certain payments from the Issuing Entity. The Notes are subject to all of the terms of the
Series Agreement. All terms used in this Note that are defined in the Series Agreement have the meanings assigned to them in or pursuant to the Series Agreement. In the event of any conflict or inconsistency between the Series Agreement and this
Note, the Series Agreement controls. 
 The [Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the
Class E Note] with initial principal amounts of $[ ], $[ ], $[ ], $[ ] and $[ ], respectively, shall also be issued under the Series Agreement. [The rights of the holders of the [Class A Notes, the Class B Notes, the Class C Notes,
and the Class D Notes] to receive payments on [the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes] are senior to the rights of the holders of the Class [B][C][D][E] Notes to receive payments as
specified in the Series Agreement.] [The rights of the holders of [the Class B Notes, the Class C Notes, the Class D Notes, and the Class E Notes] to receive payments on [the Class B Notes, the Class C Notes, the
Class D Notes and the Class E Notes] are subordinate to the rights of the holders of the Class [A][B][C][D] Notes to receive payments as specified in the Series Agreement.] 

The Series 2017-2 Notes only represent interest in the Issuing Entity allocated to the Series 2017-2 Notes. The Noteholder, by its acceptance of this Note, agrees that it shall look solely to the property of the Issuing Entity allocated to the payment of the Notes for payment hereunder and under the Series
Agreement and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Notes or the Series Agreement or, except as expressly provided in the Series Agreement, subject to any liability under the Series Agreement.

 Upon the irrevocable deposit of any amount into the Note Defeasance Account pursuant to the Series Agreement, the Issuing Entity shall
have no further liability for, and shall be deemed to be discharged and released from its obligations with respect to, this Note to the extent of the amount so deposited as such amounts are to be applied to the payments of interest on and principal
of this Note in accordance with the priorities specified in the Series Agreement, and the Noteholder shall have recourse and shall look solely to the Note Defeasance Account for the payment of such amounts. 

  
 Ex. A-8 

 Each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest
therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information. In
addition, each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any
corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements of the preceding sentence. 

This Note does not purport to summarize the Series Agreement and reference is made to the Series Agreement for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee. 

The Class [A][B][C][D][E] Note Initial Principal Balance is
$[                    ]. The Class [A][B][C][D][E] Note Principal Balance on any date of determination shall be an amount equal to the Class
[A][B][C][D][E] Note Initial Principal Balance minus the aggregate amount of any principal payments made to the Class [A][B][C][D][E] Noteholders before such date. 

The Series 2017-2 Expected Maturity Date is the June 2019 Distribution Date, but principal with
respect to the Class [A][B][C][D][E] Notes may be paid earlier or later under certain circumstances described in the Series Agreement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds to deposit the
Controlled Deposit Amount into the Note Distribution Account or, to the extent permitted by the Indenture Supplement, the Note Defeasance Account, then to the extent that excess funds are not available on subsequent Distribution Dates with respect
to the Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of the Notes shall occur later than the Series 2017-2 Expected Maturity Date. Payments of principal of the
Notes shall be payable in accordance with the provisions of the Series Agreement. 
 Subject to the terms and conditions of the Series
Agreement, the Depositor may, from time to time, direct the Owner Trustee, on behalf of the Issuing Entity, to issue one or more new Series of notes. 

  
 Ex. A-9 

 On each Distribution Date, the Indenture Trustee shall distribute to each Class [A][B][C][D][E]
Noteholder of record on the related Record Date (except for the final distribution in respect of this Note) such Class [A][B][C][D][E] Noteholder’s pro rata share of the amounts held by the Indenture Trustee that are allocated and
available on such Distribution Date to pay [interest and] principal on the Class [A][B][C][D][E] Notes pursuant to the Indenture Supplement. Except as provided in the Series Agreement with respect to a final distribution, distributions to the
Noteholders shall be made by (a) wire transfer (to the account specified by the applicable Noteholder) or check mailed to the applicable Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect
to any Notes registered in the name of the nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (b) without presentation or surrender of any Note or the making of any notation thereon. Final payment
of this Note shall be made only upon presentation and surrender of this Note at the office or agency specified in the notice of final distribution delivered by the Indenture Trustee to the Noteholders in accordance with the Series Agreement. 

On any day occurring on or after the date on which the Note Principal Balance is reduced to 10% or less of the Initial Note Principal Balance,
the Servicer (if Ally Financial or an Affiliate of Ally Financial is the Servicer) shall have the option to redeem the Notes, at a purchase price equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution
Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day. 
 This Note
does not represent an obligation of, or an interest in, Ally Bank, Ally Financial, Inc., Ally Wholesale Enterprises LLC, the Indenture Trustee, the Owner Trustee or any Affiliate of any of them (other than the Issuing Entity) and is not insured or
guaranteed by any governmental agency or instrumentality. 
 The Issuing Entity is permitted by the Indenture, under certain circumstances,
to merge or consolidate subject to the rights of the Indenture Trustee and the Noteholders. 
 [Except as otherwise provided in the
Indenture Supplement, the Class [A][B][C][D] Notes are issuable only in minimum denominations of $1,000 and integral multiples of $1,000.][Except as otherwise provided in the Indenture Supplement, the Class E Notes are issuable only in a
minimum denomination of 100% of the Class E Note Principal Balance] The transfer of this Note shall be registered in the Note Register upon surrender of this Note for registration of transfer at any office or agency maintained by the Transfer
Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Noteholder or such Noteholder’s attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class [A][B][C][D][E] Notes in any authorized denominations of like aggregate principal amount shall be issued to the designated transferee or transferees. 

  
 Ex. A-10 

 As provided in the Series Agreement and subject to certain limitations therein set forth, Class
[A][B][C][D][E] Notes are exchangeable for new Class [A][B][C][D][E] Notes in any authorized denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar. No service charge may be imposed for any such exchange but the Issuing Entity or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
therewith. 
 The Issuing Entity, the Depositor, the Indenture Trustee and any agent of the Issuing Entity, the Depositor or the Indenture
Trustee shall treat the person in whose name this Note is registered as the owner hereof for all purposes, and none of the Issuing Entity, the Depositor, the Indenture Trustee or any agent of the Issuing Entity, the Depositor or the Indenture
Trustee shall be affected by notice to the contrary. 
 This Note is to be construed in accordance with the laws of the State of New York,
without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder are to be determined in accordance with such laws. 

  
 Ex. A-11 

 ASSIGNMENT 

Social Security or other identifying number of assignee
                             

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 
  

 
  

 
  

 
  

 
 (name and address
of assignee) 
 the within note and all rights thereunder, and hereby irrevocably constitutes and appoints
                        , attorney, to transfer said note on the books kept for registration thereof, with full power of
substitution in the premises. 
  

			
	Dated:
                                        
	  	
                     
                                         
       2

		
		  	 Signature Guaranteed:

		
		  	
              
                       

  

	2 	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

  
 Ex. A-12 

 EXHIBIT B 

FORM OF MONTHLY STATEMENT 
  

 
 ALLY MASTER
OWNER TRUST 
 SERIES 2017-2 ASSET BACKED NOTES 

 
  

 

  
 Ex. B-1 

 Ally Master Owner Trust 

Monthly Servicing Report 

[        ] 
  

																													
	Series 2017-2 Summary	 				 				 				 				 				 				 			
								
	1. Information	 				 				 				 				 				 				 			
								
	 Closing Date
	 				 				 	 	June 28, 2017	 	 				 				 				 			
	 Series 2017-2 Expected Maturity Date
	 				 				 	 	June 17, 2019	 	 				 				 				 			
	 Series 2017-2 Legal Maturity Date
	 				 				 	 	June 15, 2021	 	 				 				 				 			
								
	 Nonoverconcentration or Overconcentration Serie
	 				 				 	 	Nonoverconcentration	 	 				 				 				 			
	 Excess Interest Sharing Group
	 				 				 	 	One	 	 				 				 				 			
	 Principal Sharing Group
	 				 				 	 	One	 	 				 				 				 			
	 Shared Enhancement Series
	 				 				 	 	N/A	 	 				 				 				 			
	 Interest Reallocation Group
	 				 				 	 	N/A	 	 				 				 				 			
	 Revolving/Controlled Accumulation/Early Amortizatio
	 				 				 	 	Revolving	 	 				 				 				 			
								
	2. Securities Balances	 				 				 				 				 				 				 			
								
	 Class
	 	 	 	 	 	 	 	Note Principal Balance as of
prior Distribution Date	 	 	Note Principal Balance as of
current Distribution Date	 	 	Average Daily Note Principal
Balance - Prior to Current
Distribution Date	 	 	 	 	 	 	 
	 A
	 				 				 				 	$	—  	 	 	$	—  	 	 				 			
	 B
	 				 				 				 	$	—  	 	 	$	—  	 	 				 			
	 C
	 				 				 				 	$	—  	 	 	$	—  	 	 				 			
	 D
	 				 				 				 	$	—  	 	 	$	—  	 	 				 			
	 E
	 				 				 				 	$	—  	 	 	$	—  	 	 				 			
		 				 				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 				 			
	 Total
	 				 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
								
	3. Interest Calculations	 				 				 				 				 				 				 			
								
	 Class
	 	 	 	 	 	 	 	Average Daily Note Principal
Balance - Prior to Current
Distribution Date	 	 	LIBOR + Spread	 	 	Rate	 	 	Days in Interest
Period	 	 	Monthly Interest	 
	 A
	 				 				 	$	—  	 	 	 	LIBOR + 0.34%	 	 	 	0.34000%	 	 	 	19	 	 	$	—  	 
	 B
	 				 				 	$	—  	 	 	 	N/A	 	 	 	2.25000%	 	 	 	17	 	 	$	—  	 
	 C
	 				 				 	$	—  	 	 	 	N/A	 	 	 	2.49000%	 	 	 	17	 	 	$	—  	 
	 D
	 				 				 	$	—  	 	 	 	N/A	 	 	 	3.09000%	 	 	 	17	 	 	$	—  	 
	 E
	 				 				 	$	—  	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	$	—  	 
		 				 				 	  
	  
	 	 				 				 				 	  
	  
	 
	 Total
	 				 				 	$	—  	 	 				 				 				 	$	—  	 
		 				 				 	$	—  	 	 				 				 				 			
	 LIBOR as of the LIBOR Determination Date
	 				 				 	 	0.00000	% 	 				 				 				 			
	 Blended Investor Note Spread to LIBOR (Class A
	 				 				 	 	0.00000	% 	 				 				 				 			
	 Days in Interest Period
	 				 				 	 	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Monthly Interest - Floa
	 				 				 	$	—  	 	 				 				 				 			
								
	 Blended Note Interest Rate (Class B, C, D
	 				 				 	 	0.00000	% 	 				 				 				 			
	 Days In Interest Period
	 				 				 	 	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Monthly Interest - Fixe
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Monthly Interest - Tota
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
		 				 				 	$	—  	 	 				 				 				 			
	 4. Net Invested Amount
	 				 				 				 				 				 				 			
								
	 Beginning of Period Net Invested Amoun
	 				 				 	$	—  	 	 				 				 				 			
	 Less Balance Paydown during Period
	 				 				 	$	—  	 	 				 				 				 			
	 Less Net Reallocated Principal Collections
	 				 				 	$	—  	 	 				 				 				 			
	 Less Net Series Charge-Offs
	 				 				 	$	—  	 	 				 				 				 			
	 Plus/Less Other Class E Adjustments
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 End of Period Net Invested Amount
	 				 				 	$	—  	 	 				 				 				 			
	 Determination Date Note Distribution and Note Defeasance Account Balanc
	 				 				 	$	—  	 	 				 				 				 			
	 Determination Date Net Invested Amoun
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 				 				 				 				 			
	 5. Series Allocations
	 				 				 				 				 				 				 			
								
	 Floating Series Percentage
	 				 				 	 	0.00	% 	 				 				 				 			
	 Fixed Series Percentage (Average
	 				 				 	 	0.00	% 	 				 				 				 			
	 Series Interest Collections
	 				 				 	$	—  	 	 				 				 				 			
	 Series Principal Collections (Period
	 				 				 	$	—  	 	 				 				 				 			
	 Series Defaulted Amount
	 				 				 	$	—  	 	 				 				 				 			
								
	 6. Collections
	 				 				 				 				 				 				 			
								
	 Available Series Interest Collections
	 				 				 				 				 				 				 			
	 Series Interest Collections
	 				 				 	$	—  	 	 				 				 				 			
	 Plus Reserve Fund - Net Interest and Investment Earning
	 				 				 	$	—  	 	 				 				 				 			
	 Plus Note Distribution Account - Net Interest and Investment Earning
	 				 				 	$	—  	 	 				 				 				 			
	 Plus Accumulation Period Reserve Account - Net Interest and Investment Earning
	 				 				 	$	—  	 	 				 				 				 			
	 Plus Accumulation Period Reserve Draw Amoun
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Total
	 				 				 	$	—  	 	 				 				 				 			
								
	 Amounts allocated to Interest Waterfal
	 				 				 				 				 				 				 			
	 Excess Interest Collections from Other Series
	 				 				 	$	—  	 	 				 				 				 			
	 Reserve Fund Available Amount Used
	 				 				 	$	—  	 	 				 				 				 			
	 Reallocated Principal Collections Used
	 				 				 	$	—  	 	 				 				 				 			
	 Servicer Advance
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Total
	 				 				 	$	—  	 	 				 				 				 			
								
	 Principal Collections
	 				 				 				 				 				 				 			
								
	 Series Principal Collections (collection period
	 				 				 	$	—  	 	 				 				 				 			
	 Shared Principal Collections (collection period
	 				 				 	$	—  	 	 				 				 				 			
	 Excess Funding Account Withdrawals (collection period
	 				 				 	$	—  	 	 				 				 				 			
	 Less Reallocated Principal Collections (Current Monthly Payment Date
	 				 				 	$	—  	 	 				 				 				 			
	 Additional Available Series Principal Collections (Current Monthly Payment Date
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	  
	  
	 	 				 				 				 			
	 Available Investor Principal Collections
	 				 				 	$	—  	 	 				 				 				 			
		 				 				 	$	—  	 	 				 				 				 			
	 7. Application of Available Series Interest Collections on Deposit in Collection
Accoun
	 				 				 				 				 				 				 			
								
	 Monthly Servicing Fee (including unpaid Monthly Servicing Fees for prior Distribution Dates) -
Indenture Supplement 4.04(i)
	 				 				 	$	—  	 	 				 				 				 			
	 Unpaid fees, expenses and indemnities (not to exceed $150,000 in a calendar year)
	 				 				 	$	—  	 	 				 				 				 			
	 Monthly Backup Servicing Fee
	 				 				 	$	—  	 	 				 				 				 			
								
	 Class A Monthly Interest (including unpaid Class A Monthly Interest for prior Distribution
Dates)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Class B Monthly Interest (including unpaid Class B Monthly Interest for prior Distribution
Dates)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Class C Monthly Interest (including unpaid Class C Monthly Interest for prior Distribution
Dates)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Class D Monthly Interest (including unpaid Class D Monthly Interest for prior Distribution
Dates)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Series Defaulted Amount (treated as Additional Available Series Principal Collections)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Series Charge-Offs - unreimbursed (to be treated as Additional Available Series Principal
Collections)
	 				 				 	$	—  	 	 				 				 				 			
								
	 Reallocated Principal Collections - unreimbursed (to be treated as Additional Available Series
Principal Collections)
	 				 				 	$	—  	 	 				 				 				 			
	 Amount to cause the Class E Invested Amount to not be less than the Required Class E Invested
Amount (to be treated as Additional Available Series Principal Collections)
	 				 				 	$	—  	 	 				 				 				 			
	 Reserve Fund Deposit Amount
	 				 				 	$	—  	 	 				 				 				 			
	 Accumulation Period Reserve Account Deposit Amount (beginning on Accumulation Period Reserve
Account Funding Date)
	 				 				 	$	—  	 	 				 				 				 			
	 Repayment of Outstanding Servicer Advances
	 				 				 	$	—  	 	 				 				 				 			

  
 Page 1 of 3 

																									
	 Remaining fees, expenses, indemnities or other amounts
	 				 	$	—  	 	 				 				 				 			
	 Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group
One
	 				 	$	—  	 	 				 				 				 			
	 Deposit in the Certificate Distribution Account for distribution to the holders of the Certificate
(to exten not required to be deposited in EFA or CCA)
	 				 	$	—  	 	 				 				 				 			
							
	 8. Available Investor Principal Collections Distribution Payments by Priorit
	 				 				 				 				 				 			
							
	 Available Investor Principal Collection
	 				 	$	—  	 	 				 				 				 			
	 Aggregate Deposit to Note Distribution and Note Defeasance Account
	 				 	$	—  	 	 				 				 				 			
	 Shared with other series in Excess Sharing Group On
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Remainder released to holders of Certificate Interest (to extent not required to be deposited in
EFA or CCA)
	 				 	$	—  	 	 				 				 				 			
							
	 Application of Principal Amounts in Note
Distribution Account
	 	 	 	 	Balance Prior to Distribution	 	 	Distributions Allocable to
Principal	 	 	Balance Following Distribution	 	 	                        	 	 	                        	 
	 A
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
	 B
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
	 C
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
	 D
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
	 E
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
		 				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 				 			
	 Total
	 				 	$	—  	 	 	$	—  	 	 	$	—  	 	 				 			
							
	 9. Series Accounts (Collection Period
	 				 				 				 				 				 			
							
	 Note Distribution Accoun
	 				 				 				 				 				 			
	 Note Distribution Account - Beginning Balance
	 				 	$	—  	 	 				 				 				 			
	 Plus Note Distribution Account Deposit Amoun
	 				 	$	—  	 	 				 				 				 			
	 Less Note Distribution Account Draw Amoun
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Note Distribution Account - Ending Balance
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Note Defeasance Account
	 				 				 				 				 				 			
	 Note Defeasance Account - Beginning Balance
	 				 	$	—  	 	 				 				 				 			
	 Plus Note Defeasance Account Deposit Amoun
	 				 	$	—  	 	 				 				 				 			
	 Less Note Defeasance Account Draw Amoun
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Note Defeasance Account - Ending Balance
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Reserve Fund
	 				 				 				 				 				 			
	 Reserve Fund - Beginning Balance
	 				 	$	—  	 	 				 				 				 			
	 Plus Reserve Fund Deposit Amoun
	 				 	$	—  	 	 				 				 				 			
	 Less Reserve Fund Draw Amoun
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Reserve Fund - Ending Balance
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Reserve Fund Required Amoun
	 				 	$	—  	 	 				 				 				 			
	 Reserve Fund Trigger Amoun
	 				 	$	—  	 	 				 				 				 			
							
	 Accumulation Period Reserve Accoun
	 				 				 				 				 				 			
	 Accumulation Period Reserve Account - Beginning Balanc
	 				 	$	—  	 	 				 				 				 			
	 Accumulation Period Reserve Deposit Amoun
	 				 	$	—  	 	 				 				 				 			
	 Accumulation Period Reserve Draw Amoun
	 				 	$	—  	 	 				 				 				 			
	 Accumulation Period Reserve Account - Ending Balance
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Accumulation Period Reserve Account Required Amoun
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 10. Servicer Advances
	 				 				 				 				 				 			
							
	 Beginning Unreimbursed Servicer Advances
	 				 	$	—  	 	 				 				 				 			
	 Plus Servicer Advances During the Period
	 				 	$	—  	 	 				 				 				 			
	 Less Repayment of Servicer Advances
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 Ending Unreimbursed Servicer Advances
	 				 	$	—  	 	 				 				 				 			
		 				 	  
	  
	 	 				 				 				 			
	 11. Series 2017-2 Early Amortization Events
	 				 				 				 				 				 			
							
	 Failure by the Depositor, the Servicer or the Seller, as applicable, to duly observe or perform in
any material respect any other covenants or agreements in the TSSA or PSA (unremitted for 60 days)
	 				 	 	N	 	 				 				 				 			
							
	 Breach of representation or warranty made by the seller in the PSA or the Depositor in the TSSA o
materially incorrect information in the Schedule of Accounts (unremitted for 60 days)
	 				 	 	N	 	 				 				 				 			
							
	 Failure to pay (or set aside for payment) all amounts required to be paid as principal on any Serie
2017-2 Notes on the Series 2017-2 Expected Maturity Date
	 				 	 	N	 	 				 				 				 			
							
	 Average of the Monthly Payment Rates for three preceding Collection Periods is less than
17.5%
	 				 	 	N	 	 				 				 				 			
							
	 Amount on deposit in Reserve Fund is less than Reserve Fund Required Amount for thre consecutive
Distribution Dates
	 				 	 	N	 	 				 				 				 			
							
	 Reserve Fund Required Amount exceeds the amount on deposit in Reserve Fund by more than th Reserve
Fund Trigger Amount
	 				 	 	N	 	 				 				 				 			
							
	 Series 2017-2 Event of Default has occurred
	 				 	 	N	 	 				 				 				 			
							
	 Insolvency Event with respect to the Seller, the Depositor or the Seller (or Ally, if Ally is not
th Servicer)
	 				 	 	N	 	 				 				 				 			
							
	 Amounts on deposit in the Excess Funding Account exceeds 30% of the sum of the Net Invested Amounts
for all outstanding Series (average over the last six Collection Periods or , if shorter, the period from the initial issuance date through the immediately preceding Collection Period)
	 				 	 	N	 	 				 				 				 			
	 Current Month
	 	 	0.00	% 	 				 				 				 				 			
	 Current Month - 1
	 	 	0.00	% 	 				 				 				 				 			
	 Current Month - 2
	 	 	0.00	% 	 				 				 				 				 			
	 Current Month - 3
	 	 	0.00	% 	 				 				 				 				 			
	 Current Month - 4
	 	 	0.00	% 	 				 				 				 				 			
	 Current Month - 5
	 	 	0.00	% 	 				 				 				 				 			
		 	  
	  
	 	 				 				 				 				 			
	 Six Month Average
	 	 	0.00	% 	 				 				 				 				 			
							
	 Issuing Entity or the Depositor are required to register under the Investment Company Act
	 				 	 	N	 	 				 				 				 			
							
	 Liquidation Event occurs with respect to a Significant Manufacturer or with respect to a Majority o
Manufacturers
	 				 	 	N	 	 				 				 				 			
							
	 Required Class E Invested Amount exceeds the Class E Invested Amount
	 				 	 	N	 	 				 				 				 			
	 Required Class E Invested Amount
	 	$	—  	 	 				 				 				 				 			
	 Class E Invested Amount
	 	$	—  	 	 				 				 				 				 			
							
	 A failure by the depositor to transfer to the Issuing Entity Receivables arising in connection with
Additional Accounts within 15 Business Days after the date on which the Depositor is required to convey such Receivables
	 				 	 	N	 	 				 				 				 			
							
	 On the first Distribution Date related to the Controlled Accumulation Period, the amount on deposit
in the Accumulation Period Reserve Account is less than the Accumulation Period Reserve Account Required Amount
	 				 	 	N	 	 				 				 				 			

  
 Page 2 of 3 

																									
	 12. Series 2017-2 Asset Representation Review Trigger
(“ARR Trigger”)
	  				 				 	 	                                   
                 	 	  	 	                                   
 	 	  	 	                                	 	  	 	                                	 
							
	 Current month receivables in P/N accounts (based on aggregate outstanding principal balance)
portfolio level as a percent (%) of total receivables (based on aggregate outstanding principal balance)
	  				 	 	0.00	% 	 				  				  				  			
							
	 Series 2017-2 Downgrade Trigger Percentage (%
	  				 	  
	 0.00
	 % 
	 				  				  				  			
							
	 Asset Representations Trigger Review (PASS /FAIL
	  				 				 				  				  				  			
							
	13. Credit Risk Retention	  				 				 				  				  				  			
							
	 The percentage based on the fair value of the Class E notes retained by the depositor as an
eligib horizontal residual interest for Series 2017-2 as of the Series 2017-2 closing date
	  	 	0.00	% 	 				 				  				  				  			

  
 Page 3 of 3 

 EXHIBIT C 

SERVICING CRITERIA TO BE ADDRESSED IN 

INDENTURE TRUSTEE’S ASSESSMENT OF COMPLIANCE 

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

					
	 Servicing
Criteria
	  	
Applicable
Indenture
Trustee
Servicing Criteria

			
	 Reference
	  	 Criteria
	  	 
			
	 	  	General Servicing Considerations	  	 
	1122(d)(1)(i)	  	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	  	
			
	1122(d)(1)(ii)	  	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	  	X
			
	1122(d)(1)(iii)	  	Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.	  	
			
	1122(d)(1)(iv)	  	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of
the transaction agreements.	  	X
			
	1122(d)(1)(v)	  	Aggregate of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.	  	
			
		  	Cash Collection and Administration	  	
			
	1122(d)(2)(i)	  	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction
agreements.	  	X
			
	1122(d)(2)(ii)	  	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	  	X
			
	1122(d)(2)(iii)	  	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	  	
			
	1122(d)(2)(iv)	  	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the
transaction agreements.	  	X
			
	1122(d)(2)(v)	  	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a
foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	  	X
			
	1122(d)(2)(vi)	  	Unissued checks are safeguarded so as to prevent unauthorized access.	  	X

  
 Ex. C-1 

					
	 Servicing
Criteria
	  	
Applicable
Indenture
Trustee
Servicing Criteria

			
	 Reference
	  	 Criteria
	  	 
			
	1122(d)(2)(vii)	  	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate;
(B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation;
and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	  	X
			
		  	Investor Remittances and Reporting	  	
			
	1122(d)(3)(i)	  	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in
accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by
its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.	  	X1
			
	1122(d)(3)(ii)	  	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	  	X
			
	1122(d)(3)(iii)	  	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	  	X
			
	1122(d)(3)(iv)	  	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	  	X
			
		  	Pool Asset Administration	  	
			
	1122(d)(4)(i)	  	Collateral or security on pool assets is maintained as required by the transaction agreements or related asset pool documents.	  	
			
	1122(d)(4)(ii)	  	Pool assets and related documents are safeguarded as required by the transaction agreements	  	
			
	1122(d)(4)(iii)	  	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	  	
			
	1122(d)(4)(iv)	  	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number
of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related asset pool documents.	  	
			
	1122(d)(4)(v)	  	The Servicer’s records regarding the accounts and the accounts agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	  	

  
  

	1 	Only for (A) – applicable to the timeframe the relevant investor reports are distributed to investors. 

  
 Ex. C-2 

					
	 Servicing
Criteria
	  	
Applicable
Indenture
Trustee
Servicing Criteria

			
	 Reference
	  	 Criteria
	  	 
			
	1122(d)(4)(vi)	  	Changes with respect to the terms or status of an obligor’s account (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the
transaction agreements and related pool asset documents.	  	
			
	1122(d)(4)(vii)	  	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or
other requirements established by the transaction agreements.	  	
			
	1122(d)(4)(viii)	  	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period
specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g.,
illness or unemployment).	  	
			
	1122(d)(4)(ix)	  	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	  	
			
	1122(d)(4)(x)	  	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s Account documents, on at least an annual basis, or such other period specified in the
transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable Account documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment
of the related Accounts, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xi)	  	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support
has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xii)	  	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or
omission.	  	
			
	1122(d)(4)(xiii)	  	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xiv)	  	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	  	
			
	1122(d)(4)(xv)	  	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	  	

  
 Ex. C-3Exhibit 4.1

 

	
 
    

 

 

INDENTURE

 

between

 

FORD CREDIT AUTO OWNER TRUST 2017-B,
 as Issuer

 

and

 

THE BANK OF NEW YORK MELLON,
 as Indenture Trustee

 

Dated as of June 1, 2017

 

 

	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage   and Definitions
    	
1
    
	
Section 1.2.
    	
Incorporation   by Reference of Trust Indenture Act
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II THE NOTES
    	
2
    
	
Section 2.1.
    	
Form of   Notes
    	
2
    
	
Section 2.2.
    	
Execution,   Authentication and Delivery
    	
2
    
	
Section 2.3.
    	
Tax   Treatment
    	
3
    
	
Section 2.4.
    	
Note   Register
    	
3
    
	
Section 2.5.
    	
Registration   of Transfer and Exchange
    	
3
    
	
Section 2.6.
    	
Rule 144A   Notes
    	
6
    
	
Section 2.7.
    	
Mutilated,   Destroyed, Lost or Stolen Notes
    	
7
    
	
Section 2.8.
    	
Persons   Deemed Owners
    	
8
    
	
Section 2.9.
    	
Payments   on Notes
    	
8
    
	
Section 2.10.
    	
Cancellation   of Notes
    	
9
    
	
Section 2.11.
    	
Release   of Collateral
    	
9
    
	
Section 2.12.
    	
Book-Entry   Notes
    	
9
    
	
Section 2.13.
    	
Definitive   Notes
    	
10
    
	
Section 2.14.
    	
Authenticating   Agents
    	
10
    
	
Section 2.15.
    	
Note   Paying Agents
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE III COVENANTS, REPRESENTATIONS AND   WARRANTIES
    	
11
    
	
Section 3.1.
    	
Payment   of Principal and Interest
    	
11
    
	
Section 3.2.
    	
Maintenance   of Office or Agency
    	
11
    
	
Section 3.3.
    	
Money   for Payments To Be Held in Trust
    	
11
    
	
Section 3.4.
    	
Existence
    	
12
    
	
Section 3.5.
    	
Protection   of Collateral
    	
12
    
	
Section 3.6.
    	
Performance   of Obligations
    	
13
    
	
Section 3.7.
    	
Negative   Covenants
    	
13
    
	
Section 3.8.
    	
Opinions   on Collateral
    	
14
    
	
Section 3.9.
    	
Annual   Certificate of Compliance
    	
14
    
	
Section 3.10.
    	
Merger   and Consolidation; Transfer of Assets
    	
15
    
	
Section 3.11.
    	
Successor   or Transferee
    	
15
    
	
Section 3.12.
    	
No   Other Activities
    	
16
    
	
Section 3.13.
    	
Further   Acts and Documents
    	
16
    
	
Section 3.14.
    	
Restricted   Payments
    	
16
    
	
Section 3.15.
    	
Notice   of Events of Default
    	
16
    
	
Section 3.16.
    	
Review   of Issuer’s Records
    	
16
    
	
Section 3.17.
    	
Issuer’s   Representations and Warranties
    	
16
    
	
Section 3.18.
    	
Issuer’s   Representations and Warranties About Security Interest
    	
17
    
	
Section 3.19.
    	
Calculation   Agent
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE IV SATISFACTION AND DISCHARGE
    	
19
    
	
Section 4.1.
    	
Satisfaction   and Discharge of Indenture
    	
19
    

 

i

 

	
ARTICLE V EVENTS OF DEFAULT; REMEDIES
    	
20
    
	
Section 5.1.
    	
Events   of Default
    	
20
    
	
Section 5.2.
    	
Acceleration   of Maturity; Rescission
    	
21
    
	
Section 5.3.
    	
Collection   of Indebtedness by Indenture Trustee
    	
21
    
	
Section 5.4.
    	
Trustee   May File Proofs of Claim
    	
22
    
	
Section 5.5.
    	
Enforcement   of Claims Without Possession of Notes
    	
22
    
	
Section 5.6.
    	
Remedies;   Priorities
    	
23
    
	
Section 5.7.
    	
Optional   Preservation of Collateral
    	
24
    
	
Section 5.8.
    	
Limitation   on Suits
    	
24
    
	
Section 5.9.
    	
Unconditional   Rights to Receive Principal and Interest
    	
25
    
	
Section 5.10.
    	
Restoration   of Rights and Remedies
    	
25
    
	
Section 5.11.
    	
Rights   and Remedies Cumulative
    	
25
    
	
Section 5.12.
    	
Delay   or Omission Not a Waiver
    	
26
    
	
Section 5.13.
    	
Control   by Noteholders
    	
26
    
	
Section 5.14.
    	
Waiver   of Defaults and Events of Default
    	
26
    
	
Section 5.15.
    	
Agreement   to Pay Costs
    	
26
    
	
Section 5.16.
    	
Waiver   of Stay or Extension Laws
    	
27
    
	
Section 5.17.
    	
Performance   and Enforcement of Obligations
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE VI INDENTURE TRUSTEE
    	
27
    
	
Section 6.1.
    	
Indenture   Trustee’s Obligations
    	
27
    
	
Section 6.2.
    	
Indenture   Trustee’s Rights
    	
29
    
	
Section 6.3.
    	
Indenture   Trustee’s Individual Rights
    	
30
    
	
Section 6.4.
    	
Indenture   Trustee’s Disclaimer
    	
30
    
	
Section 6.5.
    	
Notice   of Defaults
    	
30
    
	
Section 6.6.
    	
Reports   by Indenture Trustee
    	
30
    
	
Section 6.7.
    	
Compensation   and Indemnity
    	
31
    
	
Section 6.8.
    	
Resignation   or Removal of Indenture Trustee
    	
32
    
	
Section 6.9.
    	
Merger   or Consolidation; Transfer of Assets
    	
33
    
	
Section 6.10.
    	
Appointment   of Separate Trustee or Co-Trustee
    	
34
    
	
Section 6.11.
    	
Eligibility;   Disqualification
    	
35
    
	
Section 6.12.
    	
Preferential   Collection of Claims Against Issuer
    	
36
    
	
Section 6.13.
    	
Review   of Indenture Trustee’s Records
    	
36
    
	
Section 6.14.
    	
Indenture   Trustee’s Representations and Warranties
    	
36
    
	
Section 6.15.
    	
Obligation   to Update Disclosure
    	
37
    
	
Section 6.16.
    	
Reporting   of Receivables Repurchase Demands
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE VII NOTEHOLDER COMMUNICATIONS AND   REPORTS
    	
38
    
	
Section 7.1.
    	
Noteholder   Communications
    	
38
    
	
Section 7.2.
    	
Noteholder   Demand for Asset Representations Review
    	
39
    
	
Section 7.3.
    	
Reports   by Issuer
    	
40
    
	
Section 7.4.
    	
Reports   by Indenture Trustee
    	
40
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII ACCOUNTS, DISTRIBUTIONS AND   RELEASES
    	
41
    
	
Section 8.1.
    	
Collection   of Funds
    	
41
    
	
Section 8.2.
    	
Bank   Accounts; Distributions
    	
41
    
	
Section 8.3.
    	
Bank   Accounts
    	
44
    
	
Section 8.4.
    	
Release   of Collateral
    	
44
    

 

ii

 

	
ARTICLE IX AMENDMENTS
    	
45
    
	
Section 9.1.
    	
Amendments   Without Consent of Noteholders
    	
45
    
	
Section 9.2.
    	
Amendments   with Consent of Controlling Class
    	
46
    
	
Section 9.3.
    	
Execution   of Amendments
    	
47
    
	
Section 9.4.
    	
Effect   of Amendment
    	
47
    
	
Section 9.5.
    	
Conformity   with TIA
    	
47
    
	
Section 9.6.
    	
Reference   in Notes to Supplemental Indentures
    	
48
    
	
 
    	
 
    	
 
    
	
ARTICLE X REDEMPTION OF NOTES
    	
48
    
	
Section 10.1.
    	
Redemption
    	
48
    
	
 
    	
 
    	
 
    
	
ARTICLE XI OTHER AGREEMENTS
    	
49
    
	
Section 11.1.
    	
No   Petition
    	
49
    
	
Section 11.2.
    	
Subordination   of Claims Against Depositor
    	
49
    
	
Section 11.3.
    	
Issuer   Orders; Certificates and Opinions
    	
49
    
	
Section 11.4.
    	
Acts   of Noteholders
    	
51
    
	
Section 11.5.
    	
Conflict   with Trust Indenture Act
    	
51
    
	
Section 11.6.
    	
Issuer   Obligation
    	
52
    
	
 
    	
 
    	
 
    
	
ARTICLE XII MISCELLANEOUS
    	
52
    
	
Section 12.1.
    	
Benefits   of Indenture; Third-Party Beneficiaries
    	
52
    
	
Section 12.2.
    	
Notices
    	
52
    
	
Section 12.3.
    	
GOVERNING   LAW
    	
53
    
	
Section 12.4.
    	
Submission   to Jurisdiction
    	
53
    
	
Section 12.5.
    	
WAIVER   OF JURY TRIAL
    	
53
    
	
Section 12.6.
    	
No   Waiver; Remedies
    	
53
    
	
Section 12.7.
    	
Severability
    	
53
    
	
Section 12.8.
    	
Headings
    	
53
    
	
Section 12.9.
    	
Counterparts
    	
53
    

 

	
Exhibit A
    	
Form of   Notes
    	
A-1
    

 

iii

 

INDENTURE, dated as of June 1, 2017 (this “Indenture”), between FORD CREDIT AUTO OWNER TRUST 2017-B, a Delaware statutory trust, as Issuer, and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee for the benefit of the Secured Parties.

 

In connection with a securitization transaction sponsored by Ford Credit, the Issuer will issue Notes secured by a pool of Receivables consisting of retail installment sale contracts purchased by the Issuer from the Depositor, who purchased them from Ford Credit.

 

The parties agree as follows:

 

GRANTING CLAUSE

 

The Issuer Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Secured Parties, all the Issuer’s right, title and interest in, to and under, whether now owned or later acquired, the Collateral.

 

This Grant is made in trust to secure (a) the payment of principal of, interest on and other amounts owing on the Notes as stated in this Indenture and (b) compliance by the Issuer with this Indenture for the benefit of the Secured Parties.

 

The Indenture Trustee acknowledges the Grant, accepts the trusts under this Indenture according to this Indenture and agrees to perform the obligations stated in this Indenture so that the interests of the Secured Parties may be adequately and effectively protected.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.                    Usage and Definitions.  Capitalized terms used but not defined in this Indenture are defined in Appendix A to the Sale and Servicing Agreement, dated as of June 1, 2017, among Ford Credit Auto Owner Trust 2017-B, as Issuer, Ford Credit Auto Receivables Two LLC, as Depositor, and Ford Motor Credit Company LLC, as Servicer.  Appendix A also contains usage rules that apply to this Indenture.  Appendix A is incorporated by reference into this Indenture.

 

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

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Noteholder;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional trustee” means the Indenture Trustee; and

 

 

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

 

Any other TIA terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by Securities and Exchange Commission rule have the meaning assigned to them by those definitions.

 

ARTICLE II
 THE NOTES

 

Section 2.1.                    Form of Notes.

 

(a)                               Form.  Each Class of Notes will be in substantially the form of Exhibit A with variations required or permitted by this Indenture.  The Notes may have marks of identification and legends or endorsements as determined by the Responsible Person of the Issuer executing the Notes.  The physical Notes will be produced by a method determined by the Responsible Person of the Issuer executing the Notes.

 

(b)                              Incorporation by Reference.  Each Note will be dated the date of its authentication.  The terms of the Notes in Exhibit A are part of this Indenture and are incorporated into this Indenture by reference.

 

Section 2.2.                    Execution, Authentication and Delivery.

 

(a)                               Execution.  A Responsible Person of the Issuer will execute the Notes for the Issuer.  The signature of the Responsible Person on the Notes may be manual or facsimile.  Notes having the manual or facsimile signature of an individual who was a Responsible Person of the Issuer will bind the Issuer, even if the individual has ceased to be a Responsible Person before the authentication and delivery of the Notes or was not a Responsible Person on the issuance date of the Notes.

 

(b)                              Authentication and Delivery.  The Indenture Trustee will, on Issuer Order, authenticate and deliver the Notes for original issue in the Classes, Note Interest Rates and initial Note Balances as stated below (except that the Note Interest Rate for any Floating Rate Notes will not be less than 0.00%).

 

	
Class
    	
 
    	
Note   Interest Rate
    	
 
    	
Initial   Note Balance
    
	
Class A-1 Notes
    	
 
    	
1.30000%
    	
 
    	
$293,400,000
    
	
Class A-2a Notes
    	
 
    	
1.49%
    	
 
    	
$233,100,000
    
	
Class A-2b Notes
    	
 
    	
one-month   LIBOR + 0.07%
    	
 
    	
$233,100,000
    
	
Class A-3 Notes
    	
 
    	
1.69%
    	
 
    	
$373,700,000
    
	
Class A-4 Notes
    	
 
    	
1.87%
    	
 
    	
$102,770,000
    
	
Class B Notes
    	
 
    	
2.15%
    	
 
    	
$  39,030,000
    
	
Class C Notes
    	
 
    	
2.33%
    	
 
    	
$  26,020,000
    

 

2

 

(c)                               Denomination.  The Notes will initially be issued as Book-Entry Notes.  The Notes, except for the Rule 144A Notes, will be issued in minimum denominations of $1,000 and in multiples of $1,000.  The Rule 144A Notes will be issued in minimum denominations of $100,000 and in multiples of $1,000 in excess of $100,000.  However, one Note of each Class may be issued in a different amount if it exceeds the minimum denomination for the Class.

 

(d)                             Certificate of Authentication.  No Note will have the benefit of this Indenture or be valid unless it has a certificate of authentication substantially in the form included in Exhibit A manually executed by a Responsible Person of the Indenture Trustee.  The certificate of authentication on a Note will be conclusive evidence that the Note has been duly authenticated and delivered under this Indenture.

 

Section 2.3.                    Tax Treatment.  The Issuer intends that Notes owned or beneficially owned by a Person other than Ford Credit or its Affiliates will be indebtedness of the Issuer for U.S. federal, State and local income and franchise tax purposes.  The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes for U.S. federal, State and local income and franchise tax purposes as indebtedness of the Issuer.

 

Section 2.4.                    Note Register.  The Issuer appoints the Indenture Trustee to be the “Note Registrar” and to keep a register (the “Note Register”) for the purpose of registering Notes and transfers and exchanges of Notes.  On resignation of the Note Registrar, the Issuer will promptly appoint a successor or, if it elects not to make the appointment, assume the obligations of Note Registrar.  If the Issuer appoints a Person other than the Indenture Trustee as Note Registrar, (i) the Issuer will notify the Indenture Trustee of the appointment and (ii) the Indenture Trustee will have the right to rely on a certificate executed by an officer of the Note Registrar listing the names and addresses of the Noteholders and the principal amounts and number of the Notes.  Each of the Indenture Trustee (if it is not the Note Registrar), the Issuer and the Administrator will have the right to inspect the Note Register at reasonable times and to receive copies of the Note Register.

 

Section 2.5.                    Registration of Transfer and Exchange.

 

(a)                               Transfer of Notes.  A Noteholder may transfer a Note by surrendering the Note for registration of transfer at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute and the Indenture Trustee will authenticate and deliver to the Noteholder, in the name of the transferee or transferees, new Notes of the same Class, in the same principal amount.

 

(b)                              Exchange of Notes.  A Noteholder may exchange Notes for other Notes of the same Class by surrendering the Notes to be exchanged at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute, the Indenture Trustee will authenticate and the Noteholder will receive from the Indenture Trustee new Notes of the same Class, in the same principal amount.

 

3

 

(c)                               Valid Obligation.  Notes issued on the registration of transfer or exchange of Notes will be the valid obligations of the Issuer, evidencing the same debt, and have the same benefits under this Indenture as the Notes surrendered for registration of transfer or exchange.

 

(d)                             Surrendered Notes.  Every Note surrendered for registration of transfer or exchange will be (i) duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar or the Indenture Trustee duly executed by, the Noteholder of the Note or the Noteholder’s authorized attorney, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar including membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program”, according to the Exchange Act and (ii) accompanied by other documents the Indenture Trustee may require.

 

(e)                               No Service Charge.  None of the Issuer, the Note Registrar or the Indenture Trustee will impose a service charge on a Noteholder for the registration of transfer or exchange of Notes.  The Issuer, the Note Registrar or the Indenture Trustee may require the Noteholder to pay an amount to cover taxes or other governmental charges that may be imposed for the registration of transfer or exchange of the Notes.

 

(f)                                Registration of Transfers and Exchanges.  The Note Register will register transfers and exchanges of Notes in the Note Register.  However, neither the Issuer nor the Note Registrar will be required to register transfers or exchanges of Notes for which the next Payment Date is not more than 15 days after the requested date of transfer or exchange or which have been called for redemption.

 

(g)                              ERISA Representations.  Each Note Owner that is subject to Title I of ERISA, Section 4975 of the Code or Similar Law, by accepting an interest or participation in a Note, is deemed to represent that its purchase, holding and disposition of that interest or participation is not and will not result in a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the applicability of a statutory or administrative exemption from the prohibited transaction rules (or, if the Note Owner is subject to Similar Law, the purchase, holding and disposition is not and will not result in a non-exempt violation of that Similar Law).  In addition, each Note Owner that is an “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title 1 of ERISA or a “plan” as defined in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code (collectively, a “plan”), including any fiduciary purchasing the Notes on behalf of a plan, or a “plan fiduciary,” will be deemed to have represented by its purchase of the Notes that:

 

(i)                                  none of the Sponsor, Issuer, underwriters for the Notes or any of their affiliates (the “Transaction Parties”) has provided or will provide advice with respect to the acquisition of the Notes by the plan, other than to the plan fiduciary, which is independent of the Transaction Parties and of the following:

 

(A)                          a bank as defined in Section 202 of the Investment Advisers Act of 1940 or similar institution that is regulated and supervised and subject to periodic examination by a state or federal agency;

 

4

 

(B)                           an insurance carrier which is qualified under the laws of more than one state to perform the services of managing, acquiring or disposing of assets of a plan;

 

(C)                           an investment adviser registered under the Investment Advisers Act of 1940 or, if not registered an as investment adviser by reason of paragraph (1) of Section 203A of the Investment Advisers Act of 1940, is registered as an investment adviser under the laws of the state in which it maintains its principal office and place of business;

 

(D)                          is a broker-dealer registered under the Exchange Act; or

 

(E)                            a fiduciary, that at all times that the plan is invested in the Notes, will have total assets of at least $50,000,000 under its management or control (except that this requirement will not be satisfied if the plan fiduciary is either (i) the owner or a relative of the owner of an investing IRA or (ii) a participant or beneficiary or a relative of such participant or beneficiary, of the plan investing in the Notes in such capacity);

 

(ii)                              the plan fiduciary is capable of evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies, including the acquisition by the plan of the Notes;

 

(iii)                          the plan fiduciary is a “fiduciary” with respect to the plan within the meaning of Section 3(21) of ERISA, Section 4975 of the Code or both, and is responsible for exercising independent judgment in evaluating the plan’s acquisition of the Notes;

 

(iv)                          none of the Transaction Parties has exercised any authority to cause the plan to invest in the Notes or to negotiate the terms of the plan’s investment in the Notes; and

 

(v)                              the plan fiduciary has been informed by the Transaction Parties:

 

(A)                          that none of the Transaction Parties has agreed to provide impartial investment advice or to give advice in a fiduciary capacity, in connection with the plan’s acquisition of the Notes; and

 

(B)                           of the existence and nature of the Transaction Parties’ financial interests in the plan’s acquisition of the Notes.

 

5

 

Section 2.6.                    Rule 144A Notes.

 

(a)                               Rule 144A Notes Not Registered.  The Rule 144A Notes have not been registered under the Securities Act or any State securities laws.  None of the Issuer, the Note Registrar or the Indenture Trustee is obligated to register the Rule 144A Notes under the Securities Act or any State securities or “blue sky” laws or to take other action not required under this Indenture or the Trust Agreement to permit the transfer of a Rule 144A Note without registration.  The Issuer, at the direction of the Depositor or the Administrator, may elect to register, or cause the registration of, the Rule 144A Notes under the Securities Act and applicable State securities laws.  In this case, the Issuer will deliver, or cause to be delivered, to the Indenture Trustee and the Note Registrar the Opinions of Counsel, Officer’s Certificates and other information necessary to effect the registration.

 

(b)                              Restrictions on Transfer.  Until the Rule 144A Notes have been registered under the Securities Act and any applicable State securities laws under Section 2.6(a), no Rule 144A Note may be sold, transferred, assigned, participated, pledged or disposed of (each, a “Rule 144A Note Transfer”) except according to this Section 2.6, and a Rule 144A Note Transfer in violation of this Section 2.6 will be null and void (a “Void Rule 144A Note Transfer”).

 

(c)                               Note Legend and Transferee Representation.  Each Rule 144A Note will bear the legend in Exhibit A.  As a condition to the registration of a Rule 144A Note Transfer, the prospective transferee of the Rule 144A Note will be deemed to represent to the Indenture Trustee, the Note Registrar and the Issuer the following:

 

(i)                                  It understands that the Rule 144A Notes have not been registered under the Securities Act or any State securities or “blue sky” laws.

 

(ii)                              It understands that Rule 144A Note Transfers are only permitted if made in compliance with the Securities Act and other applicable laws and only to a person who the holder reasonably believes is a “qualified institutional buyer” within the meaning of Rule 144A (a “QIB”).

 

(iii)                          It (A) is a QIB, (B) is aware that the sale to it is being made under Rule 144A and if it is acquiring the Rule 144A Notes or an interest or participation in the Rule 144A Notes for the account of another QIB, that other QIB is aware that the sale is being made under Rule 144A and (C) is acquiring the Rule 144A Notes or an interest or participation in the Rule 144A Notes for its own account or for the account of another QIB.

 

(iv)                          It is purchasing the Rule 144A Notes for its own account or for one or more investor accounts for which it is acting as fiduciary or agent, in each case for investment, and not with a view to offer, transfer, assign, participate, pledge or dispose of the Rule 144A Notes for a distribution that would violate the Securities Act.

 

(d)                             Rule 144A Noteholder Agreement.  By acceptance of a Rule 144A Note, the Rule 144A Noteholder agrees with and represents to the Depositor, the Issuer and the Note Registrar, that no Rule 144A Note Transfer will be made unless (i) the registration requirements of the Securities Act and applicable State securities laws have been complied with for the Rule 144A

 

6

 

Note according to Section 2.6(a), (ii) the Rule 144A Note Transfer is to the Depositor or its Affiliates or (iii) the Rule 144A Note Transfer is exempt from the registration requirements under the Securities Act because the Rule 144A Note Transfer is in compliance with Rule 144A, to a transferee who the transferor reasonably believes is a QIB that is purchasing for its own account or for the account of a QIB and to whom notice is given that the Rule 144A Note Transfer is being made under Rule 144A.

 

(e)                               Rule 144A Information.  The Administrator will make available to the prospective transferor and transferee of a Rule 144A Note information requested to satisfy the requirements of paragraph (d)(4) of Rule 144A (the “Rule 144A Information”).  The Rule 144A Information will include any of the following items requested by the prospective transferee:

 

(i)                                  the offering memorandum, if any, relating to the Rule 144A Notes and any amendments or supplements to the offering memorandum;

 

(ii)                              the Monthly Investor Report for each Payment Date before the request;

 

(iii)                          copies of the Transaction Documents, including any amendments; and

 

(iv)                          any other information reasonably available to the Administrator that may be considered Rule 144A Information.

 

Section 2.7.                    Mutilated, Destroyed, Lost or Stolen Notes.

 

(a)                               Replacement Notes.  If a mutilated Note is surrendered to the Indenture Trustee or the Indenture Trustee receives evidence of the destruction, loss or theft of a Note, the Issuer will execute and, on Issuer Request, the Indenture Trustee will authenticate and deliver a replacement Note of the same Class and principal amount in exchange for or in place of the Note if the following conditions are met: (i) the Indenture Trustee receives security or indemnity to hold the Issuer and the Indenture Trustee harmless, (ii) none of the Issuer, the Note Registrar or the Indenture Trustee have received notice that the Note has been acquired by a protected purchaser, as defined in Section 8-303 of the UCC and (iii) the requirements of Section 8-405 of the UCC are met.  However, if a destroyed, lost or stolen Note (but not a mutilated Note) is due and payable within 15 days or has been called for redemption, instead of issuing a replacement Note, the Issuer may pay the destroyed, lost or stolen Note when so due or payable or on the Redemption Date without surrender of the Note.  If a protected purchaser of the original Note in place of which the replacement Note was issued (or the payment made) presents for payment the original Note, the Issuer and the Indenture Trustee may recover the replacement Note (or the payment) from the Person to whom it was delivered or a Person taking the replacement Note (or the payment) from the Person to whom the replacement Note (or the payment) was delivered or an assignee of that Person, except a protected purchaser, and may recover on the security or indemnity provided for the replacement Note (or the payment) for any fee, expense, loss, damage or liability incurred by the Issuer or the Indenture Trustee for the replacement Note (or the payment).

 

(b)                              Taxes, Charges and Expenses.  On the issuance of a replacement Note under Section 2.7(a), (i) the Issuer may require the Noteholder of the Note to pay an amount to cover any taxes or other governmental charges imposed and any other reasonable expenses incurred for

 

7

 

the replacement Note, (ii) the Indenture Trustee will, for a mutilated Note, cancel the Note and (iii) the Note Registrar will record in the Note Register that the destroyed, lost or stolen Note no longer has the benefits of this Indenture.

 

(c)                               Additional Obligation.  Each replacement Note issued under Section 2.7(a) will be an original additional contractual obligation of the Issuer and have the benefits of this Indenture equally and proportionately with other Notes of the same Class duly issued under this Indenture.

 

(d)                             Sole Remedy.  This Section 2.7 states the sole remedy available to Noteholders for the replacement or payment of mutilated, destroyed, lost or stolen Notes.

 

Section 2.8.                    Persons Deemed Owners.  On any date, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name a Note is registered as of that date as the owner of the Note for all purposes, including receiving payments of principal of and interest on the Note, without regard to any notice or other information to the contrary.

 

Section 2.9.                    Payments on Notes.

 

(a)                               Interest Accrual.  Each Class of Notes will accrue interest on its Note Balance for each Interest Period until the Note Balance has been paid in full at a rate per annum equal to its Note Interest Rate for that Interest Period.  Interest on the Class A-1 and Class A-2b Notes will be calculated for each Interest Period on the basis of the actual number of days in the Interest Period and a 360-day year.  Interest on the Notes (other than the Class A-1 and Class A-2b Notes) for each Interest Period will be calculated on the basis of a 360-day year consisting of twelve 30-day months.  Interest on each Note for each Interest Period will be due and payable on the related Payment Date.

 

(b)                              Principal.  The principal of each Class of Notes will be payable in installments on each Payment Date according to Article VIII.  The Note Balance of each Class of Notes will be due and payable on the earlier of the Redemption Date and its Final Scheduled Payment Date.  The Note Balance of each Class of Notes will be due and payable on the date the Notes are declared to be, or have automatically become, immediately due and payable according to Section 5.2(a).

 

(c)                               Monthly Payment of Interest and Principal.  Payments of interest and principal on each Class of Notes will be made pro rata to the Registered Noteholders of that Class on each Payment Date.  For Book-Entry Notes, payments will be made by wire transfer to the account designated by the nominee of the Clearing Agency according to Section 2.12.  For Definitive Notes, payments will be made (i) if the Noteholder has given to the Note Registrar instructions at least five Business Days before that Payment Date and the aggregate original principal amount of the Noteholder’s Notes is at least $1,000,000, by wire transfer to the account of the Registered Noteholder or (ii) by check mailed first class mail, postage prepaid, to the Registered Noteholder’s address as it appears on the Note Register on the related Record Date.  Amounts paid by wire transfers or checks that is returned undelivered will be held according to Section 3.3.

 

8

 

(d)                             Payment of Final Installment.  The final installment of principal (whether payable by wire transfer or check) of each Note on a Payment Date, the Redemption Date or the Final Scheduled Payment Date will be payable only on presentation and surrender of the Note, subject to Section 2.7(a).  The Indenture Trustee will notify each Registered Noteholder of the date the Issuer expects to pay the final installment on any of the Notes, which notice will be delivered no later than five days before that date, and the place where the Notes may be presented and surrendered for payment.

 

Section 2.10.            Cancellation of Notes.  Any Person that receives a Note surrendered for payment, registration of transfer, exchange or redemption will deliver the Note to the Indenture Trustee and the Indenture Trustee will promptly cancel it.  The Issuer may surrender to the Indenture Trustee for cancellation Notes previously authenticated and delivered under this Indenture which the Issuer may have acquired, and the Indenture Trustee will promptly cancel them.  No Notes will be authenticated in place of or in exchange for Notes cancelled as stated in this Section 2.10.  The Indenture Trustee may hold or dispose of cancelled Notes according to its standard retention or disposal policy unless the Issuer directs, by Issuer Order, that they be destroyed or returned to it.

 

Section 2.11.            Release of Collateral.  The Indenture Trustee will release property from the Lien of this Indenture only according to Sections 8.4 and 10.1.

 

Section 2.12.            Book-Entry Notes.

 

(a)                               Issuance and Registration.  The Notes will be issued as Book-Entry Notes on the Closing Date.  The Book-Entry Notes, on original issuance, will be issued in the form of printed Notes representing the Book-Entry Notes and delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuer.  The Book-Entry Notes will be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency.

 

(b)                              Sole Noteholder.  The Note Registrar and the Indenture Trustee may deal with the Clearing Agency as the sole Noteholder of the Book-Entry Notes for all purposes of this Indenture and will not be obligated to the Note Owners, except as stated in Section 7.2.

 

(c)                               Rights.  The rights of Note Owners may be exercised only through the Clearing Agency and will be limited to those established by law and agreements between the Note Owners and the Clearing Agency and/or its participants under the Depository Agreement.

 

(d)                             Clearing Agency Obligations.  The Clearing Agency will make book-entry transfers among its participants and receive and transmit payments of principal of and interest on the Book-Entry Notes to the participants.

 

(e)                               Representation of Noteholders.  If this Indenture requires or permits actions to be taken based on instructions or directions of the Noteholders of a stated percentage of the Note Balance of the Notes (or the Controlling Class), the Clearing Agency will be deemed to represent those Noteholders only if it has received instructions to that effect from Note Owners and/or the Clearing Agency’s participants owning or representing, the required percentage of the beneficial

 

9

 

interest of the Notes (or the Controlling Class) and has delivered the instructions to the Indenture Trustee.

 

(f)                                Conflicts.  If this Section 2.12 conflicts with other terms of this Indenture, this Section 2.12 will control.

 

Section 2.13.            Definitive Notes.  No Note Owner will receive a definitive, fully registered Note (a “Definitive Note”) representing the Note Owner’s interest in the Note unless and until (a) the Administrator notifies the Indenture Trustee that the Clearing Agency is no longer willing or able to properly discharge its responsibilities as depository for the Book-Entry Notes and the Administrator is unable to reach an agreement on satisfactory terms with a qualified successor, (b) the Administrator notifies the Indenture Trustee that it elects to terminate the book-entry system through the Clearing Agency or (c) after the occurrence and during the continuation of an Event of Default or a Servicer Termination Event, Note Owners of a majority of the Note Balance of the Controlling Class notify the Indenture Trustee and the Clearing Agency that they elect to terminate the book-entry system through the Clearing Agency.  In these cases, the Clearing Agency will notify Note Owners and the Indenture Trustee of the availability of Definitive Notes.  After the Clearing Agency has surrendered the printed Notes representing the Book-Entry Notes and delivered the registration instructions to the Indenture Trustee, the Issuer will execute and the Indenture Trustee, on Issuer Request, will authenticate the Definitive Notes according to the instructions of the Clearing Agency.  None of the Issuer, the Note Registrar or the Indenture Trustee will be liable for delay in delivery of the instructions and may conclusively rely, and will be protected in relying, on the instructions.  On the issuance of Definitive Notes to Note Owners, the Indenture Trustee will recognize the holders of the Definitive Notes as Noteholders.

 

Section 2.14.            Authenticating Agents.

 

(a)                               Appointment.  The Indenture Trustee may appoint one or more Persons as authenticating agents for the Notes (each, an “Authenticating Agent”) with the power to act on its behalf and subject to its direction in the authentication of Notes for issuances, transfers, exchanges and replacements.  The authentication of Notes by an Authenticating Agent under this Section 2.14 is deemed to be the authentication of Notes “by the Indenture Trustee.”  If no Authenticating Agent is appointed,  the Indenture Trustee will be the Authenticating Agent for the Notes.

 

(b)                              Resignation and Termination.  An Authenticating Agent may resign by notifying the Indenture Trustee and the Owner Trustee.  The Indenture Trustee may terminate the agency of an Authenticating Agent by notifying the Authenticating Agent and the Owner Trustee.

 

Section 2.15.            Note Paying Agents.

 

(a)                               Appointment.  The Indenture Trustee may appoint one or more Note Paying Agents that meet the eligibility standards for the Indenture Trustee in Section 6.11(a).  If no Note Paying Agent is appointed, then the Indenture Trustee will be the Note Paying Agent for the Notes.  Each Note Paying Agent will have the power to make distributions from the Bank Accounts.

 

10

 

(b)                              Resignation and Termination.  A Note Paying Agent may resign by notifying the Indenture Trustee, the Administrator and the Issuer.  The Indenture Trustee may terminate the agency of a Note Paying Agent by notifying the Note Paying Agent, the Administrator and the Issuer.

 

ARTICLE III
 COVENANTS, REPRESENTATIONS AND WARRANTIES

 

Section 3.1.                    Payment of Principal and Interest.  The Issuer will duly and punctually pay the principal of and interest on the Notes according to the Notes and this Indenture.  Amounts withheld under the Code or State or local tax law by any Person from a payment to a Noteholder will be considered as having been paid by the Issuer to the Noteholder.

 

Section 3.2.                    Maintenance of Office or Agency.  The Issuer will maintain an office or agency in the Borough of Manhattan, The City of New York, where Notes may be surrendered for registration of transfer or exchange, and where notices to and demands on the Issuer for the Notes and this Indenture may be served.  The Issuer initially appoints the Indenture Trustee to serve as its agent for those purposes.  The Issuer will promptly notify the Indenture Trustee of a change in the location of the office or agency.  If the Issuer fails to maintain the office or agency or fails to furnish the Indenture Trustee with the address of the office or agency, any surrender, notices and demands may be made or served at the Corporate Trust Office, and the Issuer appoints the Indenture Trustee as its agent to receive them.

 

Section 3.3.                    Money for Payments To Be Held in Trust.

 

(a)                               Payments on the Notes.  Payments on the Notes that are to be made from amounts withdrawn from the Bank Accounts will be made on behalf of the Issuer by the Indenture Trustee or a Note Paying Agent.  No amounts withdrawn for payments on the Notes may be paid over to the Issuer, except as stated in this Section 3.3.

 

(b)                              Agreement by Note Paying Agent.  The Indenture Trustee will, and will cause each Note Paying Agent to, execute and deliver to the Indenture Trustee, an instrument in which the Note Paying Agent agrees with the Indenture Trustee to:

 

(i)                                  hold funds held by it for the payment of amounts due on the Notes in trust for the benefit of the Persons entitled to that money and pay it to those Persons under this Indenture;

 

(ii)                              notify the Indenture Trustee of a default by the Issuer of which it has actual knowledge in the making of a required payment on the Notes;

 

(iii)                          during the continuance of a default, on the request of the Indenture Trustee, immediately pay to the Indenture Trustee money held by it in trust;

 

(iv)                          immediately resign as a Note Paying Agent and immediately pay to the Indenture Trustee amounts held by it in trust if it ceases to meet the eligibility standards in Section 6.11 for the Indenture Trustee; and

 

11

 

(v)                              comply with all requirements of law for withholding and reporting requirements for payments on the Notes.

 

(c)                               Payment Direction.  The Issuer may by Issuer Order, direct a Note Paying Agent to pay to the Indenture Trustee money held in trust by the Note Paying Agent, which money will be held by the Indenture Trustee on the same terms as the Note Paying Agent.  On a Note Paying Agent’s payment of money held in trust to the Indenture Trustee, the Note Paying Agent will be released from liability for such amounts.

 

(d)                             Unclaimed Money.  Subject to applicable law, money held by the Indenture Trustee or a Note Paying Agent in trust under this Section 3.3 which remains unclaimed for two years after it became due and payable will be discharged from the trust and paid to the Issuer on Issuer Request.  After discharge and payment, the Noteholder of the Note will, as an unsecured general creditor, look only to the Issuer for payment of the amount due and unclaimed, and the Indenture Trustee or the Note Paying Agent will be released from liability for such amounts.  However, the Indenture Trustee or the Note Paying Agent, before making the payment, will publish once, at the expense and direction of the Issuer, in a newspaper customarily published on each Business Day in the English language and of general circulation in The City of New York, notice that the money remains unclaimed and that after a date stated in the notice, which must be at least 30 days from the date of publication, any unclaimed balance of the money then remaining will be paid to the Issuer.  The Indenture Trustee will also use other reasonable means to notify the Noteholders of unclaimed payments.

 

Section 3.4.                    Existence.  The Issuer will maintain its existence as a statutory trust under the Delaware Statutory Trust Act and will obtain and maintain its qualification in each jurisdiction in which the qualification is or will be necessary to protect the validity and enforceability of this Indenture, the Notes and the Collateral.

 

Section 3.5.                    Protection of Collateral.

 

(a)                               Amendments and Financing Statements.  The Issuer will (i) execute and deliver amendments to this Indenture and other documents, (ii) file or authorize and cause to be filed financing statements and amendments and continuations of those financing statements and (iii) take other action necessary or advisable to:

 

(A)                          maintain or preserve the Lien and security interest (and the priority of the security interest) of this Indenture;

 

(B)                           perfect, maintain perfection, publish notice of or protect the validity of a Grant made or to be made by this Indenture;

 

(C)                           enforce the Collateral; or

 

(D)                          maintain and defend title to the Collateral and the rights of the Indenture Trustee and the Secured Parties in the Collateral against the claims of all Persons, subject to Permitted Liens and the Transaction Documents.

 

12

 

(b)                              Authorization to File.  The Issuer authorizes the Administrator and the Indenture Trustee to file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices as the Administrator or the Indenture Trustee may reasonably determine necessary or advisable to perfect the Indenture Trustee’s interest in the Collateral.  The financing and continuation statements may describe the Collateral as the Administrator or the Indenture Trustee may reasonably determine necessary or advisable to perfect the Indenture Trustee’s interest in the Collateral (including describing the Collateral as “all assets” of the Issuer “now owned or later acquired” or words to that effect).  The Administrator or the Indenture Trustee will promptly deliver to the Issuer file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.

 

(c)                               Indenture Trustee Not Obligated.  The Indenture Trustee is not obligated to (i) make a determination of whether filing financing or continuation statements, or amendments to the statements, is required or (ii) file any financing or continuation statements, or amendments to the statements, and will not be liable for failure to do so.

 

Section 3.6.                    Performance of Obligations.

 

(a)                               Performance of Obligations.  The Issuer will perform all of its obligations under the Transaction Documents and documents included in the Collateral.

 

(b)                              Subcontracting.  The Issuer may contract with other Persons to assist it in performing its obligations under this Indenture.  Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its obligations under this Indenture.

 

(c)                               Servicer Termination Event.  If the Issuer has knowledge of a Servicer Termination Event, the Issuer will notify the Indenture Trustee and the Rating Agencies of the event and any action the Issuer is taking to correct the situation.  If a Servicer Termination Event results from the failure of the Servicer to perform its obligations under the Sale and Servicing Agreement, the Issuer will take reasonable steps available to cause the Servicer to correct the failure.

 

Section 3.7.                    Negative Covenants.  So long as Notes are Outstanding, the Issuer will not, except as permitted in the Transaction Documents:

 

(a)                               Dispose of Collateral.  Sell, transfer, exchange or dispose of the Collateral unless directed to do so by the Indenture Trustee;

 

(b)                              No Release of Material Obligations.  Take action, and will use its commercially reasonable efforts to prevent any action from being taken by others, that would release any Person from any material obligation under a document included in the Collateral or that would impair the validity or enforceability of the Collateral or a document included in the Collateral;

 

(c)                               Set-off.  Claim a credit on, or make a deduction from the payments of principal or interest on, the Notes (other than amounts withheld from payments under applicable law) or

 

13

 

assert a claim against a Noteholder by reason of the payment of the taxes levied or assessed on the Issuer or the Collateral;

 

(d)                             Dissolve or Liquidate.  Dissolve or liquidate;

 

(e)                               Liens.  Permit (i) the validity or effectiveness of this Indenture to be impaired, or permit the Lien of this Indenture to be amended, subordinated, terminated or discharged, or permit a Person to be released from obligations under this Indenture except in each case as permitted by this Indenture, (ii) any Lien, other than Permitted Liens, to be created on or extend to the Collateral or (iii) the Lien of this Indenture not to be a valid first priority security interest in the Collateral, other than Permitted Liens; or

 

(f)                                Modification of Collateral or Transaction Documents.  Except as permitted by the Transaction Documents, amend, modify, waive, terminate or surrender any Collateral or any Transaction Document without the consent of the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Notes and notifying the Rating Agencies.

 

Section 3.8.                    Opinions on Collateral.

 

(a)                               Opinion on Recording.  If this Indenture is subject to recording, the Issuer, at its expense, will record it and deliver an Opinion of Counsel to the Indenture Trustee stating that the recording is necessary either for the protection of the Secured Parties or for the enforcement of a right or remedy Granted to the Indenture Trustee under this Indenture.

 

(b)                              Opinion on Perfection.  On the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of Counsel stating that this Indenture and all financing statements have been properly recorded or filed to perfect the Lien created by this Indenture, or stating that in the opinion of that counsel no action is necessary to perfect the Lien.

 

(c)                               Annual Opinion.  On or before April 30 of each year, starting in the year after the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of Counsel either (i) stating that, in the opinion of that counsel, all action has been taken for the recording, filing, re-recording and refiling of this Indenture and all financing statements and continuation statements to maintain the Lien of this Indenture or (ii) stating that in the opinion of that counsel no action is necessary to maintain the Lien.

 

Section 3.9.                    Annual Certificate of Compliance.  The Issuer will deliver to the Indenture Trustee within 90 days after the end of each year, starting in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Issuer, stating that (a) a review of the Issuer’s activities and of its performance under this Indenture during the prior year has been made under a Responsible Person’s supervision and (b) to the Responsible Person’s knowledge, based on the review, the Issuer has fulfilled in all material respects its obligations under this Indenture throughout the prior year or, if there has been a failure to fulfill an obligation in any material respect, stating each failure known to the Responsible Person and the nature and status of the failure.  A copy of the Officer’s Certificate may be obtained by any Noteholder or Person certifying it is a Note Owner by request to the Indenture Trustee at its Corporate Trust Office.  The Issuer’s obligation to deliver an Officer’s Certificate under this Section 3.9 will terminate on the payment in full of the Notes.

 

14

 

Section 3.10.            Merger and Consolidation; Transfer of Assets.  The Issuer will not merge or consolidate with or into any other Person or transfer all or substantially all of its assets, unless:

 

(a)                               Surviving Person.  The Person (if other than the Issuer) formed by or surviving the merger or consolidation, or that acquires those assets, (i) is organized and existing under the laws of the United States or any State and (ii) assumes, by an indenture supplemental to this Indenture (unless the assumption happens by operation of law), executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on the Notes and the performance of the other obligations under this Indenture and the other Transaction Documents to be performed by the Issuer;

 

(b)                              Subordination.  For a transfer of the assets included in the Collateral, the Person who acquires those assets agrees by means of the supplemental indenture executed and delivered to the Indenture Trustee that (i) all right, title and interest transferred will be subject and subordinate to the rights of the Noteholders, (ii) unless stated in the supplemental indenture, that Person will indemnify the Issuer for fees, expenses, losses, damages and liabilities (including fees and expenses of defending itself against any loss, damage or liability) related to this Indenture and the Notes and (iii) that Person will make all necessary filings, including filings with the Securities and Exchange Commission required by the Exchange Act for the Notes;

 

(c)                               No Default or Event of Default.  Immediately after giving effect to the merger, consolidation or transfer, no Default or Event of Default will have occurred and be continuing;

 

(d)                             Rating Agency Condition.  The Rating Agency Condition has been satisfied for the merger, consolidation or transfer;

 

(e)                               Opinion.  The Issuer has received an Opinion of Counsel (with a copy to the Indenture Trustee) stating that the merger, consolidation or transfer will not (i) cause any security issued by the Issuer to be deemed sold or exchanged for purposes of Section 1001 of the Code, (ii) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes or (iii) adversely affect the treatment of the Notes as debt for U.S. federal income tax purposes;

 

(f)                                Actions.  Any action necessary to maintain the Lien and security interest Granted by this Indenture has been taken; and

 

(g)                              Conditions.  The Issuer has delivered to the Depositor, the Servicer, the Owner Trustee and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that the merger, consolidation or transfer and the supplemental indenture comply with this Section 3.10 and that all the conditions in this Indenture for the merger, consolidation or transfer have been satisfied.

 

Section 3.11.            Successor or Transferee.  On a merger or consolidation of the Issuer or a transfer under Section 3.10, (a) the Person formed by or surviving the merger or consolidation (if other than the Issuer) will succeed to, and be substituted for, and may exercise the rights and powers of, the Issuer under this Indenture with the same effect as if that Person had been named as the Issuer in this Indenture and (b) for a transfer of the assets of the Issuer under Section 3.10,

 

15

 

the predecessor Issuer will be released from its obligations under this Indenture to be performed by the successor Issuer for the Notes immediately on receipt of notice by the Indenture Trustee stating that the Issuer is to be released.

 

Section 3.12.            No Other Activities.  The Issuer will not engage in activities other than financing, acquiring, owning and pledging the Trust Property as described in the Transaction Documents and activities incidental to those activities.

 

Section 3.13.            Further Acts and Documents.  On request of the Indenture Trustee, the Issuer will take action and execute and deliver additional documents reasonably required to perform and carry out the purposes of this Indenture.

 

Section 3.14.            Restricted Payments.

 

(a)                               No Set-off.  The Issuer will not, directly or indirectly, (i) make payments (by reduction of capital or otherwise) to the Owner Trustee or the holder of the Residual Interest, (ii) redeem, purchase, retire or acquire for value an ownership interest in the Issuer or (iii) set aside or segregate amounts for those purposes, except as permitted under this Indenture and the other Transaction Documents.

 

(b)                              No Other Payments.  The Issuer will not, directly or indirectly, make payments to or distributions from the Collection Account except according to the Transaction Documents.

 

Section 3.15.            Notice of Events of Default.  The Issuer will notify the Indenture Trustee, the Servicer and the Rating Agencies as soon as practicable and within five Business Days after a Responsible Person of the Issuer has knowledge of an Event of Default.

 

Section 3.16.            Review of Issuer’s Records.  The Issuer will maintain records and documents relating to its performance under this Indenture according to its customary business practices.  On reasonable request not more than once during any year, the Issuer will give the Indenture Trustee (or its representatives) access to the records and documents to conduct a review of the Issuer’s performance under this Indenture.  Any access or review will be conducted at the Issuer’s offices during its normal business hours at a time reasonably convenient to the Issuer and in a manner that will minimize disruption to its business operations.  Any access or review will be subject to the Issuer’s confidentiality and privacy policies.

 

Section 3.17.            Issuer’s Representations and Warranties.  The Issuer represents and warrants to the Indenture Trustee as of the Closing Date:

 

(a)                               Organization and Qualification.  The Issuer is duly formed and validly existing as a statutory trust in good standing under the laws of the State of Delaware.

 

(b)                              Power, Authority and Enforceability.  The Issuer has the power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.  The Issuer has authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  The Transaction Documents to which it is a party are the legal, valid and binding obligation of the Issuer enforceable against the Issuer, except as may be

 

16

 

limited by insolvency, bankruptcy, reorganization or other similar laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                               No Conflicts and No Violation.  The completion of the transactions contemplated by the Transaction Documents to which it is a party and the performance of its obligations under such documents will not (i) conflict with, or be a breach or default under any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Issuer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Issuer’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document (other than this Indenture), (iii) violate the Trust Agreement or (iv) violate a law or, to the Issuer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties that applies to the Issuer, which, in each case, would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(d)                             No Proceedings.  To the Issuer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties (i) asserting the invalidity of the Transaction Documents or the Notes, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents, (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under, or the validity or enforceability of, the Transaction Documents or the Notes or (iv) relating to the Issuer that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for U.S. federal income or Applicable Tax State income or franchise tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than the proceedings that, to the Issuer’s knowledge, would not reasonably be expected to have a material adverse effect on the Issuer, the performance by the Issuer of its obligations under, or the validity and enforceability of, the Transaction Documents or the Notes or the tax treatment of the Issuer or the Notes.

 

(e)                               No Investment Company.  The Issuer is not an “investment company” as defined in the Investment Company Act.  In making this determination, the Issuer is relying on the exemption in Rule 3a-7 of the Investment Company Act, although other exclusions or exemptions may also be available to the Issuer.

 

(f)                                Volcker Rule.  The Issuer is structured not to be a “covered fund” under the regulations adopted to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the “Volcker Rule.”

 

Section 3.18.            Issuer’s Representations and Warranties About Security Interest.  The Issuer represents and warrants to the Indenture Trustee as of the Closing Date, which representations and warranties will survive the termination of this Indenture and may not be waived by the Indenture Trustee:

 

17

 

(a)                               Valid Security Interest.  This Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Collateral in favor of the Indenture Trustee which is prior to all other Liens, other than Permitted Liens, and is enforceable against creditors of and purchasers from the Issuer.

 

(b)                              Perfection.  The Sponsor has represented that it has started procedures that will result in the perfection of a first priority security interest against each Obligor in the Financed Vehicles.

 

(c)                               Type.  The Collateral (other than those Permitted Investments which have been credited to a Securities Account) is “tangible chattel paper,” “electronic chattel paper,” “instruments” or “general intangibles” within the meaning of the applicable UCC.

 

(d)                             Good Title.  The Issuer owns and has good and marketable title to the Collateral free and clear of any Lien, other than Permitted Liens.  The Issuer has received all consents and approvals required by the terms of the Collateral to Grant to the Indenture Trustee all of its right, title and interest in the Collateral, except if a requirement for consent or approval is made ineffective under the applicable UCC.

 

(e)                               Filing Financing Statements.  The Issuer has caused, or will cause within ten days after the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law to perfect the security interest Granted in the Collateral to the Indenture Trustee under this Indenture.  All financing statements filed or to be filed against the Issuer in favor of the Indenture Trustee under this Indenture describing the Collateral will contain the following statement:  “A purchase of or grant of a security interest in collateral described in this financing statement will violate the rights of the Secured Parties.”

 

(f)                                No Other Sale, Grant or Financing Statements.  Other than the security interest Granted to the Indenture Trustee under this Indenture, the Issuer has not sold or Granted a security interest in any of the Collateral.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering any of the Collateral, other than financing statements relating to the security interest Granted to the Indenture Trustee under this Indenture.  The Issuer is not aware of any judgment or tax Lien filings against it.

 

(g)                              Possession of Receivables.  For a Receivable that is “tangible chattel paper,” the Issuer has in its possession, directly or through its agents, the original copy of the Receivable that is or evidences part of the Collateral, and the Receivable does not have any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee.  For a Receivable that is “electronic chattel paper,” the Issuer has not communicated an “authoritative copy” (within the meaning of the applicable UCC) of the Receivable that is or evidences part of the Collateral to any Person other than the Indenture Trustee.

 

(h)                              Securities Account.  All Permitted Investments have been and will be credited to a Securities Account.  The securities intermediary for each Securities Account has agreed to treat

 

18

 

all assets credited to the Securities Accounts as “financial assets” within the meaning of the applicable UCC.

 

(i)                                  Securities Intermediary Agreement.  The Issuer has delivered to the Indenture Trustee a fully executed agreement under which the securities intermediary has agreed to comply with all instructions originated by the Indenture Trustee relating to the Securities Accounts without further consent by the Issuer.

 

(j)                                  Name of Securities Accounts.  The Securities Accounts are not in the name of a Person other than the Issuer or the Indenture Trustee.  The Issuer has not consented to the securities intermediary of a Securities Account complying with entitlement orders of a Person other than the Indenture Trustee.

 

Section 3.19.            Calculation Agent.

 

(a)                               Appointment.  The Issuer agrees that for so long as the Floating Rate Notes are Outstanding there will be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation Agent”).  The Issuer appoints The Bank of New York Mellon as Calculation Agent only for the purposes of determining LIBOR for each Interest Period and The Bank of New York Mellon accepts the appointment.  The Calculation Agent may be removed by the Issuer at any time.  If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Issuer, the Issuer will promptly appoint as a replacement Calculation Agent a leading bank engaged in transactions in Eurodollar deposits in the international Eurodollar market and not an Affiliate of the Issuer or its Affiliates.  The Calculation Agent may not resign without a replacement having been duly appointed.

 

(b)                              LIBOR Determination.  On each LIBOR Determination Date, the Calculation Agent will notify the Servicer, the Issuer and the Administrator by email of LIBOR for the related Interest Period.  All determinations of LIBOR by the Calculation Agent, in the absence of manifest error, will be conclusive and binding on the Noteholders.

 

ARTICLE IV
 SATISFACTION AND DISCHARGE

 

Section 4.1.                    Satisfaction and Discharge of Indenture.

 

(a)                               Conditions to Satisfaction and Discharge.  Except as stated in Section 4.1(c), this Indenture will cease to be of further effect for the Notes if:

 

(i)                                  either (A) the Notes that have been authenticated and delivered (other than (1) Notes that have been destroyed, lost or stolen and that have been replaced or paid under Section 2.7 and (2) Notes for which payment money has been deposited in trust or segregated and held in trust by the Issuer and later paid to the Issuer or discharged from the trust under Section 3.3) have been delivered to the Indenture Trustee for cancellation or (B) the Notes not delivered to the Indenture Trustee for cancellation have become due and payable and the Issuer has deposited or caused to be deposited with the Indenture Trustee money in trust in an amount sufficient to pay and discharge the outstanding principal amount of the Notes and interest accrued on the Notes on the Redemption Date;

 

19

 

(ii)                              the Issuer has paid or caused to be paid all money payable by it under the Transaction Documents; and

 

(iii)                          the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3.

 

(b)                              Acknowledgement of Satisfaction and Discharge.  After the satisfaction and discharge of the Indenture under Section 4.1(a), the Indenture Trustee will (i) by Issuer Order and at the expense of the Issuer, execute documents acknowledging satisfaction and discharge of this Indenture and (ii) at the request of the Owner Trustee, the Indenture Trustee will deliver to the Owner Trustee a certificate of a Responsible Person stating that all Noteholders have been paid in full.

 

(c)                               Continuing Rights and Obligations.  After the satisfaction and discharge of this Indenture, this Indenture will continue for (i) rights of registration of transfer and exchange, (ii) replacement of mutilated, destroyed, lost or stolen Notes, (iii) the rights of the Noteholders to receive payments of principal of and interest on the Notes, (iv) the obligations of the Indenture Trustee and any Note Paying Agent under Section 3.3, (v) the rights, obligations and immunities of the Indenture Trustee under this Indenture and (vi) the rights of the Secured Parties as beneficiaries of this Indenture in the property deposited with the Indenture Trustee payable to them for a period of two years after the satisfaction and discharge.

 

ARTICLE V
 EVENTS OF DEFAULT; REMEDIES

 

Section 5.1.                    Events of Default.

 

(a)                               Events of Default.  The occurrence of one of the following events will be an event of default under this Indenture (each, an “Event of Default”):

 

(i)                                  the Issuer fails to pay interest due on a Note of the Controlling Class on any Payment Date, and the failure continues for five days or more;

 

(ii)                              the Issuer fails to pay the principal of a Note on its Final Scheduled Payment Date;

 

(iii)                          the Issuer fails to observe a material covenant or agreement of the Issuer in this Indenture (other than to pay interest on or principal of the Notes) or a representation or warranty of the Issuer made in this Indenture or in an Officer’s Certificate or other document delivered under this Indenture is incorrect in a material respect when made and, in each case, the failure or error continues for at least 60 days after the Issuer receives notice from the Indenture Trustee or the Issuer and the Indenture Trustee receive notice from the Noteholders of at least 25% of the Note Balance of the Controlling Class stating the failure or error, requiring it to be corrected and stating that the notice is a “Notice of Default”; or

 

(iv)                          an Insolvency Event of the Issuer occurs.

 

20

 

(b)                              Issuer to Notify.  The Issuer will notify the Indenture Trustee within five Business Days after a Responsible Person of the Issuer has knowledge of the occurrence of a Default under Section 5.1(a)(iii), which notice will describe the Default, the status of the Default and what action the Issuer is taking to correct the Default.  The Issuer will deliver a copy of the notice to each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

 

(c)                               Indenture Trustee to Notify.  The Indenture Trustee will notify the Noteholders within five Business Days after a Responsible Person of the Indenture Trustee has knowledge of the occurrence of an Event of Default.

 

Section 5.2.                    Acceleration of Maturity; Rescission.

 

(a)                               Acceleration.  If an Event of Default occurs and is continuing, the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Controlling Class may declare the Notes to be accelerated by notifying the Issuer (and to the Indenture Trustee if given by the Noteholders).  On acceleration, the unpaid Note Balance of the Notes, together with accrued and unpaid interest, will become immediately due and payable.  If an Event of Default in Section 5.1(a)(iv) occurs, all unpaid principal of and accrued and unpaid interest on the Notes, and all other amounts payable under this Indenture, will automatically become immediately due and payable without a declaration or other act of the Indenture Trustee or a Noteholder.  On the declaration of acceleration or automatic acceleration, the Indenture Trustee will promptly notify each Secured Party and each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

 

(b)                              Rescission of Acceleration.  The Noteholders of a majority of the Note Balance of the Controlling Class, by notifying the Issuer and the Indenture Trustee, may rescind a declaration of acceleration before a judgment or decree for payment of the amount due has been obtained by the Indenture Trustee as stated in this Article V if:

 

(i)                                  the Issuer has paid or deposited with the Indenture Trustee an amount sufficient to (A) pay the due and unpaid principal of and interest on the Notes and all other amounts that would then be due under this Indenture or on the Notes if the Event of Default giving rise to the acceleration had not occurred, (B) pay all amounts owed to the Indenture Trustee under Section 6.7 and (C) pay all other outstanding fees and expenses of the Issuer; and

 

(ii)                              all Events of Default, other than the non-payment of the principal of the Notes that has become due solely by acceleration, have been corrected or waived under Section 5.14.

 

Section 5.3.                    Collection of Indebtedness by Indenture Trustee.

 

(a)                               Overdue Amounts.  If an Event of Default under Section 5.1(a)(i) or (ii) occurs and is continuing, the Issuer, on demand of the Indenture Trustee, will pay to the Indenture Trustee for the benefit of the Noteholders, the overdue amount with interest at the rate of interest then applicable to the Notes.

 

21

 

(b)                              Collection Costs.  In addition, the Issuer will pay the costs of collection, including all amounts owed to the Indenture Trustee under Section 6.7.

 

(c)                               Proceedings.  If the Issuer fails to pay those amounts on demand, the Indenture Trustee, in its own name and as trustee of an express trust, may start a proceeding to collect the money due and unpaid, and may pursue the proceeding to final judgment, and may enforce the judgment against the Issuer and collect the money due and unpaid in the manner provided by law out of the Collateral.

 

Section 5.4.                    Trustee May File Proofs of Claim.

 

(a)                               Proofs of Claim.  If there is a proceeding involving the Issuer under the Bankruptcy Code or another bankruptcy, insolvency or other similar law, or in case a trustee, liquidator, receiver or similar official has been appointed for or taken possession of the Issuer or its property, the Indenture Trustee may:

 

(i)                                  file a proof of claim for due and unpaid principal of and interest on the Notes and file other proofs of claim or documents necessary or advisable to have the claims of the Indenture Trustee on behalf of the Secured Parties allowed in the proceedings or in other judicial proceedings involving the Issuer, its creditors and its property;

 

(ii)                              unless prohibited by applicable law, vote on behalf of the Secured Parties in the election of a trustee, a standby trustee or a Person performing similar functions in the proceedings; and

 

(iii)                          collect and receive any money or other property payable or deliverable on the claims and pay all amounts received on the claims of the Secured Parties, including the claims asserted by the Indenture Trustee on their behalf.

 

(b)                              Authorization by Secured Parties.  Each Secured Party authorizes a trustee, liquidator, receiver or similar official in a proceeding to make payments to the Indenture Trustee and, if the Indenture Trustee consents to make payments directly to the Secured Parties, to pay to the Indenture Trustee the amounts owed to the Indenture Trustee under Section 6.7.

 

(c)                               No Right to Consent or Vote.  Except as permitted under Section 5.4(a)(ii), this Indenture (i) does not authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of a Secured Party a plan of reorganization, arrangement, adjustment or composition affecting the Notes and (ii) does not limit the rights of a Secured Party to authorize the Indenture Trustee to vote on the claim of a Secured Party in the proceeding.

 

Section 5.5.                    Enforcement of Claims Without Possession of Notes.

 

(a)                               Notes not Required.  The Indenture Trustee may enforce its rights and make claims under this Indenture, or under the Notes, without the possession of the Notes or the production of the Notes in a proceeding.  A proceeding started by the Indenture Trustee will be brought in its own name as trustee of an express trust, and any recovery of judgment will be for the benefit of the Secured Parties for which the judgment has been recovered.

 

22

 

(b)                              Proceeding.  In any proceeding brought by the Indenture Trustee (and any proceeding involving the interpretation of this Indenture to which the Indenture Trustee is a party), the Indenture Trustee will be held to represent all the Secured Parties, and it will not be necessary to make any Secured Party, including a Noteholder, a party to the proceeding.

 

Section 5.6.                    Remedies; Priorities.

 

(a)                               Remedies.  If the Notes have been accelerated under Section 5.2(a) and the declaration of acceleration has not been rescinded according to Section 5.2(b), the Indenture Trustee may do one or more of the following (subject to Section 5.7), and will at the direction of the Noteholders of a majority of the Note Balance of the Controlling Class:

 

(i)                                  start a proceeding in its own name and as trustee of an express trust for the collection of all amounts then payable on the Notes or under this Indenture on the Notes, enforce any judgment obtained and collect from the Issuer money adjudged due;

 

(ii)                              start a proceeding for the complete or partial foreclosure of this Indenture on the Collateral;

 

(iii)                          sell or liquidate all or any part of the Collateral or rights or interest in the Collateral at one or more public or private sales called and conducted in any manner permitted by law;

 

(iv)                          exercise any remedies of a secured party under the UCC; and

 

(v)                              take any other action to protect and enforce the rights and remedies of the Indenture Trustee and the Secured Parties.

 

(b)                              Notice of Sale or Liquidation of Collateral.  The Indenture Trustee will notify each Secured Party and the Depositor of a sale or liquidation under Section 5.6(a)(iii) at least 15 days before the sale or liquidation.  A Secured Party, the Depositor or the Servicer may submit a bid during the sale or liquidation.

 

(c)                               Limitation on Collateral Liquidation.  The Indenture Trustee may not sell or liquidate the Collateral unless:

 

(i)                                  the Event of Default is described in Section 5.1(a)(i) or (ii); or

 

(ii)                              the Event of Default is described in Section 5.1(a)(iii) and:

 

(A)                          the Noteholders representing 100% of the Note Balance of the Notes consent to the sale or liquidation; or

 

(B)                           the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties including all principal of and accrued interest on the Notes;

 

(iii)                          the Event of Default is described in Section 5.1(a)(iv) and:

 

23

 

(A)                          the Noteholders representing 100% of the Note Balance of the Controlling Class consent to the sale or liquidation; or

 

(B)                           the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties including all principal of and accrued interest on the Notes; or

 

(C)                           the Indenture Trustee (1) determines that the Collateral will not continue to provide sufficient money for the payment of all amounts owed to the Secured Parties, as those payments would have become due if the Notes had not been accelerated and (2) obtains the consent of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class.

 

In determining whether the condition in clause (ii)(B), (iii)(B) or (iii)(C) (1) above has been satisfied, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent investment banking firm or firm of certified public accountants on the expected proceeds or on the sufficiency of the Collateral for that purpose.

 

(d)                             Proceeds of Collateral.  Any money or property collected by the Indenture Trustee after an acceleration of the Notes will be deposited in the Collection Account for distribution according to Section 8.2(e) on the Payment Date after the Collection Period during which those amounts are collected.  In all other circumstances, Section 8.2(c) will continue to apply after an Event of Default.

 

Section 5.7.                    Optional Preservation of Collateral.  If the Notes have been accelerated under Section 5.2(a) and the declaration of acceleration has not been rescinded, the Indenture Trustee may elect to maintain possession of the Collateral.  The Indenture Trustee will take into account that the Collections and other amounts expected to be received on the Collateral must be sufficient to pay the unpaid principal of and accrued and unpaid interest on the Notes when determining whether or not to maintain possession of part of the Collateral.  In making this determination, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent investment banking firm or firm of certified public accountants.

 

Section 5.8.                    Limitation on Suits.

 

(a)                               Proceedings.  No Noteholder has the right to start a proceeding under this Indenture or for the appointment of a receiver or trustee, or for any other remedy under this Indenture, unless:

 

(i)                                  the Noteholder has notified the Indenture Trustee of a continuing Event of Default;

 

(ii)                              the Noteholders of at least 25% of the Note Balance of the Controlling Class have requested the Indenture Trustee to start the proceeding for the Event of Default in its own name as Indenture Trustee under this Indenture;

 

24

 

(iii)                          the Noteholders have offered reasonable indemnity satisfactory to the Indenture Trustee against fees, expenses, losses, damages, claims and liabilities that may be incurred by the Indenture Trustee, or its agents, counsel, accountants and experts, in complying with the request;

 

(iv)                          the Indenture Trustee has failed to start the proceedings for 60 days after it receives the notice, request and offer of indemnity; and

 

(v)                              the Noteholders of a majority of the Note Balance of the Controlling Class have not given the Indenture Trustee a direction inconsistent with the request during that 60 day period.

 

(b)                              No Right to Impair.  No Noteholder has the right to impair the rights of another Noteholder or to seek or obtain priority or preference over another Noteholder or to enforce any right under this Indenture, except in the manner stated in this Indenture.

 

(c)                               Conflicting Requests.  If the Indenture Trustee receives conflicting requests under Section 5.8(a)(ii) from two or more groups of Noteholders, each evidencing less than a majority of the Note Balance of the Controlling Class, the Indenture Trustee will take the action requested by the Noteholders representing the greatest percentage of the Note Balance, notwithstanding any other provision of this Indenture.

 

Section 5.9.                    Unconditional Rights to Receive Principal and Interest.  Each Noteholder has an absolute and unconditional right to receive payment of the principal of and interest on its Note on or after the due dates stated in the Note or in this Indenture (or, for redemption, on or after the Redemption Date) and to start a proceeding for the enforcement of the payment according to Section 5.8.  Those rights may not be impaired or affected without the consent of the Noteholder.

 

Section 5.10.            Restoration of Rights and Remedies.  If the Indenture Trustee or a Noteholder has started a proceeding to enforce a right or remedy under this Indenture and the proceeding has been discontinued or abandoned or has been determined adversely to the Indenture Trustee or to the Noteholder, then the Issuer, the Indenture Trustee and the Noteholders, subject to a determination in the proceeding, will be restored to their former positions under this Indenture, and all rights and remedies of the Indenture Trustee and the Noteholders will continue as though no proceeding had been started.

 

Section 5.11.            Rights and Remedies Cumulative.  No right or remedy of the Indenture Trustee or the Noteholders under this Indenture is intended to be exclusive of any other right or remedy, and every right and remedy, if permitted by law, will be cumulative and in addition to every other right and remedy under this Indenture.  The exercise of a right or remedy will not prevent the exercise of another right or remedy at the same time.  The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture will not be affected by the seeking, obtaining or use of other relief under this Indenture.  Neither the Lien of this Indenture nor the rights or remedies of the Indenture Trustee or the Noteholders will be impaired by the recovery of a judgment by the Indenture Trustee against the Issuer or by the execution of a judgment on the Collateral.

 

25

 

Section 5.12.            Delay or Omission Not a Waiver.  No delay or omission of the Indenture Trustee or a Noteholder to exercise a right or remedy after a Default or Event of Default will impair the right or remedy, or be a waiver of the Default or Event of Default.  Every right and remedy under this Article V or under law of the Indenture Trustee or the Noteholders may be exercised as often as deemed advisable by the Indenture Trustee or by the Noteholders.

 

Section 5.13.            Control by Noteholders.  The Noteholders of a majority of the Note Balance of the Controlling Class have the right to direct the time, method and place of conducting a proceeding for a remedy available to the Indenture Trustee for the Notes or exercising a trust or power of the Indenture Trustee, subject to the following terms.

 

(a)                               No Conflict.  The direction does not conflict with law or with this Indenture.

 

(b)                              Direction to Sell or Liquidate.  Except under Section 5.6(c), a direction to the Indenture Trustee to sell or liquidate the Collateral must have been made by the Noteholders of 100% of the Note Balance of the Controlling Class.

 

(c)                               Non-Unanimous Directions.  If the Indenture Trustee elects to retain the Collateral under Section 5.7, then a direction to the Indenture Trustee by Noteholders of less than 100% of the Note Balance of the Controlling Class to sell or liquidate the Collateral will not be effective.

 

(d)                             Other Action.  The Indenture Trustee may take other action considered advisable by the Indenture Trustee that is not inconsistent with the direction from the Noteholders of a majority of the Note Balance of the Controlling Class.

 

(e)                               Adverse Action.  The Indenture Trustee need not take an action that it determines might have a material adverse effect on the rights of the Noteholders not consenting to the action.

 

Section 5.14.            Waiver of Defaults and Events of Default.

 

(a)                               Waiver by Controlling Class.  The Noteholders of a majority of the Note Balance of the Controlling Class may waive a Default or Event of Default except an Event of Default (i) in the payment of principal of or interest on the Notes (other than an Event of Default relating to failure to pay principal due only by reason of acceleration) or (ii) for a covenant or term of this Indenture that cannot be amended, supplemented or modified without the consent of all the Noteholders.

 

(b)                              Effect of Waiver.  Once waived, the Default or Event of Default will be considered not to have occurred for all purposes of this Indenture.  No waiver will extend to any other Default or Event of Default or impair any right relating to any other Default or Event of Default.

 

Section 5.15.            Agreement to Pay Costs.  The parties to this Indenture agree, and each Noteholder by its acceptance of a Note will be deemed to have agreed, that a court may in its discretion require, in a proceeding for the enforcement of a right or remedy under this Indenture, or in a proceeding against the Indenture Trustee for an action taken or not taken by it as

 

26

 

Indenture Trustee, the filing by a party litigant in the proceeding of an agreement to pay the costs of the proceeding, and that the court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against a party litigant in the proceeding.  This Section 5.15 will not apply to (a) a proceeding started by the Indenture Trustee, (b) a proceeding started by a Noteholder or group of Noteholders holding more than 10% of the Note Balance of the Notes (or for a proceeding for the enforcement of a right or remedy under this Indenture that is started by the Controlling Class, holding more than 10% of the Note Balance of the Controlling Class) or (c) a proceeding started by a Noteholder for the enforcement of the payment of principal of or interest on a Note on or after the respective due dates expressed in the Note and in this Indenture (or, for redemption, on or after the Redemption Date).

 

Section 5.16.            Waiver of Stay or Extension Laws.  The Issuer agrees that it will not plead or in any manner claim or take the benefit of, a stay or extension that may affect the performance of its obligations under this Indenture, and the Issuer waives the benefit of such law.

 

Section 5.17.            Performance and Enforcement of Obligations.

 

(a)                               Actions Requested by Indenture Trustee.  At the Administrator’s expense, the Issuer will promptly take any lawful action the Indenture Trustee requests to (i) compel the performance by (A) the Depositor and the Servicer of their obligations to the Issuer under the Sale and Servicing Agreement or (B) the Depositor and Ford Credit of their obligations under the Receivables Purchase Agreement and (ii) exercise any rights, remedies, powers, privileges and claims available to the Issuer under those agreements as directed by the Indenture Trustee.

 

(b)                              Exercise by Indenture Trustee.  If an Event of Default occurs and is continuing, (i) the Indenture Trustee may, and at the direction of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class will, exercise all rights, remedies, powers, privileges and claims of the Issuer against (A) the Depositor or the Servicer under the Sale and Servicing Agreement or (B) the Depositor and Ford Credit under the Receivables Purchase Agreement, including the right or power to take any action to compel or secure performance or observance by those Persons of their obligations to the Issuer under those agreements, and to give a consent, request, notice, direction, approval, extension or waiver under those agreements and (ii) the right and power of the Issuer to take any such action will be suspended.

 

ARTICLE VI
 INDENTURE TRUSTEE

 

Section 6.1.                    Indenture Trustee’s Obligations.

 

(a)                               Standard of Care.  If an Event of Default has occurred and is continuing, the Indenture Trustee will exercise the rights and powers vested in it under this Indenture using the same degree of care and skill as a prudent person would use under the circumstances in the conduct of that person’s own affairs.

 

27

 

(b)                              Obligations; Reliance.  Except during the continuance of an Event of Default:

 

(i)                                  the Indenture Trustee agrees to perform the obligations and only the obligations stated in this Indenture and no implied covenants or obligations are to be read into this Indenture; and

 

(ii)                              in the absence of willful misconduct, bad faith or negligence on its part, the Indenture Trustee may conclusively rely, for the truth of the statements and the correctness of the opinions furnished to it, on certificates or opinions furnished to it and, if required by this Indenture, conforming to the requirements of this Indenture.  The Indenture Trustee will examine the certificates and opinions to determine whether or not they conform to the requirements, if any, of this Indenture.

 

(c)                               Indenture Trustee Liable.  The Indenture Trustee will not be relieved from liability for its own willful misconduct, bad faith or negligence, except that:

 

(i)                                  this Section 6.1(c) does not limit the effect of Section 6.1(b);

 

(ii)                              the Indenture Trustee will not be liable for an error of judgment made in good faith unless it is proved that the Indenture Trustee was negligent in determining the relevant facts; and

 

(iii)                          the Indenture Trustee will not be liable for any action taken or not taken in good faith according to this Indenture or a direction received by it under Sections 5.13, 5.17(b) and 7.2.

 

(d)                             Not Liable for Interest.  The Indenture Trustee will not be liable for interest on money received by it, except as the Indenture Trustee may agree in writing with the Issuer.

 

(e)                               Not Required to Segregate.  The Indenture Trustee need not segregate any funds held by it in trust under this Indenture from other funds unless required by law, this Indenture or the Sale and Servicing Agreement.

 

(f)                                Section Governs.  The terms of this Indenture relating to the conduct of the Indenture Trustee, the liability of the Indenture Trustee or giving protection to the Indenture Trustee are subject to this Section 6.1 and to the TIA.

 

(g)                              No Deemed Knowledge.  The Indenture Trustee will not be deemed to have knowledge of a Default, an Event of Default or a breach of a representation or warranty unless (i) a Responsible Person of the Indenture Trustee has knowledge of the Default, Event of Default or breach or (ii) it has actually received notice of the Default, Event of Default or breach.

 

(h)                              Permissive Rights.  No permissive right of the Indenture Trustee in this Indenture or any other Transaction Document will be considered to be an obligation, and the Indenture Trustee will not be liable for not taking action under any permissive right.

 

(i)                                  Enforceable in all Capacities.  The rights, privileges, protections, immunities and benefits given to the Indenture Trustee in this Article VI, including its right to be indemnified,

 

28

 

are extended to, and will be enforceable by, the Indenture Trustee in each of its capacities under this Indenture and the other Transaction Documents, including as Authenticating Agent, Calculation Agent, Note Registrar and Note Paying Agent under this Indenture and as a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC under the Account Control Agreement.

 

Section 6.2.                    Indenture Trustee’s Rights.

 

(a)                               Reliance on Documents.  The Indenture Trustee may rely on any document believed by it to be genuine and which appears on its face to be properly executed and signed or presented by the proper Person.  The Indenture Trustee is not required to investigate any facts or matters or to verify any calculations or amounts stated in any document.  The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on a document believed by it to be genuine.

 

(b)                              Reliance on Opinions.  Before the Indenture Trustee acts or does not act, it may require and rely on an Officer’s Certificate or an Opinion of Counsel.  The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.

 

(c)                               Use of Agents.  The Indenture Trustee may exercise its rights or powers under this Indenture or perform its obligations under this Indenture either directly or by or through agents or attorneys or a custodian or nominee.  The Indenture Trustee will not be responsible for misconduct or negligence on the part of, or for the supervision of, the agent, attorney, custodian or nominee appointed by it with due care.

 

(d)                             Good Faith.  The Indenture Trustee will not be liable for any action taken or not taken in good faith which it believes to be authorized or within its rights or powers under this Indenture so long as the action taken or not taken does not amount to negligence.

 

(e)                               Advice from Experts.  The Indenture Trustee may consult with counsel, accountants or other experts, and the advice or opinion of counsel, accountants or other experts on any matters relating to this Indenture and the Notes will be full and complete authorization and protection from liability for any action taken or not taken by it under this Indenture in good faith and according to the advice or opinion of that counsel, accountant or expert.

 

(f)                                Not Required to Pay or Risk Funds.  The Indenture Trustee is not obligated to (i) exercise the rights or powers under this Indenture or to pay or risk its own funds or incur any financial liability in the performance of its obligations under this Indenture if it has reasonable grounds to believe that payment of such funds or adequate indemnity satisfactory to it against that risk or liability is not reasonably assured or given to it or (ii) start, pursue or defend litigation, investigate any matter or honor the request, demand or direction of the Noteholders under this Indenture, other than requests, demands or directions relating to an asset representations review demand under Section 7.2, unless the Noteholders have offered to the Indenture Trustee reasonable security or indemnity satisfactory to it for the reasonable expenses that might be incurred by the Indenture Trustee in complying with the request or direction.

 

29

 

(g)                              Force Majeure.  The Indenture Trustee will not be responsible or liable for a failure or delay in the performance of its obligations under this Indenture from or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear catastrophes, fires, floods, earthquakes, storms, hurricanes or other natural catastrophes and interruptions, loss or failures of mechanical, electronic or communication systems.  The Indenture Trustee will use reasonable efforts consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

(h)                              Consequential Damages.  The Indenture Trustee will not be responsible or liable for special, punitive, indirect or consequential losses or damages (including lost profit), even if the Indenture Trustee has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

Section 6.3.                    Indenture Trustee’s Individual Rights.  The Indenture Trustee and any Note Paying Agent, Note Registrar or Authenticating Agent under this Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee or Note Paying Agent, Note Registrar or Authenticating Agent.

 

Section 6.4.                    Indenture Trustee’s Disclaimer.  The Indenture Trustee will not be liable for (a) the validity or adequacy of this Indenture or the Notes, (b) the Issuer’s use of the proceeds from the Notes or (c) any statement of the Issuer in this Indenture or in the Notes, other than the Indenture Trustee’s certificate of authentication or any statement of the Issuer, the Depositor or the Servicer in any prospectus or offering document used for the offering or sale of the Notes.

 

Section 6.5.                    Notice of Defaults.  Within 90 days after a Responsible Person of the Indenture Trustee has knowledge of, or actually receives notice of, a Default under this Indenture, the Indenture Trustee will mail as described in Section 313(c) of the TIA to each Noteholder, notice of the Default, unless the Default has been corrected or waived.  However, (a) except for a Default in the payment of principal of or interest on a Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Persons in good faith determines that the withholding of the notice is in the interests of the Noteholders and (b) for a Default stated in Section 5.1(a)(iii), the Indenture Trustee will not notify the Noteholders until at least 30 days after a Responsible Person of the Indenture Trustee has knowledge of, or actually receives notice of, the Default.

 

Section 6.6.                    Reports by Indenture Trustee.

 

(a)                               Tax Information.  Starting in the year after the Closing Date, the Indenture Trustee will deliver or cause to be delivered to each Person who at any time during the prior calendar year was a Noteholder of record, a statement containing the information required to be given to a noteholder by an issuer of indebtedness, in the form and at the time required under the Code.

 

(b)                              Monthly Investor Report.  On each Payment Date, the Indenture Trustee will deliver the Monthly Investor Report to each Noteholder of record as of the most recent Record

 

30

 

Date (which delivery may be made by e-mail to the e-mail addresses in the Note Register without need for confirmation of receipt or by making the report available to the Noteholders through the Indenture Trustee’s website, which initially is located at https://gctinvestorreporting.bnymellon.com).

 

(c)                               Annual Certificate of Compliance.  If required by Regulation AB and requested by the Depositor or the Servicer, the Indenture Trustee will deliver to the Administrator, the Issuer and the Servicer on or before March 1 of each year, starting in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Indenture Trustee (i) stating that (A) a review of the Indenture Trustee’s activities during the prior year and of its performance under this Indenture has been made under the Responsible Person’s supervision and (B) to the Responsible Person’s knowledge, based on the review, the Indenture Trustee has fulfilled in all material respects its obligations under this Indenture throughout the prior year, or, if there has been a failure to fulfill the obligation in a material respect, stating the failure known to the Responsible Person and the nature and status of the failure and (ii) certifying to matters related to the Indenture Trustee as required under Form 10-K under the Exchange Act.

 

(d)                             Annual Assessment of Compliance.  The Indenture Trustee will:

 

(i)                                  deliver to the Administrator, the Issuer and the Servicer, a report on its assessment of compliance with the minimum servicing criteria described in Items 1122(d)(2)(i), (2)(ii), (2)(iv), (2)(v), (3)(ii) (for payments only) and (3)(iv) of Regulation AB (the “Applicable Servicing Criteria”) during the prior year, including disclosure of any material instance of non-compliance identified by the Indenture Trustee, as required by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB; and

 

(ii)                              cause a firm of registered public accountants to deliver to the Administrator, the Issuer and the Servicer an attestation report on the assessment of compliance with the Applicable Servicing Criteria for the prior year that (A) satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act, as applicable, (B) complies with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and (C) indicates that the firm is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act.

 

The reports will be delivered on or before March 1 of each year, starting in the year after the Closing Date, in a format suitable for filing with the Securities and Exchange Commission on EDGAR.

 

Section 6.7.                    Compensation and Indemnity.

 

(a)                               Fees.  The Issuer will pay the Indenture Trustee as compensation for performing its obligations under this Indenture a fee separately agreed by the Issuer and the Indenture Trustee.  The Indenture Trustee’s compensation will not be limited by law on compensation of a trustee of an express trust.  The Issuer will reimburse the Indenture Trustee for its reasonable expenses in performing its obligations under this Indenture and the other Transaction Documents, including costs of collection and the reasonable compensation and expenses of the

 

31

 

Indenture Trustee’s agents, counsel, accountants and experts, but excluding expenses resulting from the Indenture Trustee’s willful misconduct, bad faith or negligence.

 

(b)                              Indemnification.  The Issuer will indemnify the Indenture Trustee and its officers, directors, employees and agents (each, an “Indemnified Person”), for all fees, expenses, losses, damages and liabilities resulting from the administration of and the performance of its obligations under this Indenture and the other Transaction Documents (including the fees and expenses of defending itself against any loss, damage or liability and any fees and expenses incurred in connection with any proceedings brought by the Indemnified Person to enforce the Issuer’s indemnification obligations), but excluding any fee, expense, loss, damage or liability resulting from (i) the Indenture Trustee’s willful misconduct, bad faith or negligence or (ii) the Indenture Trustee’s breach of its representations or warranties in this Indenture.

 

(c)                               Proceedings.  If an Indemnified Person receives notice of the start of a proceeding against it, the Indemnified Person will, if a claim under the proceeding will be made under this Section 6.7, promptly notify the Issuer of the proceeding.  The Issuer may participate in and assume the defense and settlement of the proceeding at its expense.  If the Issuer notifies the Indemnified Person of its intention to assume the defense of the proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Issuer assumes the defense of the proceeding in a manner reasonably satisfactory to the Indemnified Person, the Issuer will not be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Issuer and the Indemnified Person.  If there is a conflict, the Issuer will pay for the separate counsel to the Indemnified Person.  No settlement of the proceeding may be made without the approval of the Issuer and the Indemnified Person, which approvals will not be unreasonably withheld.

 

(d)                             Survival of Obligations.  The Issuer’s obligations to the Indenture Trustee under this Section 6.7 will survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture.  Expenses incurred by the Indenture Trustee after the occurrence of a Default stated in Section 5.1(a)(iv) are intended to be expenses of administration under the Bankruptcy Code or another applicable federal or State bankruptcy, insolvency or similar law.

 

(e)                               Repayment.  If the Issuer makes a payment to an Indemnified Person under Section 6.7(b) and the Indemnified Person later collects from others any amounts for which the payment was made, the Indemnified Person will promptly repay those amounts to the Issuer for distribution according to the priority of payments under Section 8.2 on the related Payment Date.

 

(f)                                Funds for Payment.  Payments required to be made by the Issuer under this Section 6.7 will be made solely from funds used to make payments under this Indenture.

 

Section 6.8.                    Resignation or Removal of Indenture Trustee.

 

(a)                               Resignation.  The Indenture Trustee may resign by notifying the Issuer and the Administrator at least 30 days in advance.

 

(b)                              Removal by Controlling Class.  The Noteholders of a majority of the Note Balance of the Controlling Class may, without cause, remove the Indenture Trustee and

 

32

 

terminate its rights and obligations under this Indenture by notifying the Indenture Trustee and the Issuer at least 30 days in advance.

 

(c)                               Removal by Issuer.  The Issuer must remove the Indenture Trustee and terminate its rights and obligations under this Indenture if:

 

(i)                                  the Indenture Trustee fails to comply with the eligibility requirements in Section 6.11(a);

 

(ii)                              the Indenture Trustee becomes legally unable to act or incapable of acting as Indenture Trustee; or

 

(iii)                          an Insolvency Event for the Indenture Trustee occurs.

 

(d)                             Appointment of Successor.  If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class must appoint a successor Indenture Trustee promptly.  If a successor Indenture Trustee does not take office within 60 days after the Indenture Trustee resigns or is removed, the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class may petition a court of competent jurisdiction to appoint a successor Indenture Trustee.

 

(e)                               Acceptance of Appointment.  No resignation or removal of the Indenture Trustee will become effective until the acceptance of appointment by the successor Indenture Trustee under this Section 6.8.  Any successor Indenture Trustee will deliver a written acceptance of its appointment to the Indenture Trustee, the Issuer and the Administrator.  The Issuer will continue to pay amounts owed to the predecessor Indenture Trustee for the period it was Indenture Trustee according to Sections 6.7 and 8.2.  The successor Indenture Trustee will notify the Secured Parties of its succession and the Issuer or Administrator will deliver a copy of the notice to the Rating Agencies.

 

(f)                                Transition of Indenture Trustee Obligations.  On the resignation or removal of the Indenture Trustee becoming effective under Section 6.8(e), all rights, powers and obligations of the Indenture Trustee under this Indenture will become the rights, powers and obligations of the successor Indenture Trustee.  The predecessor Indenture Trustee will promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.  The Depositor will reimburse the Indenture Trustee and any successor Indenture Trustee for expenses related to the replacement of the Indenture Trustee, if those amounts have not been paid under Section 8.2.

 

Section 6.9.                    Merger or Consolidation; Transfer of Assets.

 

(a)                               Merger or Consolidation.  If the Indenture Trustee merges or consolidates with, or transfers its corporate trust business or assets to, any Person, the resulting, surviving or transferee Person will be the successor Indenture Trustee so long as that Person is qualified and eligible under Section 6.11(a).  The Indenture Trustee will promptly notify the Servicer and the Issuer of the succession, and the Issuer will notify the Rating Agencies.

 

33

 

(b)                              Authentication of Notes.  If, at the time the successor by merger or consolidation to the Indenture Trustee succeeds to the trusts created by this Indenture, Notes have been authenticated but not delivered, the successor Indenture Trustee may adopt the certificate of authentication of a predecessor Indenture Trustee and deliver the Notes so authenticated.  If at that time any Notes have not been authenticated, the successor Indenture Trustee may authenticate the Notes.  In each of those cases, the certificates will have the same force and effect provided in the Notes or in this Indenture as the certificate of the predecessor Indenture Trustee.

 

Section 6.10.            Appointment of Separate Trustee or Co-Trustee.

 

(a)                               Appointment.  For the purpose of meeting the legal requirement of a jurisdiction in which part of the Collateral may be located, after notifying the Issuer and the Servicer, the Indenture Trustee may appoint one or more Persons to act as a separate trustee or separate trustees, or co-trustee or co-trustees, of all or part of the Collateral, and to vest in those Persons, in this capacity and for the benefit of the Secured Parties, title to all or part of the Collateral, and, subject to this Section 6.10, rights, powers and obligations the Indenture Trustee may consider necessary or desirable.  No separate trustee or co-trustee will be required to be eligible as a successor trustee under Section 6.11(a) and no notice to the Secured Parties of the appointment of a separate trustee or co-trustee will be required under Section 6.8.

 

(b)                              Terms of Appointment.  Every separate trustee and co-trustee will be appointed and act subject to the following:

 

(i)                                  all rights, powers and obligations of the Indenture Trustee will apply to and will be exercised or performed by the Indenture Trustee, or the Indenture Trustee and the separate trustee or co-trustee jointly (it being understood that the separate trustee or co-trustee will not be authorized to act separately without the Indenture Trustee joining in the act), except if under the law of a jurisdiction in which a particular act or acts are to be performed the Indenture Trustee will be incompetent or unqualified to perform those act or acts, in which event those acts will be exercised and performed singly by the separate trustee or co-trustee, but solely at the direction of the Indenture Trustee;

 

(ii)                              no trustee will be personally liable by reason of an act or omission of another trustee under this Indenture; and

 

(iii)                          the Indenture Trustee may accept the resignation of or remove a separate trustee or co-trustee.

 

(c)                               Notices.  Any notice, request or other writing given to the Indenture Trustee will be deemed to have been given to each appointed separate trustee and co-trustee, as effectively as if given to each of them.

 

(d)                             Rights of Appointee.  Every document appointing a separate trustee or co-trustee will refer to this Indenture and the conditions of this Section 6.10.  Each separate trustee and co-trustee, on its acceptance of its appointment will have the rights, powers and obligations stated in its appointment, subject to this Indenture.  The document will be filed with the Indenture Trustee and the Indenture Trustee will give the Issuer a copy of each document.

 

34

 

(e)                               Indenture Trustee as Agent.  A separate trustee or co-trustee may appoint the Indenture Trustee as its agent or attorney-in-fact with power and authority, if permitted by law, to do each lawful act under or for this Indenture on its behalf and in its name.  If a separate trustee or co-trustee becomes incapable of acting, resigns or is removed, all of its rights, powers and obligations will be exercised by the Indenture Trustee, if permitted by law, without the appointment of a new or successor trustee.

 

Section 6.11.            Eligibility; Disqualification.

 

(a)                               Eligibility Requirements.  The Indenture Trustee must satisfy the requirements of Section 310(a) of the TIA and must comply with Section 310(b) of the TIA.  The Indenture Trustee or its parent must have a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition and must have a long-term debt rating of investment grade by each of the Rating Agencies or must be acceptable to each of the Rating Agencies.  Promptly after the Indenture Trustee fails to satisfy the requirements in this Section 6.11(a) or ceases to be a Qualified Institution, the Indenture Trustee will notify the Issuer and the Servicer of the failure.

 

(b)                              Resignation.  Within 90 days after the occurrence of an Event of Default that has not been corrected or waived, unless authorized by the Securities and Exchange Commission, the Indenture Trustee will resign for the Class A, Class B and/or Class C Notes according to Section 6.8, and the Issuer will appoint a successor Indenture Trustee for the Class A, Class B and/or Class C Notes, as applicable, so that there will be separate Indenture Trustees for the Class A, Class B and Class C Notes.  If the Indenture Trustee fails to comply with the prior sentence, the Indenture Trustee must comply with TIA Section 310(b)(ii) and (iii).

 

(c)                               Successor.  If a successor Indenture Trustee is appointed for the Class A, Class B or Class C Notes under this Section 6.11, the Issuer, the predecessor Indenture Trustee and the successor Indenture Trustee will execute an indenture supplemental to this Indenture.  The supplemental indenture will contain:

 

(i)                                  the terms on which the successor Indenture Trustee accepts its appointment;

 

(ii)                              the terms necessary or advisable to transfer and confirm to, the successor Indenture Trustee the rights, powers and obligations of the Indenture Trustee for the Notes for which the successor Indenture Trustee is appointed;

 

(iii)                          if the predecessor Indenture Trustee is not being removed as Indenture Trustee for all of the Notes, the terms necessary or desirable to confirm that the rights, powers and obligations of the predecessor Indenture Trustee for the Notes for which the predecessor Indenture Trustee is not being removed continue to be vested in the Indenture Trustee for these Notes; and

 

(iv)                          the terms necessary to provide for or facilitate the administration of the trusts under this Indenture by more than one Indenture Trustee.

 

35

 

(d)                             Timing.  Nothing in this Indenture or in the supplemental indenture will make the Indenture Trustees co-trustees of the same trust and the Indenture Trustee will be a trustee of a trust or trusts under this Indenture separate and apart from the trust or trusts under this Indenture administered by another Indenture Trustee.  The indenture supplement will become effective on the removal of the predecessor Indenture Trustee.

 

Section 6.12.            Preferential Collection of Claims Against Issuer.  The Indenture Trustee will comply with Section 311(a) of the TIA, excluding each creditor relationship listed in Section 311(b) of the TIA.  An Indenture Trustee who has resigned or been removed will be subject to Section 311(c) of the TIA.

 

Section 6.13.            Review of Indenture Trustee’s Records.  The Indenture Trustee agrees that, with reasonable prior notice, it will permit authorized representatives of the Issuer, the Servicer or the Administrator, during the Indenture Trustee’s normal business hours, to have access to and review the facilities, processes, books of account, records, reports and other documents and materials of the Indenture Trustee relating to (a) the performance of the Indenture Trustee’s obligations under this Indenture, (b) the payments of fees and expenses of the Indenture Trustee for its performance and (c) any claim made by the Indenture Trustee under this Indenture.  In addition, the Indenture Trustee will permit those representatives to make copies and extracts of the books and records and to discuss them with the Indenture Trustee’s officers and employees.  Any access and review will be subject to the Indenture Trustee’s confidentiality and privacy policies.  The Indenture Trustee will maintain all relevant books, records, reports and other documents and materials for a period of two years after the termination of its obligations under this Indenture.

 

Section 6.14.            Indenture Trustee’s Representations and Warranties.  The Indenture Trustee represents and warrants to the Issuer as of the Closing Date:

 

(a)                               Organization and Qualification.  The Indenture Trustee is duly organized and, validly existing as a banking corporation in good standing under the laws of the State of New York.  The Indenture Trustee is qualified as a foreign banking corporation in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(b)                              Power, Authority and Enforceability.  The Indenture Trustee has the power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.  The Indenture Trustee has authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  Each of the Transaction Documents to which it is a party is the legal, valid and binding obligation of the Indenture Trustee enforceable against the Indenture Trustee, except as may be limited by insolvency, bankruptcy, reorganization or other similar laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

36

 

(c)                               No Conflicts and No Violation.  The completion of the transactions under the Transaction Documents to which it is a party, and the performance of its obligations under such documents, will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Indenture Trustee is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Indenture Trustee’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document, (iii) violate the Indenture Trustee’s organizational documents or by-laws or (iv) violate a law or, to the Indenture Trustee’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Indenture Trustee or its properties that applies to the Indenture Trustee, which, in each case, would reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(d)                             No Proceedings.  To the Indenture Trustee’s knowledge, there are no proceedings or investigations pending or threatened in writing before any federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Indenture Trustee or its properties (i) asserting the invalidity of the Transaction Documents to which it is a party, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents to which it is a party or (iii) seeking a determination or ruling that would reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under, or the validity or enforceability of, the Transaction Documents to which it is a party.

 

(e)                               Eligibility.  The Indenture Trustee satisfies the requirements of Section 310(a) of the TIA and is a Qualified Institution.  The Indenture Trustee or its parent has a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition.

 

(f)                                Information Given by the Indenture Trustee.  The information given by the Indenture Trustee in any certificate delivered by a Responsible Person of the Indenture Trustee is true and correct in all material respects.

 

Section 6.15.            Obligation to Update Disclosure.  The Indenture Trustee will notify and provide information, and certify that information in an Officer’s Certificate, to the Depositor on the occurrence of any event or condition relating to the Indenture Trustee or actions taken by the Indenture Trustee that (a) may be required to be disclosed by the Depositor under Item 2 (the institution of, material developments in, or termination of legal proceedings against The Bank of New York Mellon that are material to the Noteholders) of Form 10-D under the Exchange Act within five days of a Responsible Person of the Indenture Trustee becoming aware of such proceeding, (b) the Depositor reasonably requests of the Indenture Trustee that the Depositor, believes is necessary to comply with Regulation AB within five days of the request, (c) is required to be disclosed under Item 5 (submission of matters to a vote of the Noteholders) of Form 10-D under the Exchange Act within five days of a Responsible Person of the Indenture Trustee becoming aware of the submission, (d) is required to be disclosed under Item 6.02 (resignation, removal, replacement or substitution of The Bank of New York Mellon as Indenture Trustee) or Item 6.04 (failure to make a distribution when required) of Form 8-K under

 

37

 

the Exchange Act within two days of a Responsible Person of the Indenture Trustee becoming aware of the occurrence or (e) causes the information given by the Indenture Trustee in any certificate delivered by a Responsible Person of the Indenture Trustee to be untrue or incorrect in any material respect or is necessary to make the statements given by the Indenture Trustee in light of the circumstances in which they were made not misleading within five days of a Responsible Person of the Indenture Trustee becoming aware of the event or condition.

 

Section 6.16.            Reporting of Receivables Repurchase Demands.  The Indenture Trustee will (a) notify the Sponsor, the Depositor and the Servicer, as soon as practicable and within five Business Days, of demands or requests received by a Responsible Person of the Indenture Trustee for the repurchase of any Receivable under Section 3.4 of the Receivables Purchase Agreement or Section 2.5 of the Sale and Servicing Agreement, (b) promptly on request by the Sponsor, the Depositor or the Servicer, provide to them other information reasonably requested to facilitate compliance by them with Rule 15Ga-1 under the Exchange Act, and Items 1104(e) and 1121(c) of Regulation AB and (c) if requested by the Sponsor, the Depositor or the Servicer, provide a written certification no later than 15 days following the end of any quarter or year that the Indenture Trustee has not received any repurchase demands or requests for that period, or if repurchase demands or requests have been received during that period, that the Indenture Trustee has provided all the information reasonably requested under clause (b) above.  The Indenture Trustee and the Issuer will not have responsibility or liability for a filing required to be made by a securitizer under the Exchange Act or Regulation AB.

 

ARTICLE VII
 NOTEHOLDER COMMUNICATIONS AND REPORTS

 

Section 7.1.                    Noteholder Communications.

 

(a)                               Noteholder List.  If the Indenture Trustee is not the Note Registrar, the Issuer will furnish a list of the names and addresses of the Noteholders of any Definitive Notes to the Indenture Trustee (a) not more than five days after each Record Date, as of that Record Date and (b) not more than 30 days after receipt by the Issuer of a request from the Indenture Trustee, as of a date not more than ten days before the time the list is furnished.  If the Indenture Trustee is the Note Registrar, the Indenture Trustee, on the request of the Owner Trustee, will furnish within ten days to the Owner Trustee a list of Noteholders of any Book-Entry Notes as of the date stated by the Owner Trustee.

 

(b)                              Noteholder List Retention.  The Indenture Trustee will maintain a current list of the names and addresses of the Noteholders based on the most recent list furnished to the Indenture Trustee under Section 7.1(a) and the names and addresses of the Noteholders received by the Indenture Trustee in its capacity as Note Registrar.

 

(c)                               TIA Communication.  A Noteholder may communicate under Section 312(b) of the TIA with other Noteholders about their rights under this Indenture or under the Notes.  The Issuer, the Indenture Trustee and the Note Registrar will have the protection of Section 312(c) of the TIA.

 

38

 

(d)                             Noteholder Communications with Indenture Trustee.  A Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) may communicate with the Indenture Trustee and give notices and make requests and demands and give directions to the Indenture Trustee through the procedures of the Clearing Agency and by notifying the Indenture Trustee.  Any Note Owner must provide a written certification stating that the Note Owner is a beneficial owner of a Note, together with supporting documentation such as a trade confirmation, an account statement, a letter from a broker or dealer verifying ownership or another similar document evidencing ownership of a Note.  The Indenture Trustee will not be required to take action in response to requests, demands or directions of a Noteholder or a Note Owner, other than requests, demands or directions relating to an asset representations review demand under Section 7.2, unless the Noteholder or Note Owner has offered reasonable security or indemnity reasonably satisfactory to the Indenture Trustee to protect it against the fees and expenses that it may incur in complying with the request, demand or direction.

 

(e)                               Communications between Noteholders.  A Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) that seeks to communicate with other Noteholders or Note Owners, as applicable, about a possible exercise of rights under this Indenture or the other Transaction Documents may send a request to the Issuer or the Servicer, on behalf of the Issuer, to include information regarding the communication in a Form 10-D to be filed by the Issuer with the Securities and Exchange Commission.  Each request must include (i) the name of the requesting Noteholder or Note Owner, (ii) the method by which other Noteholders or Note Owners, as applicable, may contact the requesting Noteholder or Note Owner and (iii) in the case of a Note Owner, a certification from that Person that it is a Note Owner, together with at least one form of documentation evidencing its ownership of a Note, including a trade confirmation, account statement, letter from a broker or dealer or similar document.  A Noteholder or Note Owner, as applicable, that delivers a request under this Section 7.1(e) will be deemed to have certified to the Issuer and the Servicer that its request to communicate with other Noteholders or Note Owners, as applicable, relates solely to a possible exercise of rights under this Indenture or the other Transaction Documents, and will not be used for other purposes.  The Issuer will promptly deliver any request to the Servicer.  On receipt of a request, the Servicer will include in the Form 10-D filed by the Issuer with the Securities and Exchange Commission for the Collection Period in which the request was received (A) a statement that the Issuer has received a request from a Noteholder or Note Owner, as applicable, that is interested in communicating with other Noteholders or Note Owners, as applicable, about a possible exercise of rights under this Indenture or the other Transaction Documents, (B) the name of the requesting Noteholder or Note Owner, (C) the date the request was received and (D) a description of the method by which the other Noteholders or Note Owners, as applicable, may contact the requesting Noteholder or Note Owner.

 

Section 7.2.                    Noteholder Demand for Asset Representations Review.  If a Delinquency Trigger occurs, as reported on Form 10-D, a Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) may make a demand on the Indenture Trustee to cause a vote of the Noteholders or Note Owners, as applicable, about whether to direct the Asset Representations Reviewer to conduct a Review of the Review Receivables under the Asset Representations Review Agreement.  In the case of a Note Owner, each demand must be accompanied by a certification from that Person that it is a

 

39

 

Note Owner, together with at least one form of documentation evidencing its ownership of a Note, including a trade confirmation, account statement, letter from a broker or dealer or similar document.  If the Noteholders or Note Owners of at least 5% of the aggregate Note Balance of the Notes demand a vote within 90 days of the filing of the Form 10-D reporting the occurrence of the Delinquency Trigger, the Indenture Trustee will promptly request a vote of the Noteholders or Note Owners of record as of the most recent Record Date and, in the case of Note Owners, through the Clearing Agency process.  The vote will remain open until the 150th day after the filing of the Form 10-D.  Assuming a voting quorum of the Noteholders or Note Owners holding at least 5% of the aggregate Note Balance of the Notes is reached, if the Noteholders or Note Owners of a majority of the Note Balance of Notes voted to direct a Review, the Indenture Trustee will promptly send a Review Notice to the Asset Representations Reviewer and the Servicer under the Asset Representations Review Agreement stating that the Noteholders or Note Owners have voted to direct the Asset Representations Reviewer to conduct the Review.

 

Section 7.3.                    Reports by Issuer.

 

(a)                               SEC Filings.  The Issuer will, or will cause the Administrator or the Servicer to:

 

(i)                                  prepare and file with the Securities and Exchange Commission (A) the annual reports and the information, documents and other reports (or copies or parts the Securities and Exchange Commission may prescribe) that the Issuer is required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the Exchange Act, including annual reports on Form 10-K, monthly distribution reports on Form 10-D, and (B) additional information, documents and reports about compliance by the Issuer with this Indenture required by the Securities and Exchange Commission;

 

(ii)                              deliver to the Indenture Trustee, within 15 days after the Issuer is required to file the same with the Securities and Exchange Commission, copies of the annual reports and the information, documents or other reports filed with the Securities and Exchange Commission under Section 7.3(a)(i); and

 

(iii)                          deliver to the Indenture Trustee the information, documents and reports (or summaries) required to be filed by the Issuer under Section 7.3(a)(i) and (ii) as may be required by rules and regulations prescribed by the Securities and Exchange Commission.

 

(b)                              Documents and Reports to Noteholders.  The Indenture Trustee will mail to all Noteholders, as described in Section 313(c) of the TIA, the information, documents and reports (or summaries of such items) supplied to the Indenture Trustee under Section 7.3(a).

 

(c)                               Fiscal Year.  The fiscal year of the Issuer will be the calendar year.

 

Section 7.4.                    Reports by Indenture Trustee.

 

(a)                               Annual Report.  Within 90 days after each April 15, starting in the year after the Closing Date, the Indenture Trustee will prepare and mail to each Noteholder a report dated as of April 15 of the applicable year that complies with Section 313(a) of the TIA, if the report is required under Section 313(a) of the TIA.  The Indenture Trustee will also prepare and mail to

 

40

 

the Noteholders any report required under Section 313(b) of the TIA.  A report mailed to the Noteholders under this Section 7.4(a) will be mailed according to Section 313(c) of the TIA.

 

(b)                              Filing.  The Indenture Trustee will file with the Securities and Exchange Commission a copy of each report delivered under Section 7.4(a) at the time of its mailing to the Noteholders.

 

ARTICLE VIII
 ACCOUNTS, DISTRIBUTIONS AND RELEASES

 

Section 8.1.                    Collection of Funds.  Except as permitted under this Indenture, the Indenture Trustee may demand payment or delivery of, and will receive and collect, directly the funds and other property payable to or to be received by the Indenture Trustee under this Indenture and the Sale and Servicing Agreement.  The Indenture Trustee will apply the funds and other property received by it, and will make deposits to, and distributions from, the Bank Accounts, under this Indenture and the Sale and Servicing Agreement.

 

Section 8.2.                    Bank Accounts; Distributions.

 

(a)                               Establishment.  On and after the Closing Date, the Indenture Trustee will maintain the Bank Accounts established by the Servicer under Section 4.1 of the Sale and Servicing Agreement.

 

(b)                              Reserve Account Draw Amount.  On or before each Payment Date, the Indenture Trustee will withdraw the amounts required to be withdrawn from the Reserve Account and deposit them into the Collection Account under Section 4.4 of the Sale and Servicing Agreement.

 

(c)                               Distributions from Collection Account.  Subject to Section 8.2(e), on each Payment Date the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) withdraw from the Collection Account and make deposits and payments, to the extent of Available Funds in the Collection Account for that Payment Date, in the following order of priority (pro rata within each priority level based on the amounts due except as otherwise stated):

 

(i)                                  first, to the payment of amounts, including indemnities, then due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer and expenses of the Issuer incurred according to the Transaction Documents, in each case, if not paid by the Depositor or the Administrator, up to a maximum of $375,000 per year;

 

(ii)                              second, to the Servicer, unpaid Servicing Fees;

 

(iii)                          third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the prior Payment Date;

 

(iv)                          fourth, for allocation as principal under Section 8.2(d), the First Priority Principal Payment;

 

41

 

(v)                              fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

 

(vi)                          sixth, for allocation as principal under Section 8.2(d), the Second Priority Principal Payment;

 

(vii)                      seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

 

(viii)                  eighth, to the Reserve Account, the amount required to bring the amount in the Reserve Account up to the Specified Reserve Balance, unless the Payment Date is on or after the Final Scheduled Payment Date for the Class C Notes;

 

(ix)                          ninth, for allocation as principal under Section 8.2(d), the Regular Principal Payment;

 

(x)                              tenth, to the payment of all amounts due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer and any expenses of the Issuer, in each case, if not paid by the Depositor or Administrator or under Section 8.2(c)(i) on that Payment Date; and

 

(xi)                          eleventh, to the holder of the Residual Interest, any remaining amounts.

 

(d)                             Distributions of Principal.  On each Payment Date, the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) pay any amounts allocated to principal under Section 8.2(c) in the following order of priority, in each case, applied pro rata according to the Note Balance of the Notes of that Class:

 

(i)                                  first, to the Noteholders of Class A-1 Notes in payment of principal until the Note Balance of the Class A-1 Notes has been reduced to zero;

 

(ii)                              second, to the Noteholders of Class A-2a and Class A-2b Notes, pro rata based on the respective Note Balances, in payment of principal until the Note Balance of the Class A-2a and Class A-2b Notes has been reduced to zero;

 

(iii)                          third, to the Noteholders of Class A-3 Notes, in payment of principal until the Note Balance of the Class A-3 Notes has been reduced to zero;

 

(iv)                          fourth, to the Noteholders of Class A-4 Notes, in payment of principal until the Note Balance of the Class A-4 Notes has been reduced to zero;

 

(v)                              fifth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes has been reduced to zero;

 

(vi)                          sixth, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes has been reduced to zero; and

 

(vii)                      seventh, to the holder of the Residual Interest), any remaining amounts.

 

42

 

(e)                               Distributions Following Acceleration.  If the Notes are accelerated after an Event of Default, on each Payment Date starting with the Payment Date relating to the Collection Period in which the Notes are accelerated, the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) withdraw from the Bank Accounts and make deposits and payments, to the extent of funds in the Bank Accounts for the related Collection Period, in the following order of priority (pro rata to the Persons within each priority level based on the amounts due except as stated):

 

(i)                                  first, to the payment of amounts, including indemnities, due to the Indenture Trustee, the Owner Trustee, the Asset Representations Reviewer and expenses of the Issuer incurred according to the Transaction Documents;

 

(ii)                              second, to the Servicer, unpaid Servicing Fees;

 

(iii)                          third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the end of the prior Payment Date;

 

(iv)                          fourth, to the Noteholders of Class A-1 Notes in payment of principal until the Note Balance of the Class A-1 Notes is reduced to zero;

 

(v)                              fifth, to the Noteholders of Class A-2a and Class A-2b Notes, in payment of principal until the Note Balance of the Class A-2a and Class A-2b Notes is reduced to zero;

 

(vi)                          sixth, to the Noteholders of Class A-3 Notes in payment of principal until the Note Balance of the Class A-3 Notes is reduced to zero;

 

(vii)                      seventh, to the Noteholders of Class A-4 Notes in payment of principal until the Note Balance of the Class A-4 Notes is reduced to zero;

 

(viii)                  eighth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

 

(ix)                          ninth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes is reduced to zero;

 

(x)                              tenth, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

 

(xi)                          eleventh, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes is reduced to zero; and

 

(xii)                      twelfth, to the holder of the Residual Interest, any remaining amounts.

 

(f)                                Subordination Agreement.  Each of (i) the subordination of interest payments to the Noteholders of the Class B Notes to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes and (ii) the subordination of interest payments to the

 

43

 

Noteholders of the Class C Notes to the payment of any Second Priority Principal Payment to the Noteholders of the Class A Notes and the Class B Notes under Section 8.2(c) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.

 

Section 8.3.                    Bank Accounts.

 

(a)                               Limited Liability for Permitted Investments.  Subject to Section 6.1(c), the Indenture Trustee will not be liable for any insufficiency in Bank Accounts resulting from a loss on a Permitted Investment, except for losses attributable to the Indenture Trustee’s failure to make payments on the Permitted Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee.  The Indenture Trustee is not obligated to monitor the activities of any Qualified Institution (unless the Qualified Institution is also the Indenture Trustee) and will not be liable for the actions or inactions of any Qualified Institution (unless the Qualified Institution is also the Indenture Trustee).

 

(b)                              Notice to Qualified Institution.  A Responsible Person of the Indenture Trustee will notify the Qualified Institution maintaining the Bank Accounts (if not the Indenture Trustee) if an Event of Default has occurred and is continuing.

 

Section 8.4.                    Release of Collateral.

 

(a)                               Release of Property.  The Indenture Trustee may, and when required by this Indenture will, release Collateral from the Lien of this Indenture, in each case, according to this Indenture.  Except under Sections 8.4(b), 8.4(c) and 10.1(c), the Indenture Trustee will release Collateral from the Lien of this Indenture only on receipt of an Issuer Request and an Officer’s Certificate and an Opinion of Counsel and (if required by the TIA) Independent Certificates according to Sections 314(c) and 314(d)(1) of the TIA meeting the requirements of Section 11.3.

 

(b)                              Deemed Release.  The Indenture Trustee will be deemed to release, and does release, and each Noteholder or Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges that the Indenture Trustee will release Liens and other rights and interests it possesses, without further action of the parties, in, to and under:

 

(i)                                  each Receivable and all proceeds of the Receivable sold by the Issuer under Section 3.4(c) of the Receivables Purchase Agreement or Section 2.5(c) or 3.3(f) of the Sale and Servicing Agreement, effective when the Receivable is deemed sold and assigned by the Issuer under the applicable Section;

 

(ii)                              each Receivable (but not in the proceeds of the sale or disposition of the Receivable or the related Financed Vehicle) sold by the Issuer under Section 3.4 of the Sale and Servicing Agreement, effective when the Receivable is deemed sold and assigned by the Issuer under the applicable Section; and

 

(iii)                          each Financed Vehicle relating to a Liquidated Receivable (but not in the proceeds of the sale or disposition of the Financed Vehicle), effective immediately before the sale or disposition of the Financed Vehicle.

 

44

 

(c)                               Release of Funds.  When there are no Notes Outstanding and all amounts due from the Issuer to the Indenture Trustee have been paid in full under Section 6.7 or 10.1, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to those funds under this Indenture or the other Transaction Documents, the funds then in the Bank Accounts under this Indenture.  The Indenture Trustee will release Collateral from the Lien of this Indenture under this Section 8.4(c) only on receipt of an Issuer Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3

 

(d)                             Termination Statements.  On receipt of an Issuer Request accompanied by an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3, the Indenture Trustee will execute termination statements and other documents to release Collateral as permitted by this Section 8.4 and Section 10.1.  No party relying on a document or authorization executed by the Indenture Trustee under this Article VIII is required to determine the Indenture Trustee’s authority, inquire into the satisfaction of conditions precedent or require evidence of the application of funds.

 

ARTICLE IX
 AMENDMENTS

 

Section 9.1.                    Amendments Without Consent of Noteholders.

 

(a)                               General Amendments.  Without the consent of the Noteholders but after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture:

 

(i)                                  to correct or expand the description of property subject to the Lien of this Indenture, or better to assure, convey and confirm to the Indenture Trustee property subject or required to be subjected to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;

 

(ii)                              to evidence the succession of any other Person to the Issuer, and the assumption by the successor of the obligations of the Issuer in this Indenture and in the Notes;

 

(iii)                          to add to the obligations of the Issuer, for the benefit of the Noteholders, or to surrender a right or power given to the Issuer in this Indenture;

 

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

 

(v)                              to clarify an ambiguity, correct an error or correct or supplement a term in this Indenture inconsistent with another term in this Indenture or to add terms which are not inconsistent with the other terms of this Indenture if the action does not have a material adverse effect on the interests of the Noteholders;

 

45

 

(vi)                          to evidence the acceptance of the appointment under this Indenture of a successor trustee and to add to or change this Indenture necessary for the administration of the trusts under this Indenture by more than one trustee; or

 

(vii)                      to modify, eliminate or add to the terms of this Indenture to effect the qualification of this Indenture under the TIA and to add to this Indenture other terms required by the TIA.

 

(b)                              Amendments without Material Adverse Effect.  Without the consent of the Noteholders, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture to add terms to, to change or eliminate the terms of, or to amend (other than the amendments in Section 9.2) the rights of the Noteholders under, this Indenture, if:

 

(i)                                  the Issuer or the Administrator delivers, to the Indenture Trustee an Officer’s Certificate stating that the amendment will not have a material adverse effect on the Notes;

 

(ii)                              the Issuer delivers an Opinion of Counsel to the Indenture Trustee stating that the amendment will not (A) cause a Note to be considered sold or exchanged for purposes of Section 1001 of the Code, (B) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes or (C) adversely affect the treatment of the Notes as debt for U.S. federal income tax purposes; and

 

(iii)                          the Rating Agency Condition has been satisfied.

 

Section 9.2.                    Amendments with Consent of Controlling Class.

 

(a)                               Amendments.  With the consent of the Noteholders of a majority of the Note Balance of the Controlling Class and after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture to add terms to, to change or eliminate the terms of, or to modify the rights of the Noteholders under, this Indenture if the Issuer delivers an Opinion of Counsel to the Indenture Trustee stating that the amendment will not (i) cause any Note to be considered sold or exchanged for purposes of Section 1001 of the Code, (ii) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes or (iii) adversely affect the treatment of the Notes as debt for U.S. federal income tax purposes.  However, no amendment, without the consent of each Noteholder of each Outstanding Note adversely affected by the amendment, will:

 

(A)                          change Section 9.1 or this Section 9.2;

 

(B)                           change (1) the Final Scheduled Payment Date or the date of payment of any installment of principal of or interest on a Note, (2) the principal amount of or interest rate on a Note, (3) the price at which the Notes may be redeemed, (4) the priority of payments on the Notes or relating to the application of collections on, or the proceeds of the sale of, the Collateral to payment of principal of or

 

46

 

interest on the Notes, or change the place of payment where, or the currency in which, a Note or the interest on a Note is payable or (5) the right of the Noteholders to start proceedings to enforce this Indenture;

 

(C)                           change the percentage of the Note Balance of the Notes or the Controlling Class required for any action;

 

(D)                          change the definition of “Outstanding” or “Controlling Class”;

 

(E)                            change the calculation of the amount of a payment of principal or interest on a Note on a Payment Date; or

 

(F)                             permit the creation of any Lien ranking prior or equal to the Lien of this Indenture on the Collateral, other than Permitted Liens, or, except as permitted by this Indenture or the other Transaction Documents, release the Lien of this Indenture on the Collateral.

 

(b)                              Noteholder Consent.  For any amendment to this Indenture or any other Transaction Document requiring the consent of the Noteholders, the Indenture Trustee will, when directed by Issuer Order, notify the Noteholders to request consent and follow its reasonable procedures to obtain consent.

 

Section 9.3.                    Execution of Amendments.

 

(a)                               Form; Authorization; Reliance.  Each amendment will be in form reasonably satisfactory to the Indenture Trustee.  The Indenture Trustee is authorized to execute the amendment and any other agreements required by the amendment.  For any amendment, the Issuer will deliver to the Indenture Trustee and the Owner Trustee an Opinion of Counsel stating that the amendment is permitted by this Indenture and that all conditions to the amendment have been satisfied.

 

(b)                              Indenture Trustee Not Obligated.  The Indenture Trustee is not obligated to, enter into an amendment that adversely affects the Indenture Trustee’s rights, powers, obligations, or liabilities under this Indenture.

 

(c)                               Indenture Supplement not an Amendment.  An indenture supplement entered into under Section 6.11(c) will not be considered an amendment to this Indenture for purposes of this Article IX.

 

Section 9.4.                    Effect of Amendment.  On the execution of an amendment under this Article IX, this Indenture will be amended by the amendment, and the amendment will be part of this Indenture for all purposes.  Every Noteholder of Notes authenticated and delivered before or after the amendment will be bound by the amendment.

 

Section 9.5.                    Conformity with TIA.  Each amendment of this Indenture executed under this Article IX will conform to the requirements of the TIA as then in effect so long as this Indenture is qualified under the TIA.

 

47

 

Section 9.6.                    Reference in Notes to Supplemental Indentures.  Notes authenticated and delivered after the execution of an amendment under this Article IX may, and if required by the Indenture Trustee will, bear a notation about the amendment.  New Notes modified to conform to an amendment may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for the Outstanding Notes.

 

ARTICLE X
 REDEMPTION OF NOTES

 

Section 10.1.            Redemption.

 

(a)                               Optional Redemption.  The Notes may be redeemed in whole, but not in part, at the direction of the Servicer on any Payment Date on which the Servicer exercises its option to purchase the Trust Property under Section 8.1 of the Sale and Servicing Agreement.  If the Notes are to be redeemed under this Section 10.1, the Servicer or the Issuer will notify the Indenture Trustee and the Rating Agencies at least ten days before the Redemption Date.  After the Servicer or the Issuer notifies the Indenture Trustee, the Indenture Trustee will promptly notify the Noteholders:

 

(i)                                  of the Redemption Date;

 

(ii)                              of the Note Redemption Price;

 

(iii)                          of the outstanding Note Balance of each Class of the Notes to be redeemed and that the Notes plus accrued and unpaid interest on the Notes to the Redemption Date will be paid in full;

 

(iv)                          of the place to surrender the Notes for final payment (which will be the office or agency of the Issuer maintained under Section 3.2); and

 

(v)                              that on the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest on the Notes will become due and payable and that interest on the Notes will cease to accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on the Redemption Date.

 

(b)                              Deposit of Note Redemption Price.  The Issuer will cause the Servicer to deposit on the Business Day before the Redemption Date (or, with satisfaction of the Rating Agency Condition, on the Redemption Date) in the Collection Account the amount required under Section 8.1 of the Sale and Servicing Agreement, and the Notes will be paid in full on the Redemption Date.

 

(c)                               Release of Funds.  On the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest on the Notes will become due and payable and that interest on the Notes will cease to accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on the Redemption Date.  On redemption, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to funds then in the Bank Accounts under this Indenture according to Section 8.4(c).

 

48

 

ARTICLE XI
 OTHER AGREEMENTS

 

Section 11.1.            No Petition.  The Indenture Trustee and each Noteholder or Note Owner, by accepting a Note or an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) the Depositor or (ii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 11.1 will survive the resignation or removal of the Indenture Trustee under this Indenture and the termination of this Indenture.

 

Section 11.2.            Subordination of Claims Against Depositor.  The Issuer’s obligations under this Indenture are solely the Issuer’s obligations and do not represent an obligation or interest in the assets of the Depositor other than the Sold Property conveyed to the Issuer under the Sale and Servicing Agreement.  The Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by accepting a Note or an interest or participation in a Note, acknowledge and agree that they have no right, title or interest in or to Other Assets of the Depositor.  If the Indenture Trustee, Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, the Other Assets or (ii) is deemed to have an interest in, claim to or benefit in or from the Other Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including under Section 1111(b) of the Bankruptcy Code), then the Indenture Trustee, Noteholder or Note Owner further acknowledges and agrees that the interest, claim or benefit in, to or from the Other Assets is expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Assets, are entitled to be paid from, entitled to the benefits of, or secured by, those Other Assets (whether or not the entitlement or security interest is legally perfected or entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on those other obligations and liabilities.  This Section 11.2 is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.  The Indenture Trustee, each Noteholder and each Note Owner further acknowledge and agree that no adequate remedy at law exists for a breach of this Section 11.2 and it may be enforced by an action for specific performance.  This Section 11.2 is for the third-party benefit of the Depositor and any Person with an interest in the Other Assets and will survive the termination of this Indenture.

 

Section 11.3.            Issuer Orders; Certificates and Opinions.

 

(a)                               Issuer Order or Issuer Request.  For an order or request by the Issuer to the Indenture Trustee to take an action under this Indenture or any other Transaction Document, the Issuer will deliver the following documents to the Indenture Trustee: (i) a written order (an “Issuer Order”) or a written request (an “Issuer Request”), signed in the name of the Issuer by a Responsible Person and delivered to the Indenture Trustee, (ii) an Officer’s Certificate stating that all conditions in this Indenture or other Transaction Document for the proposed action have been satisfied, (iii) if required by the TIA or on the request of the Indenture Trustee, an Opinion

 

49

 

of Counsel stating that the conditions have been satisfied and (iv) if required by the TIA, an Independent Certificate from a firm of certified public accountants of national reputation selected by the Issuer.  However, no certificates or opinions are required to be delivered if this Indenture requires the furnishing of specific documents for the action to be taken.

 

(b)                              Form of Certificates and Opinions.

 

(i)                                  Each certificate or opinion on compliance with a condition or covenant in this Indenture will include:

 

(A)                          a statement that each signatory of the certificate or opinion has read the covenant or condition and the definitions in this Indenture relating to the covenant or condition;

 

(B)                           a brief statement about the nature and scope of the examination or investigation on which the statements or opinions in the certificate or opinion are based;

 

(C)                           a statement that, in the opinion of the signatory, the signatory has made an examination or investigation if necessary to enable the signatory to express an informed opinion on whether or not the covenant or condition has been complied with; and

 

(D)                          a statement about whether, in the opinion of the signatory, the condition or covenant has been complied with.

 

(ii)                              Any Officer’s Certificate of a Responsible Person of the Issuer may be based, for legal matters, on an opinion of counsel, unless that Responsible Person knows, or in the exercise of reasonable care should know, that the opinion is erroneous.  Any Officer’s Certificate of a Responsible Person of the Issuer or opinion of counsel may be based, for factual matters, on an Officer’s Certificate of a Responsible Person of the Servicer, the Depositor or the Issuer (including by the Administrator on behalf of the Issuer), stating that the information about those factual matters is in the possession of the Servicer, the Depositor, the Issuer or the Administrator, unless the Responsible Person of the Issuer or counsel knows, or in the exercise of reasonable care should know, that the Officer’s Certificate is erroneous.

 

(c)                               Conditions for Release.

 

(i)                                  Before depositing property or securities with the Indenture Trustee that is to be made the basis for the release of any Collateral subject to the Lien of this Indenture, the Issuer will furnish to the Indenture Trustee (A) an Officer’s Certificate stating the opinion of each Responsible Person signing the certificate about the fair value (within 90 days before the deposit) to the Issuer of the property or securities to be so deposited and (B) an Independent Certificate about the same matters, if the fair value to the Issuer of the securities to be so deposited and of other of securities withdrawn or released since the start of the then-current year, as stated in the certificates required by clause (A) and this clause (B), is 10% or more of the Note Balance of the Notes Outstanding, except that an

 

50

 

Independent Certificate need not be furnished for property or securities so deposited if the fair value of the property or securities to the Issuer as stated in the related Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance of the Notes.

 

(ii)                              Whenever property or securities are to be released from the Lien of this Indenture, the Issuer will furnish to the Indenture Trustee (A) an Officer’s Certificate stating the opinion of each Responsible Person signing the certificate about the fair value (within 90 days before the release) of the property or securities to be released and stating that in the opinion of that Responsible Person the proposed release will not impair the security under this Indenture and (B) an Independent Certificate about the same matters, if the fair value of the property or securities and of other property, other than property as contemplated by Section 11.3(d), of securities released from the Lien of this Indenture since the start of the then-current year, as stated in the certificates required by clause (A) and this clause (B), is 10% or more of the Note Balance of the Notes Outstanding, except that an Independent Certificate need not be furnished for the release of property or securities if the fair value of the property or securities as stated in the related Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance of the Notes.

 

(d)                             Ordinary Course of Business.  The Issuer may, without furnishing any Officer’s Certificates or Independent Certificates under Section 11.3(c), (i) collect, liquidate, sell or dispose of Receivables and Financed Vehicles in the ordinary course of its business, so long as Collections, Liquidation Proceeds, Recoveries and other proceeds of the dispositions are applied according to this Indenture and (ii) make cash payments out of the Bank Accounts, in each case, as and if permitted or required by the Transaction Documents.

 

(e)                               Exemptive Orders.  If the Securities and Exchange Commission issues an exemptive order under Section 304(d) of the TIA modifying the Indenture Trustee’s obligations under Sections 314(c) and 314(d)(1) of the TIA, the Indenture Trustee will release property from the Lien of this Indenture only according to the Transaction Documents and the conditions and procedures stated in the exemptive order.

 

Section 11.4.            Acts of Noteholders.  Any request, demand, authorization, direction, notice, consent, waiver or other action permitted by a Transaction Document to be given or taken by the Noteholders or a stated percentage of the Noteholders may be included in and evidenced by one or more documents signed by the Noteholders.  Except as otherwise stated in a Transaction Document, the action will become effective when the documents are delivered to the Indenture Trustee and, if required, to the Issuer.  Any such acts will bind the Noteholder of every Note issued on the registration of the Note or in exchange for the Note or in place of the Note, for all purposes whether or not notation of the action is made on the Note.

 

Section 11.5.            Conflict with Trust Indenture Act.  If any part of this Indenture limits, qualifies or conflicts with any other part of this Indenture that is required or deemed to be included in this Indenture by the TIA, the required or deemed part will control.  Sections 310 through 317 of the TIA that impose obligations on a Person (including those automatically deemed included in this Indenture unless expressly excluded by this Indenture) are a part of and govern this Indenture.

 

51

 

Section 11.6.            Issuer Obligation.  No recourse may be taken, directly or indirectly, for the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or a certificate or other writing delivered under this Indenture or the Notes, against (a) the Indenture Trustee or the Owner Trustee each in its individual capacity, (b) each holder of a beneficial interest in the Issuer, (c) each partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (d) each holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.  The Indenture Trustee and the Owner Trustee have none of these obligations in their individual capacities.  For all purposes of this Indenture, the Owner Trustee will be subject to, and have the benefits of, Articles V, VI and VII of the Trust Agreement.

 

ARTICLE XII
 MISCELLANEOUS

 

Section 12.1.            Benefits of Indenture; Third-Party Beneficiaries.  This Indenture and the Notes are for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Secured Parties, each Person with rights to payments or distributions under this Indenture and the holder of the Residual Interest will be third-party beneficiaries of this Indenture and may enforce this Indenture according to its terms.  No other Person will have any right or obligation under this Indenture or the Notes.

 

Section 12.2.            Notices.

 

(a)                               Notices to Parties.  Notices, requests, directions, consents, waivers or other communications to or from the parties to this Indenture must be in writing and will be considered received by the recipient:

 

(i)                                  for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the recipient;

 

(ii)                              for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)                          for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)                          for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

 

(b)                              Notice Addresses.  A notice, request, direction, consent, waiver or other communication will be addressed to the recipient stated on Schedule B to the Sale and Servicing Agreement, which address the party may change by notifying the other party.

 

52

 

(c)                               Notice to Noteholders.  Notices to a Noteholder will be considered received by the Noteholder:

 

(i)                                  for Definitive Notes, for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the Noteholder at its address in the Note Register; or

 

(ii)                              for Book-Entry Notes, when delivered under the procedures of the Clearing Agency, whether or not the Noteholder actually receives the notice.

 

(d)                             Notices to Rating Agencies.  Where this Indenture requires notice to the Rating Agencies, failure to give the notice will not affect other rights or obligations under this Indenture, and will not be a Default or Event of Default.

 

Section 12.3.            GOVERNING LAW.  THIS INDENTURE WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 12.4.            Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Indenture.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

 

Section 12.5.            WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDINGS RELATING TO THIS INDENTURE.

 

Section 12.6.            No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Indenture will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Indenture are in addition to any powers, rights and remedies under law.

 

Section 12.7.            Severability.  If a part of this Indenture is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Indenture and will not affect the validity, legality or enforceability of the remaining Indenture.

 

Section 12.8.            Headings.  The headings in this Indenture are included for convenience and will not affect the meaning or interpretation of this Indenture.

 

Section 12.9.            Counterparts.  This Indenture may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

53

 

	
EXECUTED BY:
    	
 
    
	
 
    	
 
    
	
 
    	
FORD CREDIT AUTO OWNER   TRUST 2017-B,
    
	
 
    	
 
    	
  as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
U.S. BANK TRUST   NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner   Trustee of Ford Credit Auto Owner Trust 2017-B
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
  Name:
    
	
 
    	
 
    	
  Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK   MELLON,
    
	
 
    	
 
    	
not in its individual   capacity but solely as Indenture Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
  Name:
    
	
 
    	
 
    	
  Title:
    

 

[Signature Page to Indenture]

 

 

Exhibit A

 

Form of Notes

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN ANOTHER NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND PAYMENT IS MADE TO CEDE & CO. OR TO ANOTHER ENTITY REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.

 

[Rule 144A Notes Only: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), BY PURCHASING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) UNDER RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE UNDER RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE, ACCORDING TO ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.]

 

EACH HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR A FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO PART 4 OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE (A “SIMILAR LAW”), BY ACCEPTING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), IS DEEMED TO REPRESENT THAT ITS PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) IS NOT AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM THE PROHIBITED TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY SIMILAR LAW,

 

EA-1

 

THE PURCHASE, HOLDING OR DISPOSITION IS NOT AND WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF THE SIMILAR LAW).  IN ADDITION, THE REPRESENTATIONS STATED IN SECTION 2.5(g) OF THE INDENTURE THAT ARE INTENDED TO COMPLY WITH DEPARTMENT OF LABOR’S REGULATIONS AT 29 C.F.R. SECTIONS 2510.3-21(a) AND (c)(1), ARE DEEMED MADE BY EACH HOLDER OF THIS NOTE, EXCEPT THAT, IF THOSE REGULATIONS ARE REVOKED, REPEALED OR NO LONGER EFFECTIVE, THOSE REPRESENTATIONS WILL BE DEEMED TO NOT BE IN EFFECT.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS STATED IN THIS NOTE.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF THIS NOTE.

 

EA-2

 

	
REGISTERED
    	
$[___________]
    	
 
    
	
No. R-1
    	
 
    	
CUSIP NO. [_________]
    

 

FORD CREDIT AUTO OWNER TRUST 2017-B

 

CLASS [A-_][B][C] [___%][FLOATING RATE] ASSET BACKED NOTES

 

Ford Credit Auto Owner Trust 2017-B, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), for value received, promises to pay to CEDE & CO., or registered assigns, the principal sum of [________________] DOLLARS payable on the fifteenth day of each month, or, if that day is not a Business Day, the next succeeding Business Day, starting in [__________] (each, a “Payment Date”) in an amount equal to the aggregate amount payable to the Noteholders of Class [A-_][B][C] Notes on that Payment Date from the amounts payable as principal on the Class [A-_][B][C] Notes under Section 3.1 of the Indenture, dated as of [__________] (the “Indenture”), between the Issuer and The Bank of New York Mellon, as Indenture Trustee (the “Indenture Trustee”).  However, the entire unpaid principal amount of this Note will be due and payable on the earlier of (a) the [__________] Payment Date (the “Class [A-_][B][C] Final Scheduled Payment Date”), or (b) the Redemption Date under Section 10.1 of the Indenture.  The entire unpaid principal amount of the Notes will be due and payable on the date on which the Notes are declared to be, or have automatically become, immediately due and payable under Section 5.2(a) of the Indenture.  Principal payments on the Class [A-_][B][C] Notes will be made pro rata to the Noteholders entitled to those principal payments.  Capitalized terms used but not defined in this Note are defined in Article I of the Indenture, which also contains usage rules that apply to this Note.

 

The Issuer will pay interest on this Note [at the rate per annum shown above] [a rate based on LIBOR determined under the terms of the Indenture, equal to LIBOR plus [___]% (but not less than 0.00%)] on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the prior Payment Date (in each case, after giving effect to payments of principal made on the prior Payment Date), subject to limitations in Section 3.1 of the Indenture.  Interest on this Note will accrue for each Payment Date from and including the [15th day of the month before each Payment Date][previous Payment Date on which interest has been paid] (or, for the initial Payment Date, from and including the Closing Date) to but excluding [the 15th day of the month in which that Payment Date occurs][that Payment Date].  Interest will be computed on the basis of [actual days elapsed and] a 360-day year [of twelve 30 day months].

 

The principal of and interest on this Note are payable in the coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts.  Payments made by the Issuer on this Note will be applied first to interest due and payable on this Note as stated above and then to the unpaid principal of this Note.

 

This Note is one of a duly authorized issue of Class [A-_][B][C] [___%] [Floating Rate] Asset Backed Notes (the “Class [A-_][B][C] Notes”) of the Issuer.  Also authorized under the Indenture are the Class [A-_][B][C] Notes.  The Indenture and indentures supplemental to the Indenture state the respective rights and obligations of the Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to the Indenture.

 

EA-3

 

The Class [A-_][B][C] Notes are and will be equally and ratably secured by the collateral pledged as security therefor under the Indenture.  Interest on and principal of the Notes will be payable according to the priority of payments stated in Section 8.2 of the Indenture.  [Class B only:][The Class B Notes are subordinated in right of payment to the Class A Notes.]  [Class C only:][The Class C Notes are subordinated in right of payment to the Class A and Class B Notes.]

 

Payments of interest on this Note on each Payment Date, together with each installment of principal if not in full payment of this Note, will be made to the Registered Noteholder of this Note either by wire transfer, to the account of the Noteholder at a bank or other entity having proper facilities for the wire transfer, if the Noteholder has given to the Note Registrar proper written instructions at least five Business Days before that Payment Date and the Noteholder’s Notes in the aggregate evidence a denomination of not less than $1,000,000, or, if not, by check mailed first class mail, postage prepaid, to the Registered Noteholder’s address as it appears on the Note Register on each Record Date.  However, unless Definitive Notes have been issued to Note Owners, payment will be made by wire transfer to the account designated by Cede & Co., as nominee of the Clearing Agency or a successor nominee.  The payments will be made without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note effected by payments made on a Payment Date will bind future Noteholders of this Note and of a Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this Note, whether or not noted on this Note.  If money is expected to be available for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Registered Noteholder of this Note as of the prior Record Date by notice mailed or transmitted by fax before that Payment Date, and the amount then due and payable will be payable only on presentation and surrender of this Note at the Indenture Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for those purposes located in The City of New York.

 

The Issuer will pay interest on overdue installments of interest at the Class [A-_][B][C] Note Interest Rate if lawful.

 

The Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement.

 

The transfer of this Note is subject to the restrictions on transfer stated on the face of this Note and to the other limitations in the Indenture.  Subject to the satisfaction of those restrictions and limitations, the transfer of this Note may be registered on the Note Register on surrender of this Note for registration of transfer at the office or agency designated by the Issuer under the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Noteholder of this Note or its attorney-in-fact, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and then one or more new Notes of the same Class in authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for the registration of transfer or exchange of this Note, but the transferor may be required to pay an amount to cover

 

EA-4

 

any tax or other governmental charge that may be imposed under any registration of transfer or exchange.

 

Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that no recourse may be taken, directly or indirectly, for the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or a certificate or other writing delivered for the Notes and the Indenture, against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (iv) any holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.

 

The obligations of the Issuer under the Indenture are solely the obligations of the Issuer and do not represent an obligation or interest in any assets of the Depositor other than the Sold Property conveyed to the Issuer under the Sale and Servicing Agreement.  Each Noteholder and Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges and agrees that it has no right, title or interest in or to any Other Assets of the Depositor.  If the Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Assets or (ii) is deemed to have any interest, claim to or benefit in or from Other Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Noteholder or Note Owner further acknowledges and agrees that any interest, claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Assets, are entitled to be paid from, entitled to the benefits of, or secured by those Other Assets (whether or not any entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on the other obligations and liabilities.  THIS PARAGRAPH IS A SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(a) OF THE BANKRUPTCY CODE.

 

Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against (i) the Depositor or (ii) the Issuer, respectively, or join any other Person in starting or pursuing against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under any bankruptcy or similar law.

 

The Issuer has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and franchise tax purposes, Notes that are beneficially owned by a Person other than Ford Credit or its Affiliates will qualify as indebtedness of the Issuer secured by the Collateral.  Each Noteholder or Note Owner, by its acceptance of a Note or an interest or participation in a Note, will be deemed to agree to treat the Notes for federal, State and local income, single business and franchise tax purposes as indebtedness of the Issuer.

 

EA-5

 

For any date, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as of that date as the owner of this Note for the purpose of receiving payments of principal of and any interest on the Note and for all other purposes, without regard to any notice or other information to the contrary.

 

The Indenture permits, with some exceptions requiring the consent of all adversely affected Noteholders under in the Indenture, the amendment of the Indenture and the modification of the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture by the Issuer with the consent of the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.  The Indenture also permits the Indenture Trustee to amend or waive some terms and conditions in the Indenture without the consent of the Noteholders if  some conditions are satisfied.  In addition, the Indenture contains terms permitting the Noteholders of Notes evidencing stated percentages of the Note Balance of the Notes or of the Controlling Class, on behalf of all Noteholders, to waive compliance by the Issuer with some terms of the Indenture and some defaults under the Indenture and their consequences.  Any consent or waiver by the Noteholder of this Note will be conclusive and bind the Noteholder and all future Noteholders of this Note and of any Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this Note whether or not notation of the consent or waiver is made on this Note.

 

The term “Issuer,” as used in this Note, includes any successor to the Issuer under the Indenture.

 

The Issuer is permitted by the Indenture, under some circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee and the Noteholders under the Indenture.

 

The Notes are issuable only in registered form in denominations as stated in the Indenture, subject to some limitations in the Indenture.

 

THIS NOTE AND THE INDENTURE WILL BE GOVERNED BY, AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

No reference in this Note to the Indenture, and no term of this Note or of the Indenture, will alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency prescribed in this Note.

 

Except as permitted under the Transaction Documents, none of The Bank of New York Mellon, in its individual capacity, U.S. Bank Trust National Association, in its individual capacity, any owner of a beneficial interest in the Issuer, or their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns will be personally liable for, nor will recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications in the Indenture.  The Noteholder of this Note, by its acceptance of this Note, agrees that, except as permitted in the Transaction Documents, for an Event of Default under the

 

EA-6

 

Indenture, the Noteholder has no claim against those Persons for any deficiency, loss or claim from this Note.  However, nothing in this Note will be taken to prevent recourse to, and enforcement against, the assets of the Issuer for liabilities, obligations and undertakings in the Indenture or in this Note.

 

Unless the certificate of authentication on this Note has been executed by the Indenture Trustee whose name appears below by manual signature, this Note will not have the benefit of the Indenture, or be valid or obligatory for any purpose.

 

[Remainder of Page Left Blank]

 

EA-7

 

The Issuer has caused this instrument to be signed, manually or in facsimile, by its Responsible Person, as of the date below.

 

Date: [________]

 

	
 
    	
FORD CREDIT AUTO OWNER   TRUST 2017-B
    
	
 
    	
 
    
	
 
    	
BY:
    	
U.S. BANK TRUST   NATIONAL ASSOCIATION,
    
	
 
    	
 
    	
not in its individual   capacity but solely as Owner Trustee of Ford Credit Auto Owner Trust 2017-B
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
  Responsible   Person
    
	
 
    	
 
    	
 
    
	
CERTIFICATE OF AUTHENTICATION
    
				

 

This is one of the Class [A-_][B][C] Notes designated above and referred to in the Indenture.

 

	
Date: [________]
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK   MELLON,
    
	
 
    	
 
    	
not in its individual   capacity but
    
	
 
    	
 
    	
solely as Indenture   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
  Responsible   Person
    

 

EA-8

 

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

____________________________________
 (name and address of assignee)

 

the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints _________________, attorney, to transfer said Note on the books kept for registration of said Note, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
 
    	
 */
    
	
 
    	
Signature   Guaranteed
    
	
 
    	
 
    
	
 
    	
 
    	
*/
    	
 
    	
 
    

 

 

 

 

*/                                    NOTICE:  The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatever.  The signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program” selected by the Note Registrar in addition to, or in substitution for, the Securities Transfer Agents Medallion Program, all according to the Exchange Act.

 

EA-9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]