Document:

Exhibit 10.1

EXECUTION COPY

RECEIVABLES PURCHASE AGREEMENT

between

USAA FEDERAL SAVINGS BANK

as Seller

and

USAA ACCEPTANCE, LLC

as Depositor

Dated as of June 19, 2007

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
ARTICLE I INTERPRETATION

	
1

	
 

	
 

	
 

	
 

	
 

	
Section
  1.01.

	
Definitions
  and Usage

	
1

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II CONVEYANCE OF RECEIVABLES

	
2

	
 

	
 

	
 

	
 

	
 

	
Section
  2.01.

	
Conveyance
  of Receivables

	
2

	
 

	
 

	
Section
  2.02.

	
The Closing

	
2

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III REPRESENTATIONS AND WARRANTIES

	
3

	
 

	
 

	
 

	
 

	
 

	
Section
  3.01.

	
Representations
  and Warranties of the Depositor

	
3

	
 

	
 

	
Section
  3.02.

	
Representations
  and Warranties of the Seller

	
4

	
 

	
 

	
Section
  3.03.

	
Repurchase
  upon Breach

	
9

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV CONDITIONS

	
10

	
 

	
 

	
 

	
 

	
 

	
Section
  4.01.

	
Conditions
  to Obligation of the Depositor

	
10

	
 

	
 

	
Section
  4.02.

	
Conditions
  to Obligation of the Seller

	
11

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE V COVENANTS OF THE SELLER

	
11

	
 

	
 

	
 

	
 

	
 

	
Section
  5.01.

	
Protection
  of Right, Title and Interest

	
11

	
 

	
 

	
Section
  5.02.

	
Other Liens
  or Interests

	
12

	
 

	
 

	
Section
  5.03.

	
Costs and
  Expenses

	
12

	
 

	
 

	
Section
  5.04.

	
Hold
  Harmless

	
12

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VI INDEMNIFICATION

	
12

	
 

	
 

	
 

	
 

	
 

	
Section
  6.01.

	
Indemnification

	
12

	
 

	
 

	
Section
  6.02.

	
Contribution

	
14

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VII MISCELLANEOUS PROVISIONS

	
15

	
 

	
 

	
 

	
 

	
 

	
Section
  7.01.

	
Obligations
  of Seller

	
15

	
 

	
 

	
Section
  7.02.

	
Transfers
  Intended as Sale; Security Interest

	
15

	
 

	
 

	
Section
  7.03.

	
Transfer to
  the Issuer

	
16

	
 

	
 

	
Section
  7.04.

	
Amendment

	
16

	
 

	
 

	
Section
  7.05.

	
Waivers

	
17

	
 

	
 

	
Section
  7.06.

	
Notices

	
17

	
 

	
 

	
Section
  7.07.

	
Costs and
  Expenses

	
17

	
 

	
 

	
Section
  7.08.

	
Representations
  of the Seller and the Depositor

	
17

	
 

	
 

	
Section
  7.09.

	
Confidential
  Information

	
17

	
 

	
 

	
Section
  7.10.

	
Headings and
  Cross-References

	
18

	
 

	
 

	
Section
  7.11.

	
GOVERNING
  LAW

	
18

	
 

	
 

	
Section
  7.12.

	
Counterparts

	
18

	
 

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
Section
  7.13.

	
Third-Party
  Beneficiary

	
18

	
 

	
 

	
Section
  7.14.

	
No
  Proceedings

	
18

	
 

	
 

	
 

	
 

	
 

	
 

	
Schedule A
  Schedule of Receivables

	
 

	
 

	
Schedule B-1
  Location of Receivable Files

	
 

	
 

	
Schedule B-2
  Location of Lien Certificates

	
 

	
 

ii

          RECEIVABLES
PURCHASE AGREEMENT dated as of June 19, 2007 (as from time to time amended,
supplemented or otherwise modified and in effect, this “Agreement”),
between USAA FEDERAL SAVINGS BANK, a federally chartered savings association,
as seller (in such capacity, together with its permitted successors and
permitted assigns in such capacity, the “Seller”) and USAA ACCEPTANCE,
LLC, a Delaware limited liability company, as depositor (together with its
successors and permitted assigns, the “Depositor”).

RECITALS

          WHEREAS,
the Depositor desires to purchase a portfolio of receivables and related
property consisting of motor vehicle installment loan contracts originated by
the Seller in the ordinary course of its business;

          WHEREAS,
the Seller and the Depositor wish to set forth the terms pursuant to which such
portfolio of receivables and related property are to be sold by the Seller to
the Depositor; and

          WHEREAS,
the Depositor intends, concurrently with its purchase hereunder, to convey all
of its right, title and interest in and to all of such portfolio of receivables
and related property to USAA Auto Owner Trust 2007-1, a Delaware statutory
trust (the “Issuer”) pursuant to a Sale and Servicing Agreement dated as
of June 19, 2007 (the “Sale and Servicing Agreement”), by and among the
Issuer, the Depositor, USAA Federal Savings Bank, as Seller and Servicer, and
the Issuer intends to pledge all of its right, title and interest in and to
such portfolio of receivables and related property to The Bank of New York, as
Indenture Trustee (the “Indenture Trustee”) pursuant to the Indenture
dated as of June 19, 2007 (the “Indenture”), by and between the Issuer
and the Indenture Trustee.

          NOW,
THEREFORE, in consideration of the foregoing, other good and valuable
consideration and the mutual terms and covenants contained herein, the parties
hereto agree as follows:

Article I

Interpretation

          Section
1.01. Definitions and Usage. Except as otherwise specified herein or as
the context may otherwise require, capitalized terms used but not otherwise
defined herein are defined in Appendix A to the Sale and Servicing
Agreement, which also contains rules as to usage that shall be applicable
herein.

Article II

Conveyance of Receivables

          Section
2.01. Conveyance of Receivables. 

                    (a)
In consideration of the Depositor’s delivery to or upon the order of the Seller
on the Closing Date of $1,222,030,779.95 (the “Purchase Price”), the
Seller does hereby irrevocably sell, transfer, assign, set over and otherwise
convey to the Depositor, without recourse (subject to the obligations of the
Seller set forth herein) all right, title, and interest of the Seller, whether
now or hereinafter acquired, in and to the Trust Property. 

                    (b)
The transfer, assignment and conveyance made hereunder shall not constitute and
is not intended to result in an assumption by the Depositor of any obligation
of the Seller to the Obligors or any other Person in connection with the
Receivables and the other Trust Property or any agreement, document or instrument
related thereto. 

                    (c)
The Seller and the Depositor intend that the transfer of assets by the Seller
to the Depositor pursuant to this Agreement be a sale of the ownership interest
in such assets to the Depositor, rather than the mere granting of a security
interest to secure a borrowing. In the event, however, that such transfer is
deemed not to be a sale but to be the grant of a security interest to secure a
borrowing, the Seller shall be deemed to have hereby granted to the Depositor a
security interest in all accounts, money, chattel paper, securities,
instruments, documents, deposit accounts, certificates of deposit, letters of
credit, advices of credit, banker’s acceptances, uncertificated securities,
general intangibles, contract rights, goods and other property consisting of,
arising from or relating to such Trust Property, which security interest shall
be perfected and of first priority, and this Agreement shall constitute a
security agreement under applicable law. Pursuant to the Sale and Servicing
Agreement and Section 7.04 hereof, the Depositor may sell, transfer and
assign to the Issuer (i) all or any portion of the assets assigned to the
Depositor hereunder, (ii) all or any portion of the Depositor’s rights against
the Seller under this Agreement and (iii) all proceeds thereof. Such assignment
may be made by the Depositor with or without an assignment by the Depositor of
its rights under this Agreement, and without further notice to or
acknowledgement from the Seller. The Seller waives, to the extent permitted
under applicable law, all claims, causes of action and remedies, whether legal
or equitable (including any right of setoff), against the Depositor or any
assignee of the Depositor relating to such action by the Depositor in
connection with the transactions contemplated by the Sale and Servicing
Agreement. 

          Section
2.02. The Closing. The sale and purchase of the Trust Property shall
take place at a closing at the office of Mayer, Brown, Rowe & Maw LLP,
Chicago, Illinois on the Closing Date, simultaneously with the closing under
(a) the Sale and Servicing Agreement, (b) the Indenture and (c) the Trust
Agreement. 

2

Article III

Representations and Warranties

          Section
3.01. Representations and Warranties of the Depositor. The Depositor
hereby represents and warrants as follows to the Seller and the Indenture
Trustee as of the date hereof and the Transfer Date: 

                    (a)
Organization and Good Standing. The Depositor is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Delaware, with all requisite power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is currently conducted. 

                    (b)
Due Qualification. The Depositor is duly qualified to do business as a
foreign limited liability company in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions where the failure to do
so would materially and adversely affect the Depositor’s ability to acquire the
Receivables or the other Trust Property or the validity or enforceability of
the Receivables or the other Trust Property. 

                    (c)
Power and Authority. The Depositor has all the limited liability company
power and authority to execute, deliver and perform this Agreement and the
other Basic Documents to which it is a party and to carry out their respective
terms; the Depositor has full power and authority to sell and assign the
property to be sold and assigned to and deposited with the Issuer, and the
Depositor shall have duly authorized such sale and assignment to the Issuer by
all necessary limited liability company action; and the execution, delivery and
performance of this Agreement and the other Basic Documents to which the
Depositor is a party have been duly authorized by the Depositor by all
necessary limited liability company action. 

                    (d)
Binding Obligation. This Agreement and the other Basic Documents to
which the Depositor is a party, when duly executed and delivered by the other
parties hereto and thereto, shall constitute legal, valid and binding
obligations of the Depositor, enforceable against the Depositor in accordance
with their respective terms, except as the enforceability thereof may be
limited by bankruptcy, insolvency, reorganization or similar laws now or
hereafter in effect relating to or affecting creditors’ rights generally and to
general principles of equity (whether applied in a proceeding at law or in
equity). 

                    (e)
No Violation. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time or both) a default under, the limited liability
company agreement of the Depositor, or any indenture, agreement or other
instrument to which the Depositor is a party or by which it is bound, or
violate any law, rules or regulation applicable to the Depositor of any court
or federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor. 

                    (f)
No Proceedings. There are no proceedings or investigations pending or,
to the Depositor’s knowledge, threatened against the Depositor before any
court, regulatory body, 

3

administrative
agency or other governmental instrumentality having jurisdiction over the
Depositor or its properties (i) asserting the invalidity of this Agreement or
any other Basic Document to which the Depositor is a party, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this
Agreement or any other Basic Document to which the Depositor is a party or
(iii) seeking any determination or ruling that might materially and adversely
affect the performance by the Depositor of its obligations under, or the
validity or enforceability of, this Agreement or any other Basic Document to
which the Depositor is a party. 

                    (g)
No Consents. The Depositor is not required to obtain the consent of any
other party or any consent, license, approval, registration, authorization, or
declaration of or with any governmental authority, bureau or agency in
connection with the execution, delivery, performance, validity, or
enforceability of this Agreement or any other Basic Document to which it is a
party that has not already been obtained. 

          Section
3.02. Representations and Warranties of the Seller. 

                    (a)
The Seller hereby represents and warrants as follows to the Depositor and the
Indenture Trustee as of the date hereof and as of the Transfer Date: 

	
 

	
 

	
 

	
                    (i)
  Organization and Good Standing. The Seller is a federally chartered
  savings association duly organized and validly existing as a banking
  institution under the laws of the United States and continues to hold a valid
  certificate to do business as such, and has the power to own its assets and
  to transact the business in which it is currently engaged. The Seller is duly
  authorized to transact business and has obtained all necessary licenses and
  approvals, and is in good standing in each jurisdiction in which the character
  of the business transacted by it or any properties owned or leased by it
  requires such authorization. 

	
 

	
 

	
 

	
                    (ii)
  Power and Authority. The Seller has the power and authority to make,
  execute, deliver and perform this Agreement and all of the transactions
  contemplated under this Agreement and the other Basic Documents to which the
  Seller is a party, and has taken all necessary action to authorize the
  execution, delivery and performance of this Agreement and the other Basic
  Documents to which the Seller is a party. When executed and delivered, this
  Agreement and the other Basic Documents to which the Seller is a party will
  constitute legal, valid and binding obligations of the Seller enforceable in
  accordance with their respective terms, except as enforcement of such terms
  may be limited by bankruptcy, insolvency or similar laws affecting the
  enforcement of creditors’ rights generally and by the availability of
  equitable remedies and except as enforcement of such terms may be limited by
  receivership, conservatorship and supervisory powers of bank regulatory
  agencies generally. 

	
 

	
 

	
 

	
                    (iii)
  No Violation. The execution, delivery and performance by the Seller of
  this Agreement and the other Basic Documents to which the Seller is a party
  will not violate any provision of any existing state, federal or, to the best
  knowledge of the Seller, local law or regulation or any order or decree of
  any court applicable to the Seller or any provision of the articles of
  association or incorporation or the bylaws of the Seller, or constitute a
  breach of any mortgage, indenture, contract or other agreement to 

4

	
 

	
 

	
 

	
which
  the Seller is a party or by which the Seller may be bound or result in the
  creation or imposition of any lien upon any of the Seller’s properties
  pursuant to any such mortgage, indenture, contract or other agreement (other
  than this Agreement). 

	
 

	
 

	
 

	
                    (iv)
  No Proceedings. There are no proceedings or investigations pending or,
  to the Seller’s knowledge, threatened against the Seller before any court,
  regulatory body, administrative agency or other governmental instrumentality
  having jurisdiction over the Seller or its properties (i) asserting the
  invalidity of this Agreement or any other Basic Document to which the Seller
  is a party, (ii) seeking to prevent the consummation of any of the
  transactions contemplated by this Agreement or any other Basic Document to
  which the Seller is a party or (iii) seeking any determination or ruling that
  might materially and adversely affect the performance by the Seller of its
  obligations under, or the validity or enforceability of, this Agreement or
  any other Basic Document to which the Seller is a party. 

	
 

	
 

	
 

	
                    (v)
  Chief Executive Office. The chief executive office of the Seller is
  located at 10750 McDermott Freeway, San Antonio, Texas 78288. 

	
 

	
 

	
 

	
                    (vi)
  No Consents. The Seller is not required to obtain the consent of any
  other party or any consent, license, approval, registration, authorization,
  or declaration of or with any governmental authority, bureau or agency in
  connection with the execution, delivery, performance, validity, or
  enforceability of this Agreement or any other Basic Document to which it is a
  party that has not already been obtained. 

	
 

	
 

	
 

	
                    (vii)
  No Notice. The Seller represents and warrants that it acquired title
  to the Receivables and the other Trust Property in good faith, without notice
  of any adverse claim. 

	
 

	
 

	
 

	
                    (viii)
  Bulk Transfer. The Seller represents and warrants that the transfer,
  assignment and conveyance of the Receivables and the other Trust Property by
  the Seller pursuant to this Agreement are not subject to the bulk transfer
  laws or any similar statutory provisions in effect in any applicable
  jurisdiction. 

	
 

	
 

	
 

	
                    (ix)
  Seller Information. No certificate of an officer, statement or
  document furnished in writing or report delivered pursuant to the terms
  hereof by the Seller contains any untrue statement of a material fact or
  omits to state any material fact necessary to make the certificate,
  statement, document or report not misleading. 

	
 

	
 

	
 

	
                    (x)
  Ordinary Course. The transactions contemplated by this Agreement and
  the other Basic Documents to which the Seller is a party are in the ordinary
  course of the Seller’s business. 

	
 

	
 

	
 

	
                    (xi)
  Solvency. The Seller is not insolvent, nor will the Seller be made
  insolvent by the transfer of the Trust Property, nor does the Seller
  anticipate any pending insolvency. 

	
 

	
 

	
 

	
                    (xii)
  Legal Compliance. The Seller is not in violation of, and the execution
  and delivery by the Seller of this Agreement and the other Basic Documents to
  

5

	
 

	
 

	
 

	
which the
  Seller is a party and its performance and compliance with the terms of this
  Agreement and the other Basic Documents to which the Seller is a party will
  not constitute a violation with respect to, any order or decree of any court
  or any order or regulation of any federal, state, municipal or governmental
  agency having jurisdiction, which violation would materially and adversely
  affect the Seller’s condition (financial or otherwise) or operations or any
  of the Seller’s properties or materially and adversely affect the performance
  of any of its duties under the Basic Documents. 

	
 

	
 

	
 

	
                    (xiii)
  Creditors. The Seller did not sell the Receivables or the other Trust
  Property to the Depositor with any intent to hinder, delay or defraud any of
  its creditors. 

                    (b)
The Seller makes the following representations and warranties with respect to
the Receivables, on which the Depositor relies in accepting the Receivables and
in transferring the Receivables to the Issuer under the Sale and Servicing
Agreement, and on which the Issuer relies in pledging the same to the Indenture
Trustee. Such representations and warranties speak as of the execution and
delivery of this Agreement and as of the Transfer Date, but shall survive the
sale, transfer and assignment of the Receivables to the Depositor, the
subsequent sale, transfer and assignment of the Receivables by the Depositor to
the Issuer pursuant to the Sale and Servicing Agreement and the pledge of the
Receivables by the Issuer to the Indenture Trustee pursuant to the Indenture. 

	
 

	
 

	
 

	
                    (i)
  Schedule of Receivables. The information set forth in Schedule A to
  this Agreement with respect to each Receivable is true and correct in all
  material respects, and no selection procedures adverse to the Securityholders
  have been used in selecting the Receivables from all receivables owned by the
  Seller which meet the selection criteria specified herein.

	
 

	
 

	
 

	
                    (ii)
  No Sale or Transfer. No Receivable has been sold, transferred,
  assigned or pledged by the Seller to any Person other than the Depositor. 

	
 

	
 

	
 

	
                    (iii)
  Good Title. Immediately prior to the transfer and assignment of the
  Receivables to the Depositor herein contemplated, the Seller had good and
  marketable title to each Receivable free and clear of all Liens and rights of
  others; and, immediately upon the transfer thereof, the Depositor, has either
  (i) good and marketable title to each Receivable, free and clear of all of
  all Liens and rights of others, and the transfer has been perfected under
  applicable law or (ii) a first priority perfected security interest in each
  Receivable. 

	
 

	
 

	
 

	
                    (iv)
  Receivable Files. The Receivable Files shall be kept at one or more of
  the locations specified in Schedule B-1 hereto; provided, that the Lien Certificates
  shall be kept at one or more of the locations specified in Schedule B-2
  hereto. 

	
 

	
 

	
 

	
                    (v)
  Characteristics of Receivables. Each Receivable (a) has been
  originated for the retail financing of a Financed Vehicle by an Obligor
  located in one of the States of the United States or the District of
  Columbia; (b) contains customary and enforceable provisions such that the
  rights and remedies of the holder thereof are 

6

	
 

	
 

	
 

	
adequate for
  realization against the collateral of the benefits of the security; and (c)
  provides for fully amortizing level scheduled monthly or semi-monthly
  payments (provided that the
  payment in the last month in the life of the Receivable may be different from
  the level scheduled payment) and for accrual of interest at a fixed rate
  according to the simple interest method. 

	
 

	
 

	
 

	
                    (vi)
  Compliance with Law. Each Receivable and each sale of the related
  Financed Vehicle complied at the time it was originated or made, and complies
  on and after the Cut-off Date, in all material respects with all requirements
  of applicable federal, state, and local laws, and regulations thereunder,
  including usury laws, the Federal Truth-in-Lending Act, the Equal Credit
  Opportunity Act, the Fair Credit Reporting Act, the Federal Trade Commission
  Act, the Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and
  Z, state adaptations of the National Consumer Act and of the Uniform Consumer
  Credit Code, and any other consumer credit, equal opportunity, and disclosure
  laws applicable to such Receivable and sale. 

	
 

	
 

	
 

	
                    (vii)
  Binding Obligation. Each Receivable constitutes the legal, valid, and
  binding payment obligation in writing of the Obligor, enforceable by the
  holder thereof in all material respects in accordance with its terms,
  subject, as to enforcement, to applicable bankruptcy, insolvency,
  reorganization, liquidation and other similar laws and equitable principles
  relating to or affecting the enforcement of creditors’ rights. 

	
 

	
 

	
 

	
                    (viii)
  No Government Obligor. No Receivable is due from the United States of
  America or any state or from any agency, department, instrumentality or
  political subdivision of the United States of America or any state or local
  municipality and no Receivable is due from a business except to the extent
  that such receivable has a personal guaranty. 

	
 

	
 

	
 

	
                    (ix)
  Security Interest in Financed Vehicle. Immediately prior to the sale
  and assignment thereof to the Depositor as herein contemplated, each
  Receivable was secured by a validly perfected first priority security
  interest in the Financed Vehicle in favor of the Seller as secured party or
  all necessary and appropriate action with respect to such Receivable had been
  taken to perfect a first priority security interest in the related Financed
  Vehicle in favor of the Seller as secured party, which security interest is
  assignable and has been so assigned by the Seller to the Depositor. 

	
 

	
 

	
 

	
                    (x)
  Receivables in Force. No Receivable has been satisfied, subordinated,
  or rescinded, nor has any Financed Vehicle been released from the Lien
  granted by the related Receivable in whole or in part. 

	
 

	
 

	
 

	
                    (xi)
  No Waiver. No provision of a Receivable has been waived in such a
  manner that such Receivable fails to meet all of the representations and
  warranties made by the Seller herein with respect thereto pursuant to this Section
  3.02. 

	
 

	
 

	
 

	
                    (xii)
  No Amendments. No Receivable has been amended except pursuant to
  instruments included in the Receivable Files and no such amendment has 

7

	
 

	
 

	
 

	
caused such
Receivable to fail to meet all of the representations and warranties made by
the Seller herein with respect thereto pursuant to this Section 3.02.  

	
 

	
 

	
 

	
                    (xiii)
  No Defenses. As of the Cut-off Date, there are no rights of
  rescission, setoff, counterclaim, or defense, and the Seller has no knowledge
  of the same being asserted or threatened, with respect to any Receivable. 

	
 

	
 

	
 

	
                    (xiv)
  No Liens. As of the Cut-off Date, no Liens or claims have been filed
  that would be Liens prior to, or equal or coordinate with, the Lien granted
  by the Receivable. 

	
 

	
 

	
 

	
                    (xv)
  No Default. Except for payment defaults continuing for a period of not
  more than thirty (30) days as of the Cut-off Date, the Seller has no
  knowledge that a default, breach, violation, or event permitting acceleration
  under the terms of any Receivable exists; the Seller has no knowledge that a
  continuing condition that with notice or lapse of time would constitute a
  default, breach, violation, or event permitting acceleration under the terms
  of any Receivable exists; and the Seller has not waived any of the foregoing.
  

	
 

	
 

	
 

	
                    (xvi)
  Insurance. Each Receivable requires that the Obligor thereunder obtain
  comprehensive and collision insurance covering the Financed Vehicle. 

	
 

	
 

	
 

	
                    (xvii)
  Lawful Assignment. No Receivable has been originated in, or is subject
  to the laws of, any jurisdiction under which the sale, transfer, and
  assignment of such Receivable under this Agreement is unlawful, void or
  voidable. 

	
 

	
 

	
 

	
                    (xviii)
  All Filings Made. No filings (other than UCC filings which have been
  made on the Closing Date) or other actions are necessary in any jurisdiction
  to give the Issuer a first priority perfected security interest in the
  Receivables and to give the Indenture Trustee a first priority perfected
  security interest in the Receivables. 

	
 

	
 

	
 

	
                    (xix)
  One Original. With respect to any Receivable for which an original
  executed copy exists, there is no more than one original executed copy of
  such Receivable which does not have any marks or notations indicating that it
  has been pledged, assigned or otherwise conveyed to any Person other than the
  Seller and which, immediately prior to the delivery thereof to the Servicer,
  as custodian for the Indenture Trustee, was in the possession of the Seller. 

	
 

	
 

	
 

	
                    (xx)
  Security. Each Receivable is secured by a new or used automobile or
  light-duty truck. 

	
 

	
 

	
 

	
                    (xxi)
  Maturity of Receivables. Each Receivable has a remaining maturity, as
  of the Cut-off Date, of not less than 8 months and not more than 72 months
  and an original maturity of not less than 9 months and not more than 72
  months. No Receivable has a scheduled maturity later than May 18, 2013. 

	
 

	
 

	
 

	
                    (xxii)
  Annual Percentage Rate. Each Receivable is a fully-amortizing simple
  interest contract which bears interest at a fixed rate per annum and which
  provides 

8

	
 

	
 

	
 

	
for level
  scheduled monthly or semi-monthly payments (except for the last payment,
  which may be minimally different from the level payments) over its respective
  remaining term, and is not secured by any interest in real estate. 

	
 

	
 

	
 

	
                    (xxiii)
  No Repossessions. Each Receivable is secured by a Financed Vehicle
  that, as of the Cut-off Date, has not been repossessed without reinstatement
  of such Receivable. 

	
 

	
 

	
 

	
                    (xxiv)
  Obligor Not Subject to Bankruptcy Proceedings. Each Receivable has
  been entered into by an Obligor who has not been identified on the computer
  files of the Seller as being a debtor in any bankruptcy proceeding as of the
  Cut-off Date. 

	
 

	
 

	
 

	
                    (xxv)
  No Overdue Payments. No Receivable has any payment that is more than
  thirty (30) days past due as of the Cut-off Date. 

	
 

	
 

	
 

	
                    (xxvi)
  Tangible Chattel Paper. The Receivables constitute “tangible chattel
  paper” within the meaning of UCC Section 9-102. 

	
 

	
 

	
 

	
                    (xxvii)
  Remaining Principal Balance. Each Receivable had a remaining principal
  balance, as of the Cut-off Date, of at least $800.00. 

          Section
3.03. Repurchase upon Breach. Upon discovery by or notice to the Depositor or
Seller of a breach of any of the representations and warranties set forth in
Section 3.02(b) at the time such representations and warranties were made which
materially and adversely affects the interests of the Issuer or the
Noteholders, the party discovering such breach or receiving such notice shall
give prompt written notice thereof to the other party; provided, that
delivery of the Servicer’s Certificate, which identifies that Receivables are
being or have been repurchased, shall be deemed to constitute prompt notice by
the Seller (if the Seller is the Servicer) of such breach; provided,
further, that the
failure to give such notice shall not affect any obligation of Seller
hereunder. If Seller does not correct or cure such breach prior to the end of
the Collection Period which includes the 60th day (or, if Seller elects, an
earlier date) after the date that Seller became aware or was notified of such
breach, then Seller shall purchase any Receivable materially and adversely
affected by such breach from the Depositor on the Payment Date following the
end of such Collection Period. Any such breach or failure will not be deemed to
have a material and adverse effect if such breach or failure does not affect
the ability of the Depositor (or its assignee) to collect, receive and retain
timely payment in full on such Receivable, including any Liquidation Proceeds.
Any such purchase by Seller shall be at a price equal to the Purchase Amount
(less any Liquidation Proceeds deposited, or to be deposited, in the Collection
Account with respect to such Receivable pursuant to Section 3.3 of the Sale and
Servicing Agreement). In consideration for such repurchase, Seller shall make
(or shall cause to be made) a payment to the Depositor equal to the Purchase
Amount (less any Liquidation Proceeds deposited, or to be deposited, in the
Collection Account, with respect to such Receivables, pursuant to Section 3.3
 of the Sale and Servicing Agreement) by depositing such amount into the
Collection Account prior to 11:00 a.m., New York City time on such Payment
Date. Upon payment of such Purchase Amount (less any Liquidation Proceeds
deposited, or to be deposited, in the Collection Account, with respect to such
Receivables, pursuant to Section 3.3 of the Sale and Servicing Agreement) by
Seller, the Depositor shall release and shall execute  

9

and deliver
such instruments of release, transfer or assignment, in each case without
recourse or representation, as shall be reasonably necessary to vest in Seller
or its designee any Receivable repurchased pursuant hereto. It is understood
and agreed that the obligation of Seller to purchase any Receivable as
described above shall constitute the sole remedy respecting such breach
available to the Depositor. 

Article IV

Conditions

          Section
4.01. Conditions to Obligation of the Depositor. The obligation of the
Depositor to purchase the Receivables is subject to the satisfaction of the
following conditions: 

                    (a)
Representations and Warranties True. The representations and warranties
of the Seller hereunder shall be true and correct in all material respects on
the Transfer Date with the same effect as if then made, and the Seller shall
have performed all obligations to be performed by it hereunder on or prior to
the Transfer Date. 

                    (b)
Computer Files Marked. The Seller shall, at its own expense, on or prior
to the Transfer Date, indicate in its computer files that the Receivables have
been sold to the Depositor pursuant to this Agreement and deliver to the
Depositor the Schedule of Receivables, certified by the Seller’s President,
Vice President or Treasurer to be true, correct and complete. 

                    (c)
Documents to be Delivered by the Seller on the Transfer Date: 

	
 

	
 

	
 

	
                    (i)
  Evidence of UCC Filing. On the Closing Date, the Seller shall record
  and file, at its own expense, a UCC-1 financing statement in the State of
  Texas, naming the Seller as seller, and naming the Depositor as secured
  party, describing the Receivables and the other assets assigned to the
  Depositor pursuant to Section 2.01, meeting the requirements of the
  laws of such jurisdiction and in such manner as is necessary to perfect the
  sale, transfer, assignment and conveyance of the Receivables and such other
  assets to the Depositor. The financing statement referenced above will
  contain a statement to the following effect “A purchase of or security
  interest in any collateral described in this financing statement will violate
  the rights of the Secured Party”. The Seller shall deliver to the Depositor a
  file-stamped copy or other evidence satisfactory to the Depositor of such
  filing as soon as available following such recordation or filing. 

	
 

	
 

	
 

	
                    (ii)
  Opinions of Seller’s Counsel. On or prior to the Closing Date, the
  Depositor shall have received the opinions of counsel to the Seller, in form
  and substance satisfactory to the Depositor, as to the matters as the
  Depositor has heretofore requested or may reasonably request. 

	
 

	
 

	
 

	
                    (iii)
  Other Documents. Such other documents as the Depositor may reasonably
  request. 

                    (d)
Other Transactions. The transactions contemplated by the Sale and
Servicing Agreement, the Indenture and the Trust Agreement to be consummated on
the Transfer Date shall be consummated on such date. 

10

          Section
4.02. Conditions to Obligation of the Seller. The obligation of the
Seller to sell the Receivables to the Depositor is subject to the satisfaction
of the following conditions: 

                    (a)
Representations and Warranties True. The representations and warranties
of the Depositor hereunder shall be true and correct on the Transfer Date with
the same effect as if then made, and the Depositor shall have performed all
obligations to be performed by it hereunder on or prior to the Transfer Date. 

                    (b)
Receivables Purchase Price. On the Transfer Date, the Depositor shall
have delivered to the Seller the purchase price specified in Section 2.01
hereof. 

                    (c)
Opinion of Counsel. The Depositor shall have furnished to the Seller an
Opinion of Counsel, dated the Closing Date, in form and substance reasonably
satisfactory to the Seller. 

                    (d)
Other Transactions. The transactions contemplated by the Sale and
Servicing Agreement, the Indenture and the Trust Agreement to be consummated on
the Transfer Date shall be consummated on such date. 

Article V

Covenants of the Seller

          The
Seller agrees with the Depositor and the Indenture Trustee as follows: 

          Section
5.01. Protection of Right, Title and Interest. 

                    (a)
Filings. The Seller shall cause at its own expense all financing
statements and continuation statements and any other necessary documents
covering the right, title and interest of the Seller, the Depositor, the Trust
and the Indenture Trustee, respectively, in and to the Receivables and the
other property included in the Trust Estate to be promptly filed and at all
times to be kept recorded, registered and filed, all in such manner and in such
places as may be required by law fully to preserve and protect the right, title
and interest of the Depositor hereunder, the Trust under the Sale and Servicing
Agreement and the Indenture Trustee under the Indenture in and to the
Receivables and the other property included in the Trust Property. The Seller
shall deliver to the Depositor and the Indenture Trustee file stamped copies
of, or filing receipts for, any document recorded, registered or filed as
provided above, as soon as available following such recordation, registration
or filing. The Depositor shall cooperate fully with the Seller in connection
with the obligations set forth above and will execute any and all documents
reasonably required to fulfill the intent of this paragraph. 

                    (b)
Name Change. If the Seller makes any change in its name, identity or corporate
structure that would make any financing statement or continuation statement
filed in accordance with paragraph (a) above seriously misleading within
the applicable provisions of the UCC or any title statute or if the Seller
changes the jurisdiction under whose laws it is formed, the Seller shall give
the Depositor, the Indenture Trustee and the Owner Trustee written notice
thereof at least 10 days prior to such change and shall promptly file such
financing statements or 

11

amendments as
may be necessary to continue the perfection of the Depositor’s interest in the
property conveyed pursuant to Section 2.01.  

          Section
5.02. Other Liens or Interests. Except for the conveyances hereunder and
pursuant to the Basic Documents, the Seller shall not sell, pledge, assign or
transfer to any Person, or grant, create, incur, assume, or suffer to exist any
Lien on, or any interest in, to or under the Receivables, and the Seller shall
defend the right, title and interest of the Depositor, the Trust and the
Indenture Trustee in, to and under the Receivables against all claims of third
parties claiming through or under the Seller. 

          Section
5.03. Costs and Expenses. The Seller agrees to pay all reasonable costs
and disbursements in connection with the perfection, as against all third
parties claiming through or under the Seller, of the Depositor’s, the Issuer’s
and the Indenture Trustee’s right, title and interest in and to the Receivables
and the other property included in the Trust Property. 

          Section
5.04. Hold Harmless. The Seller shall protect, defend, indemnify and
hold the Depositor, the Issuer and their respective assigns and their
employees, officers, directors and agents harmless from and against all losses,
liabilities, claims and damages of every kind and character, including any
legal or other expenses reasonably incurred, as incurred, resulting from or
relating to or arising out of (i) the inaccuracy, nonfulfillment or breach of
any representation, warranty, covenant or agreement made by the Seller in this
Agreement, (ii) any legal action, including, without limitation, any
counterclaim, that has either been settled by the litigants or has proceeded to
judgment by a court of competent jurisdiction, in either case to the extent it
is based upon alleged facts that, if true, would constitute a breach of any
representation, warranty, covenant or agreement made by the Seller in this
Agreement, (iii) any actions or omissions of the Seller occurring prior to the
Transfer Date with respect to any of the Receivables or Financed Vehicles or
(iv) any failure of a Receivable to be originated in compliance with all
applicable requirements of law. These indemnity obligations shall be in
addition to any obligation that the Seller may otherwise have. 

Article VI

Indemnification

          Section
6.01. Indemnification.

                    (a)
The Seller agrees to indemnify and hold harmless the Depositor, each of its
respective directors, each officer of the Depositor who signed the Registration
Statement, and each person or entity who controls the Depositor or any such
person, within the meaning of Section 15 of the Securities Act, against
any and all losses, claims, damages or liabilities, joint and several, to which
the Depositor, or any such person or entity may become subject, under the
Securities Act or otherwise, and will reimburse the Depositor, and each such
controlling person for any legal or other expenses reasonably incurred by the
Depositor or such controlling person in connection with investigating or
defending any such loss, claims, damages or liabilities insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact made by the Seller contained in the Preliminary Prospectus Supplement or
Prospectus Supplement or any 

12

amendment or
supplement to the Preliminary Prospectus Supplement or Prospectus Supplement or
the omission or the alleged omission to state therein a material fact necessary
in order to make the statements in the Preliminary Prospectus Supplement or
Prospectus Supplement or any amendment or supplement to the Preliminary
Prospectus Supplement or Prospectus Supplement, in the light of the circumstance
under which they were made, not misleading, but, in each case, only to the
extent that such untrue statement or alleged untrue statement or omission or
alleged omission relates to the information contained in the Prospectus
Supplement under the captions: “Summary of Terms of the Notes—Composition of
the Receivables”; “Risk Factors”; and “The Receivables Pool”; and in the Base
Prospectus under the caption “The Bank’s Portfolio of Motor Vehicle Loans”
(such information, the “Seller Information”). This indemnity agreement
will be in addition to any liability which the Seller may otherwise have to the
Depositor or any Affiliate thereof pursuant to Section 5.04 of this
Agreement or otherwise. 

                    (b)
The Depositor agrees to indemnify and hold harmless the Seller and each Person
who controls the Seller within the meaning of Section 15 of the
Securities Act against any and all losses, claims, damages or liabilities,
joint and several, to which the Seller, or any such person or entity may become
subject, under the Securities Act or otherwise, and will reimburse the Seller
and each such controlling Person for any legal or other expenses reasonably
incurred by the Seller or such controlling Person in connection with
investigating or defending any such losses, claims, damages or liabilities
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of material fact contained in the Registration Statement or
any amendment or supplement thereto or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading or (ii) any untrue statement or
alleged untrue statement of any material fact contained in the Preliminary
Prospectus Supplement, Prospectus Supplement or the Prospectus or any amendment
or supplement to the Preliminary Prospectus Supplement, Prospectus Supplement
or the Prospectus or the omission or the alleged omission to state therein a
material fact necessary in order to make the statements in the Preliminary
Prospectus Supplement, Prospectus Supplement or the Prospectus or any amendment
or supplement to the Prospectus Supplement, in the light of the circumstances
under which they were made, not misleading, but only to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission
relates to the information contained in the Preliminary Prospectus Supplement,
Prospectus Supplement or the Prospectus other than the Seller Information. This
indemnity agreement will be in addition to any liability which the Depositor
may otherwise have. 

                    (c)
Promptly after receipt by any indemnified party under this Article VI of
notice of any claim or the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against any indemnifying
party under this Article VI, notify the indemnifying party in writing of
the claim or the commencement of that action; provided,
however, that the failure to notify an indemnifying party shall not
relieve it from any liability which it may have under this Article VI
except to the extent it has been materially prejudiced by such failure; provided, further, that the failure to
notify any indemnifying party shall not relieve it from any liability which it
may have to any indemnified party otherwise than under this Article VI. 

13

          If
any such claim or action shall be brought against an indemnified party, and it
shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable
to the indemnified party under this Article VI for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof other than reasonable costs of investigation. 

          Any
indemnified party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such indemnified party unless: (i) the
employment thereof has been specifically authorized by the indemnifying party
in writing; (ii) such indemnified party shall have been advised by such counsel
that there may be one or more legal defenses available to it which are
different from or additional to those available to the indemnifying party and
in the reasonable judgment of such counsel it is appropriate for such
indemnified party to employ separate counsel; or (iii) the indemnifying party
has failed to assume the defense of such action and employ counsel reasonably
satisfactory to the indemnified party, in which case, if such indemnified party
notifies the indemnifying party in writing that it elects to employ separate
counsel at the expense of the indemnifying party, the indemnifying party shall
not have the right to assume the defense of such action on behalf of such
indemnified party, it being understood, however, the indemnifying party shall
not, in connection with any one such action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to local
counsel) at any time for all such indemnified parties, which firm shall be
designated in writing by the Depositor, if the indemnified parties under this Article
VI consist of the Depositor, or by the Seller, if the indemnified parties
under this Article VI consist of the Seller. 

          Each
indemnified party, as a condition of the indemnity agreements contained in Section
6.01(a) and (b), shall use its commercially reasonable efforts to
cooperate with the indemnifying party in the defense of any such action or
claim. An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding. 

          Section
6.02. Contribution. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
this Article VI is for any reason held to be unenforceable although
applicable in accordance with its terms, the Seller, on the one hand, and the
Depositor, on the other, shall contribute to the aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by said indemnity
agreement incurred by the Seller and the Depositor in such proportions as shall
be appropriate to reflect the relative benefits received by the Seller on the
one hand and the Depositor on the other from the sale of the 

14

Receivables
such that the Depositor is responsible for that portion represented by the
underwriting discount set forth on the cover page of the Prospectus Supplement,
and the Seller shall be responsible for the balance; provided, however, that no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. For purposes of this Section 6.02,
each Person, if any, who controls the Depositor within the meaning of Section
15 of the Securities Act shall have the same rights to contribution as the
Depositor and each Person, if any, who controls the Seller within the meaning
of Section 15 of the Securities Act shall have the same rights to
contribution as the Seller. Notwithstanding anything in this Section 6.02
to the contrary, the Depositor shall not be required to contribute an amount in
excess of the amount of the underwriting discount appearing on the cover page
of the Prospectus Supplement. 

Article VII

Miscellaneous Provisions

          Section
7.01. Obligations of Seller. The obligations of the Seller under this
Agreement shall not be affected by reason of any invalidity, illegality or
irregularity of any Receivable. 

          Section
7.02. Transfers Intended as Sale; Security Interest. 

                    (a)
Each of the parties hereto expressly intends and agrees that the transfers
contemplated and effected under this Agreement are complete and absolute sales
and contributions rather than pledges or assignments of only a security
interest and shall be given effect as such for all purposes. It is further the
intention of the parties hereto that the Receivables and related Trust Property
shall not be part of Seller’s estate in the event of a bankruptcy or insolvency
of Seller. The sales and transfers by Seller of the Receivables and related
Trust Property hereunder are and shall be without recourse to, or
representation or warranty (express or implied) by, Seller, except as otherwise
specifically provided herein. The limited rights of recourse specified herein
against Seller are intended to provide a remedy for breach of representations
and warranties relating to the condition of the property sold, rather than to
the collectibility of the Receivables. 

                    (b)
Notwithstanding the foregoing, in the event that the Receivables and other
Trust Property are held to be property of Seller, or if for any reason this
Agreement is held or deemed to create indebtedness or a security interest in
the Receivables and other Trust Property, then it is intended that: 

	
 

	
 

	
 

	
                    (i)
  This Agreement shall be deemed to be a security agreement within the meaning
  of Articles 8 and 9 of the New York UCC and the UCC of any other applicable
  jurisdiction; 

	
 

	
 

	
 

	
                    (ii)
  The conveyance provided for in Section 2.01 shall be deemed to be a
  grant by Seller of, and Seller hereby grants to the Depositor, a security
  interest in all of its right (including the power to convey title thereto),
  title and interest, whether now 

15

	
 

	
 

	
 

	
owned or
  hereafter acquired, in and to the Receivables and other Trust Property, to
  secure such indebtedness and the performance of the obligations of Seller
  hereunder; 

	
 

	
 

	
 

	
                    (iii)
  The possession by the Depositor or its agent of the Receivable Files and any
  other property as constitute instruments, money, negotiable documents or
  chattel paper shall be deemed to be “possession by the secured party” or
  possession by the purchaser or a person designated by such purchaser, for
  purposes of perfecting the security interest pursuant to the New York UCC and
  the UCC of any other applicable jurisdiction; and 

	
 

	
 

	
 

	
                    (iv)
  Notifications to persons holding such property, and acknowledgments, receipts
  or confirmations from persons holding such property, shall be deemed to be
  notifications to, or acknowledgments, receipts or confirmations from, bailees
  or agents (as applicable) of the Depositor for the purpose of perfecting such
  security interest under applicable law. 

          Section
7.03. Transfer to the Issuer. The Seller acknowledges and agrees that
(1) the Depositor will, pursuant to the Sale and Servicing Agreement, transfer
and assign the Receivables and assign its rights under this Agreement with
respect thereto to the Issuer and, pursuant to the Indenture, the Issuer will
pledge the Receivables to the Indenture Trustee, and (2) the representations
and warranties contained in this Agreement and the rights of the Depositor
under this Agreement, including under Section 3.03, are intended to
benefit the Issuer, the Indenture Trustee, the Noteholders and the
Certificateholder. The Seller hereby consents to such transfers and assignments
and agrees that enforcement of a right or remedy hereunder by the Indenture
Trustee, the Owner Trustee or the Issuer shall have the same force and effect
as if the right or remedy had been enforced or executed by the Depositor. 

          Section
7.04. Amendment. This Agreement may be amended from time to time, with
prior written notice to the Rating Agencies, but without the consent of the
Noteholders or the Certificateholders, by a written amendment duly executed and
delivered by the Seller and the Depositor, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of Noteholders or
Certificateholders; provided that (i) such amendment shall not, as evidenced by
an Opinion of Counsel or an Officer’s Certificate, materially and adversely
affect the interest of any Noteholder or Certificateholder and (ii) the person
requesting the amendment obtains a letter from the Rating Agencies stating that
the amendment would not result in the downgrading or withdrawal of the ratings
then assigned to the Notes. This Agreement may also be amended by the Seller
and the Depositor, with the prior written notice to the Rating Agencies and the
prior written consent of (a) the Holders of Notes evidencing at least a
majority of (i) the Outstanding principal amount of the Class A-1 Notes, (ii)
the Outstanding principal amount of the Class A-2 Notes, (iii) the Outstanding
principal amount of the Class A-3 Notes, (iv) the Outstanding principal amount
of the Class A-4 Notes and (v) the Outstanding principal amount of the Class B
Notes, and (b) the Certificateholders of Certificates evidencing at least a
majority of the Percentage Interests (excluding, for purposes of this
Section7.05, Certificates held by the Seller, the Depositor or any of their
respective Affiliates) for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, that no such 

16

amendment may
(i) increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on Receivables or distributions that shall
be required to be made for the benefit of any Noteholders or Certificateholders
or (ii) reduce the aforesaid majority requirement that is required to consent
to any such amendment, without the consent of the Holders of all the
outstanding Notes and Certificates. 

          Section
7.05. Waivers. No failure or delay on the part of the Depositor, the
Issuer or the Indenture Trustee in exercising any power, right or remedy under
this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other or
further exercise thereof or the exercise of any other power, right or remedy. 

          Section
7.06. Notices. All demands, notices and communications under this
Agreement shall be in writing, personally delivered, faxed and followed by
first class mail, or mailed by certified mail, return receipt requested, and
shall be deemed to have been duly given upon receipt (a) in the case of the
Depositor, to 9830 Colonnade Blvd., Suite 600, San Antonio, Texas 78230,
Attention: Vice President, Legal Counsel; (b) in the case of the Servicer,
Administrator and Custodian, to 10750 McDermott Freeway, San Antonio, Texas
78288, Attention: Mike Broker, Vice President, (c) in the case of the Seller,
10750 McDermott Freeway, San Antonio, Texas 78288, Attention: Mike Broker, Vice
President; (d) in the case of the Issuer or the Owner Trustee, at the Corporate
Trust Office (as defined in the Trust Agreement); (e) in the case of Moody’s
Investors Service, Inc., at the following address: Moody’s Investors Service,
Inc., ABS Monitoring Department, 99 Church Street, New York, New York 10007,
and (f) in the case of Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc., at the following address: Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, 40th Floor, New York, New York 10041, Attention: Asset Backed
Surveillance Department; or, as to each of the foregoing, at such other address
as shall be designated by written notice to the other parties. 

          Section
7.07. Costs and Expenses. The Seller shall pay all expenses incident to
the performance of its obligations under this Agreement and the Seller agrees
to pay all reasonable out-of-pocket costs and expenses of the Depositor, in
connection with the perfection of the Depositor’s, the Issuer’s and the
Indenture Trustee’s right, title and interest in and to the Receivables and the
enforcement of any obligation of the Seller hereunder as contemplated by the
Basic Documents. 

          Section
7.08. Representations of the Seller and the Depositor. The respective
agreements, representations, warranties and other statements by the Seller and
the Depositor set forth in or made pursuant to this Agreement shall remain in
full force and effect and will survive the closing under Section 2.02
and the transfers and assignments referred to in Section 7.04. 

          Section
7.09. Confidential Information. The Depositor agrees that it will
neither use nor disclose to any Person the names and addresses of the Obligors
or any other personally identifiable information of an Obligor, except in connection
with the enforcement of the Depositor’s rights hereunder, under the
Receivables, under the Sale and Servicing Agreement or any other Basic
Document, or as required by any of the foregoing or by law. 

17

          Section
7.10. Headings and Cross-References. The various headings in this
Agreement are included for convenience only and shall not affect the meaning or
interpretation of any provision of this Agreement. References in this Agreement
to section names or numbers are to such Sections of this Agreement. 

          Section
7.11. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICTS OF
LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

          Section
7.12. Counterparts. This Agreement may be executed in counterparts, each
of which shall be an original, but all of which together shall constitute one
and the same instrument. 

          Section
7.13. Third-Party Beneficiary. The Indenture Trustee is an express
third-party beneficiary of this Agreement and shall be entitled to enforce the
provisions of this Agreement as if it were a party hereto. 

          Section
7.14. No Proceedings. So long as this Agreement is in effect, and for
one year plus one day following its termination, (i) each of the Seller and the
Depositor agrees that it will not file any involuntary petition or otherwise
institute any bankruptcy, reorganization arrangement, insolvency or liquidation
proceeding or other proceedings under any federal or state bankruptcy law or
similar law against the Trust and (ii) the Seller agrees that it will not file
any involuntary petition or otherwise institute any bankruptcy, reorganization
arrangement, insolvency or liquidation proceeding or other proceedings under
any federal or state bankruptcy law or similar law against the Depositor. 

[Signatures Follow]

18

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

	
 

	
 

	
 

	
 

	
USAA FEDERAL
  SAVINGS BANK, as Seller

	
 

	
 

	
 

	
 

	
By:

	
/s/ Edwin T.
  McQuiston

	
 

	
 

	

	
 

	
Name: Edwin
  T. McQuiston

	
 

	
Title: Vice
  President

	
 

	
 

	
 

	
 

	
USAA
  ACCEPTANCE, LLC, as Depositor

	
 

	
 

	
 

	
 

	
By:

	
/s/ David K.
  Kimball

	
 

	
 

	

	
 

	
Name: David
  K. Kimball

	
 

	
Title:
  Assistant Vice President

Receivables Purchase Agreement 

SCHEDULE A

Schedule of Receivables

[On file with the Indenture Trustee]

SCHEDULE B-1

Location of Receivable Files

c/o USAA
Federal Savings Bank

10750 McDermott Freeway

San Antonio, TX 78288 

SCHEDULE B-2

Location of Lien Certificates

FDI Consulting, Inc.

1610 Arden Way, Suite 145

Sacramento, CA 95815Exhibit 10.2             

EXECUTION COPY 

SALE AND SERVICING AGREEMENT

among

USAA AUTO OWNER TRUST 2007-1,

as Issuer,

USAA ACCEPTANCE, LLC,

as Depositor,

and

USAA FEDERAL SAVINGS BANK,

as Seller and Servicer

Dated as of June 19, 2007

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
Article I

	
DEFINITIONS AND USAGE

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
Article II

	
TRUST
  PROPERTY

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 2.1

	
 

	
Conveyance
  of Trust Property; Intent of the Parties

	
 

	
1

	
 

	
Section 2.2

	
 

	
Representations
  and Warranties of the Depositor regarding the Receivables

	
 

	
2

	
 

	
Section 2.3

	
 

	
Repurchase
  Upon Breach

	
 

	
5

	
 

	
Section 2.4

	
 

	
Custody of
  Receivable Files

	
 

	
6

	
 

	
Section 2.5

	
 

	
Duties of
  Servicer as Custodian

	
 

	
6

	
 

	
Section 2.6

	
 

	
Instructions;
  Authority to Act

	
 

	
7

	
 

	
Section 2.7

	
 

	
Custodian’s
  Indemnification

	
 

	
7

	
 

	
Section 2.8

	
 

	
Effective
  Period and Termination

	
 

	
8

	
 

	
 

	
 

	
 

	
 

	
Article III

	
ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY

	
 

	
8

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 3.1

	
 

	
Duties of
  Servicer

	
 

	
8

	
 

	
Section 3.2

	
 

	
Collection
  of Receivable Payments

	
 

	
9

	
 

	
Section 3.3

	
 

	
Realization
  Upon Receivables

	
 

	
9

	
 

	
Section 3.4

	
 

	
Allocations
  of Collections

	
 

	
10

	
 

	
Section 3.5

	
 

	
Maintenance
  of Security Interests in Financed Vehicles

	
 

	
10

	
 

	
Section 3.6

	
 

	
Covenants of
  Servicer

	
 

	
10

	
 

	
Section 3.7

	
 

	
Purchase of
  Receivables Upon Breach

	
 

	
11

	
 

	
Section 3.8

	
 

	
Servicer
  Fees

	
 

	
11

	
 

	
Section 3.9

	
 

	
Servicer’s
  Certificate

	
 

	
12

	
 

	
Section 3.10

	
 

	
Annual
  Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice
  of Event of Servicing Termination

	
 

	
12

	
 

	
Section 3.11

	
 

	
Annual
  Independent Certified Public Accountant’s Report

	
 

	
13

	
 

	
Section 3.12

	
 

	
Access to
  Certain Documentation and Information Regarding Receivables

	
 

	
14

	
 

	
Section 3.13

	
 

	
Servicer
  Expenses

	
 

	
14

	
 

	
Section 3.14

	
 

	
[Reserved]

	
 

	
14

	
 

	
Section 3.15

	
 

	
1934 Act
  Filings; Sarbanes-Oxley Act Requirements

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
Article IV

	
DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND CERTIFICATEHOLDERS

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 4.1

	
 

	
Accounts

	
 

	
14

	
 

	
Section 4.2

	
 

	
Collections

	
 

	
16

	
 

	
Section 4.3

	
 

	
Application
  of Collections

	
 

	
16

	
 

	
Section 4.4

	
 

	
Advances

	
 

	
16

	
 

	
Section 4.5

	
 

	
Additional
  Deposits

	
 

	
17

	
 

	
Section 4.6

	
 

	
Distributions

	
 

	
17

	
 

	
Section 4.7

	
 

	
Reserve
  Account

	
 

	
21

	
 

	
Section 4.8

	
 

	
Net Deposits

	
 

	
23

i

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 4.9

	
 

	
Statements
  to Noteholders and Certificateholders

	
 

	
23

	
 

	
 

	
 

	
 

	
 

	
Article V

	
THE DEPOSITOR

	
 

	
25

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 5.1

	
 

	
Representations,
  Warranties and Covenants of Depositor

	
 

	
25

	
 

	
Section 5.2

	
 

	
Liability of
  Depositor; Indemnities

	
 

	
27

	
 

	
Section 5.3

	
 

	
Merger or
  Consolidation of, or Assumption of the Obligations of Depositor

	
 

	
27

	
 

	
Section 5.4

	
 

	
Limitation
  on Liability of Depositor and Others

	
 

	
27

	
 

	
Section 5.5

	
 

	
Depositor
  May Own Notes or Certificates

	
 

	
28

	
 

	
 

	
 

	
 

	
 

	
Article VI

	
THE SERVICER

	
 

	
28

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 6.1

	
 

	
Representations
  of Servicer

	
 

	
28

	
 

	
Section 6.2

	
 

	
Indemnities
  of Servicer

	
 

	
29

	
 

	
Section 6.3

	
 

	
Merger or
  Consolidation of, or Assumption of the Obligations of Servicer

	
 

	
30

	
 

	
Section 6.4

	
 

	
Limitation
  on Liability of Servicer and Others

	
 

	
31

	
 

	
Section 6.5

	
 

	
Delegation
  of Duties

	
 

	
31

	
 

	
Section 6.6

	
 

	
Servicer Not
  to Resign as Servicer

	
 

	
32

	
 

	
Section 6.7

	
 

	
Servicer May
  Own Notes or Certificates

	
 

	
32

	
 

	
 

	
 

	
 

	
 

	
 

	
Article VII

	
SERVICING TERMINATION

	
 

	
32

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 7.1

	
 

	
Events of
  Servicing Termination

	
 

	
32

	
 

	
Section 7.2

	
 

	
Appointment
  of Successor Servicer

	
 

	
34

	
 

	
Section 7.3

	
 

	
Repayment of
  Advances

	
 

	
35

	
 

	
Section 7.4

	
 

	
Notification
  to Noteholders and Certificateholders

	
 

	
35

	
 

	
Section 7.5

	
 

	
Waiver of
  Past Events of Servicing Termination

	
 

	
35

	
 

	
 

	
 

	
 

	
 

	
Article VIII

	
TERMINATION

	
 

	
35

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 8.1

	
 

	
Optional
  Purchase of All Receivables

	
 

	
35

	
 

	
Section 8.2

	
 

	
Succession
  Upon Satisfaction and Discharge of Indenture

	
 

	
36

	
 

	
 

	
 

	
 

	
 

	
Article IX

	
MISCELLANEOUS
  PROVISIONS

	
 

	
36

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 9.1

	
 

	
Amendment

	
 

	
36

	
 

	
Section 9.2

	
 

	
Protection
  of Title to Trust Property

	
 

	
37

	
 

	
Section 9.3

	
 

	
Counterparts

	
 

	
39

	
 

	
Section 9.4

	
 

	
GOVERNING
  LAW

	
 

	
39

	
 

	
Section 9.5

	
 

	
Notices

	
 

	
39

	
 

	
Section 9.6

	
 

	
Severability
  of Provisions

	
 

	
40

	
 

	
Section 9.7

	
 

	
Assignment

	
 

	
40

	
 

	
Section 9.8

	
 

	
Further
  Assurances

	
 

	
40

	
 

	
Section 9.9

	
 

	
No Waiver;
  Cumulative Remedies

	
 

	
40

	
 

	
Section 9.10

	
 

	
Third-Party
  Beneficiaries

	
 

	
40

	
 

	
Section 9.11

	
 

	
Actions by
  Noteholders or Certificateholders

	
 

	
41

	
 

	
Section 9.12

	
 

	
Limitation
  of Liability of Owner Trustee and Indenture Trustee

	
 

	
41

ii

TABLE OF CONTENTS
(continued)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 9.13

	
 

	
Savings
  Clause

	
 

	
41

	
 

	
 

	
 

	
 

	
 

	
 

	
Article X

	
EXCHANGE ACT
  REPORTING

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 10.1

	
 

	
Further
  Assurances

	
 

	
42

	
 

	
Section 10.2

	
 

	
Form 10-D
  Filings

	
 

	
43

	
 

	
Section 10.3

	
 

	
Form 8-K
  Filings

	
 

	
43

	
 

	
Section 10.4

	
 

	
Form 10-K
  Filings

	
 

	
43

	
 

	
Section 10.5

	
 

	
Report on
  Assessment of Compliance and Attestation

	
 

	
43

	
 

	
Section 10.6

	
 

	
Back-up
  Sarbanes-Oxley Certification

	
 

	
44

	
 

	
Section 10.7

	
 

	
Use of
  Subcontractors

	
 

	
45

	
 

	
Section 10.8

	
 

	
Representations
  and Warranties

	
 

	
45

	
 

	
Section 10.9

	
 

	
Indemnification

	
 

	
46

	
 

	
Section
  10.10

	
 

	
Amendments

	
 

	
47

	
Schedule A

	
Schedule of
  Receivables

	
 

	
A-1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Schedule B-1

	
 

	
Location of
  Receivable Files

	
 

	
B-1

	
Schedule B-2

	
 

	
Location of
  Lien Certificates

	
 

	
B-2

	
Appendix A

	
 

	
Definitions
  and Usage

	
 

	
Appendix A-1

	
Appendix B

	
 

	
Item 1119
  Parties

	
 

	
Appendix B-1

	
Appendix C

	
 

	
Minimum
  Servicing Criteria Assessment

	
 

	
Appendix C-1

	
Appendix D

	
 

	
Performance
  Certification (Trustee/Reporting Subcontractor)

	
 

	
Appendix D-1

	
Appendix E

	
 

	
Performance
  Certification (Servicer)

	
 

	
Appendix E-1

iii

          SALE
AND SERVICING AGREEMENT, dated as of June 19, 2007 (as from time to time
amended, supplemented or otherwise modified and in effect, this “Agreement”),
among USAA AUTO OWNER TRUST 2007-1, a Delaware statutory trust (the “Issuer”),
USAA ACCEPTANCE, LLC, a Delaware limited liability company (the “Depositor”)
and USAA FEDERAL SAVINGS BANK, a federally chartered savings association, as
seller of the Receivables to the Depositor (in such capacity, the “Seller”)
and servicer (in such capacity, the “Servicer”). Each of the Bank of New
York (the “Indenture Trustee”) and Wells Fargo Delaware Trust Company
(the “Owner Trustee”) join in this Agreement to agree to perform each of
its respective duties as Indenture Trustee and Owner Trustee, respectively, as
are specifically set forth in this Agreement.

          WHEREAS,
the Issuer desires to purchase a portfolio of receivables and related property
consisting of motor vehicle installment loan contracts originated by the Seller
in the ordinary course of its business;

          WHEREAS,
the Seller is concurrently selling such portfolio of receivables and related
property to the Depositor pursuant to the Receivables Purchase Agreement, and
the Depositor is willing to sell such portfolio of receivables and related
property to the Issuer; and

          WHEREAS,
the Servicer is willing to service such receivables on behalf of the Issuer.

          NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

          Except
as otherwise specified herein or as the context may otherwise require,
capitalized terms used but not otherwise defined herein are defined in Appendix
A hereto, which also contains rules as to usage that shall be applicable
herein.

ARTICLE II

TRUST PROPERTY

          SECTION
2.1 Conveyance of Trust Property; Intent of the Parties. In
consideration of the Issuer’s delivery to, or upon the order of, the Depositor
of the Notes and the Certificates, the Depositor does hereby irrevocably sell,
transfer, assign and otherwise convey to the Issuer (i) without recourse
(subject to the obligations herein) all right, title and interest of the
Depositor, whether now owned or hereafter acquired, in and to the Trust
Property and (ii) funds in the amount of the Reserve Initial Deposit. The sale,
transfer, assignment and conveyance made hereunder shall not constitute and is
not intended to result in an assumption by the Issuer of any obligation of the
Depositor to the Obligors or any other Person in connection with the Receivables
and the other Trust Property or any agreement, document or instrument related
thereto. The Depositor and the Issuer intend that the sale, transfer,
assignment and conveyance 

of the Trust
Property pursuant to this Section 2.1 shall be a sale, and not a secured
borrowing, for accounting purposes.

          SECTION
2.2 Representations and Warranties of the Depositor regarding the
Receivables. The Depositor makes the following representations and
warranties with respect to the Receivables, on which the Issuer relies in
purchasing the Receivables and pledging the same to the Indenture Trustee. Such
representations and warranties speak as of the execution and delivery of this
Agreement and as of the Transfer Date, but shall survive the sale, transfer and
assignment of the Receivables by the Depositor to the Issuer and the pledge of
the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture.

	
 

	
 

	
 

	
 

	
(i)

	
Schedule of
  Receivables. The information set forth in Schedule
  A to this Agreement with respect to each Receivable is true and correct
  in all material respects, and no selection procedures adverse to the
  Securityholders have been used in selecting the Receivables from all
  receivables owned by the Seller which meet the selection criteria specified
  herein.

	
 

	
 

	
 

	
 

	
(ii)

	
No Sale or
  Transfer. No Receivable has been sold, transferred,
  assigned or pledged by the Depositor to any Person other than the Issuer.

	
 

	
 

	
 

	
 

	
(iii)

	
Good Title.
  Immediately prior to the transfer and assignment of the Receivables to the
  Issuer herein contemplated, the Depositor had good and marketable title to
  each Receivable free and clear of all Liens and rights of others; and,
  immediately upon the transfer thereof, the Issuer, has either (i) good and
  marketable title to each Receivable, free and clear of all of all Liens and
  rights of others, and the transfer has been perfected under applicable law or
  (ii) a first priority perfected security interest in each Receivable.

	
 

	
 

	
 

	
 

	
(iv)

	
Receivable
  Files. The Receivable Files shall be kept at one or
  more of the locations specified in Schedule B-1 hereto; provided,
  that the Lien Certificates shall be kept at one or more of the locations
  specified in Schedule B-2 hereto.

	
 

	
 

	
 

	
 

	
(v)

	
Characteristics
  of Receivables. Each Receivable (a) has been
  originated for the retail financing of a Financed Vehicle by an Obligor
  located in one of the States of the United States or the District of
  Columbia; (b) contains customary and enforceable provisions such that the
  rights and remedies of the holder thereof are adequate for realization
  against the collateral of the benefits of the security; and (c) provides for
  fully amortizing level scheduled monthly or semi-monthly payments (provided
  that the payment in the last month in the life of the Receivable may be
  different from the level scheduled payment) and for accrual of interest at a
  fixed rate according to the simple interest method.

	
 

	
 

	
 

	
 

	
(vi)

	
Compliance
  with Law. Each Receivable and each sale of the
  related Financed Vehicle complied at the time it was originated or made, and
  complies on and after the Cut-off Date, in all material respects with all
  requirements of applicable federal, state, and local laws, and regulations
  thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal
  Credit Opportunity 

2

	
 

	
 

	
 

	
 

	
 

	
Act, the
  Fair Credit Reporting Act, the Federal Trade Commission Act, the
  Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and Z, state
  adaptations of the National Consumer Act and of the Uniform Consumer Credit
  Code, and any other consumer credit, equal opportunity, and disclosure laws
  applicable to such Receivable and sale.

	
 

	
 

	
 

	
 

	
(vii)

	
Binding
  Obligation. Each Receivable constitutes the legal,
  valid, and binding payment obligation in writing of the Obligor, enforceable
  by the holder thereof in all material respects in accordance with its terms,
  subject, as to enforcement, to applicable bankruptcy, insolvency,
  reorganization, liquidation and other similar laws and equitable principles
  relating to or affecting the enforcement of creditors’ rights.

	
 

	
 

	
 

	
 

	
(viii)

	
No
  Government Obligor. No Receivable is due from the
  United States of America or any state or from any agency, department,
  instrumentality or political subdivision of the United States of America or
  any state or local municipality and no Receivable is due from a business
  except to the extent that such receivable has a personal guaranty.

	
 

	
 

	
 

	
 

	
(ix)

	
Security
  Interest in Financed Vehicle. Immediately prior to
  the sale and assignment thereof to the Issuer as herein contemplated, each
  Receivable was secured by a validly perfected first priority security
  interest in the Financed Vehicle in favor of the Seller as secured party or
  all necessary and appropriate action with respect to such Receivable had been
  taken to perfect a first priority security interest in the related Financed
  Vehicle in favor of the Seller as secured party, which security interest is
  assignable and has been so assigned by the Seller to the Depositor and by the
  Depositor to the Issuer.

	
 

	
 

	
 

	
 

	
(x)

	
Receivables
  in Force. No Receivable has been satisfied,
  subordinated, or rescinded, nor has any Financed Vehicle been released from
  the Lien granted by the related Receivable in whole or in part.

	
 

	
 

	
 

	
 

	
(xi)

	
No Waiver.
  No provision of a Receivable has been waived in such a manner that such
  Receivable fails to meet all of the representations and warranties made by
  the Depositor herein with respect thereto pursuant to this Section 2.2.

	
 

	
 

	
 

	
 

	
(xii)

	
No
  Amendments. No Receivable has been amended except
  pursuant to instruments included in the Receivable Files and no such
  amendment has caused such Receivable to fail to meet all of the
  representations and warranties made by the Depositor herein with respect
  thereto pursuant to this Section 2.2.

	
 

	
 

	
 

	
 

	
(xiii)

	
No Defenses.
  As of the Cut-off Date, there are no rights of rescission, setoff,
  counterclaim, or defense, and the Depositor has no knowledge of the same
  being asserted or threatened, with respect to any Receivable.

3

	
 

	
 

	
 

	
 

	
(xiv)

	
No Liens.
  As of the Cut-off Date, no Liens or claims have been filed that would be
  Liens prior to, or equal or coordinate with, the Lien granted by the
  Receivable.

	
 

	
 

	
(xv)

	
No Default.
  Except for payment defaults continuing for a period of not more than thirty
  (30) days as of the Cut-off Date, the Depositor has no knowledge that a
  default, breach, violation, or event permitting acceleration under the terms
  of any Receivable exists; the Depositor has no knowledge that a continuing
  condition that with notice or lapse of time would constitute a default,
  breach, violation, or event permitting acceleration under the terms of any
  Receivable exists; and the Depositor has not waived any of the foregoing.

	
 

	
 

	
 

	
 

	
(xvi)

	
Insurance.
  Each Receivable requires that the Obligor thereunder obtain comprehensive and
  collision insurance covering the Financed Vehicle.

	
 

	
 

	
 

	
 

	
(xvii)

	
Lawful
  Assignment. No Receivable has been originated in, or
  is subject to the laws of, any jurisdiction under which the sale, transfer,
  and assignment of such Receivable under this Agreement is unlawful, void or
  voidable.

	
 

	
 

	
 

	
 

	
(xviii)

	
All Filings
  Made. No filings (other than UCC filings which have
  been made on the Closing Date) or other actions are necessary in any
  jurisdiction to give the Issuer a first priority perfected security interest
  in the Receivables and to give the Indenture Trustee a first priority
  perfected security interest in the Receivables.

	
 

	
 

	
 

	
 

	
(xix)

	
One Original.
  With respect to any Receivable for which an original executed copy exists,
  there is no more than one original executed copy of such Receivable which
  does not have any marks or notations indicating that it has been pledged,
  assigned or otherwise conveyed to any Person other than the Seller and which,
  immediately prior to the delivery thereof to the Servicer, as custodian for
  the Indenture Trustee, was in the possession of the Seller.

	
 

	
 

	
 

	
 

	
(xx)

	
Security.
  Each Receivable is secured by a new or used automobile or light-duty truck.

	
 

	
 

	
 

	
 

	
(xxi)

	
Maturity of
  Receivables. Each Receivable has a remaining
  maturity, as of the Cut-off Date, of not less than 8 months and not more than
  72 months and had an original maturity of not less than 9 months and not more
  than 72 months. No Receivable has a scheduled maturity later than May 18,
  2013.

	
 

	
 

	
 

	
 

	
(xxii)

	
Annual
  Percentage Rate. Each Receivable is a
  fully-amortizing simple interest contract which bears interest at a fixed
  rate per annum and which provides for level scheduled monthly or semi-monthly
  payments (except for the last payment, which may be minimally different from
  the level payments) over its respective remaining term, and is not secured by
  any interest in real estate.

4

	
 

	
 

	
 

	
 

	
(xxiii)

	
No
  Repossessions. Each Receivable is secured by a
  Financed Vehicle that, as of the Cut-off Date, has not been repossessed
  without reinstatement of such Receivable.

	
 

	
 

	
 

	
 

	
(xxiv)

	
Obligor Not
  Subject to Bankruptcy Proceedings. Each Receivable
  has been entered into by an Obligor who has not been identified on the
  computer files of the Seller as being a debtor in any bankruptcy proceeding
  as of the Cut-off Date.

	
 

	
 

	
 

	
 

	
(xxv)

	
No Overdue
  Payments. No Receivable has any payment that is more
  than thirty (30) days past due as of the Cut-off Date.

	
 

	
 

	
 

	
 

	
(xxvi)

	
Tangible
  Chattel Paper. The Receivables constitute “tangible
  chattel paper” within the meaning of UCC Section 9-102.

	
 

	
 

	
 

	
 

	
(xxvii)

	
Remaining
  Principal Balance. Each Receivable had a remaining
  principal balance, as of the Cut-off Date, of at least $800.00.

          SECTION
2.3 Repurchase Upon Breach. Upon discovery by any party hereto or by an
Authorized Officer of the Indenture Trustee of a breach of any of the
representations and warranties set forth in Section 2.2 at the time such
representations and warranties were made which materially and adversely affects
the interests of the Issuer or the Noteholders, the party discovering such
breach shall give prompt written notice thereof to the other parties hereto and
to the Indenture Trustee; provided, that
delivery of the Servicer’s Certificate, which identifies that Receivables are
being or have been repurchased, shall be deemed to constitute prompt notice by
the Servicer and the Issuer of such breach; provided, further, that the failure to give
such notice shall not affect any obligation of the Depositor hereunder. If the
Depositor does not correct or cure such breach prior to the end of the
Collection Period which includes the 60th day (or, if the Depositor elects, an
earlier date) after the date that the Depositor became aware or was notified of
such breach, then the Depositor shall purchase any Receivable materially and
adversely affected by such breach from the Issuer on the Payment Date following
the end of such Collection Period (or, if the Depositor elects, an earlier
date). Any such breach or failure will not be deemed to have a material and
adverse effect if such breach or failure does not affect the ability of the
Issuer to collect, receive and retain timely payment in full on such
Receivable, including any Liquidation Proceeds. Any such purchase by the
Depositor shall be at a price equal to the Purchase Amount (less any
Liquidation Proceeds deposited, or to be deposited, in the Collection Account
with respect to such Receivable pursuant to Section 3.3). In consideration for
such repurchase, the Depositor shall make (or shall cause to be made) a payment
to the Issuer equal to the Purchase Amount (less any Liquidation Proceeds
deposited, or to be deposited, in the Collection Account with respect to such
Receivable pursuant to Section 3.3) by depositing such amount into the
Collection Account prior to 11:00 a.m., New York City time on such Payment
Date, or earlier date, if elected by the Depositor. Upon payment of such
Purchase Amount (less any Liquidation Proceeds deposited, or to be deposited,
in the Collection Account with respect to such Receivable pursuant to Section
3.3) by the Depositor, the Issuer and the Indenture Trustee shall release and
shall execute and deliver such instruments of release, transfer or assignment,
in each case without recourse or representation, as shall be reasonably
requested of it to vest in the Depositor or its designee any Receivable
repurchased pursuant 

5

hereto. It is
understood and agreed that the right to cause the Depositor to purchase (or to
enforce the obligations of the Seller under the Receivables Purchase Agreement
to purchase) any Receivable as described above shall constitute the sole remedy
respecting such breach available to the Issuer and the Indenture Trustee.
Neither the Owner Trustee nor the Indenture Trustee will have any duty to
conduct an affirmative investigation as to the occurrence of any condition
requiring the repurchase of any Receivable pursuant to this Section 2.3
or the eligibility of any Receivable for purposes of this Agreement.
Notwithstanding anything herein to the contrary, the Depositor shall only be
obligated to pay such Purchase Amount and repurchase the related Receivable to
the extent it receives the Purchase Amount from the Seller pursuant to Section
7.02 of the Receivables Purchase Agreement.

          SECTION
2.4 Custody of Receivable Files. To assure uniform quality in servicing
the Receivables and to reduce administrative costs, the Issuer, upon the
execution and delivery of this Agreement, hereby revocably appoints the
Servicer, and the Servicer hereby accepts such appointment, to act as the agent
of the Issuer and the Indenture Trustee as custodian of the following documents
or instruments, which are hereby constructively delivered to the Indenture
Trustee, as pledgee of the Issuer pursuant to the Indenture, with respect to
each Receivable:

	
 

	
 

	
 

	
          (i) The
  original executed Receivable or, if no such original exists, a copy thereof.

	
 

	
 

	
 

	
          (ii) 
  The original credit application fully executed by the Obligor or a photocopy
  thereof or a record thereof on a computer file, diskette or on microfiche.

	
 

	
 

	
 

	
          (iii) 
  The notice of recorded Lien or such documents that the Servicer or the
  Depositor shall keep on file, in accordance with its customary procedures,
  evidencing the first priority perfected security interest of the Seller in
  the Financed Vehicle.

	
 

	
 

	
 

	
          (iv) 
  Any and all other documents (including any computer file, diskette or
  microfiche) that the Servicer or the Seller shall keep on file, in accordance
  with its customary procedures, relating to a Receivable, an Obligor (to the
  extent relating to a Receivable), or a Financed Vehicle.

          The
Servicer acknowledges that it holds the documents and instruments relating to
the Receivables for the benefit of the Issuer and the Indenture Trustee. The
Issuer and the Indenture Trustee shall have no responsibility to monitor the
Servicer’s performance as custodian and shall have no liability in connection
with the Servicer’s performance of such duties hereunder.

          SECTION
2.5 Duties of Servicer as Custodian.

          (a)
Safekeeping. The Servicer shall hold the Receivable Files for the
benefit of the Issuer and the Indenture Trustee and shall maintain such
accurate and complete accounts, records and computer systems pertaining to each
Receivable File as shall enable the Servicer and the Issuer to comply with the
terms and conditions of this Agreement, and the Indenture Trustee to comply
with the terms and conditions of the Indenture. In performing its duties as
custodian, the Servicer shall act with reasonable care, using that degree of
skill and attention that the Servicer exercises with respect to the receivable
files relating to all comparable automotive receivables that the Servicer
services for itself or others. The Servicer shall conduct, or cause to be 

6

conducted,
periodic audits of the Receivable Files held by it under this Agreement and of
the related accounts, records and computer systems, in such a manner as shall
enable the Issuer or the Indenture Trustee to identify all Receivables Files and
such related accounts, records and computer systems and verify the accuracy of
the Servicer’s record keeping. The Servicer shall promptly report to the Issuer
and the Indenture Trustee any failure on its part to hold the Receivable Files
and maintain its accounts, records, and computer systems as herein provided and
shall promptly take appropriate action to remedy any such failure. Nothing
herein shall be deemed to require an initial review or any periodic review by
the Issuer, the Owner Trustee or the Indenture Trustee of the Receivable Files.

          (b) Maintenance
of and Access to Records. The Servicer shall maintain each Receivable File
at its offices specified in Schedule B-1 to this Agreement provided,
that all Lien Certificates will be maintained at the location specified in Schedule
B-2, or at such other office as shall be specified to the Issuer and the
Indenture Trustee by 30 days’ prior written notice. The Servicer shall make
available to the Issuer and the Indenture Trustee or their duly authorized
representatives, attorneys, or auditors, the Receivable Files and the related
accounts, records and computer systems maintained by the Servicer during normal
business hours as the Issuer or the Indenture Trustee shall reasonably request,
which does not unreasonably interfere with the Servicer’s normal operations.

          (c) Release
of Documents. Upon written instructions from the Indenture Trustee, the
Servicer shall release or cause to be released any document in the Receivable
Files to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture
Trustee’s designee, as the case may be, at such place or places as the
Indenture Trustee may reasonably designate, as soon as is reasonably
practicable, to the extent it does not unreasonably interfere with the
Servicer’s normal operations. The Servicer shall not be responsible for any
loss occasioned by the failure of the Indenture Trustee or its agent or
designee to return any document or any delay in doing so.

          SECTION
2.6 Instructions; Authority to Act. All instructions from the Indenture
Trustee shall be in writing and signed by an Authorized Officer of the
Indenture Trustee, and the Servicer shall be deemed to have received proper
instructions with respect to the Receivable Files upon its receipt of such
written instructions.

          SECTION
2.7 Custodian’s Indemnification. The Servicer, as custodian, shall
indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any and
all liabilities, obligations, losses, compensatory damages, payments, costs, or
expenses of any kind whatsoever that may be imposed on, incurred, or asserted
against the Issuer, the Owner Trustee or the Indenture Trustee as the result of
any improper act or omission in any way relating to the maintenance and custody
by the Servicer as custodian of the Receivable Files; provided, however,
that the Servicer shall not be liable (i) to the Issuer for any portion of any
such amount resulting from the willful misfeasance, bad faith, or negligence of
the Indenture Trustee, the Owner Trustee or the Issuer, (ii) to the Owner
Trustee for any portion of any such amount resulting from the willful
misfeasance, bad faith, or negligence of the Indenture Trustee, the Owner
Trustee or the Issuer and (iii) to the Indenture Trustee for any portion of any
such amount resulting from the willful misfeasance, bad faith, or negligence of
the Indenture Trustee, the Owner Trustee or the Issuer.

7

          SECTION
2.8 Effective Period and Termination. The Servicer’s appointment as
custodian shall become effective as of the Cut-off Date and shall continue in
full force and effect until terminated pursuant to this Section 2.8. If
the Bank shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer shall have
been terminated under Section 7.1, the appointment of the Servicer as
custodian hereunder may be terminated by the Indenture Trustee, or by the
holders of Notes evidencing not less than a majority of the principal amount of
the Controlling Class Outstanding (or if no Notes are Outstanding, by holders
of Certificates evidencing not less than a majority of the Percentage Interests
evidenced by the Certificates), in the same manner as the Indenture Trustee or
such Securityholders may terminate the rights and obligations of the Servicer
under Section 7.1. As soon as practicable after any termination of such
appointment, the Servicer shall deliver to the Indenture Trustee or the
Indenture Trustee’s agent the Receivable Files and the related accounts and
records maintained by the Servicer at such place or places as the Indenture
Trustee may reasonably designate.

ARTICLE III

ADMINISTRATION AND SERVICING OF RECEIVABLES
AND TRUST PROPERTY

          SECTION
3.1 Duties of Servicer. The Servicer shall manage, service, administer
and make collections on the Receivables with reasonable care, using that degree
of skill and attention that the Servicer exercises with respect to all
comparable new or used automobile and light-duty truck receivables that it
services for itself. The Servicer’s duties shall include collection and posting
of all payments, responding to inquiries of Obligors on such Receivables,
investigating delinquencies, sending payment coupons to Obligors, reporting tax
information to Obligors, accounting for collections, furnishing monthly and
annual statements to the Owner Trustee and the Indenture Trustee with respect
to distributions, making Advances pursuant to Section 4.4, preparing (or
causing to be prepared) the tax returns of the Trust in accordance with Section
5.6 of the Trust Agreement and, if requested to do so, providing the
certifications required, pursuant to Section 5.1(b) hereof. The Servicer
shall follow its customary standards, policies and procedures in performing its
duties as Servicer. Without limiting the generality of the foregoing, the
Servicer is hereby authorized and empowered to execute and deliver, on behalf
of itself, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders,
the Certificateholders, or any of them, any and all instruments of satisfaction
or cancellation, or partial or full release or discharge, and all other
comparable instruments, with respect to such Receivables or to the Financed
Vehicles securing such Receivables. If the Servicer shall commence a legal
proceeding to enforce a Receivable, the Issuer (in the case of a Receivable
other than a Purchased Receivable) shall thereupon be deemed to have
automatically assigned, solely for the purpose of collection, such Receivable
to the Servicer. If in any enforcement suit or legal proceeding it shall be
held that the Servicer may not enforce a Receivable on the ground that it shall
not be a real party in interest or a holder entitled to enforce the Receivable,
the Issuer shall, at the Servicer’s expense and direction, take steps to
enforce the Receivable, including bringing suit in its name or the names of the
Indenture Trustee, the Noteholders, the Certificateholders, or any of them. The
Issuer shall furnish the Servicer with any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder.

8

          SECTION
3.2 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
new or used automobile and light-duty truck receivables that it services for
itself. The Servicer shall not change the amount of or reschedule the due date
of any scheduled payment of a Receivable to a date more than 30 days from the
original due date of such scheduled payment, change the annual percentage rate
of or extend any Receivable or change any material term of a Receivable, except
as provided by the terms of the Receivable or of this Agreement or as required
by law or court order; provided, however, that the Servicer
may extend any Receivable that is in default or with respect to which default
is reasonably foreseeable and that would be acceptable to the Servicer with
respect to comparable new or used automobile and light-duty truck receivables
that it services for itself if (a) the amount on deposit in the Reserve
Account is greater than zero at the time of the extension, (b) the total
credit-related extensions granted on the Receivable will not exceed four months
in the aggregate, (c) the total number of credit-related extensions
granted on the Receivable will not exceed two, and (d) the maturity of
such Receivable will not be extended beyond May 18, 2013. If, as a result of
inadvertently rescheduling or extending payments, such rescheduling or
extension breaches any of the terms of the proviso to the preceding sentence,
then the Servicer shall be obligated to purchase such Receivable pursuant to Section
3.7. For the purpose of such purchases pursuant to Section 3.7,
notice shall be deemed to have been received by the Servicer at such time as
shall make purchase mandatory as of the last day of the Collection Period
during which the discovery of such breach occurred.

          Notwithstanding
anything to the contrary herein, the Servicer may implement programs that grant
payment extensions in respect of receivables that are not delinquent. Any such
program shall be implemented with the approval of the senior officer’s credit
committee of the Servicer in accordance with the Servicer’s general lending and
policy guidelines. Any such payment extension may extend the maturity of the
applicable receivable beyond its original term to maturity. Notwithstanding
anything to the contrary herein, the Servicer may also reduce the interest rate
on Receivables affected by the application of the Servicemembers Civil Relief
Act to a rate that is lower than the maximum rate prescribed by the
Servicemembers Civil Relief Act and may readjust the payment schedule for any
Receivable that is affected by the application of the Servicemembers Civil
Relief Act until the maturity of the receivable.

          The
Servicer may at any time perform specific duties as servicer or custodian under
this Agreement through subcontractors; provided, however, that no such
delegation or subcontracting shall relieve the Servicer of its responsibilities
with respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto. All amounts payable to any subcontractor
shall be paid by the Servicer and shall not be obligations of the Indenture
Trustee, the Owner Trustee or the Issuer or paid from the Indenture Trust
Estate. References in this Agreement to actions taken or to be taken by the
Servicer include actions taken or to be taken by a subcontractor on behalf of
the Servicer.

          SECTION
3.3 Realization Upon Receivables. On behalf of the Issuer, the Servicer
shall use reasonable efforts, consistent with its customary standards, policies
and procedures, to repossess or otherwise convert the ownership of the Financed
Vehicle securing any Receivable as to which the Servicer shall have determined
to be a Defaulted Receivable or otherwise (and 

9

shall specify
any such Defaulted Receivable to the Indenture Trustee no later than the
Determination Date following the Collection Period in which the Servicer shall
have made such determination). The Servicer shall follow such customary
standards, policies and procedures as it shall deem necessary or advisable in
its servicing of comparable receivables, which may include selling the Financed
Vehicle at public or private sale. The Servicer shall be entitled to recover
from proceeds all reasonable expenses incurred by it in the course of
converting the Financed Vehicle into cash proceeds. The Liquidation Proceeds
(net of such expenses) realized in connection with any such action with respect
to a Receivable shall be deposited by the Servicer in the Collection Account in
the manner specified in Section 4.2 and shall be applied to reduce
(or to satisfy, as the case may be) the Purchase Amount of the Receivable, if
such Receivable is to be repurchased by the Depositor pursuant to Section
2.3, or is to be purchased by the Servicer pursuant to Section 3.7.
The foregoing shall be subject to the provision that, in any case in which the
Financed Vehicle shall have suffered damage, the Servicer shall not be required
to expend funds in connection with the repair or the repossession of such
Financed Vehicle unless it shall determine in its discretion that such repair
and/or repossession will increase the Liquidation Proceeds by an amount greater
than the amount of such expenses.

          SECTION
3.4 Allocations of Collections. If an Obligor is obligated under one or
more Receivables and also under one or more other assets owned by the Bank or
assigned by the Bank to third parties, then any payment on any such asset
received from or on behalf of such Obligor shall, if identified as being made
with respect to a particular item or asset, be applied to such item, and
otherwise shall be allocated by the Bank in accordance with its customary
standards, policies and procedures.

          SECTION
3.5 Maintenance of Security Interests in Financed Vehicles. The Servicer
shall, in accordance with its customary procedures, take such steps as are
necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle. The Issuer hereby authorizes the
Servicer to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer and the Indenture Trustee in the event of the
relocation of a Financed Vehicle or for any other reason, in either case, when
the Servicer has knowledge of the need for such re-perfection. In the event
that the assignment of a Receivable to the Issuer is insufficient, without a
notation on the related Financed Vehicle’s certificate of title, or without
fulfilling any additional administrative requirements under the laws of the
state in which the Financed Vehicle is located, to transfer to the Issuer a
perfected security interest in the related Financed Vehicle, the Servicer
hereby agrees that the Servicer’s listing as the secured party on the
certificate of title is deemed to be in its capacity as agent of the Issuer and
the Indenture Trustee and further agrees to hold such certificate of title as
the agent and custodian of the Issuer and the Indenture Trustee; provided
that the Servicer shall not, nor shall the Issuer or the Indenture Trustee have
the right to require that the Servicer, make any such notation on the related
Financed Vehicles’ certificate of title or fulfill any such additional
administrative requirement of the laws of the state in which a Financed Vehicle
is located.

          SECTION
3.6 Covenants of Servicer. The Servicer shall not (i) release the
Financed Vehicle securing each such Receivable from the security interest
granted by such Receivable in whole or in part except in the event of payment
in full by or on behalf of the Obligor thereunder, (ii) impair the rights of
the Trust or the Indenture Trustee in the Receivables, or (iii) increase
the number of payments under a Receivable, increase the Amount Financed under a
Receivable or 

10

extend or
forgive payments on a Receivable, except as provided in Section 3.2. In
the event that at the end of the scheduled term of any Receivable, the
outstanding principal amount thereof is such that the final payment to be made
by the related Obligor is larger than the regularly scheduled payment of
principal and interest made by such Obligor, the Servicer may permit such
Obligor to pay such remaining principal amount in more than one payment of
principal and interest; provided that the last such payment shall
be due on or prior to the Collection Period immediately preceding the Class B
Final Scheduled Payment Date.

          SECTION
3.7 Purchase of Receivables Upon Breach. Upon discovery by any party
hereto or by an Authorized Officer of the Indenture Trustee of a breach of any
of the covenants set forth in Section 3.2, 3.5 or 3.6
which materially and adversely affects the interests of the Issuer or the
Noteholders, the party discovering such breach shall give prompt written notice
thereof to the other parties hereto and to the Indenture Trustee; provided,
that delivery of the Servicer’s Certificate, which identifies that Receivables
are being or have been repurchased, shall be deemed to constitute prompt notice
by the Servicer and the Issuer of such breach; provided, further,
that the failure to give such notice shall not affect any obligation of the
Servicer hereunder. If the Servicer does not correct or cure such breach prior
to the end of the Collection Period which includes the 60th day (or, if the
Servicer elects, an earlier date) after the date that the Servicer became aware
or was notified of such breach, then the Servicer shall purchase any Receivable
materially and adversely affected by such breach from the Issuer on the Payment
Date following the end of such Collection Period. Any such breach or failure
will not be deemed to have a material and adverse effect if such breach or
failure does not affect the ability of the Issuer to collect, receive and
retain timely payment in full on such Receivable, including any Liquidation
Proceeds. Any such purchase by the Servicer shall be at a price equal to the
Purchase Amount (less any Liquidation Proceeds deposited, or to be deposited,
in the Collection Account with respect to such Receivable pursuant to Section
3.3). For purposes of this Section 3.7, the Purchase Amount shall
consist in part of a release by the Servicer of all rights of reimbursement
with respect to Outstanding Advances on the Receivable. In consideration for
such repurchase, the Servicer shall make (or shall cause to be made) a payment
to the Issuer equal to the Purchase Amount (less any Liquidation Proceeds deposited,
or to be deposited, in the Collection Account with respect to such Receivable
pursuant to Section 3.3) by depositing such amount into the Collection
Account prior to 11:00 a.m., New York City time on such Payment Date. Upon
payment of such Purchase Amount (less any Liquidation Proceeds deposited, or to
be deposited, in the Collection Account with respect to such Receivable
pursuant to Section 3.3) by the Servicer, the Issuer and the Indenture
Trustee shall release and shall execute and deliver such instruments of
release, transfer or assignment, in each case without recourse or
representation, as shall be reasonably necessary to vest in the Servicer or its
designee any Receivable repurchased pursuant hereto. It is understood and
agreed that the obligation of the Servicer to purchase any Receivable as
described above shall constitute the sole remedy respecting such breach
available to the Issuer and the Indenture Trustee.

          SECTION
3.8 Servicer Fees. The Servicer shall be entitled to any interest earned
on the amounts deposited in the Collection Account during each Collection
Period plus all late fees, prepayment charges and other administrative fees and
expenses or similar charges, if any, allowed by applicable law and the terms of
the Receivables during each Collection Period (the “Supplemental Servicing
Fee”). The Servicer also shall be entitled to the Servicing Fee, as
provided herein.

11

          SECTION
3.9 Servicer’s Certificate. On or prior to the Determination Date for
each Payment Date, the Servicer shall deliver to the Depositor, the Owner
Trustee, each Note Paying Agent, the Indenture Trustee and the Seller, with a
copy to the Rating Agencies, a Servicer’s Certificate containing all
information (including all specific dollar amounts) necessary to make the
transfers and distributions pursuant to Sections 4.3, 4.4, 4.5,
4.6 and 4.7 hereof, and Section 8.2 of the Indenture for
the Collection Period preceding the date of such Servicer’s Certificate,
together with the written statements to be furnished by the Owner Trustee to
Certificateholders pursuant to Section 4.9 hereof and by the Indenture
Trustee to the Noteholders pursuant to Section 4.9 hereof and Section
6.6 of the Indenture. Receivables purchased or to be purchased by the Servicer
or the Depositor shall be identified by the Servicer by the Seller’s account
number with respect to such Receivable (as specified in the Schedule of
Receivables).

          SECTION
3.10 Annual Statement as to Compliance; Item 1122 Servicing Criteria Assessment;
Notice of Event of Servicing Termination. (a) The Servicer shall deliver to
the Owner Trustee, the Indenture Trustee and each Rating Agency within 90 days
after the end of each fiscal year of the Issuer (or if such day is not a
Business Day, the next Business Day) beginning March 30, 2008,

          (i) an
Officer’s Certificate, with respect to the preceding 12-month period (or such
shorter period in the case of the first such certificate), stating that
(x) a review of the activities of the Servicer during the preceding
12-month period (or such shorter period in the case of the first such
certificate) and of its performance under this Agreement has been made under
such officer’s supervision and (y) to the best of such officer’s
knowledge, based on such review, the Servicer has fulfilled all its obligations
in all material respects under this Agreement throughout such period, or, if
there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and
status thereof, and

          (ii) the
servicing criteria assessment required to be filed in respect of the Trust
under the Exchange Act under Item 1122 of Regulation AB if periodic reports
under Section 15(d) of the Exchange Act, or any successor provision
thereto, are required to be filed in respect of the Trust. Such report shall be
signed by an authorized officer of the Servicer and shall at a minimum address
each of the Servicing Criteria specified on a certification substantially in
the form of Appendix C hereto delivered to the Depositor concurrently
with the execution of this Agreement. To the extent any of the Servicing
Criteria are not applicable to the Servicer, with respect to asset-backed
securities transactions taken as a whole involving the Servicer and that are
backed by the same asset type backing the Notes, such report shall include such
a statement to that effect. The Depositor and the Servicer, and each of their
respective officers and directors shall be entitled to rely on upon each such
servicing criteria assessment.

          A
copy of such Officer’s Certificate and the report referred to in Section 3.11
may be obtained by any Certificateholder by a request in writing to the Owner
Trustee, or by any Noteholder or Person certifying that it is a Note Owner by a
request in writing to the Indenture Trustee, in either case addressed to the
applicable Corporate Trust Office. Upon the telephone request of the Owner
Trustee, the Indenture Trustee shall promptly furnish the Owner Trustee a list
of Noteholders as of the date specified by the Owner Trustee.

12

          (b) The
Servicer shall deliver to the Owner Trustee, the Indenture Trustee and each
Rating Agency promptly after having obtained knowledge thereof, but in no event
later than five (5) Business Days thereafter, written notice in an
Officer’s Certificate of any event which with the giving of notice or lapse of
time, or both, would become an Event of Servicing Termination under Section 7.1.
The Seller shall deliver to the Owner Trustee, the Indenture Trustee and each
Rating Agency promptly after having obtained knowledge thereof, but in no event
later than five (5) Business Days thereafter, written notice in an
Officer’s Certificate of any event which with the giving of notice or lapse of
time, or both, would become an Event of Servicing Termination under
clause (a)(ii) of Section 7.1.

          (c) The
Servicer shall cause each Reporting Subcontractor to deliver to the Depositor
an assessment of compliance and accountant’s attestation as and when provided
in paragraph (a)(ii) of this Section 3.10 and Section 3.11. The
Servicer shall execute (provided the Servicer is not an Affiliate of the
Depositor) (and shall cause each Reporting Subcontractor to execute) a reliance
certificate to enable the Certification Parties to rely upon each (i) annual
report on assessments of compliance with servicing criteria provided pursuant
to Section 3.10 and (ii) accountant’s report provided pursuant to Section
3.10 and shall include a certification that each such annual compliance
statement or report discloses any deficiencies or defaults described to the
registered public accountants of such Person to enable such accountants to
render the certificates provided for in Section 3.11.

          (d) In
the event the Servicer, any subservicer or Reporting Subcontractor is
terminated or resigns during the term of this Agreement, such Person shall
provide the documents and information pursuant to Section 3.10 and Section
3.11 with respect to the period of time it was subject to this Agreement or
provided services with respect to the Trust or the Receivables. Notwithstanding
anything to the contrary contained herein, if the Servicer has exercised
commercially reasonable efforts to obtain any assessment or attestation
required hereunder from a Reporting Subcontractor, the failure by the Reporting
Subcontractor to provide such attestation on or assessment shall not constitute
a breach hereunder by the Servicer.

          (e) Notwithstanding
anything in this Section 3.10 to the contrary, any certification,
assessment of compliance or accountant’s attestation required by this Section
3.10 may be replaced by any similar certification, assessment or
attestation using other procedures or attestation standards which are now or in
the future in use by servicers of comparable assets, and which otherwise comply
with any rule, regulation, “no action” letter, telephone interpretation or
similar guidance promulgated by the Commission.

          SECTION
3.11 Annual Independent Certified Public Accountant’s Report. The
Servicer shall cause a firm of independent certified public accountants, who
may also render other services to the Servicer, the Seller or the Depositor, to
deliver to the Owner Trustee and the Indenture Trustee within 90 days after the
end of each fiscal year of the Issuer (or if such day is not a Business Day,
the next Business Day) beginning March 30, 2008 with respect to the prior
calendar year (or such shorter period in the case of the first such report) the
attestation report that would be required to be filed in respect of the Trust
under the Exchange Act if periodic reports under Section 15(d) of the
Exchange Act, or any successor provision thereto, were required to be filed in
respect of the Trust. Such attestation shall be in accordance with Rules
1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the
Exchange Act, including, without 

13

limitation
that in the event that an overall opinion cannot be expressed, such registered
public accounting firm shall state in such report why it was unable to express
such an opinion. The certification required by this paragraph may be replaced
by any similar certification using other procedures or attestation standards
which are now or in the future in use by servicers of comparable assets, and
which otherwise comply with any rule, regulation, “no action” letter, telephone
interpretation or similar guidance promulgated by the Commission.

          SECTION
3.12 Access to Certain Documentation and Information Regarding Receivables.
The Servicer shall provide to the Certificateholders, the Indenture Trustee and
the Noteholders access to the Receivable Files in such cases where the
Certificateholders, the Indenture Trustee or the Noteholders shall be required
by applicable statutes or regulations to review such documentation. Access
shall be afforded without charge, but only upon reasonable request and during
the normal business hours at the respective offices of the Servicer. Nothing in
this Section 3.12 shall affect the obligation of the Servicer to observe
any applicable law prohibiting disclosure of information regarding the
Obligors, and the failure of the Servicer to provide access to information as a
result of such obligation shall not constitute a breach of this Section 3.12.

          SECTION
3.13 Servicer Expenses. The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including
fees, expenses (including counsel fees and expenses) and disbursements of the
Owner Trustee and the Indenture Trustee, independent accountants, taxes imposed
on the Servicer and expenses incurred in connection with distributions and
reports to Noteholders and Certificateholders.

          SECTION
3.14 [Reserved]. 

          SECTION
3.15 1934 Act Filings; Sarbanes-Oxley Act Requirements. The Issuer
hereby authorizes the Servicer and the Depositor, or either of them, to
prepare, sign, certify and file any and all reports, statements and information
respecting the Issuer and/or the Notes required to be filed pursuant to the
Exchange Act, and the rules thereunder. To the extent any documents are
required to be filed or any certification is required to be made with respect
to the Issuer or the Notes pursuant to the Sarbanes-Oxley Act, the Issuer
hereby authorizes the Servicer and the Depositor, or either of them, to
prepare, sign, certify and file any such documents or certifications on behalf
of the Issuer.

ARTICLE IV

DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO
NOTEHOLDERS AND 

CERTIFICATEHOLDERS

          SECTION
4.1 Accounts. (a) The Servicer shall, prior to the Closing Date, cause
to be established and maintained an Eligible Deposit Account in the name “The
Bank of New York, as Indenture Trustee, as secured party from USAA Auto Owner
Trust 2007-1”, initially at the corporate trust department of the Indenture
Trustee, which shall be designated as the “Collection Account”. The Collection
Account shall be under the sole dominion and control of the Indenture Trustee; provided,
that the Servicer may make deposits to and direct the Indenture Trustee in
writing to make withdrawals from the Collection Account in accordance with the
terms of the 

14

Basic
Documents. The Collection Account will be established and maintained pursuant
to an account agreement which specifies New York law as the governing law. In
addition, the Collection Account shall be established and maintained at an
institution which agrees in writing that for so long as the Notes are outstanding
it will comply with entitlement orders (as defined in Article 8 of the UCC)
originated by the Indenture Trustee without further consent of the Issuer. All
monies deposited from time to time in the Collection Account shall be held by
the Indenture Trustee as secured party for the benefit of the Noteholders and,
after payment in full of the Notes, as agent of the Issuer and as part of the
Trust Property. All deposits to and withdrawals from the Collection Account
shall be made only upon the terms and conditions of the Basic Documents. No
checks shall be issued, printed or honored with respect to the Collection
Account.

          If
the Servicer is required to remit collections pursuant to the first sentence of
Section 4.2, all amounts held in the Collection Account shall, to
the extent permitted by applicable law, rules and regulations, be invested, as
directed in writing by the Servicer, by the bank or trust company then
maintaining the Collection Account in specified Permitted Investments that
mature not later than the Business Day immediately prior to the Payment Date
for the Collection Period to which such amounts relate (or in the case of the
Special Payment Date, the portion of such funds needed to make the final
payment on the Class A-1 Notes shall mature not later than the Business Day
immediately prior to the Special Payment Date) and such Permitted Investments
shall be held to maturity. All interest and other income (net of losses and
investment expenses) on funds on deposit in the Collection Account shall be
withdrawn from the Collection Account at the written direction of the Servicer
and shall be paid to the Servicer. The Indenture Trustee shall not be liable
for investment losses in Permitted Investments made in accordance with
directions from the Servicer. In the event that the Collection Account is no
longer to be maintained at the corporate trust department of the Indenture
Trustee, the Servicer shall, with the Indenture Trustee’s or Issuer’s
assistance as necessary, cause an Eligible Deposit Account to be established as
the Collection Account within ten (10) Business Days (or such longer period not
to exceed thirty (30) calendar days as to which each Rating Agency may consent)
and give written notice of the location and account number of such account to
the Indenture Trustee.

          (b) The
Servicer shall, prior to the Closing Date, cause to be established and
maintained an Eligible Deposit Account in the name “The Bank of New York, as
Indenture Trustee, as secured party from USAA Auto Owner Trust 2007-1”,
initially at the corporate trust department of the Indenture Trustee, which
shall be designated as the “Principal Distribution Account”. The Principal
Distribution Account shall be under the sole dominion and control of the
Indenture Trustee; provided, that the Servicer may make
deposits to and direct the Indenture Trustee in writing to make withdrawals
from the Principal Distribution Account in accordance with the terms of the
Basic Documents. The Principal Distribution Account will be established and
maintained pursuant to an account agreement which specifies New York law as the
governing law. In addition, the Principal Distribution Account shall be
established and maintained at an institution which agrees in writing that for
so long as the Notes are outstanding it will comply with entitlement orders (as
defined in Article 8 of the UCC) originated by the Indenture Trustee without
further consent of the Issuer. All monies deposited from time to time in the
Principal Distribution Account shall be held by the Indenture Trustee as
secured party for the benefit of the Noteholders and, after payment in full of
the Notes, as agent of the Issuer and 

15

as part of the
Trust Property. All deposits to and withdrawals from the Principal Distribution
Account shall be made only upon the terms and conditions of the Basic
Documents.

          (c) [Reserved].

          SECTION
4.2 Collections. Except as provided below, the Servicer shall remit to
the Collection Account within two (2) Business Days of the receipt thereof
(i) all payments by or on behalf of the Obligors (but excluding Purchased
Receivables) and (ii) all Liquidation Proceeds, both as collected during
the Collection Period; provided that the Bank, so long as it is
acting as the Servicer and no Event of Servicing Termination has occurred and
is continuing, may make remittances of collections on a less frequent basis
than that specified in the immediately preceding sentence. It is understood
that such less frequent remittances may be made only on the specific terms and
conditions set forth below in this Section 4.2 and only for so long as
such terms and conditions are fulfilled. Accordingly, notwithstanding the
provisions of the first sentence of this Section 4.2, the Servicer shall
remit collections received during a Collection Period to the Collection Account
in immediately available funds by 10:00 a.m. New York City time on the Payment
Date (or in the case of the Special Payment Date, on the Special Payment Date),
but only for so long as the Monthly Remittance Condition is satisfied. The
Owner Trustee or the Indenture Trustee shall not be deemed to have knowledge of
any event or circumstance in the definition of Monthly Remittance Condition
that would require remittance by the Servicer to the Collection Account within
two (2) Business Days of receipt as aforesaid unless the Owner Trustee or the
Indenture Trustee has received written notice of such event or circumstance
from the Seller or the Servicer in an Officer’s Certificate or from the holders
of Notes evidencing not less than 25% of the principal amount of the Notes
Outstanding or from the Certificateholders of Certificates evidencing not less
than 25% of the Percentage Interests evidenced by the Certificates or a Trustee
Officer in the Corporate Trust Office with knowledge hereof or familiarity
herewith has actual knowledge of such event or circumstance. For purposes of
this Article IV the phrase “payments by or on behalf of Obligors” shall
mean payments made by Persons other than the Servicer or by other means.

          SECTION
4.3 Application of Collections. For the purposes of this Agreement, as
of the close of business on the last day of each Collection Period, all
collections for the Collection Period with respect to each Receivable (other
than a Purchased Receivable) shall be applied by the Servicer first to the
amount of interest accrued on such Receivable to the date of receipt, then to
reduce the scheduled principal amount outstanding on the Receivable to the
extent of the remaining scheduled payment and then to any outstanding fees
under the terms of the Receivable. Amounts paid by the Depositor, the Seller or
the Servicer in respect of Purchased Receivables shall be allocated first to
any interest accrued on the related Receivable and then to the Principal
Balance of the related Receivable.

          SECTION
4.4 Advances. (b) As of each Determination Date, the Servicer shall make
a payment with respect to each Receivable (other than a Defaulted Receivable)
equal to the excess, if any, of (x) the product of the Principal Balance
of such Receivable as of the first day of the related Collection Period and
one-twelfth of the Annual Percentage Rate (as adjusted downward, as the case
may be, in accordance with the Servicemembers Civil Relief Act or pursuant to Section
3.2) on such Receivable (calculated on the basis of a 360-day year of
twelve 30-day months), over (y) the interest actually received by the
Servicer with respect to such Receivable 

16

from the
Obligor or from payment of the Purchase Amount during or with respect to such
Collection Period. The Servicer shall deposit all such Advances into the
Collection Account in immediately available funds no later than, 10:00 a.m. New
York City time, on the Payment Date. Notwithstanding the foregoing, the
Servicer may elect not to make any Advance with respect to a Receivable to the
extent that the Servicer, in its sole discretion, shall determine that such
Advance is not recoverable from subsequent payments on such Receivable or from
withdrawals from the Reserve Account. To the extent that the amount set forth
in clause (y) above with respect to a Receivable is greater than the amount set
forth in clause (x) above with respect thereto, such excess amount shall be
distributed to the Servicer pursuant to Section 4.6(b). In addition, in
the event that a Receivable becomes a Defaulted Receivable, Outstanding
Advances in respect of that Receivable shall be reimbursed to the extent of
interest Collections with respect to such Receivable and, if such amounts are
insufficient, from amounts on deposit in the Reserve Account, and if such
amounts are not sufficient, from amounts on deposit in the Collection Account.
The Servicer shall not make any advance with respect to principal of
Receivables. 

          (b)
The Servicer shall deposit in the Collection Account the aggregate Advances on
the Receivables pursuant to Section 4.4(a). To the extent that the
Servicer fails to make an Advance pursuant to Section 4.4(a) on the date
required, the Servicer shall so notify the Issuer and the Indenture Trustee in
writing specifying the amount of the Advance and the Receivable to which such
Advance related, and the Indenture Trustee shall withdraw such amount (or, if
determinable by the Servicer, such portion of such amount as does not represent
advances for delinquent interest) from the Reserve Account and deposit such
amount in the Collection Account. 

          SECTION
4.5 Additional Deposits. (a) The Depositor and the Servicer shall
deposit in the Collection Account the aggregate Purchase Amounts with respect
to Purchased Receivables pursuant to Sections 2.3 and 3.7,
respectively, and the Servicer shall deposit therein all Purchase Amounts to be
paid under Section 8.1. All such deposits with respect to a Collection
Period shall be made, in immediately available funds no later than 10:00 a.m.
New York City time, on the Payment Date related to such Collection Period (or
in the case of the Special Payment Date, the Special Payment Date). 

          (b)
The Indenture Trustee, in accordance with the written instructions of the
Servicer, shall, on each Payment Date, and the Special Payment Date to the
extent such amounts are for distribution to the Class A-1 Notes, make a
withdrawal from the Reserve Account (i) first, in an amount equal to the
Reserve Account Excess Amount for such Payment Date and (ii) second, in an
amount equal to the amount (if positive) calculated by the Servicer pursuant to
the second sentence of Section 4.6(b). 

          SECTION
4.6 Distributions. (a) On each Payment Date, the Indenture Trustee shall
cause the transfer and distribution of the amounts set forth in the Servicer’s
Certificate for such Payment Date from the Collection Account to the Servicer,
in immediately available funds, for repayment of Outstanding Advances pursuant
to Section 4.4(a). 

          (b)
The Servicer shall on or before each Determination Date calculate the Available
Collections, the Reserve Account Excess Amount, the Available Funds, the
Servicing Fee and all unpaid Servicing Fees from prior Collection Periods, if
any, the Accrued Class A Note Interest, 

17

the Accrued
Class B Note Interest, the First Priority Principal Payment, if any, and the
Regular Principal Distribution Amount. In addition, the Servicer shall
calculate on or before each Determination Date the difference, if any, between
the Total Required Payment and the Available Funds and, pursuant to Section
4.5(b), the Indenture Trustee shall withdraw funds from the Reserve Account
in an amount equal to the lesser of such difference (if positive) or the
balance of such Reserve Account. 

          (c)
On each Payment Date, the Servicer shall instruct the Indenture Trustee (based
on the information contained in the Servicer’s Certificate delivered on or
before the related Determination Date pursuant to Section 3.9), to make
the following withdrawals from the Collection Account and make deposits,
distributions and payments, to the extent of Available Funds for such Payment
Date (plus funds, if any, deposited in the Collection Account from the Reserve
Account pursuant to Section 4.5(b)), in the following order of priority:

	
 

	
 

	
 

	
          (i)
  first, to the Servicer, the
  Servicing Fee and all unpaid Servicing Fees from prior Collection Periods; 

	
 

	
 

	
 

	
          (ii)
  second, to the Class A
  Noteholders, the Accrued Class A Note Interest for such Payment Date; provided that if there are not
  sufficient funds available to pay the entire amount of the Accrued Class A
  Note Interest, the amounts available shall be applied to the payment of such
  interest on the Class A Notes on a pro rata basis; 

	
 

	
 

	
 

	
          (iii)
  third, to the Class A
  Noteholders, the First Priority Principal Payment, if any, for such Payment
  Date to be distributed in the same priority as described under Section 4.6(d)
  of this Agreement; 

	
 

	
 

	
 

	
          (iv)
  fourth, to the Class B
  Noteholders, the Accrued Class B Note Interest for such Payment Date; 

	
 

	
 

	
 

	
          (v)
  fifth, to the Principal
  Distribution Account, the Regular Principal Distribution Amount (less any
  amounts distributed under clause (iii) above) for such Payment Date; 

	
 

	
 

	
 

	
          (vi)
  sixth, if such Payment Date is
  a Final Scheduled Payment Date for any Class, to the Principal Distribution
  Account, the amount necessary to reduce the remaining principal amount of
  such Class to zero after giving effect to the amount, if any, to be applied
  on such Payment Date to such Class from funds deposited pursuant to clauses
  (iii) and (v) above; 

	
 

	
 

	
 

	
          (vii)
  seventh, to the Reserve
  Account, the amount, if any, required to reinstate the amount in the Reserve
  Account up to the Specified Reserve Balance for such Payment Date; 

	
 

	
 

	
 

	
          (viii)
  eighth, to the Indenture
  Trustee and the Owner Trustee, all amounts due for fees, expenses and
  indemnification pursuant to Section 6.7 of the Indenture and Section
  7.1 of the Trust Agreement, respectively, and not previously paid; 

18

	
 

	
 

	
 

	
          (ix)
  ninth, to the Servicer, the
  legal expenses and costs, if any, payable pursuant to Sections 6.4(b)
  and (c), and 

	
 

	
 

	
 

	
          (x)
  tenth, to the
  Certificateholder, any remaining Available Funds for such Payment Date. 

	
 

	
 

	
 

	
Notwithstanding
  the foregoing in this Section 4.6(c),

	
 

	
 

	
 

	
          (A)
if the Notes have been accelerated after an Event of Default specified in
Section 5.1(iii) of the Indenture, then the Available Funds shall instead be
applied in the following order of priority:  

	
 

	
 

	
 

	
(1) to the
  Indenture Trustee and the Owner Trustee, all amounts due for fees, expenses
  and indemnification under Section 6.7 of the Indenture, Section 7.1
  of the Trust Agreement and Section 6.2 of this Agreement, respectively, and
  not previously paid; 

	
 

	
 

	
 

	
(2) to the
  Servicer, the Servicing Fee and all unpaid Servicing Fees from prior Collection
  Periods; 

	
 

	
 

	
 

	
(3) to the
  Class A Noteholders, the Accrued Class A Note Interest for such Payment Date;
  provided that if there are not
  sufficient funds available to pay the entire amount of the Accrued Class A
  Note Interest, the amounts available shall be applied to the payment of such
  interest on the Class A Notes on a pro rata basis; 

	
 

	
 

	
 

	
(4) to the
  Class A Noteholders, the First Priority Principal Payment, if any, for such
  Payment Date to be distributed in the same manner as described under Section
  4.6(d) of this Agreement; 

	
 

	
 

	
 

	
(5) to the
  Class B Noteholders, the Accrued Class B Note Interest for such Payment Date;
  

	
 

	
 

	
 

	
(6) first,
  to the holders of the Class A-1 Notes in reduction of principal until the
  principal amount of the Class A-1 Notes has been paid in full and then to the
  holders of the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
  on a pro rata basis in
  reduction of principal until the principal amount of such Class A Notes has
  been paid in full; 

	
 

	
 

	
 

	
(7) to the
  holders of the Class B Notes in reduction of principal until the principal
  amount of the Class B Notes has been paid in full; 

	
 

	
 

	
 

	
(8) to the
  Servicer, legal expenses and costs incurred pursuant to Sections 6.4(b)
  and (c); and 

19

	
 

	
 

	
 

	
(9) to the
  Certificateholder, any remaining Available Funds for such Payment Date; and

	
 

	
 

	
 

	
          (B)
  if the Notes have been accelerated after an Event of Default specified in Section
  5.1(i), (ii), (iv) or (v) of the Indenture, then the
  Available Funds shall instead be applied in the following order of priority: 

	
 

	
 

	
 

	
(1) to the
  Indenture Trustee and the Owner Trustee, all amounts due for fees, expenses
  and indemnification under Section 6.7 of the Indenture, Section 7.1
  of the Trust Agreement and Section 6.2 of this Agreement,
  respectively, and not previously paid; 

	
 

	
 

	
 

	
(2) to the
  Servicer, the Servicing Fee and all unpaid Servicing Fees from prior
  Collection Periods; 

	
 

	
 

	
 

	
(3) to the
  Class A Noteholders, the Accrued Class A Note Interest for such Payment Date;
  provided that if there are not
  sufficient funds available to pay the entire amount of the Accrued Class A
  Note Interest, the amounts available shall be applied to the payment of such
  interest on the Class A Notes on a pro
  rata basis; 

	
 

	
 

	
 

	
(4) first,
  to the holders of the Class A-1 Notes in reduction of principal until the
  principal amount of the Class A-1 Notes has been paid in full and then to the
  holders of the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
  on a pro rata basis in
  reduction of principal until the principal amount of such Class A Notes has
  been paid in full; 

	
 

	
 

	
 

	
(5) to the
  Class B Noteholders, first, the Accrued Class B Note Interest for such
  Payment Date and second, in reduction of principal until the principal amount
  of the Class B Notes has been paid in full; 

	
 

	
 

	
 

	
(6) to the
  Servicer, legal expenses and costs incurred pursuant to Sections 6.4(b)
  and (c); and 

	
 

	
 

	
 

	
(7) to the
  Certificateholder, any remaining Available Funds for such Payment Date. 

          (d)
If the Notes have not been accelerated because of an Event of Default, then on
each Payment Date the Servicer shall instruct the Indenture Trustee (based on
the information contained in the Servicer’s Certificate delivered on or before
the related Determination Date pursuant to Section 3.9), to withdraw the
funds deposited in the Principal Distribution Account on such Payment Date and
make distributions and payments in the following order of priority:

	
 

	
 

	
 

	
          (i)
  first, to the holders of the
  Class A-1 Notes on a pro rata basis
  in reduction of principal until the principal amount of the Class A-1 Notes
  has been paid in full;

20

	
 

	
 

	
 

	
          (ii)
  second, to the holders of the
  Class A-2 Notes on a pro rata
  basis in reduction of principal until the principal amount of the Class A-2
  Notes has been paid in full; 

	
 

	
 

	
 

	
          (iii)
  third, to the holders of the
  Class A-3 Notes on a pro rata
  basis in reduction of principal until the principal amount of the Class A-3
  Notes has been paid in full; 

	
 

	
 

	
 

	
          (iv)
  fourth, to the holders of the
  Class A-4 Notes on a pro rata
  basis in reduction of principal until the principal amount of the Class A-4
  Notes has been paid in full; and 

	
 

	
 

	
 

	
          (v)
  fifth, to the holders of the
  Class B Notes on a pro rata
  basis in reduction of principal until the principal amount of the Class B
  Notes has been paid in full. 

Any funds
remaining on deposit in the Principal Distribution Account shall be paid to the
Indenture Trustee and the Owner Trustee to the extent, if any, of amounts due
to them hereunder that are unpaid , then to the Servicer any amounts payable
pursuant to Sections 6.4(b) and (c) and then to the Certificateholder.  

          If
the Notes have been accelerated because of an Event of Default, then on each
Payment Date the Servicer shall instruct the Indenture Trustee (based on the
information contained in the Servicer’s Certificate delivered on or before the
related Determination Date pursuant to Section 3.9), to withdraw the
funds deposited in the Principal Distribution Account on such Payment Date and
pay them to the holders of the Class A-1 Notes until the principal amount of
the Class A-1 Notes has been paid in full, then to the holders of the Class A-2
Notes, Class A-3 Notes and Class A-4 Notes on a pro rata basis in reduction of principal until the principal
amount of the Class A Notes has been paid in full and then to the holders of
the Class B Notes in reduction of principal until the principal amount of the
Class B Notes has been paid in full. 

          (e)
Notwithstanding anything to the contrary continued herein, with respect to the
Special Payment Date, the instructions provided by the Servicer to the
Indenture Trustee pursuant to Section 4.6(c) and Section 4.6(d)
(to be provided in the Servicer’s Certificate delivered to the Indenture
Trustee on or before the related Determination Date pursuant to Section 3.9)
shall specify the distributions that shall be made from the Collection Account
and the Principal Distribution Account in respect of the Class A-1 Notes on the
Special Payment Date. The portion of the Available Funds (plus funds, if any,
deposited in the Collection Account from the Reserve Account pursuant to Section
4.5(b)) distributed from the Collection Account and the Principal
Distribution Account in respect of the Class A-1 Notes on the Special Payment
Date shall be allocated pursuant to the Servicer’s Certificate in the order and
priority set forth in Section 4.6(c) and Section 4.6(d) as though
such amounts were to be distributed on the July 2008 Payment Date. 

          SECTION
4.7 Reserve Account. (a) (i) The Servicer shall, prior to the Closing
Date, cause to be established and maintained an Eligible Deposit Account in the
name “The Bank of New York, as Indenture Trustee, as secured party from USAA
Auto Owner Trust 2007-1”, initially at the corporate trust department of the
Indenture Trustee, which shall be designated as 

21

the “Reserve
Account” (the Reserve Account, together with the Collection Account (including
the Principal Distribution Account), the “Trust Accounts”). The Reserve
Account shall be under the sole dominion and control of the Indenture Trustee; provided, that the Servicer may make
deposits to the Reserve Account in accordance with the Basic Documents. The
Reserve Account will be established and maintained pursuant to an account
agreement which specifies New York law as the governing law. In addition, the
Reserve Account shall be established and maintained at an institution which
agrees in writing that for so long as the Notes are Outstanding it will comply
with entitlement orders (as defined in Article 8 of the UCC) originated by the
Indenture Trustee without further consent of the Issuer. On the Closing Date,
the Depositor shall deposit the Reserve Initial Deposit into the Reserve Account.
The Reserve Account and all amounts, securities, investments, financial assets
and other property deposited in or credited to the Reserve Account (such
amounts, the “Reserve Account Property”) shall be held by the Indenture
Trustee as secured party for the benefit of the Noteholders and, after payment
in full of the Notes, as agent of the Owner Trustee and as part of the Trust
Property, and all deposits to and withdrawals from there from shall be made
only upon the terms and conditions of the Basic Documents. No checks shall be
issued, printed or honored with respect to the Collection Account. 

          The
Reserve Account Property shall, to the extent permitted by applicable law,
rules and regulations, be invested, as directed in writing by holders of Certificates
holding not less than a majority of the Percentage Interests evidenced by the
Certificates, by the bank or trust company then maintaining the Reserve Account
in Permitted Investments that mature not later than the next Payment Date (or
in the case of the Special Payment Date, the portion of such funds needed to
make final payment on the Class A-1 Notes shall mature not later than the
Special Payment Date) or such later date that satisfies the Rating Agency
Condition, and such Permitted Investments shall be held to maturity. If The
Bank of New York is the Indenture Trustee, in the absence of written direction,
all funds shall be retained uninvested. Additionally, amounts in the Reserve
Account will be retained uninvested in the circumstances described in Section
8.3(c) of the Indenture. All interest and other income (net of losses and
investment expenses) on funds on deposit in the Reserve Account shall be
deposited therein. The Indenture Trustee shall not be liable for investment
losses in Permitted Investments made in accordance with directions from the
investment instructions received from holders of the Certificates as provided
above. In the event the Reserve Account is no longer to be maintained at the
corporate trust department of the Indenture Trustee, the Servicer shall, with
the Indenture Trustee’s or Owner Trustee’s assistance as necessary, cause an
Eligible Deposit Account to be established as the Reserve Account within ten
(10) Business Days (or such longer period not to exceed thirty (30) calendar
days as to which each Rating Agency may consent) and give written notice of the
location and account number of such account to the Indenture Trustee. 

          (ii)
With respect to Reserve Account Property: 

	
 

	
 

	
 

	
          (A)
  any Reserve Account Property that is a “financial asset” as defined in
  Section 8-102(a)(9) of the UCC shall be physically delivered to, or credited
  to an account in the name of, the institution maintaining the Reserve Account
  in accordance with such institution’s customary procedures such that such
  institution establishes a “securities entitlement” in favor of the Indenture
  Trustee with respect thereto; and 

22

	
 

	
 

	
 

	
(B) any
  Reserve Account Property that is held in deposit accounts shall be held
  solely in the name of the Indenture Trustee at one or more depository
  institutions having the Required Rating and each such deposit account shall
  be subject to the exclusive custody and control of the Indenture Trustee and
  the Indenture Trustee shall have sole signature authority with respect
  thereto.

	
 

	
 

	
 

	
          (ii) Except
  for any deposit accounts specified in clause (ii)(B) above, the Reserve
  Account shall only be invested in securities or in other assets which the
  institution maintaining the Reserve Account agrees to treat as “financial
  assets” as defined in Section 8-102(a)(9) of the UCC. 

          (b)
If the Servicer pursuant to Section 4.4 determines on or before any
Determination Date that it is required to make an Advance and does not do so
from its own funds, the Servicer shall promptly instruct the Indenture Trustee
in writing to draw funds, in an amount specified by the Servicer, from the
Reserve Account and deposit them in the Collection Account to cover any
shortfall. Such payment shall be deemed to have been made by the Servicer
pursuant to Section 4.4 for purposes of making distributions pursuant to this
Agreement, but shall not otherwise satisfy the Servicer’s obligation to deliver
the amount of the Advances to the Indenture Trustee, and the Servicer shall
within two (2) Business Days replace any funds in the Reserve Account so used.  

          (c)
Following the payment in full of the aggregate principal amount of the Notes
and of all other amounts owing or to be distributed hereunder or under the
Indenture or the Trust Agreement to Noteholders, the Indenture Trustee and the
Owner Trustee, any remaining Reserve Account Property shall be distributed to
the Certificateholder. 

          SECTION
4.8 Net Deposits. For so long as (i) the Bank shall be the Servicer and
(ii) the Servicer shall be entitled pursuant to Section 4.2 to remit
collections on a monthly basis rather than within two (2) Business Days of
receipt, the Bank may make the remittances pursuant to Sections 4.2 and 4.5
above, net of amounts to be distributed to the Bank pursuant to Section
4.6(c). Nonetheless, the Servicer shall account for all of the above
described remittances and distributions except for the Supplemental Servicing
Fee in the Servicer’s Certificate as if the amounts were deposited and/or
transferred separately. 

          SECTION
4.9 Statements to Noteholders and Certificateholders. On the Business
Day prior to each Payment Date (or in the case of the Special Payment Date and
with respect to the Class A-1 Noteholders, on the Business Day prior to the Special
Payment Date), the Servicer shall provide to the Indenture Trustee (with copies
to the Rating Agencies, each Note Paying Agent and the Depositor) for the
Indenture Trustee to make available to each Noteholder of record as of the most
recent Record Date and to the Owner Trustee for the Owner Trustee to forward to
each Certificateholder of record as of the most recent Record Date a statement
based on information in the Servicer’s Certificate furnished pursuant to Section
3.9, setting forth for the Collection Period relating to such Payment Date
the following information as to the Notes and the Certificates to the extent
applicable: 

	
 

	
 

	
 

	
          (i)
  the amount of such distribution allocable to principal allocable to the Notes
  and to the Certificates; 

23

	
 

	
 

	
 

	
          (ii)
  the amount of such distribution allocable to interest allocable to the Notes
  and the Certificates; 

	
 

	
 

	
 

	
          (iii)
  the amount of such distribution allocable to draws from the Reserve Account,
  if any; 

	
 

	
 

	
 

	
          (iv)
  the number of receivables and the Pool Balance as of the beginning of
  business on the first day of the preceding Collection Period and the close of
  business on the last day of the preceding Collection Period; 

	
 

	
 

	
 

	
          (v)
  the Specified Reserve Balance as of such Payment Date; 

	
 

	
 

	
 

	
          (vi)
  the amount of the Servicing Fee paid to the Servicer with respect to the
  related Collection Period and the amount of any unpaid Servicing Fees and the
  change in such amount from that of the prior Payment Date; 

	
 

	
 

	
 

	
          (vii)
  the amounts of the Class A Noteholders’ Interest Carryover Shortfall and the
  Class B Noteholders’ Interest Carryover Shortfall, if any, on such Payment
  Date and the change in such amounts from the preceding Payment Date; 

	
 

	
 

	
 

	
          (viii)
  the aggregate outstanding principal amount of each Class of Notes and the
  Note Pool Factor for each Class of Notes as of such Payment Date; 

	
 

	
 

	
 

	
          (ix)
  the amount of any previously due and unpaid payment of principal of the
  Notes, and the change in such amount from that of the prior Payment Date; 

	
 

	
 

	
 

	
          (x)
  [reserved]; 

	
 

	
 

	
 

	
          (xi)
  the balance of the Reserve Account on such Payment Date, after giving effect
  to distributions made on such Payment Date and the change in such balance
  from the preceding Payment Date; 

	
 

	
 

	
 

	
          (xii)
  [reserved]; 

	
 

	
 

	
 

	
          (xiii)
  the aggregate Purchase Amount of Receivables repurchased by the Depositor or
  the Seller or purchased by the Servicer, if any, with respect to the related
  Collection Period; 

	
 

	
 

	
 

	
          (xiv)
  the amount of Advances, if any, on such Payment Date; 

	
 

	
 

	
 

	
          (xv)
  the aggregate Collections for the related Collection Period; 

	
 

	
 

	
 

	
          (xvi)
  the aggregate Principal Balance of the Receivables that became designated as
  Defaulted Receivables during the related Collection Period; 

	
 

	
 

	
 

	
          (xvii)
  the applicable Record Dates, Interest Period and Determination Dates for
  calculating distributions and the actual Payment Date; 

24

	
 

	
 

	
 

	
          (xviii)
  the amount of Collections received on the Receivables and any other assets of
  the Trust for the related Collection Period and any fees and expenses of the
  trust paid with respect to the Collection Period; 

	
 

	
 

	
 

	
          (xix)
  delinquency and loss information for the Receivables for the related
  Collection Period; and 

	
 

	
 

	
 

	
          (xx)
  information on any coverage ratios or performance triggers, if applicable,
  including the Specified Reserve Reduction Trigger, and an indication if such
  triggers have been reached. 

          In
addition, such statements may be made available to the Noteholders and
Certificateholders of record by being posted by the Indenture Trustee on its
website at www.bnyinvestorreporting.com. Access to such statements
posted to such website shall be limited to Noteholders and Certificateholders
only. The Indenture Trustee shall take whatever steps it believes in its sole
discretion to be necessary to so limit access to such statements on such
website. 

          Each
amount set forth on the Payment Date statement pursuant to clauses (i), (ii),
(vi), (vii) and (ix) above shall be expressed as a dollar amount per $1,000 of
original principal amount of a Note. 

ARTICLE V

THE DEPOSITOR

          SECTION
5.1 Representations, Warranties and Covenants of Depositor. 

          (a)
The Depositor makes the following representations and warranties on which the
Issuer is deemed to have relied in acquiring the Trust Property. The
representations and warranties speak as of the execution and delivery of this
Agreement and shall survive the conveyance of the Trust Property, by the
Depositor to the Issuer and the pledge thereof by the Issuer to the Indenture
Trustee pursuant to the Indenture: 

          (i)
Organization and Good Standing. The Depositor is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Delaware, with all requisite power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire and own the Receivables. 

          (ii)
Power and Authority. The Depositor has all requisite power and authority
to execute and deliver this Agreement and the other Basic Documents to which it
is a party and to carry out their terms; the Depositor has full power and
authority to sell and assign the property to be sold, and assigned to and
deposited with the Issuer, and the Depositor shall have duly authorized such
sale and assignment to the Issuer by all necessary limited liability company
action; and the execution, delivery, and performance of this Agreement and the
other Basic Documents to which the Depositor is a party have been duly authorized,
executed and delivered by the Depositor by all necessary limited liability
company action. 

25

          (iii)
Binding Obligations. This Agreement, when duly executed and delivered by
the other parties hereto, constitutes a legal, valid, and binding obligation of
the Depositor enforceable against the Depositor in accordance with its terms,
except as the enforceability hereof may be limited by bankruptcy, insolvency,
reorganization, or other similar laws affecting creditors’ rights in general and
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law. 

          (iv)
No Violation. The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which the Depositor is a party and
the fulfillment of the terms hereof and thereof do not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the limited liability
company agreement of the Depositor, or conflict with or breach any of the
material terms or provisions of, or constitute (with or without notice or lapse
of time) a default under, any indenture, agreement, or other instrument to
which the Depositor is a party or by which it is bound, (ii) result in the
creation or imposition of any lien upon any of its properties pursuant to the
terms of any such indenture, agreement, or other instrument, or (iii) violate
any law or, to the best of the Depositor’s knowledge, any order, rule, or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties. 

          (v)
No Proceedings. There are no proceedings or investigations pending, or,
to the best of the Depositor’s knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities or (iv) relating to the Depositor
and which might adversely affect the federal income tax attributes of the
Securities. 

          (vi)
Security Interest Representation. This Agreement creates a valid and
continuing security interest (as defined in the applicable UCC) in the
Receivables that is in existence in favor of the Issuer, which security
interest is prior to all other liens, and is enforceable as such as against
creditors of and purchasers from the Depositor, which security interest will be
assigned to the Indenture Trustee pursuant to the Indenture. Other than the
security interest granted to the Issuer, the Depositor has not pledged,
assigned, transferred or sold, a security interest in, or otherwise conveyed
any of the Receivables, the Depositor has not authorized the filing of and is
not aware of any financing statements against the Depositor that include a
description of such Receivables other than the financing statements in favor of
the Issuer and the Indenture Trustee, and the Depositor is not aware of any
judgment or tax lien filing against it. 

          (b)
The Depositor covenants that it shall provide, or cause the Servicer to
provide, in a timely manner the certifications required by Section 302
of the Sarbanes-Oxley Act of 2002. 

26

          SECTION
5.2 Liability of Depositor; Indemnities. The Depositor shall be liable
in accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement, and hereby agrees to the
following: 

          (a)
The Depositor shall indemnify, defend, and hold harmless the Issuer, the Owner
Trustee and the Indenture Trustee from and against any taxes that may at any
time be asserted against any such Person with respect to, and as of the date
of, the conveyance of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege, or
license taxes (but, in the case of the Issuer, not including any taxes asserted
with respect to ownership of the Receivables or federal or state income taxes
arising out of the transactions contemplated by this Agreement and the other
Basic Documents) and costs and expenses in defending against the same. 

          (b)
The Depositor shall indemnify, defend, and hold harmless the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders and the Certificateholders from
and against any loss, liability or expense incurred by reason of (i) the
Depositor’s willful misfeasance, bad faith, or negligence in the performance of
its duties under this Agreement, or by reason of reckless disregard of its
obligations and duties under this Agreement and (ii) the Depositor’s violation
of federal or State securities laws in connection with the registration or the
sale of the Notes or the Certificates. 

          (c)
Indemnification under this Section 5.2 shall survive the resignation or
removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and shall include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation. If the Depositor shall have
made any indemnity payments pursuant to this Section 5.2 and the Person
to or on behalf of whom such payments are made thereafter shall collect any of
such amounts from others, such Person shall promptly repay such amounts to the
Depositor, without interest. 

          SECTION
5.3 Merger or Consolidation of, or Assumption of the Obligations of
Depositor. Any Person (i) into which the Depositor may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Depositor shall be a party, or (iii) succeeding to the business of
the Depositor, which Person in any of the foregoing cases executes an agreement
of assumption to perform every obligation of the Depositor under this
Agreement, will be the successor to the Depositor under this Agreement without
the execution or filing of any document or any further act on the part of any
of the parties to this Agreement. The Depositor shall provide notice of any
merger, conversion, consolidation, or succession pursuant to this Section 5.3 to the Rating Agencies.  

          SECTION
5.4 Limitation on Liability of Depositor and Others. The Depositor and
any officer or employee or agent of the Depositor may rely in good faith on the
advice of counsel or on any document of any kind, prima facie properly executed
and submitted by any Person respecting any matters arising hereunder. The
Depositor shall not be under any obligation to appear in, prosecute, or defend
any legal action that shall not be incidental to its obligations under this
Agreement, and that in its opinion may involve it in any expense or liability. 

27

          SECTION
5.5 Depositor May Own Notes or Certificates. The Depositor, and any
Affiliate of the Depositor, may in its individual or any other capacity become
the owner or pledgee of Notes or Certificates with the same rights as it would
have if it were not the Depositor or an Affiliate thereof, except as otherwise
expressly provided herein or in the other Basic Documents. Except as set forth
herein or in the other Basic Documents, Notes and Certificates so owned by or
pledged to the Depositor or any such Affiliate shall have an equal and
proportionate benefit under the provisions of this Agreement and the other
Basic Documents, without preference, priority, or distinction as among all of
the Notes and Certificates. 

ARTICLE VI

THE SERVICER

          SECTION
6.1 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Trust Property. The representations speak as of the execution and delivery of
this Agreement and shall survive the conveyance of the Trust Property to the
Issuer and the pledge thereof by the Issuer pursuant to the Indenture: 

          (a)
Organization and Good Standing. The Servicer has been duly organized and
is validly existing as a federally chartered savings association or corporation
and is in good standing under the laws of the United States of America or its
state of incorporation, with power and authority to own its properties and to
conduct its business as such properties are currently owned and such business
is presently conducted, and had at all relevant times, and has, power,
authority, and legal right to acquire, own, sell, and service the Receivables
and to hold the Receivable Files as custodian on behalf of the Indenture
Trustee. 

          (b)
Power and Authority. The Servicer has the power and authority to execute
and deliver this Agreement and the other Basic Documents to which it is a party
and to carry out their terms; and the execution, delivery, and performance of
this Agreement and the other Basic Documents to which it is a party shall have
been duly authorized, executed and delivered by the Servicer by all necessary
corporate action. 

          (c)
Binding Obligations. This Agreement constitutes a legal, valid, and
binding obligation of the Servicer enforceable in accordance with its terms
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles
relating to or affecting the enforcement of creditors’ rights in general and by
general principles of equity regardless of whether such enforceability is
considered in a proceeding in equity or law. 

          (d)
No Violation. The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which the Servicer is a party and
the fulfillment of the terms hereof do not conflict with, result in any breach
of any of the terms and provisions of, nor constitute (i) (with or without
notice or lapse of time) a default under, the articles of association or bylaws
of the Servicer, or conflict with or breach any of the material terms or
provisions of, or constitute (with or without notice or lapse of time) a
default under, any indenture, agreement, or other instrument to which the
Servicer is a party or by which it shall be 

28

bound, (ii)
result in the creation or imposition of any lien upon any of its properties
pursuant to the terms of any such indenture, agreement, or other instrument or
(iii) violate any law or, to the best of the Servicer’s knowledge, any order,
rule, or regulation applicable to the Servicer of any court or of any federal
or state regulatory body, administrative agency, or other governmental
instrumentality having jurisdiction over the Servicer or its properties. 

          (e)
No Proceedings. There are no proceedings or investigations pending, or
to the best of the Servicer’s knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Servicer or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement and the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Servicer of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities, or (iv) relating to the Servicer
and which might adversely affect the federal income tax attributes of the
Securities. 

          (f)
Fidelity Bond. The Servicer maintains a fidelity bond in such form and
amount as is customary for banks acting as custodian of funds and documents in
respect of retail automotive installment sales contracts. 

          (g)
Qualifying Income. The Servicer will assist the Issuer in meeting its
responsibility under Section 2.4 of the Indenture and Section 2.11
of the Trust Agreement that at least 90% of the Issuer’s gross income for each
taxable year of the Issuer will constitute “qualifying income” under Section
7704(d) of the Internal Revenue Code of 1986, as amended in the form of
interest and gains from the receivables and other qualifying income. 

          SECTION
6.2 Indemnities of Servicer. The Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement, and hereby agrees to the following: 

          (a)
The Servicer shall defend, indemnify and hold harmless the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders, the Certificateholders and the
Depositor from and against any and all costs, expenses, losses, damages, claims
and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle. 

          (b)
The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner
Trustee, the Depositor and the Indenture Trustee from and against any taxes
that may at any time be asserted against any such Person with respect to the
transactions contemplated herein or in the other Basic Documents, if any,
including, without limitation, any sales, gross receipts, general corporation,
tangible personal property, privilege, or license taxes (but, in the case of
the Issuer, not including any taxes asserted with respect to, and as of the
date of, the conveyance of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, or asserted with respect to
ownership of the Receivables, or federal or state income taxes arising out of
the transactions contemplated by this Agreement and the other Basic Documents)
and costs and expenses in defending against the same. 

29

          (c)
The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders, the Certificateholders and the
Depositor from and against any and all costs, expenses, losses, claims,
damages, and liabilities to the extent that such cost, expense, loss, claim,
damage, or liability arose out of, or was imposed upon any such Person through,
the negligence, willful misfeasance, or bad faith of the Servicer in the
performance of its duties under this Agreement or any other Basic Document to
which it is a party, or by reason of reckless disregard of its obligations and
duties under this Agreement or any other Basic Document to which it is a party.

          (d)
The Servicer shall indemnify, defend, and hold harmless the Owner Trustee and
the Indenture Trustee, as applicable, from and against all costs, expenses,
losses, claims, damages, and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties contained herein
and in the other Basic Documents, if any, except to the extent that such cost,
expense, loss, claim, damage, or liability: (i) shall be due to the willful
misfeasance, bad faith, or negligence (except for errors in judgment) of the
Owner Trustee or the Indenture Trustee, as applicable; (ii) in the case of the
Owner Trustee, shall arise from the Owner Trustee’s breach of any of its
representations or warranties set forth in Section 6.9 of the Trust
Agreement or, in the case of the Indenture Trustee, from the Indenture
Trustee’s breach of any of its representations or warranties set forth in the
Indenture; or (iii) in the case of the Indenture Trustee, shall arise out of or
be incurred in connection with the performance by the Indenture Trustee of the
duties of a Successor Servicer hereunder. 

          (e)
Indemnification under this Section 6.2 by the Bank (or any successor
thereto pursuant to Section 7.2) as Servicer, with respect to the period
such Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination
of this Agreement or the resignation or removal of the Owner Trustee or the Indenture
Trustee and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Servicer shall have made any indemnity payments pursuant
to this Section 6.2 and the Person to or on behalf of whom such payments
are made thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Servicer, without interest. 

          SECTION
6.3 Merger or Consolidation of, or Assumption of the Obligations of Servicer.
Any Person (i) into which the Servicer may be merged or consolidated, (ii)
resulting from any merger, conversion, or consolidation to which the Servicer
shall be a party, (iii) succeeding to the business of the Servicer or (iv) 50%
or more of the equity of which is owned, directly or indirectly, by the United
Services Automobile Association, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Servicer
under this Agreement, will be the successor to the Servicer under this Agreement
without the execution or filing of any paper or any further act on the part of
any of the parties to this Agreement. The Servicer shall provide prior notice
of the effective date of any merger, conversion, consolidation or succession
pursuant to this Section 6.3 to the Rating Agencies, the Indenture
Trustee and the Depositor. The Servicer shall provide the Depositor in writing
such information as reasonably requested by the Depositor to comply with its
Exchange Act reporting obligations with respect to a successor Servicer. 

30

          SECTION
6.4 Limitation on Liability of Servicer and Others. (a) Neither the
Servicer nor any of the directors or officers or employees or agents of the
Servicer shall be under any liability to the Issuer, the Noteholders or the
Certificateholders, except as provided under this Agreement, for any action
taken or for refraining from the taking of any action pursuant to this
Agreement or for errors in judgment; provided,
however, that this provision
shall not protect the Servicer or any such Person against any liability that
would otherwise be imposed by reason of willful misfeasance or bad faith in the
performance of duties or by reason of reckless disregard of obligations and
duties under this Agreement, or by reason of negligence in the performance of
its duties under this Agreement. The Servicer and any director, officer or
employee or agent of the Servicer may rely in good faith on any Opinion of
Counsel or on any Officer’s Certificate of the Depositor or certificate of
auditors believed to be genuine and to have been signed by the proper party in
respect of any matters arising under this Agreement. 

          (b)
Except as provided in this Agreement, the Servicer shall not be under any
obligation to appear in, prosecute, or defend any legal action that shall not
be incidental to its duties to service the Receivables in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability; provided, however,
that the Servicer may undertake any reasonable action that it may deem
necessary or desirable in respect of this Agreement and the rights and duties
of the parties to this Agreement and the interests of the Noteholders and
Certificateholders under this Agreement. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be expenses,
costs and liabilities of the Issuer, and the Servicer shall be entitled to be
reimbursed therefor. Any amounts due the Servicer pursuant to this subsection
shall be payable on a Payment Date from the Available Collections on deposit in
the Collection Account only after all payments required to be made on such date
to the Noteholders and the Servicer have been made, and deposits of any amount
required to be deposited into the Reserve Account pursuant to Section
4.6(c)(vii) to maintain the amount on deposit therein (exclusive of
investment income and earnings on amounts on deposit therein) at the Specified
Reserve Balance on such date have been made. 

          (c)
The Servicer and any director or officer or employee or agent of the Servicer
shall be indemnified by the Trust and held harmless against any loss,
liability, or expense including reasonable attorneys’ fees and expenses
incurred in connection with any legal action relating to the performance of the
Servicer’s duties under this Agreement, other than (i) any loss or liability
otherwise reimbursable pursuant to this Agreement; (ii) any loss, liability, or
expense incurred solely by reason of the Servicer’s willful misfeasance,
negligence, or bad faith in the performance of its duties hereunder or by
reason of reckless disregard of its obligations and duties under this
Agreement; and (iii) any loss, liability, or expense for which the Issuer is to
be indemnified by the Servicer under this Agreement. Any amounts due the
Servicer pursuant to this subsection shall be payable on a Payment Date from
the Available Funds on deposit in the Collection Account only after all
payments required to be made on such date to the Noteholders and the Servicer
have been made, and deposits of any amount required to be deposited into the
Reserve Account pursuant to Section 4.6(c)(vii) to maintain the amount
on deposit therein (exclusive of investment income and earnings on amounts on
deposit therein) at the Specified Reserve Balance on such date have been made. 

          SECTION
6.5 Delegation of Duties. The Servicer may at any time perform specific
duties as servicer under this Agreement through sub-contractors; provided that no such 

31

delegation or
subcontracting shall relieve the Servicer of its responsibilities with respect
to such duties as to which the Servicer shall remain primarily responsible and
the Servicer shall be solely responsible for the fees of any such
sub-contractors. 

          SECTION
6.6 Servicer Not to Resign as Servicer. Subject to the provisions of
Section 6.3, the Servicer shall not resign from its obligations and duties
under this Agreement except upon determination that the performance of its
duties under this Agreement shall no longer be permissible under applicable
law. Notice of any such determination permitting the resignation of the
Servicer shall be communicated to the Owner Trustee, the Indenture Trustee and
the Depositor at the earliest practicable time (and, if such communication is
not in writing, shall be confirmed in writing at the earliest practicable time)
and any such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Owner Trustee and the Indenture Trustee concurrently
with or promptly after such notice. No such resignation shall become effective
until the Indenture Trustee or a Successor Servicer shall have (i) taken the
actions required by Section 7.1(b), (ii) assumed the responsibilities
and obligations of the Servicer in accordance with Section 7.2 and (iii)
provided in writing the information reasonably requested by the Depositor to
comply with its reporting obligations under the Exchange Act with respect to a
replacement Servicer. 

          SECTION
6.7 Servicer May Own Notes or Certificates. The Servicer, and any
Affiliate of the Servicer, may, in its individual or any other capacity, become
the owner or pledgee of Notes or Certificates with the same rights as it would
have if it were not the Servicer or an Affiliate thereof, except as otherwise
expressly provided herein or in the other Basic Documents. Except as set forth
herein or in the other Basic Documents, Notes and Certificates so owned by or
pledged to the Servicer or such Affiliate shall have an equal and proportionate
benefit under the provisions of this Agreement, without preference, priority or
distinction as among all of the Notes and Certificates. 

ARTICLE VII

SERVICING TERMINATION

          SECTION
7.1 Events of Servicing Termination. (a) If any one of the following
events (“Events of Servicing Termination”) shall occur and be
continuing: 

	
 

	
 

	
 

	
          (i)
  Any failure by the Servicer (or, so long as the Seller is the Servicer, the
  Seller) to deliver to the Owner Trustee or the Indenture Trustee any proceeds
  or payment required to be so delivered under the terms of the Notes and the
  Certificates and this Agreement that shall continue unremedied for a period
  of five (5) Business Days after written notice of such failure is received by
  the Servicer or the Seller, as the case may be, from the Owner Trustee or the
  Indenture Trustee or after discovery of such failure by an officer of the
  Servicer or the Seller, as the case may be; or 

	
 

	
 

	
 

	
          (ii)
  Failure on the part of the Servicer (or, so long as the Seller is the
  Servicer, the Seller) duly to observe or to perform in any material respect
  any other covenants or agreements, as the case may be, set forth in the
  Notes, the Certificates or in this Agreement, which failure shall (A)
  materially and adversely affect the rights of 

32

	
 

	
 

	
 

	
Noteholders
  or Certificateholders and (B) continue unremedied for a period of ninety (90)
  days after the date on which written notice of such failure, requiring the
  same to be remedied, shall have been given (1) to the Servicer or the Seller,
  as the case may be, by the Owner Trustee or the Indenture Trustee, or (2) to
  the Owner Trustee, the Indenture Trustee, the Seller and the Servicer by the
  Noteholders of Notes evidencing not less than 25% of the principal amount of
  the Controlling Class or, if no Notes are outstanding, by Certificateholders
  of Certificates evidencing not less than 25% of the Percentage Interests
  evidenced by the Certificates; or 

	
 

	
 

	
 

	
          (iii)
  So long as the Bank or another depository institution is not the Servicer,
  the entry of a decree or order by a court or agency or supervisory authority
  having jurisdiction in the premises for the appointment of a conservator,
  receiver, or liquidator for the Servicer in any insolvency, readjustment of
  debt, marshalling of assets and liabilities, or similar proceedings, or for
  the winding up or liquidation of its respective affairs, and the continuance
  of any such decree or order unstayed and in effect for a period of sixty (60)
  consecutive days; or 

	
 

	
 

	
 

	
          (iv)
  So long as the Bank or another depository institution is not the Servicer,
  the consent by the Servicer to the appointment of a conservator or receiver
  or liquidator in any insolvency, readjustment of debt, marshalling of assets
  and liabilities, or similar proceedings of or relating to the Servicer of or
  relating to substantially all of its property; or the Servicer shall admit in
  writing its inability to pay its debts generally as they become due, file a
  petition to take advantage of any applicable insolvency or reorganization
  statute, make an assignment for the benefit of its creditors, or voluntary
  suspend payment of its obligations or become insolvent; 

then the
Indenture Trustee shall promptly notify each Rating Agency, and in each and
every case, so long as an Event of Servicing Termination shall not have been
remedied, either the Indenture Trustee or the holders of Notes evidencing not
less than a majority of the principal amount of the Controlling Class
Outstanding (or, if no Notes are Outstanding, Certificates evidencing not less
than a majority of the Percentage Interests evidenced by the Certificates), by
notice then given in writing to the Servicer (and to the Indenture Trustee and
the Owner Trustee if given by the Noteholders and to the Owner Trustee if given
by the Certificateholders) (with a copy to the Rating Agencies) may terminate
all of the rights and obligations of the Servicer under this Agreement. On or
after the receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the Notes,
the Certificates or the Trust Property or otherwise, shall pass to and be
vested in the Indenture Trustee or such Successor Servicer as may be appointed
under Section 7.2; and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, on behalf
of the predecessor Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the
Receivables and related documents, or otherwise.  

          (b)
Upon termination of the Servicer under Section 7.1(a), the predecessor Servicer
shall cooperate with the Indenture Trustee, the Owner Trustee and such
Successor Servicer in effecting the termination of the responsibilities and
rights of the predecessor Servicer under this  

33

Agreement,
including the transfer to the Indenture Trustee or such Successor Servicer for
administration of all cash amounts that shall at the time be held by the
predecessor Servicer for deposit, or shall thereafter be received with respect
to a Receivable and the delivery of the Receivable Files and the related
accounts and records maintained by the Servicer. All reasonable costs and
expenses (including attorneys’ fees) incurred in connection with transferring
the Receivable Files to the Successor Servicer and amending this Agreement to
reflect such succession as Servicer pursuant to this Section 7.1 shall be paid
by the predecessor Servicer upon presentation of reasonable documentation of
such costs and expenses.  

          SECTION
7.2 Appointment of Successor Servicer. (a) Upon the Servicer’s receipt
of notice of termination pursuant to Section 7.1 or the Servicer’s
resignation in accordance with the terms of this Agreement, the predecessor
Servicer shall continue to perform its functions as Servicer under this
Agreement, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of termination,
until receipt of such notice and, in the case of resignation, until the later
of (x) the date 90 days from the delivery to the Indenture Trustee and the
Owner Trustee of written notice of such resignation (or written confirmation of
such notice) in accordance with the terms of this Agreement and (y) the date
upon which the predecessor Servicer shall become unable to act as Servicer, as
specified in the notice of resignation and accompanying Opinion of Counsel. In
the event of the Servicer’s resignation or termination hereunder, the Issuer
shall appoint a Successor Servicer, and the Successor Servicer shall accept its
appointment by a written assumption in form acceptable to the Owner Trustee and
the Indenture Trustee (with a copy to each Rating Agency) and shall provide the
Depositor in writing with such information as reasonably requested by the
Depositor to comply with its reporting obligations under the Exchange Act with
respect to a replacement servicer. In the event that a Successor Servicer has
not been appointed at the time when the predecessor Servicer has ceased to act
as Servicer in accordance with this Section 7.2, the Indenture Trustee
without further action shall automatically be appointed the Successor Servicer
and the Indenture Trustee shall be entitled to the Servicing Fee and shall
provide the Depositor in writing with such information as reasonably requested
by the Depositor to comply with its reporting obligations under the Exchange
Act with respect to a replacement servicer. The Indenture Trustee may resign as
the Servicer by giving written notice of such resignation to the Issuer and in
such event shall be released from such duties and obligations, such release not
to be effective until the date a Successor Servicer enters into a written
assumption as provided in this Section. Upon delivery of any such notice to the
Issuer, the Issuer shall obtain a new servicer as the Successor Servicer in
accordance with this Section. Notwithstanding the above, if the Indenture
Trustee shall be legally unable so to act or if, within 30 days after the
delivery of its notice of resignation, the Issuer shall not have obtained a
Successor Servicer, the Indenture Trustee shall appoint, or petition a court of
competent jurisdiction to appoint, any established institution, having a net
worth of not less than $100,000,000 and whose regular business shall include
the servicing of automotive receivables, as the successor to the Servicer under
this Agreement; provided that the
Rating Agency Condition shall be satisfied in connection with such appointment.

          (b)
Upon appointment, the Successor Servicer shall be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties, and liabilities arising thereafter relating thereto placed on the
predecessor Servicer, by the terms and provisions of this Agreement. 

34

          (c)
In connection with such appointment, subject to Section 3.7(e) of the
Indenture, the Indenture Trustee may make such arrangements for the
compensation of such Successor Servicer out of payments on Receivables as it
and such Successor Servicer shall agree; provided,
however, that no such compensation shall be in excess of that
permitted the predecessor Servicer under this Agreement. The Indenture Trustee
and such Successor Servicer shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession.  

          SECTION
7.3 Repayment of Advances. If the identity of the Servicer shall change,
the predecessor Servicer shall be entitled to receive to the extent of
available funds reimbursement for Outstanding Advances pursuant to Sections
4.3 and 4.4, in the manner specified in Section 4.6, with
respect to all Advances made by the predecessor Servicer. 

          SECTION
7.4 Notification to Noteholders and Certificateholders. Upon any termination
of, or appointment of a successor to, the Servicer pursuant to this Article
VII, the Indenture Trustee shall give prompt written notice thereof to
Noteholders, and the Owner Trustee shall give prompt written notice thereof to
Certificateholders at their respective addresses of record and to each Rating
Agency. 

          SECTION
7.5 Waiver of Past Events of Servicing Termination. The holders of Notes
evidencing not less than a majority of the principal amount of the Controlling
Class (or, if no Notes are Outstanding, holders of Certificates evidencing not
less than a majority of the Percentage Interests evidenced by the Certificates)
may, on behalf of all Noteholders and Certificateholders, waive any Event of
Servicing Termination hereunder and its consequences, except an event resulting
from the failure to make any required deposits to or payments from any of the
Trust Accounts in accordance with this Agreement, which shall require the
unanimous vote of all Holders of Outstanding Securities. Upon any such waiver
of a past Event of Servicing Termination, such Event of Servicing Termination
shall cease to exist, and shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other event or impair any right consequent thereon. The Issuer shall provide
written notice of any such waiver to the Rating Agencies. 

ARTICLE VIII

TERMINATION

          SECTION
8.1 Optional Purchase of All Receivables. As of the last day of any
Collection Period as of which the Pool Factor shall be equal to or less than
the Optional Purchase Percentage, the Servicer shall have the option to
purchase the Trust Property from the Trust. To exercise such option, the
Servicer shall deposit pursuant to Section 4.5 in the Collection Account
an amount equal to the lesser of (i) the aggregate Purchase Amount for the
Receivables and (ii) the fair market value of the Receivables, and shall
succeed to all interests in and to the Trust. Notwithstanding the foregoing,
the Servicer shall not be permitted to exercise such option unless the amount
to be deposited in the Collection Account pursuant to the preceding sentence is
greater than or equal to the sum of the outstanding principal amount of the
Notes and all accrued but unpaid interest (including any over due interest)
thereon. The amount deposited in the Collection Account pursuant to this Section
8.1 shall be used on the next Payment Date to make payments in full to
Noteholders and Certificateholders in the manner set forth in Article IV.

35

          SECTION
8.2 Succession Upon Satisfaction and Discharge of Indenture. Following
the satisfaction and discharge of the Indenture and the payment in full of the
principal of and interest on the Notes, to the extent permitted by applicable
law and until the payment of all amounts owing or to be distributed hereunder
to the Certificateholders, the Indenture Trustee will continue to carry out its
obligations hereunder as agent for the Owner Trustee, including without
limitation making distributions from the Collection Account in accordance with Section
4.6, making withdrawals from the Reserve Account in accordance with Section
4.5(b) and Section 4.7. 

ARTICLE IX

MISCELLANEOUS PROVISIONS

          SECTION
9.1 Amendment. 

          (a)
This Agreement may be amended by the Depositor, the Servicer and the Issuer,
with the consent of the Indenture Trustee and the Owner Trustee to the extent
that their respective rights or obligations may be affected thereby (which
consent may not be unreasonably withheld), but without the consent of any of
the Noteholders or the Certificateholders, to cure any ambiguity, to correct or
supplement any provisions in this Agreement, or to add any provisions to or
change or eliminate any provisions or to modify the rights of the Noteholders
or Certificateholders; provided, however, that (i) such action shall not, as
evidenced by either an Opinion of Counsel or an Officer’s Certificate delivered
to the Owner Trustee and the Indenture Trustee, materially and adversely affect
the interests of any Noteholder or Certificateholder and (ii) the Rating Agency
Condition shall be satisfied. 

          (b)
This Agreement may also be amended from time to time by the Depositor, the
Servicer and the Issuer, with the consent of the Indenture Trustee and the
Owner Trustee to the extent that their respective rights or obligations may be
affected thereby (which consent may not be unreasonably withheld) and with the
consent of (i) the Noteholders of Notes evidencing not less than a majority of
the principal amount of each Class of Notes and (ii) the Certificateholders of
Certificates evidencing not less than a majority of the Percentage Interests
evidenced by the Certificates (which consent of any holder of a Note or holder
of a Certificate given pursuant to this Section 9.1 or pursuant to any other
provision of this Agreement shall be conclusive and binding on such Note or
Certificate, as the case may be, and on all future holders of such Note or
holders of such Certificate, as the case may be, and of any Note or
Certificate, as applicable, issued upon the transfer thereof or in exchange
thereof or in lieu thereof whether or not notation of such consent is made upon
such Note or the Certificate), for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement,
or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, that no such amendment shall (A)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, or change the allocation or priority of, collections of payments on
Receivables or distributions that shall be required to be made on any Note or
Certificate or change any Note Interest Rate or the amount required to be on
deposit in the Reserve Account, without the consent of all Noteholders or
Certificateholders or (B) reduce the aforesaid percentage required to consent
to any such amendment, without the consent of the holders of all Notes and
holders of all Certificates. Notwithstanding the foregoing, the Depositor may 

36

decrease the
Specified Reserve Balance upon satisfaction of the Rating Agency Condition
without the consent of any other party hereto or any Noteholder or
Certificateholder. 

          (c)
Prior to the execution of any such amendment the Servicer will provide written
notification of the substance of such amendment to each Rating Agency. 

          (d)
Promptly after the execution of any such amendment, the Servicer shall furnish
written notification of the substance of such amendment to each
Certificateholder, the Indenture Trustee and each Rating Agency and the
Indenture Trustee will provide notification of the substance of such amendment
to each Noteholder. It shall not be necessary for the consent of Noteholders or
the Certificateholders pursuant to this Section 9.1 to approve the
particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents (and any other consents of Noteholders and
Certificateholders provided for in this Agreement) and of evidencing the
authorization of the execution thereof by Noteholders and Certificateholders
shall be subject to such reasonable requirements as the Owner Trustee and the
Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement. 

          (e)
Prior to the execution of any amendment to this Agreement, the Owner Trustee
and the Indenture Trustee shall be entitled to receive and rely upon an Opinion
of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and the Opinion of Counsel referred to in Section
9.2(i)(1). The Owner Trustee or the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects such Owner Trustee’s
or Indenture Trustee’s own rights, duties or immunities under this Agreement or
otherwise. 

          SECTION
9.2 Protection of Title to Trust Property. (a) The Depositor and the
Seller shall file such financing statements and cause to be filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain, and protect the interest of the
Issuer and the Indenture Trustee for the benefit of the Noteholders in the
Receivables and in the proceeds thereof. The financing statements referenced in
the foregoing sentence will contain a statement to the following effect “A
purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Secured Party”. The Depositor or the
Seller, as applicable, shall deliver (or cause to be delivered) to the Owner
Trustee and the Indenture Trustee file-stamped copies of, or filing receipts
for, any document filed as provided above, as soon as available following such
filing. 

          (b)
None of the Depositor, the Seller or the Servicer shall change its name,
identity, or corporate structure in any manner that would, could, or might make
any financing statement or continuation statement filed by the Seller or the
Depositor in accordance with paragraph (a) above seriously misleading within
the meaning of § 9-506 of the UCC, unless it shall have given the Owner Trustee
and the Indenture Trustee at least 10 days’ prior written notice thereof, with
a copy to the Rating Agencies, and shall have promptly filed appropriate
amendments to all previously filed financing statements or continuation
statements described in paragraph (a) above. 

37

          (c)
The Depositor, the Seller and the Servicer shall give the Owner Trustee and the
Indenture Trustee at least ten (10) days’ prior written notice of any
relocation of its principal executive office or change in the jurisdiction
under whose laws it is formed if, as a result of such relocation or change, the
applicable provisions of the UCC would require the filing of any amendment of
any previously filed financing or continuation statement or of any new
financing statement and shall promptly file any such amendment or new financing
statement. The Servicer shall at all times maintain each office from which it
shall service Receivables, and its principal executive office, within the
United States of America. 

          (d)
The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each Receivable and the amounts
from time to time deposited in the Collection Account and the Reserve Account
in respect of such Receivable. 

          (e)
The Servicer shall maintain its computer systems so that, from and after the
time of conveyance under this Agreement of the Receivables to the Issuer, the
Servicer’s master computer records (including any back-up archives) that refer
to a Receivable shall indicate clearly, by numerical code or otherwise, that
such Receivable is owned by the Issuer and has been pledged to the Indenture
Trustee pursuant to the Indenture. Indication of the Issuer’s and the Indenture
Trustee’s interest in a Receivable shall not be deleted from or modified on the
Servicer’s computer systems until, and only until, the Receivable shall have
been paid in full or repurchased. 

          (f)
If at any time the Seller or the Servicer shall propose to sell, grant a
security interest in, or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender, or other transferee, the
Servicer shall give to such prospective purchaser, lender, or other transferee
computer tapes, records, or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been conveyed to and is owned
by the Issuer and has been pledged to the Indenture Trustee. 

          (g)
The Servicer, upon receipt of reasonable prior notice, shall permit the Owner
Trustee, the Indenture Trustee and their respective agents at any time during
normal business hours to inspect, audit, and make copies of and to obtain
abstracts from the Servicer’s records regarding any Receivable. 

          (h)
Upon request, the Servicer shall furnish to the Owner Trustee and the Indenture
Trustee, within five (5) Business Days, a list of all Receivables (by contract
number and name of Obligor) then owned by the Issuer, together with a reconciliation
of such list to the Schedule of Receivables and to each of the Servicer’s
Certificates furnished before such request indicating removal of Receivables
from the Trust. 

          (i)
The Servicer shall deliver to the Owner Trustee and the Indenture Trustee: 

38

	
 

	
 

	
 

	
          (1)
  promptly after the execution and delivery of this Agreement and of each
  amendment thereto, an Opinion of Counsel either (A) stating that, in the
  opinion of such Counsel and subject to customary qualifications and assumptions,
  all financing statements and continuation statements have been filed that are
  necessary fully to preserve and protect the interest of the Issuer and the
  Indenture Trustee in the Receivables, and reciting the details of such
  filings or referring to prior Opinions of Counsel in which such details are
  given, or (B) stating that, in the opinion of such Counsel, no such action
  shall be necessary to preserve and protect such interest; and 

	
 

	
 

	
 

	
          (2)
  within 120 days after the beginning of each calendar year beginning with the
  first calendar year beginning more than three months after the Cut-off Date,
  an Opinion of Counsel, dated as of a date during such 120-day period, either
  (A) stating that, in the opinion of such counsel and subject to customary
  qualifications and assumptions, all financing statements and continuation
  statements have been filed that are necessary fully to preserve and protect
  the interest of the Issuer and the Indenture Trustee in the Receivables, and
  reciting the details of such filings or referring to prior Opinions of
  Counsel in which such details are given, or (B) stating that, in the opinion
  of such Counsel, no such action shall be necessary to preserve and protect
  such interest. 

          Each
Opinion of Counsel referred to in clause (i)(1) or (i)(2) above shall specify
any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest. 

          SECTION
9.3 Counterparts. For the purpose of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed in any number
of counterparts, each of which counterparts shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same instrument.

          SECTION
9.4 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICTS OF LAW
PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS. 

          SECTION
9.5 Notices. All demands, notices, and communications under this
Agreement shall be in writing, personally delivered, sent by telecopier, over
night courier or mailed by certified mail, return receipt requested, and shall
be deemed to have been duly given upon receipt (a) in the case of the Seller or
the Servicer, at 10750 McDermott Freeway, San Antonio, Texas 78288, Attention:
Mike Broker, Vice President, or at such other address as shall be designated by
the Seller or the Servicer in a written notice to the Owner Trustee and the
Indenture Trustee, (b) in the case of the Depositor, at 9830 Colonnade Blvd.,
Suite 600, San Antonio, Texas 78230, Attention: Vice President, Legal Counsel,
(c) in the case of the Owner Trustee, at the Corporate Trust Office of the
Owner Trustee, Attention: Rita M. Ritrovato, (d) in the case of the Indenture
Trustee, at the Corporate Trust Office of the Indenture Trustee, (e) in the
case of Moody’s Investors Service, Inc., at the following address: Moody’s
Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007, and (f) in the 

39

case of
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., at the following address: Standard & Poor’s Rating
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, 40th
Floor, New York, New York 10041, Attention: Asset Backed Surveillance
Department. Any notice required or permitted to be mailed to a Noteholder shall
be given by first class mail, postage prepaid, at the address of such Person as
shown in the Note Register. Any notice required or permitted to be given to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Certificateholder as shall be designated by such party in a
written notice to each other party. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholder shall receive such notice. 

          SECTION
9.6 Severability of Provisions. If any one or more of the covenants,
agreements, provisions, or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, agreements, provisions, or terms
shall be deemed severable from the remaining covenants, agreements, provisions,
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes, the
Certificates or the rights of the holders thereof. 

          SECTION
9.7 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Sections 6.3 and 7.2 and as provided in the
provisions of this Agreement concerning the resignation of the Servicer, this
Agreement may not be assigned by the Depositor or the Servicer unless (i)(A)
the Rating Agency Condition is satisfied and (B) the Indenture Trustee and the
Owner Trustee have consented thereto, which consent shall not be unreasonably
withheld or (ii) the Owner Trustee, the Indenture Trustee, the Noteholders of
Notes evidencing not less than 66 2/3% of the principal amount of the Notes
Outstanding and the Certificateholders of Certificates evidencing not less than
66 2/3% of the Percentage Interests evidenced by the Certificates consent
thereto. Any transfer or assignment with respect to the Servicer of all its
rights, obligations and duties will not become effective until a successor
Servicer has assumed the Servicer’s rights, duties and obligations under this
Agreement. In the event of a transfer or assignment pursuant to clause (ii)
above, the Rating Agencies shall be provided with notice of such transfer or
assignment. 

          SECTION
9.8 Further Assurances. The Depositor and the Servicer agree to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Owner Trustee or the
Indenture Trustee more fully to effect the purposes of this Agreement. 

          SECTION
9.9 No Waiver; Cumulative Remedies. No failure to exercise and no delay
in exercising, on the part of the Owner Trustee, the Indenture Trustee, the
Noteholders or the Certificateholders, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power
or privilege. The rights, remedies, powers and privileges therein provided are
cumulative and not exhaustive of any rights, remedies, powers and privileges
provided by law. 

          SECTION
9.10 Third-Party Beneficiaries. This Agreement will inure to the benefit
of and be binding upon the parties hereto, the Indenture Trustee and the Owner
Trustee and their 

40

respective
successors and permitted assigns and each of the Indenture Trustee and the
Owner Trustee may enforce the provisions hereof as if they were parties
thereto. Except as otherwise provided in this Article IX, no other Person will
have any right or obligation hereunder. The parties hereto hereby acknowledge
and consent to the pledge of this Agreement by the Issuer to the Indenture Trustee
for the benefit of the Noteholders pursuant to the Indenture. 

          SECTION
9.11 Actions by Noteholders or Certificateholders. (a) Wherever in this
Agreement a provision is made that an action may be taken or a notice, demand,
or instruction given by Noteholders or Certificateholders, such action, notice,
or instruction may be taken or given by any Noteholder or Certificateholder, as
applicable, unless such provision requires a specific percentage of Noteholders
or Certificateholders. 

          (b)
Any request, demand, authorization, direction, notice, consent, waiver, or
other act by a Noteholder or Certificateholder shall bind such Noteholder or
Certificateholder and every subsequent holder of such Note or Certificate
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done or omitted to be done by the Owner
Trustee, the Indenture Trustee or the Servicer in reliance thereon, whether or
not notation of such action is made upon such Note or Certificate. 

          SECTION
9.12 Limitation of Liability of Owner Trustee and Indenture Trustee. (a)
Notwithstanding anything contained herein to the contrary, this Agreement has
been countersigned by Wells Fargo Delaware Trust Company not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall Wells Fargo Delaware Trust Company, in its individual capacity or,
except as expressly provided in the Trust Agreement, as Owner Trustee of the
Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer. For all
purposes of this Agreement, in the performance of its duties or obligations
hereunder or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of,
the terms and provisions of Articles VI and VII of the Trust Agreement. 

          (b)
Notwithstanding anything contained herein to the contrary, this Agreement has
been accepted by The Bank of New York, not in its individual capacity but
solely as Indenture Trustee, and in no event shall The Bank of New York, have
any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder or in any of the certificates,
notices or agreements delivered pursuant hereto, as to all of which recourse
shall be had solely to the assets of the Issuer. For all purposes of this
Agreement, in the performance of its duties or obligations hereunder or in the
performance of any duties or obligations of the Issuer hereunder, the Indenture
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Article VI of the Indenture. 

          SECTION
9.13 Savings Clause. (a) Each of the parties hereto expressly intends
and agrees that the transfers contemplated and effected under this Agreement
are complete and absolute sales and transfers rather than pledges or
assignments of only a security interest and shall be given effect as such for
all purposes. It is further the intention of the parties hereto that the
Receivables and related Trust Property shall not be part of the Depositor’s
estate in the event 

41

of a
bankruptcy or insolvency of the Depositor. The sales and transfers by the
Depositor of Receivables and related Trust Property hereunder are and shall be
without recourse to, or representation or warranty (express or implied) by, the
Depositor, except as otherwise specifically provided herein. The limited rights
of recourse specified herein against the Depositor are intended to provide a
remedy for breach of representations and warranties relating to the condition
of the property sold, rather than to the collectibility of the Receivables. 

          (b)
Notwithstanding the foregoing, in the event that the Receivables and other
Trust Property are held to be property of the Depositor, or if for any reason
this Agreement is held or deemed to create indebtedness or a security interest
in the Receivables and other Trust Property, then it is intended that: 

	
 

	
 

	
 

	
 

	
(i)

	
This
  Agreement shall be deemed to be a security agreement within the meaning of
  Articles 8 and 9 of the New York UCC and the UCC of any other applicable
  jurisdiction; 

	
 

	
 

	
 

	
 

	
(ii)

	
The
  conveyance provided for in Section 2.1 shall be deemed to be a grant
  by the Depositor, and the Depositor hereby grants, to the Issuer of a
  security interest in all of its right (including the power to convey title
  thereto), title and interest, whether now owned or hereafter acquired, in and
  to the Receivables and other Trust Property, to secure such indebtedness and the
  performance of the obligations of the Depositor hereunder; 

	
 

	
 

	
 

	
 

	
(iii)

	
The
  possession by the Issuer, or the Servicer as the Issuer’s agent, of the
  Receivable Files and any other property as constitute instruments, money,
  negotiable documents or chattel paper shall be deemed to be “possession by
  the secured party” or possession by the purchaser or a person designated by
  such purchaser, for purposes of perfecting the security interest pursuant to
  the New York UCC and the UCC of any other applicable jurisdiction; and 

	
 

	
 

	
 

	
 

	
(iv)

	
Notifications
  to persons holding such property, and acknowledgments, receipts or
  confirmations from persons holding such property, shall be deemed to be
  notifications to, or acknowledgments, receipts or confirmations from, bailees
  or agents (as applicable) of the Issuer for the purpose of perfecting such
  security interest under applicable law. 

ARTICLE X

EXCHANGE ACT REPORTING

          SECTION
10.1 Further Assurances. The Indenture Trustee, the Owner Trustee and
the Servicer shall reasonably cooperate with the Depositor in connection with
the satisfaction of the Depositor’s reporting requirements under the Exchange
Act with respect to the Trust. The Depositor shall not exercise its right to
request delivery of information or other performance under these provisions
other than in good faith. In addition to the information specified below, if so
requested by the Depositor for the purpose of satisfying its reporting
obligation under the Exchange Act, the Indenture Trustee, the Owner Trustee and
the Servicer shall provide the 

42

Depositor with
(a) such information which is available to such Person without unreasonable
effort or expense and within such timeframe as may be reasonably requested by
the Depositor to comply with the Depositor’s reporting obligations under the
Exchange Act and (b) to the extent such Person is a party (and the Depositor is
not a party) to any agreement or amendment required to be filed, copies of such
agreement or amendment in EDGAR-compatible form. Each of the Servicer, the
Indenture Trustee and the Owner Trustee acknowledges that interpretations of
the requirements of Regulation AB may change over time, whether due to
interpretive guidance provided by the Commission or its staff, consensus among
participants in the asset-backed securities markets, advice of counsel, or
otherwise, and agrees to comply with requests made by the Depositor in good
faith for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB. 

          SECTION
10.2 Form 10-D Filings. So long as the Depositor is required to file
Exchange Act Reports with respect to the Issuer, no later than each Payment
Date, each of the Indenture Trustee, the Owner Trustee and the Servicer shall
notify (and the Servicer shall cause any Subservicer to notify) the Depositor
of any Form 10-D Disclosure Item with respect to such Person, together with a
description of any such Form 10-D Disclosure Item in form and substance
reasonably acceptable to the Depositor. In addition to such information as the
Servicer is obligated to provide pursuant to other provisions of this
Agreement, if so requested by the Depositor, the Servicer shall provide such
information which is available to the Servicer, without unreasonable effort or
expense regarding the performance or servicing of the Receivables as is
reasonably required to facilitate preparation of distribution reports in
accordance with Item 1121 of Regulation AB. Such information shall be provided
concurrently with the Statements to Noteholders pursuant to Section 4.9,
commencing with the first such report due not less than five Business Days
following such request. 

          SECTION
10.3 Form 8-K Filings. So long as the Depositor is required to file
Exchange Act Reports with respect to the Issuer, each of the Indenture Trustee,
the Owner Trustee and the Servicer shall promptly notify the Depositor, but in
no event later than one (1) Business Day after its occurrence, of any
Reportable Event (in the case of the Owner Trustee, only an event in clause (d)
of the definition of “Reportable Event”) of which such Person (or in the case
of the Owner Trustee and the Indenture Trustee, a Trustee Officer of such
Person) has actual knowledge. Each Person shall be deemed to have actual knowledge
of any such event to the extent that it relates to such Person or any action or
failure to act by such Person. 

          SECTION
10.4 Form 10-K Filings. So long as the Depositor is required to file
Exchange Act Reports: (i) if the Item 1119 Parties listed on Appendix B have
changed since the Closing Date, no later than March 1 of each year, the
Depositor shall provide each of the Indenture Trustee, the Owner Trustee and
the Servicer with an updated Appendix B setting forth the Item 1119 Parties and
(ii) no later than March 15 of each year, commencing in 2008, the Indenture
Trustee, the Owner Trustee and the Servicer shall notify the Depositor of any
Form 10-K Disclosure Item, together with a description of any such Form 10-K
Disclosure Item in form and substance reasonably acceptable to the Depositor.  

          SECTION
10.5 Report on Assessment of Compliance and Attestation. So long as the
Depositor is required to file Exchange Act Reports, on or before March 15 of
each calendar year, commencing in 2008: 

43

          (a)
The Indenture Trustee shall deliver to the Depositor and the Servicer a report
of the Indenture Trustee’s assessment of compliance with the Servicing Criteria
during the immediately preceding calendar year, as set forth under Rules 13a-18
and 15d-18 of the Exchange Act (or any successor provisions) and Item 1122 of
Regulation AB. Such report shall be signed by an authorized officer of the
Indenture Trustee and shall at a minimum address each of the Servicing Criteria
specified on a certification substantially in the form of Appendix C hereto
delivered to the Depositor concurrently with the execution of this Agreement (provided that such certification may be
revised after the date of this Agreement as agreed by the Depositor and the Indenture
Trustee to reflect any guidance with respect to such criteria from the
Commission). To the extent any of the Servicing Criteria are not applicable to
the Indenture Trustee, with respect to asset-backed securities transactions
taken as a whole involving the Indenture Trustee and that are backed by the
same asset type backing the Notes, such report shall include such a statement
to that effect. The Indenture Trustee acknowledges and agrees that the
Depositor and the Servicer with respect to its duties as the Certifying Person,
and each of their respective officers and directors shall be entitled to rely
on upon each such servicing criteria assessment and the attestation delivered
pursuant to Section 10.5(b) below. 

          (b)
The Indenture Trustee shall deliver to the Depositor and the Servicer a report
of a registered public accounting firm that attests to, and reports on, the
assessment of compliance made by the Indenture Trustee and delivered pursuant
to the preceding paragraph. Such attestation shall be in accordance with Rules
13a-18 and 15d-18 of the Exchange Act (or any successor provisions), Rules
1-02(a)(3) and 2-02(g) of Regulation S-X (or any successor provisions) under
the Securities Act and the Exchange Act, including, without limitation that in
the event that an overall opinion cannot be expressed, such registered public
accounting firm shall state in such report why it was unable to express such an
opinion. Such report must be available for general use and not contain
restricted use language. 

          (c)
The Indenture Trustee shall cause each Reporting Subcontractor to deliver to
the Depositor and the Servicer an assessment of compliance and accountant’s
attestation as and when provided in paragraphs (a) and (b) of this Section. An
assessment of compliance provided by a Subcontractor need not address any
elements of the Servicing Criteria other than those specified by the Indenture
Trustee pursuant to Section 10.5(a). 

          (d)
In the event the Indenture Trustee or Reporting Subcontractor is terminated or
resigns during the term of this Agreement, such Person shall provide the
documents and information pursuant to this Section 10.5 with respect to
the period of time it was subject to this Agreement or provided services with
respect to the Trust or the Receivables. 

          SECTION
10.6 Back-up Sarbanes-Oxley Certification. No later than March 15 of
each year, beginning in 2008, the Indenture Trustee and the Servicer shall
provide to the Person who signs the Sarbanes-Oxley Certification (the “Certifying
Person”) a certification (each, a “Performance Certification”) and
shall cause each Reporting Subcontractor, in the form attached hereto as Appendix
D (in the case of the Indenture Trustee or a Reporting Subcontractor) and
as Appendix E (in the case of the Servicer) on which the Certifying
Person, the entity for which the Certifying Person acts as an officer, and such
entity’s officers, directors and Affiliates (collectively with the Certifying
Person, “Certification Parties”) can reasonably rely. The Depositor will
not request delivery of a certification under this clause unless the Depositor
is 

44

required under
the Exchange Act to file an annual report on Form 10-K with respect to the
Trust. So long as the Servicer is an Affiliate of the Depositor, the Servicer
may, but is not required to deliver the Performance Certificate. In the event
that prior to the filing date of the Form 10-K in March of each year, the
Indenture Trustee or the Servicer has actual knowledge of information material
to the Sarbanes-Oxley Certification, the Indenture Trustee or the Servicer
shall promptly notify the Depositor. Each of the Indenture Trustee and the
Servicer agrees to cooperate with all reasonable requests made by any
Certifying Person or Certification Party in connection with such Person’s
attempt to conduct any due diligence that such Person reasonably believes to be
appropriate in order to allow it to deliver any Sarbanes-Oxley Certification or
portion thereof with respect to the Trust. 

          SECTION
10.7 Use of Subcontractors. 

          (a)
It shall not be necessary for the Indenture Trustee or the Servicer to seek the
consent of the Depositor or any other party hereto to the utilization of any
Subcontractor. Each of the Indenture Trustee and the Servicer shall promptly
upon request provide to the Depositor (or any designee of the Depositor, such
as the Servicer or the Administrator) a written description (in form and
substance satisfactory to the Depositor) of the role and function of each
Subcontractor utilized by such Person, specifying (i) the identity of each such
Subcontractor, (ii) which (if any) of such Subcontractors are “participating in
the servicing function” within the meaning of Item 1122 of Regulation AB, (iii)
which elements of the Servicing Criteria will be addressed in assessments of
compliance provided by each Subcontractor identified pursuant to clause (ii) of
this paragraph and (iv) which (if any) of such Subcontractors such Person
elects to take responsibility for assessing compliance with the servicing
criteria applicable to such Subcontractor’s activities. As a condition to the
utilization of any Subcontractor determined to be a Reporting Subcontractor,
the Indenture Trustee shall cause any such Subcontractor for the benefit of the
Depositor to comply with the provisions of Sections 10.5 and 10.6 of this
Agreement to the same extent as if such Subcontractor were the Indenture
Trustee. The Indenture Trustee shall be responsible for obtaining from each
Subcontractor and delivering to the Depositor, any assessment of compliance and
attestation required to be delivered by such Subcontractor under Section
10.5 and Section 10.6, in each case as and when required to be
delivered. 

          (b)
As a condition to the utilization of any Subcontractor determined to be a
Reporting Subcontractor, the Servicer shall cause any such Subcontractor for
the benefit of the Depositor to comply with the provisions of Section
3.10(a)(ii), Section 3.11 and Section 10.6 of this Agreement
to the same extent as if such Subcontractor were the Servicer. The Servicer
shall be responsible for obtaining from each Subcontractor and delivering to
the Depositor, any assessment of compliance and attestation required to be
delivered by such Subcontractor under this Agreement, in each case as and when
required to be delivered. 

          SECTION
10.8 Representations and Warranties. Each of the Indenture Trustee and
the Owner Trustee represents that (i) there are no affiliations, relating to
such Person with respect to any 1119 Party, (ii) there are no relationships or
transactions with respect to any 1119 Party and such Person that are outside
the ordinary course of business or on terms other than would be obtained in an
arm’s length transaction with an unrelated third party, apart from the
transactions contemplated under the Basic Documents, and that are material to
the investors’ understanding 

45

of the Notes
and (iii) there are no legal proceedings pending, or known to be contemplated
by governmental authorities, against such Person, or of which the property of
such Person is subject, that is material to the Noteholders. 

          SECTION
10.9 Indemnification. 

          (a)
Each of the Indenture Trustee and the Servicer shall indemnify the Depositor,
each affiliate of the Depositor, the Servicer with respect to its duties as
Certifying Person or each Person who controls any of such parties (within the
meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:  

          (i)
(A) any untrue statement of a material fact contained or alleged to be
contained in (x) with respect to the Indenture Trustee, the servicing criteria
assessment provided under this Article X and (y) with respect to the Servicer, Section
3.10 and Section 3.11 of this Agreement by or on behalf of such
Person (with respect to each such party, the “Provided Information”), or
(B) the omission or alleged omission to state in the Provided Information a
material fact required to be stated in the Provided Information, or necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided,
by way of clarification, that clause (B) of this paragraph shall be construed
solely by reference to the related Provided Information and not to any other
information communicated in connection with a sale or purchase of securities,
without regard to whether the Provided Information or any portion thereof is
presented together with or separately from such other information; or 

          (ii)
with respect to the Indenture Trustee, any failure by the Indenture Trustee to
deliver any servicing criteria assessment when and as required under this
Article X and with respect to the Servicer, any failure by the Servicer to
deliver any information, report, certification, accountant’s letter or other
material when and as required under Section 3.10, Section 3.11 or
Article X, as applicable. 

          (b)
In the case of any failure of performance described in clause (ii) of this
Section, each of the Indenture Trustee and the Servicer shall promptly
reimburse the Depositor for all costs reasonably incurred by each such party in
order to obtain the information, report, certification, accountants’ letter or
other material not delivered as required by the Indenture Trustee or the
Servicer, as applicable. 

          (c)
Each of the Indenture Trustee and the Servicer shall require that any Reporting
Subcontractor agree to the provisions of paragraphs (a) and (b) of this Section
10.9, or shall be responsible for all such indemnification, costs or
expenses if the Reporting Subcontractor will not agree to such provisions. 

          (d)
Notwithstanding anything to the contrary contained herein, in no event shall
the Indenture Trustee be liable for special, indirect or consequential damages
of any kind 

46

whatsoever,
including but not limited to lost profits, even if the Indenture Trustee has
been advised of the likelihood of such loss or damage and regardless of the
form of action. 

          SECTION
10.10 Amendments. Notwithstanding anything in Section 9.01 to the
contrary, in the event the parties to this Agreement desire to further clarify
or amend any provision of this Article X, this Agreement may be amended
to reflect the new agreement between the parties covering matters in this Article
X, provided such amendment
will not require any Opinion of Counsel or satisfaction of the Rating Agency
Condition or the consent of any Noteholder or Certificateholder. 

[Signatures Follow]

47

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

	
 

	
 

	
 

	
 

	
USAA AUTO
  OWNER TRUST 2007-1,

	
 

	
 as Issuer

	
 

	
 

	
 

	
 

	
By:

	
WELLS FARGO
  DELAWARE TRUST

	
 

	
 

	
COMPANY,

	
 

	
 

	
not in its
  individual capacity but solely as 
Owner Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Amy L.
  Martin

	
 

	
 

	
 

	

	
 

	
 

	
Name: Amy L. Martin

	
 

	
 

	
Title:   Vice President

Sale and Servicing

Agreement (2007-1)

S-1

	
 

	
 

	
 

	
 

	
USAA FEDERAL
  SAVINGS BANK,

	
 

	
 as Seller and Servicer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Edwin T.
  McQuiston

	
 

	
 

	

	
 

	
Name: Edwin T. McQuiston

	
 

	
Title:   Vice President

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
USAA
  ACCEPTANCE, LLC,

	
 

	
as Depositor

	
 

	
 

	
 

	
 

	
By:

	
/s/ David K.
  Kimball

	
 

	
 

	

	
 

	
Name: David K. Kimball

	
 

	
Title:   Assistant Vice President

Sale and Servicing

Agreement (2007-1)

S-2

The Indenture
Trustee and the Owner Trustee agree to undertake to perform each of its
respective duties as Indenture Trustee and Owner Trustee, respectively, as are
specifically set forth in this Agreement. 

	
 

	
 

	
Accepted and
  agreed: 

	
 

	
THE BANK OF
  NEW YORK, 

  not in its individual capacity 
but solely as Indenture Trustee 

	
 

	
By:

	
/s/ Suhrita
  Das 

	
 

	

	
Name: Suhrita Das

	
Title:   Assistant Vice President 

	
 

	
 

	
WELLS FARGO
  DELAWARE TRUST COMPANY, 

  not in its individual capacity 
but solely as Owner Trustee 

	
 

	
By:

	
/s/ Amy L.
  Martin 

	
 

	

	
Name: Amy L. Martin 

	
Title:   Vice President

Sale and Servicing

Agreement (2007-1)

S-3

SCHEDULE A

SCHEDULE OF RECEIVABLES

[On File with the Indenture Trustee]

A-1

SCHEDULE B-1

Location of Receivable Files

c/o USAA
Federal Savings Bank 

10750 McDermott Freeway 

San Antonio, TX 78288 

B-1-1

SCHEDULE B-2

Location of Lien Certificates

FDI
Consulting, Inc. 

1610 Arden Way, Suite 145 

Sacramento, CA 95815 

B-2-1

APPENDIX A

Definitions and Usage

(Attached)

Appendix A

DEFINITIONS AND USAGE

          The
following rules of construction and usage shall be applicable to any agreement
or instrument that is governed by this Appendix: 

          (a)
All terms defined in this Appendix shall have the defined meanings when used in
any agreement or instrument governed hereby and in any certificate or other
document made or delivered pursuant thereto unless otherwise defined therein. 

          (b)
As used herein, in any agreement or instrument governed hereby and in any
certificate or other document made or delivered pursuant thereto, accounting
terms not defined in this Appendix or in any such agreement, instrument,
certificate or other document, and accounting terms partly defined in this
Appendix or in any such agreement, instrument, certificate or other document,
to the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles as in effect on the date of such
agreement or instrument. To the extent that the definitions of accounting terms
in this Appendix or in any such agreement, instrument, certificate or other
document are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Appendix or
in any such instrument, certificate or other document shall control. 

          The
words “hereof,” “herein,” “hereunder” and words of similar import when used in
an agreement or instrument refer to such agreement or instrument as a whole and
not to any particular provision or subdivision thereof; references in an
agreement or instrument to “Article,” “Section” or another subdivision or to an
attachment are, unless the context otherwise requires, to an article, section
or subdivision of or an attachment to such agreement or instrument; and the
term “including” and its variations shall be deemed to be followed by “without
limitation.” 

          The
definitions contained in this Appendix are equally applicable to both the
singular and plural forms of such terms and to the masculine as well as to the
feminine and neuter genders of such terms. 

          Any
agreement, instrument or statute defined or referred to below or in any
agreement or instrument that is governed by this Appendix means such agreement
or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or
consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns. 

Definitions

          “Accrued
Class A Note Interest” shall mean, with respect to any Payment Date, the
sum of the Class A Noteholders’ Monthly Accrued Interest for such Payment Date
and the Class A Noteholders’ Interest Carryover Shortfall for such Payment
Date. 

          “Accrued
Class B Note Interest” shall mean, with respect to any Payment Date, the
sum of the Class B Noteholders’ Monthly Accrued Interest for such Payment Date
and the Class B Noteholders’ Interest Carryover Shortfall for such Payment
Date. 

          “Act”
shall have the meaning specified in Section 11.3(a) of the Indenture. 

          “Administration
Agreement” shall mean the Administration Agreement, dated as of June 19,
2007, by and among the Administrator, the Issuer and the Indenture Trustee. 

          “Administrator”
shall mean the Bank, in its capacity as administrator under the Administration
Agreement, or any successor Administrator thereunder. 

          “Advance”
shall mean the amount of interest, as of a Determination Date, which the
Servicer is required to advance on the Receivables pursuant to Section
4.4(a) of the Sale and Servicing Agreement. 

          “Affiliate”
shall mean, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any Person
shall mean the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms “controlling” and “controlled” shall have meanings
correlative to the foregoing. 

          “Amount
Financed” shall mean, with respect to a Receivable, the amount advanced
under the Receivable toward the purchase price of the Financed Vehicle and any
related costs. 

          “Annual
Percentage Rate” or “APR” of a Receivable shall mean the annual rate of
finance charges stated in the Receivable. 

          “Applicable
Tax State” shall mean, as of any date of determination, each State as to
which any of the following is then applicable: (a) a State in which the Owner
Trustee maintains its Corporate Trust Office and (b) the State of Texas. 

          “Authenticating
Agent” shall have the meaning specified in Section 2.14 of the
Indenture or Section 3.14 of the Trust Agreement, as applicable. 

          “Authorized
Officer” shall mean, (i) with respect to the Issuer, any officer within the
Corporate Trust Office of the Owner Trustee, including any vice president,
assistant vice president, secretary, assistant secretary or any other officer
of the Owner Trustee customarily performing functions similar to those
performed by any of the above designated officers and, for so long as the
Administration Agreement is in full force and effect, any officer of the
Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to the
Administration Agreement; and (ii) with respect to the Indenture Trustee or the
Owner Trustee, any officer within the Corporate Trust Office of the Indenture
Trustee or the Owner Trustee, as the case may be, including any vice president,
assistant vice president, secretary, assistant secretary or any other officer
of the Indenture Trustee or the Owner Trustee, as the case may be, customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a 

2

particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject, in each
case having direct responsibility for the administration of the Indenture or
the Trust Agreement, as applicable, and shall also mean, with respect to the
Owner Trustee, any officer of the Administrator. 

          “Available
Collections” shall mean, for any Payment Date, the sum of the following
amounts with respect to the Collection Period preceding such Payment Date: (i)
all payments collected with respect to Receivables; (ii) all Liquidation
Proceeds attributable to Receivables which were designated as Defaulted
Receivables in prior Collection Periods in accordance with the Servicer’s customary
servicing procedures; (iii) all Advances made by the Servicer of interest due
on the Receivables; (iv) the Purchase Amount received with respect to each
Receivable that became a Purchased Receivable during such Collection Period;
and (v) partial prepayments of any refunded item included in the principal
balance of a Receivable, such as extended warranty protection plan costs, or
physical damage, credit life, disability insurance premiums, or any partial
prepayment which causes a reduction in the Obligor’s periodic payment to an
amount below the Scheduled Payment as of the Cut-off Date; provided however,
that in calculating the Available Collections the following will be excluded:
(i) amounts received on any Receivable to the extent that the Servicer has previously
made an unreimbursed Advance on such Receivable and the amount received exceeds
the accrued and unpaid interest on such Receivable that has not been advanced;
(ii) amounts received on any of the Receivables to the extent that the Servicer
has previously made an unreimbursed Advance on a Receivable which is not
recoverable from collections on the particular Receivable; (iii) all payments
and proceeds (including Liquidation Proceeds) of any Receivables the Purchase
Amount of which has been included in Available Funds in a prior Collection
Period; (iv) Liquidation Proceeds with respect to a Receivable attributable to
accrued and unpaid interest thereon (but not including interest for the then
current Collection Period) but only to the extent of any unreimbursed Advances;
and (v) amounts constituting the Supplemental Servicing Fee. 

          “Available
Funds” shall mean, for any Payment Date, the sum of the Available
Collections for such Payment Date and the Reserve Account Excess Amount for
such Payment Date; provided that, in the event of a Special Payment Date, a
portion of the Available Funds for the July, 2008 Payment Date shall be
distributed from the Collection Account and the Principal Distribution Account
on the Special Payment Date as provided in Section 4.6(e) of the Sale
and Servicing Agreement and the remaining Available Funds shall be distributed
on the July, 2008 Payment Date as provided in Section 4.6(b) and Section
4.6(c) of the Sale and Servicing Agreement. 

          “Average
Delinquency Ratio” shall mean, for any Payment Date, the average of the
Delinquency Ratios for the preceding three Collection Periods. 

          “Average
Delinquency Ratio Test” shall mean, for a Payment Date occurring in a month
specified in the table below, a test that will be met if the Average
Delinquency Ratio for such Payment Date is less than the percentage specified
opposite such Payment Date: 

3

	
 

	
 

	
 

	
 

	
Payment Date

	
 

	
Percentage

	
 

	

	
 

	

	
 

	
June 2009

	
 

	
0.25%

	
 

	
December
  2009

	
 

	
0.30%

	
 

          “Bank”
shall mean USAA Federal Savings Bank, a federally chartered savings
association. 

          “Bankruptcy
Code” shall mean the United States Bankruptcy Code, 11 U.S.C. 101 et seq.,
as amended. 

          “Basic
Documents” shall mean the Certificate of Trust, the Trust Agreement, the
Sale and Servicing Agreement, the Receivables Purchase Agreement, the
Indenture, the Administration Agreement, the Underwriting Agreement, the Note
Depository Agreement and the other documents and certificates delivered in
connection therewith. 

          “Benefit
Plan” shall mean (a) an “employee benefit plan” (as defined in Section
3(3) of ERISA), whether or not subject to the provisions of Title I of
ERISA, (b) any “plan” described in Section 4975(e)(1) of the Code, and
(c) any entity whose underlying assets included plan assets by reason of an
employee benefit plan’s or a plan’s investment in the entity. 

          “Book-Entry
Note” shall mean a beneficial interest in any of the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B
Notes, in each case issued in book-entry form. 

          “Business
Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions or trust companies in the State of New York, the State of
Delaware or the State of Texas are authorized by law, regulation or executive
order to be closed. 

          “Certificateholder”
or “holder of a Certificate” shall mean a Person in whose name a Certificate is
registered. 

          “Certificate
of Trust” shall mean the Certificate of Trust in the form of Exhibit B to
the Trust Agreement filed for the Trust pursuant to Section 3810(a) of
the Statutory Trust Statute. 

          “Certificates”
shall mean the asset backed Certificates evidencing the beneficial interest of
a Certificateholder in the property of the Trust, substantially in the form of
Exhibit A to the Trust Agreement; provided, however, that the Owner Trust
Estate has been pledged to the Indenture Trustee to secure payment of the Notes
and the rights of the Certificateholders to receive distributions on the
Certificates are subordinated to the rights of the Noteholders as described in
the Sale and Servicing Agreement, the Indenture and the Trust Agreement. 

          “Certification
Party” shall have the meaning set forth in Section 10.6 of the Sale
and Servicing Agreement. 

          “Certifying
Person” shall have the meaning set forth in Section 10.6 of the Sale
and Servicing Agreement. 

4

          “Class”
shall mean a class of Notes, which may be the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes, the Class A-4 Notes or the Class B Notes. 

          “Class
A Noteholder” shall mean any holder of a Class A Note. 

          “Class
A Noteholders’ Interest Carryover Shortfall” shall mean, for any Payment
Date, the excess of the Accrued Class A Note Interest for the preceding Payment
Date over the amount in respect of interest that is actually paid to
Noteholders of Class A Notes on such preceding Payment Date, plus interest on
the amount of interest due but not paid to Noteholders of Class A Notes on the
preceding Payment Date, to the extent permitted by law, at the respective Note
Interest Rates borne by such Class A Notes for the related Interest Period. 

          “Class
A Noteholders’ Monthly Accrued Interest” shall mean, with respect to any
Payment Date, the aggregate interest accrued for the related Interest Period on
the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes at the respective Note Interest Rate for such Class in accordance with
its terms on the outstanding principal amount of the Notes of each such Class
on the immediately preceding Payment Date or the Closing Date, as the case may
be, after giving effect to all payments of principal to the holders of the
Notes of such Class on or prior to such preceding Payment Date. 

          “Class
A Notes” shall mean, collectively, the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes. 

          “Class
A-1 Final Scheduled Payment Date” shall mean the Special Payment Date. 

          “Class
A-1 Noteholder” shall mean the Person in whose name a Class A-1 Note is
registered on the Note Register. 

          “Class
A-1 Notes” shall mean the $291,000,000 aggregate initial principal amount
Class A-1 5.33725% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit A-1 to the Indenture. 

          “Class
A-1 Rate” shall mean 5.33725% per annum. Interest with respect to the Class
A-1 Notes shall be computed on the basis of actual days elapsed in the
applicable Interest Period divided by 360 for all purposes of the Basic
Documents. 

          “Class
A-2 Final Scheduled Payment Date” shall mean the April 2010 Payment Date. 

          “Class
A-2 Noteholder” shall mean the Person in whose name a Class A-2 Note is
registered on the Note Register. 

          “Class
A-2 Notes” shall mean the $335,000,000 aggregate initial principal amount
Class A-2 5.40% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit A-2 to the Indenture. 

          “Class
A-2 Rate” shall mean 5.40% per annum. Interest with respect to the Class
A-2 Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months for all purposes of the Basic Documents. 

5

          “Class
A-3 Final Scheduled Payment Date” shall mean the October 2011 Payment Date.

          “Class
A-3 Noteholder” shall mean the Person in whose name a Class A-3 Note is
registered on the Note Register. 

          “Class
A-3 Notes” shall mean the $343,000,000 aggregate initial principal amount
Class A-3 5.43% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit A-3 to the Indenture. 

          “Class
A-3 Rate” shall mean 5.43% per annum. Interest with respect to the Class
A-3 Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months for all purposes of the Basic Documents. 

          “Class
A-4 Final Scheduled Payment Date” shall mean the February 2013 Payment
Date. 

          “Class
A-4 Noteholder” shall mean the Person in whose name a Class A-4 Note is
registered on the Note Register. 

          “Class
A-4 Notes” shall mean the $219,430,000 aggregate initial principal amount
Class A-4 5.55% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit A-4 to the Indenture. 

          “Class
A-4 Rate” shall mean 5.55% per annum. Interest with respect to the Class
A-4 Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months for all purposes of the Basic Documents. 

          “Class
B Final Scheduled Payment Date” shall mean the December 2013 Payment Date. 

          “Class
B Noteholder” shall mean the Person in whose name a Class B Note is
registered on the Note Register. 

          “Class
B Noteholders’ Interest Carryover Shortfall” shall mean, for any Payment
Date, the excess of the Accrued Class B Note Interest for the preceding Payment
Date over the amount in respect of interest that is actually paid to
Noteholders of Class B Notes on such preceding Payment Date, plus interest on
the amount of interest due but not paid to the Noteholders of Class B Notes on
the preceding Payment Date, to the extent permitted by law, at the Class B Rate
borne for the related Interest Period. 

          “Class
B Noteholders’ Monthly Accrued Interest” shall mean, with respect to any
Payment Date, the aggregate interest accrued for the related Interest Period on
the Class B Notes at the Class B Rate on the outstanding principal amount of
the Class B Notes on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all payments of principal to
the holders of the Class B Notes on or prior to such preceding Payment Date. 

          “Class
B Notes” shall mean the $33,600,779 aggregate initial principal amount
Class B 5.85% Asset Backed Notes issued by the Trust pursuant to the Indenture,
substantially in the form of Exhibit B to the Indenture. 

6

          “Class
B Rate” shall mean 5.85% per annum. Interest with respect to the Class B
Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months for all purposes of the Basic Documents. 

          “Clearing
Agency” shall mean an organization registered as a “clearing agency”
pursuant to Section 17A of the Exchange Act. 

          “Clearing
Agency Participant” shall mean a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency
effects book-entry transfers and pledges of securities deposited with the
Clearing Agency. 

          “Closing
Date” shall mean June 19, 2007. 

          “Code”
shall mean the Internal Revenue Code of 1986, as amended, and Treasury
Regulations promulgated thereunder. 

          “Collateral”
shall have the meaning specified in the Granting Clause of the Indenture. 

          “Collection
Account” shall mean the account or accounts established and maintained as
such pursuant to Section 4.1(a) of the Sale and Servicing Agreement.  

          “Collection
Period” shall mean, with respect to the first Payment Date, the period from
and including the Cut-off Date to and including June 30, 2007 and, with respect
to each subsequent Payment Date, the calendar month preceding the calendar
month in which the Payment Date occurs. 

          “Collections”
shall mean all amounts collected by the Servicer (from whatever source) on or with
respect to the Receivables. 

          “Commission”
shall mean the United States Securities and Exchange Commission. 

          “Computer
Tape” shall mean the computer tape generated by the Seller which provides
information relating to the Receivables and which was used by the Seller in
selecting the Receivables conveyed to the Trust hereunder. 

          “Controlling
Class” shall mean the Class A Notes voting together as a single Class until
they are paid in full; thereafter the Class B Notes will be the Controlling
Class. 

          “Controlling
Person” shall mean a Person, other than a Benefit Plan Investor, that has
discretionary authority or control with respect to the assets of the Trust or
who provides investment advice for a direct or indirect fee with respect to
those assets, or any affiliate of such a Person. 

          “Corporate
Trust Office” shall mean, (i) with respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at 919 North
Market Street, Suite 700, Wilmington, Delaware 19801 or at such other address
as the Owner Trustee may designate from time to time by notice to the
Certificateholders and the Depositor, or the principal corporate trust office
of any successor Owner Trustee (the address of which the successor Owner
Trustee will 

7

notify the
Certificateholders and the Depositor); and (ii) with respect to the Indenture
Trustee, the principal corporate trust office of the Indenture Trustee located
at 101 Barclay Street, 4 West, New York, New York 10286, Attention: Corporate
Trust Administration--USAA 2007-1 or at such other address as the Indenture
Trustee may designate from time to time by notice to the Noteholders and the
Issuer, or the principal corporate trust office of any successor Indenture
Trustee (the address of which the successor Indenture Trustee will notify the
Noteholders and the Issuer). 

          “Cumulative
Net Loss Ratio” shall mean, for any Payment Date, the ratio, expressed as a
percentage, of (a) the sum of the excess of Realized Losses over Recoveries for
each Collection Period since the Cut-off Date through the last day of the
related Collection Period, to (b) the Pool Balance as of the Cut-off Date. 

          “Cumulative
Net Loss Ratio Test” shall mean, for a Payment Date occurring in a month
specified in the table below, a test that will be met if the Cumulative Net
Loss Ratio for such Payment Date is less than the percentage specified opposite
such Payment Date: 

	
 

	
 

	
 

	
Payment Date

	
 

	
Percentage

	

	
 

	

	
June 2009

	
 

	
0.55%

	
December 2009

	
 

	
0.65%

          “Cut-off
Date” shall mean June 1, 2007. 

          “Default”
shall mean any occurrence that is, or with notice or the lapse of time or both
would become, an Event of Default. 

          “Defaulted
Receivable” shall mean a Receivable (i) that the Servicer determines is
unlikely to be paid in full or (ii) with respect to which at least 5% of a
Scheduled Payment is 120 or more days delinquent as of the end of a calendar
month. 

          “Definitive
Certificates” shall have the meaning specified in Section 3.13 of the Trust
Agreement.  

          “Definitive
Notes” shall have the meaning specified in Section 2.11 of the Indenture.  

          “Delinquency
Ratio” means, for any Collection Period, the ratio, expressed as a
percentage, of (a) the Principal Amount of all outstanding Receivables (other
than Purchased Receivables and Defaulted Receivables) that are 60 or more days
delinquent as of the end of such Collection Period, determined in accordance
with the Servicer’s customary practices, plus Receivables as to which the
related Financed Vehicle has been repossessed but not sold (other than
Purchased Receivables and Defaulted Receivables), to (b) the Pool Balance as of
the last day of such Collection Period. 

          “Depositor”
shall mean USAA Acceptance, LLC, a Delaware limited liability company. 

8

          “Determination
Date” shall mean, with respect to any Collection Period, the second
Business Day immediately preceding the Payment Date following such Collection
Period; provided, however, if any Class A-1 Notes are Outstanding after the
Payment Date in June 2008, the Determination Date for the July 2008 Payment
Date shall mean, the second Business Day immediately preceding the Special
Payment Date. 

          “EDGAR”
shall mean the Commission’s Electronic Data Gathering, Analysis and Retrieval
system. 

          “Eligible
Deposit Account” shall mean either (i) a segregated account with an
Eligible Institution or (ii) a segregated trust account with the corporate
trust department of a depository institution organized under the laws of the
U.S. or any one of the states thereof or the District of Columbia (or any
domestic branch of a foreign bank), having corporate trust powers and acting as
trustee for funds deposited in such account, so long as any of the securities
of such depository institution have a credit rating from each Rating Agency in
one of its generic rating categories which signifies investment grade. 

          “Eligible
Institution” shall mean either (i) the corporate trust department of the
Indenture Trustee or the Owner Trustee, as applicable; or (ii) a depository
institution organized under the laws of the U.S. or any one of the states
thereof or the District of Columbia (or any domestic branch of a foreign bank),
(1) which has either (A) a long-term unsecured debt rating of at least “AA-” by
Standard & Poor’s and “Baa3” by Moody’s or (B) a short-term unsecured debt
rating or certificate of deposit rating of “A-1+” by Standard & Poor’ and
“Prime-1” by Moody’s and (2) whose deposits are insured by the FDIC. 

          “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended. 

          “Event
of Default” shall have the meaning specified in Section 5.1 of the
Indenture.  

          “Event
of Servicing Termination” shall mean an event specified in Section 7.1 of
the Sale and Servicing Agreement.  

          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 

          “Exchange
Act Reports” shall mean any reports on Form 10-D, Form 8-K and Form 10-K
required to be filed by the Depositor with respect to the Trust under the
Exchange Act. 

          “Executive
Officer” shall mean, with respect to any corporation or depository
institution, the Chief Executive Officer, Chief Operating Officer, Chief
Financial Officer, President, Executive Vice President, any Vice President, the
Secretary or the Treasurer of such corporation and, with respect to any
partnership, any general partner thereof. 

          “FDIC”
shall mean the Federal Deposit Insurance Corporation. 

          “Final
Scheduled Payment Date” shall mean, with respect to (i) the Class A-1
Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class A-2 Notes,
the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3 Notes, the
Class A-3 Final Scheduled Payment 

9

Date, (iv) the
Class A-4 Notes, the Class A-4 Final Scheduled Payment Date, and (v) the Class
B Notes, the Class B Final Scheduled Payment Date. 

          “Financed
Vehicle” shall mean a new or used automobile or light-duty truck, together
with all accessions thereto, securing an Obligor’s indebtedness under the
respective Receivable. 

          “First
Priority Principal Payment” shall mean, for each Payment Date, a payment of
principal equal to the excess, if any, of the aggregate principal amount of the
Class A Notes (before giving effect to any payments on that Payment Date) over
the Pool Balance at the end of the related Collection Period. 

          “Form
10-D Disclosure Item” shall mean with respect to any Person, any litigation
or governmental proceedings pending against such Person, or any of the Trust,
the Depositor, the Indenture Trustee, the Owner Trustee or the Servicer if such
Person or in the case of the Owner Trustee or Indenture Trustee, a Responsible
Officer of such Person, has actual knowledge thereof, in each case that would
be material to the noteholders. 

          “Form
10-K Disclosure Item” shall mean with respect to any Person, (a) any Form
10-D Disclosure Item and (b) any affiliations or relationships between such
Person and any Item 1119 Party to the extent a Responsible Officer of such
Person (in the case of the Indenture Trustee and the Owner Trustee) has actual
knowledge thereof. 

          “Grant”
shall mean to mortgage, pledge, bargain, sell, warrant, alienate, remise,
release, convey, assign, transfer, create, and to grant a lien upon and a
security interest in and right of set-off against, and to deposit, set over and
confirm pursuant to the Indenture. A Grant of the Collateral or of any other
agreement or instrument shall include all rights, powers and options (but none
of the obligations) of the granting party thereunder, including the immediate
and continuing right to claim for, collect, receive and give receipt for
principal and interest payments in respect of the Collateral and all other
monies payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the granting party or otherwise,
and generally to do and receive anything that the granting party is or may be
entitled to do or receive thereunder or with respect thereto. 

          “Indemnified
Parties” shall have the meaning assigned to such term in Section 7.2 of the
Trust Agreement.  

          “Indenture”
shall mean the Indenture, dated as of June 19, 2007, by and between the Trust
and the Indenture Trustee, as supplemented from time to time. 

          “Indenture
Trust Estate” shall mean all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
Indenture for the benefit of the Noteholders (including, without limitation,
all property and interests Granted to the Indenture Trustee), including all
proceeds thereof. 

          “Indenture
Trustee” shall mean The Bank of New York, a banking corporation organized
under the laws of the State of New York, not in its individual capacity but
solely as Indenture Trustee under the Indenture, or any successor Indenture
Trustee under the Indenture. 

10

          “Independent”
shall mean, when used with respect to any specified Person, that such Person
(a) is in fact independent of the Issuer, any other obligor on the Notes, the
Seller and any Affiliate of any of the foregoing Persons, (b) does not have any
direct financial interest or any material indirect financial interest in the
Issuer, any such other obligor on the Notes, the Seller or any Affiliate of any
of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor on the Notes, the Seller or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions. 

          “Independent
Certificate” shall mean a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.1 of the Indenture, made by an
Independent appraiser, firm of certified public accountants or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of “Independent” in the Indenture and that
the signer is Independent within the meaning thereof.  

          “Initial
Pool Balance” shall mean $1,222,030,779.95. 

          “Insolvency
Event” shall mean, with respect to any Person, (i) the making of a general
assignment for the benefit of creditors, (ii) the filing of a voluntary
petition in bankruptcy, (iii) being adjudged a bankrupt or insolvent, or having
had entered against such Person an order for relief in any bankruptcy or
insolvency proceeding, (iv) the filing by such Person of a petition or answer
seeking reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or regulation, (v) the
filing by such Person of an answer or other pleading admitting or failing to
contest the material allegations of a petition filed against such Person in any
proceeding specified in (vii) below, (vi) seeking, consent to or acquiescing in
the appointment of a trustee, receiver or liquidator of such Person or of all
or any substantial part of the assets of such Person or (vii) the failure to
obtain dismissal within 60 days of the commencement of any proceeding against
such Person seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any statute, law or
regulation, or the entry of any order appointing a trustee, liquidator or
receiver of such Person or of such Person’s assets or any substantial portion
thereof. 

          “Interest
Period” shall mean, with respect to any Payment Date (i) with respect to
the Class A-1 Notes, from and including the Closing Date (in the case of the
first Payment Date) or from and including the most recent Payment Date on which
interest has been paid to but excluding the following Payment Date and (ii)
with respect to each Class of Notes (other than the Class A-1 Notes) and the
Certificates, from and including the Closing Date (in the case of the first
Payment Date) or from and including the 15th day of the calendar month
preceding each Payment Date to but excluding the 15th day of the calendar month
of such Payment Date. 

          “IRS”
shall mean the Internal Revenue Service. 

          “Issuer”
shall mean the Trust unless a successor replaces it and, thereafter, shall mean
the successor. 

11

          “Issuer
Order” and “Issuer Request” shall mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee. 

          “Item
1119 Party” shall mean the Depositor, the Seller, the Servicer, the
Indenture Trustee, the Owner Trustee and any other material transaction party,
as identified in Appendix B to the Sale and Servicing Agreement. 

          “Investment
Letter” shall have the meaning specified in Section 3.4(b) of the
Trust Agreement. 

          “Lien”
shall mean a security interest, lien, charge, pledge, equity, or encumbrance of
any kind other than, in respect of a Receivable, tax liens, mechanics’ liens,
and any liens which attach to the respective Receivable by operation of law. 

          “Lien
Certificate” shall mean the notice or other document referenced in clause
(iii) of the description of the Receivable Files. 

          “Liquidation
Proceeds” shall mean with respect to any Receivable (a) insurance proceeds
received by the Servicer and (b) monies collected by the Servicer on a
Defaulted Receivable from whatever source, including but not limited to
proceeds of Financed Vehicles sold after repossession, net of any payments
required by law to be remitted to the Obligor and net of all reasonable
expenses incurred by the Servicer in converting to cash the Financed Vehicle
securing such Defaulted Receivable. 

          “Monthly
Remittance Condition” shall be deemed to be satisfied if (i) USAA Federal
Savings Bank is the Servicer, (ii) no Event of Servicer Termination has
occurred and is continuing and (iii) USAA Capital Corporation has a short-term
debt rating of at least “P1” from Moody’s and “A1” from Standard & Poor’s. 

          “Moody’s”
shall mean Moody’s Investors Service, Inc. 

          
“Note Depository Agreement” shall mean the Letter of Representations,
dated as of June 19, 2007 by and between the Issuer and The Depository Trust
Company regarding the Notes. 

          “Note
Interest Rate” shall mean the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate, the Class A-4 Rate or the Class B Rate, as applicable. 

          “Note
Owner” shall mean, with respect to any Book-Entry Note, the Person who is
the beneficial owner of such Book-Entry Note, as reflected on the books of the
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).

          “Note
Paying Agent” shall mean the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 of the Indenture and is authorized by the Issuer to make payments to and
distributions from the Collection Account (including the Principal Distribution
Account), including payment of principal of or interest on the Notes on behalf
of the Issuer.  

12

          “Note
Pool Factor” shall mean, with respect to each Class of Notes as of the
close of business on the last day of a Collection Period, a seven-digit decimal
figure calculated by the Servicer and equal to the outstanding principal
balance of such Class of Notes (after giving effect to any reductions thereof
to be made on the immediately following Payment Date) divided by the original
outstanding principal balance of such Class of Notes. The Note Pool Factor will
be 1.0000000 as of the Closing Date; thereafter, the Note Pool Factor will
decline to reflect reductions in the outstanding principal amount of such Class
of Notes. 

          “Note
Register” and “Note Registrar” shall have the respective meanings
specified in Section 2.5 of the Indenture.  

          “Noteholder”
or “holder of a Note” shall mean the Person in whose name a Note is
registered on the Note Register. 

          “Notes”
shall mean the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes and the Class B Notes, collectively. 

          “Obligor”
on a Receivable shall mean the purchaser or co-purchasers of the Financed
Vehicle or any other Person who owes payments under the Receivable. 

          “Officer’s
Certificate” shall mean (i) with respect to the Trust, a certificate signed
by any Authorized Officer of the Trust and (ii) with respect to the Depositor,
the Seller or the Servicer, a certificate signed by the chairman of the board,
the president, any executive or senior vice president, any vice president, the
treasurer or the controller of the Depositor, the Seller or the Servicer, as
applicable. 

          “Opinion
of Counsel” shall mean a written opinion of counsel which counsel shall be
acceptable to the Indenture Trustee, the Owner Trustee or the Rating Agencies,
as applicable. 

          “Optional
Purchase Percentage” shall mean 10%. 

          “Outstanding”
shall mean with respect to the Securities, as of the date of determination, all
Securities theretofore authenticated and delivered under the Indenture or the
Trust Agreement, as applicable, except: 

          (a)
Securities theretofore (i) cancelled by the Note Registrar or (ii) delivered to
the Note Registrar for cancellation; 

          (b)
Securities or portions thereof the payment for which money in the necessary
amount has been theretofore deposited with (i) in the case of the Notes, the
Indenture Trustee or any Note Paying Agent in trust for the Noteholders of such
Notes (provided, however, that if such Notes are to be prepaid, notice of such
prepayment has been duly given pursuant to the Indenture or provision for such notice
has been made, satisfactory to the Indenture Trustee) or (ii) in the case of
the Certificates, the Owner Trustee in trust for the Certificateholders of such
Certificates (provided, however, that if such Certificates are to be prepaid,
notice of such prepayment has been duly given pursuant to the Trust Agreement
or provision for such notice has been made, satisfactory to the Owner Trustee);
and 

13

          (c)
Securities in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to the Indenture or the Trust Agreement,
as applicable, unless proof satisfactory to the Indenture Trustee or the Owner
Trustee, as applicable, is presented that any such Securities are held by a
protected purchaser; 

provided, that
in determining whether the holders of Notes or Certificates evidencing the
requisite principal amount of the Notes Outstanding or Certificates Outstanding
have given any request, demand, authorization, direction, notice, consent, or
waiver under any Basic Document, Securities owned by the Issuer, any other
obligor upon the Securities, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Indenture Trustee or
Owner Trustee, as applicable, shall be protected in relying on any such
request, demand, authorization, direction, notice, consent, or waiver, only (i)
Notes that a Responsible Officer of the Indenture Trustee knows to be so owned
and (ii) Certificates that a Responsible Officer of the Owner Trustee knows to
be so owned, shall be so disregarded; provided, however, if the Issuer, any
other obligor upon the Securities, the Depositor, the Seller, the Servicer or
any Affiliate of any of the foregoing Persons owns an entire Class of
Securities, such Securities shall be deemed to be Outstanding. Notes owned by
the Issuer, any other obligor upon the Notes, the Depositor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Indenture Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Issuer, any other obligor
upon the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any
of the foregoing Persons. Certificates owned by the Issuer, any other obligor
upon the Certificates, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Owner Trustee
the pledgee’s right so to act with respect to such Certificates and that the
pledgee is not the Issuer, any other obligor upon the Certificates, the
Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons. 

          “Outstanding
Advances” on the Receivables shall mean the sum, as of the close of
business on the last day of a Collection Period, of all Advances as reduced as
provided in Section 4.4(a) of the Sale and Servicing Agreement.  

          “Owner
Trustee” shall mean Wells Fargo Delaware Trust Company, a Delaware limited
purpose trust company, not in its individual capacity but solely as Owner
Trustee under the Trust Agreement, or any successor Owner Trustee under the
Trust Agreement. 

          “Owner
Trust Estate” shall mean all right, title and interest of the Trust in, to
and under the property and rights assigned to the Trust pursuant to Article II
of the Sale and Servicing Agreement. 

          “Payment
Date” shall mean the fifteenth (15th) day of each calendar month or, if
such day is not a Business Day, the next succeeding Business Day; provided,
however, if any Class A-1 Notes are Outstanding after the Payment Date in June
2008, Payment Date shall also mean, in the context of the date for final
payment of the Class A-1 Notes and the Interest Period for the Class A-1 Notes
from the June 2008 Payment Date to but excluding such final Payment Date, the
Special Payment Date. 

14

          “Percentage
Interest” shall mean, as to any Certificate, the percentage interest,
specified on the face thereof, in the distributions on the Certificates
pursuant to the Trust Agreement. 

          “Permitted
Investments” shall mean, on any date of determination, book-entry
securities, negotiable instruments or securities represented by instruments in
bearer or registered form with maturities not exceeding the Business Day
preceding the next Payment Date (or in the case of the Special Payment Date,
the portion of such funds needed to make the final payment on the Class A-1
Notes shall not have maturities later than the Business Day immediately prior
to the Special Payment Date) which evidence: 

          (a)
direct non-callable obligations of, and obligations fully guaranteed as to
timely payment by, the United States of America; 

          (b)
demand deposits, time deposits or certificates of deposit of any depository
institution or trust company incorporated under the laws of the United States
of America or any state thereof (or any domestic branch of a foreign bank) and
subject to supervision and examination by federal or State banking or
depository institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein, the commercial paper or
other short-term unsecured debt obligations (other than such obligations the
rating of which is based on the credit of a Person other than such depository institution
or trust company) thereof shall have a credit rating from each of the Rating
Agencies in the highest investment category granted thereby; 

          (c)
commercial paper having, at the time of the investment or contractual
commitment to invest therein, a rating from each of the Rating Agencies in the
highest investment category granted thereby; 

          (d)
investments in money market funds having a rating from each of the Rating
Agencies in the highest investment category granted thereby (including funds
for which the Indenture Trustee or the Owner Trustee or any of their respective
Affiliates is investment manager or advisor); 

          (e)
bankers’ acceptances issued by any depository institution or trust company
referred to in clause (b) above; 

          (f)
repurchase obligations with respect to any security that is a direct
non-callable obligation of, or fully guaranteed by, the United States of
America or any agency or instrumentality thereof the obligations of which are
backed by the full faith and credit of the United States of America, in either
case entered into with a depository institution or trust company (acting as
principal) described in clause (b); and 

          (g)
any other investment with respect to which the Issuer or the Servicer has
received written notification from the Rating Agencies that the acquisition of
such investment as a Permitted Investment will not result in a withdrawal or
downgrading of the ratings on the Notes or the Certificates. 

15

          “Person”
shall mean any individual, corporation, limited liability company, estate,
partnership, joint venture, association, joint stock company, trust,
unincorporated organization, or government or any agency or political
subdivision thereof. 

          “Plan”
means an employee benefit plan (as defined in Section 3(3) of ERISA) that is
subject to Title I of ERISA, a plan (as defined in Section 4975(e)(1) of the
Code) and any entity whose underlying assets include plan assets by reason of a
plan’s investment in the entity or otherwise. 

          “Pool
Balance” shall mean on any date of determination, the aggregate outstanding
Principal Balance of the Receivables (exclusive of Purchased Receivables and
Defaulted Receivables) as of such date of determination. 

          “Pool
Factor” as of the last day of a Collection Period shall mean a seven-digit
decimal figure equal to the Pool Balance at that time divided by the Initial
Pool Balance. 

          “Predecessor
Note” shall mean, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note and, for purposes of this definition, any Note authenticated
and delivered under Section 2.6 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.  

          “Preliminary
Prospectus Supplement” shall have the meaning specified in the Underwriting
Agreement. 

          “Prepayment
Date” shall mean with respect to a prepayment of the Notes pursuant to
Section 10.1(a) of the Indenture, the Payment Date specified by the Servicer
pursuant to Section 10.1(a) or (b) of the Indenture, as applicable.  

          “Prepayment
Price” shall mean in the case of a Class of Notes to be prepaid, an amount
equal to the unpaid principal amount of such Class of Notes plus accrued and
unpaid interest thereon at the applicable Note Interest Rate plus interest on
any overdue interest at the applicable Note Interest Rate (to the extent
lawful) to but excluding the Prepayment Date. 

          “Principal
Balance” of a Receivable, as of any date of determination, shall mean the
Amount Financed minus that portion of all payments actually received on or
prior to such date allocable to principal. 

          “Principal
Distribution Account” shall mean the administrative sub-account of the
Collection Account established and maintained as such pursuant to Section 4.1(b) of the Sale and Servicing Agreement.  

          “Proceeding”
shall mean any suit in equity, action at law or other judicial or
administrative proceeding. 

          “Prospectus”
shall have the meaning specified in the Underwriting Agreement. 

16

          “Prospectus
Supplement” shall have the meaning specified in the Underwriting Agreement.

          “Purchase
Amount” with respect to a Purchased Receivable shall mean the sum, as of
the last day of the related Collection Period, of the Principal Balance thereof
plus the accrued interest thereon at the weighted average of the Note Interest
Rates and the Class B Rate through the end of the related Collection Period.

          “Purchased
Receivable” shall mean a Receivable purchased as of the close of business
on the last day of the respective Collection Period by the Servicer pursuant to
Section 3.7 of the Sale and Servicing Agreement, by the Seller pursuant
to Section 2.3 of the Sale and Servicing Agreement or by the Servicer
pursuant to Section 8.1 of the Sale and Servicing Agreement.

          “Rating
Agency” shall mean each of the nationally recognized statistical rating
organizations designated by the Depositor to provide a rating on the Notes or
the Certificates which is then rating such Notes or Certificates. If no such
organization or successor is any longer in existence, “Rating Agency” shall be
a nationally recognized statistical rating organization or other comparable
Person designated by the Depositor, notice of which designation shall be given
to the Indenture Trustee, the Owner Trustee and the Servicer.

          “Rating
Agency Condition” shall mean, with respect to any action, that each of the
Rating Agencies shall have notified the Servicer, the Depositor, the Owner
Trustee and the Indenture Trustee in writing that such action will not result
in a reduction or withdrawal of the then current ratings of the Notes or the
Certificates.

          “Realized
Losses” shall mean, for any Collection Period and for each Receivable that
became a Defaulted Receivable during such Collection Period, the excess of the
Principal Balance of each such Receivable over Liquidation Proceeds received
with respect to such Receivable during such Collection Period, to the extent
allocable to principal.

          “Receivable”
shall mean a motor vehicle installment loan contract listed on Schedule A to
the Receivables Purchase Agreement and all proceeds thereof and payments
thereunder, which Receivable shall not have been released by the Indenture
Trustee and the Owner Trustee from the Trust.

          “Receivable
Files” shall mean the documents specified in Section 2.4 of the Sale
and Servicing Agreement.

          “Receivables
Purchase Agreement” shall mean the Receivables Purchase Agreement, dated as
of June 19, 2007, by and between the Bank, as seller, and the Depositor, as
purchaser.

          “Record
Date” shall mean, with respect to any Payment Date or Prepayment Date and
any Book-Entry Security, the close of business on the day prior to such Payment
Date or Prepayment Date or, with respect to any Definitive Note or Definitive
Certificate, the last day of the month preceding the month in which such
Payment Date or Prepayment Date occurs.

          “Recoveries”
shall mean, with respect to any Collection Period, all amounts received by the
Servicer with respect to any Defaulted Receivable during any Collection Period
following the

17

Collection
Period in which such Receivable became a Defaulted Receivable, net of any fees,
costs and expenses incurred by the Servicer in connection with the collection
of such Receivable and any payments required by law to be remitted to the
Obligor.

          “Registered
Noteholder” shall mean the Person in whose name a Note is registered on the
Note Register on the applicable Record Date.

          “Registration
Statement” shall mean Registration Statement No. 333-131356 filed by the
Depositor with the Commission as of the applicable effective date as to each
part of the Registration Statement pursuant to Rule 430B(f)(2).

          “Regular
Principal Distribution Amount” shall mean, with respect to any Payment
Date, an amount equal to the excess, if any, of (a) the sum of the aggregate
principal amount of the Notes for such Payment Date (before giving effect to
any payments on that Payment Date) over (b) the Pool Balance at the end of the
related Collection Period.

          “Regulation
AB” shall mean subpart 229.1100 – Asset Backed Securities (Regulation AB),
17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject
to such clarification and interpretation as have been provided by the
Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from
time to time.

          “Related
Agreements” shall have the meaning specified in the recitals to the
Administration Agreement.

          “Reportable
Event” shall mean any event required to be reported on Form 8-K, and in any
event, the following:

	
 

	
 

	
 

	
(a) entry
  into a material definitive agreement related to the Trust, the Notes or the
  Receivables, or an amendment to a Basic Document, even if the Depositor is
  not a party to such agreement (e.g., a servicing agreement with a servicer
  contemplated by Item 1108(a)(3) of Regulation AB);

	
 

	
 

	
 

	
(b)
  termination of a Basic Document (other than by expiration of the agreement on
  its stated termination date or as a result of all parties completing their
  obligations under such agreement), even if the Depositor is not a party to
  such agreement (e.g., a servicing agreement with a servicer contemplated by
  Item 1108(a)(3) of Regulation AB);

	
 

	
 

	
 

	
(c) with
  respect to the Servicer only, the occurrence of a Servicing Termination Event
  or an Event of Default;

	
 

	
 

	
 

	
(d) the
  resignation, removal, replacement, substitution of the Indenture Trustee, the
  Owner Trustee or any Co-Trustee;

	
 

	
 

	
 

	
(e) with
  respect to the Indenture Trustee only, a required distribution to holders of
  the Notes is not made as of the required Payment Date under the Indenture;
  and

18

	
 

	
 

	
 

	
(f) with
  respect to the Servicer only, if the Servicer becomes aware of any bankruptcy
  or receivership of the Seller, the Depositor, the Indenture Trustee, the
  Owner Trustee, any enhancement or support provider contemplated by Item
  1114(b) or 1115 of Regulation AB, or other material party contemplated by
  Item 1101(d)(1) of Regulation AB.

          “Reporting
Subcontractor” shall mean with respect to the Indenture Trustee, any Subcontractor
determined by such Person pursuant to Section 10.7 to be “participating
in the servicing function” within the meaning of Item 1122 of Regulation AB.
References to a Reporting Subcontractor shall refer only to the Subcontractor
of such Person and shall not refer to Subcontractors generally.

          “Representatives”
shall mean Banc of America Securities LLC and Citigroup Global Markets Inc., as
representatives of the several Underwriters.

          “Repurchase
Event” shall have the meaning specified in Section 7.02 of the
Receivables Purchase Agreement.

          “Required
Rating” shall mean a rating on (i) short-term unsecured debt obligations of
“Prime-1” by Moody’s and (ii) short-term unsecured debt obligations of “A-1+”
by Standard & Poor’s; and any requirement that short-term unsecured debt
obligations have the “Required Rating” shall mean that such short-term
unsecured debt obligations have the foregoing required ratings from each of
such Rating Agencies.

          “Reserve
Account” shall mean the account established and maintained as such pursuant
to Section 4.7(a) of the Sale and Servicing Agreement.

          “Reserve
Account Property” shall have the meaning specified in Section 4.7(a)
of the Sale and Servicing Agreement.

          “Reserve
Account Excess Amount” shall mean, with respect to any Payment Date, an
amount equal to the excess, if any, of (i) the amount of cash or other
immediately available funds in the Reserve Account on such Payment Date (prior
to giving effect to any withdrawals therefrom relating to such Payment Date)
over (ii) the Specified Reserve Balance with respect to such Payment Date.

          “Reserve
Initial Deposit” shall mean $10,387,261.63.

          “Rule
144 A Letter” shall have the meaning specified in Section 3.4(b) of
the Trust Agreement.

          “Sale
and Servicing Agreement” shall mean the Sale and Servicing Agreement, dated
as of June 19, 2007, by and among the Trust, as issuer, the Depositor, and the
Bank, as seller and servicer.

          “Schedule
of Receivables” shall mean the list of Receivables attached as Schedule A
to the Receivables Purchase Agreement, the Sale and Servicing Agreement and the
Indenture

19

(which
Schedules may be in the form of microfiche, disk or other means acceptable to
the Indenture Trustee).

          “Scheduled
Payment” shall mean, for any Collection Period for any Receivable, the
amount indicated in such Receivable as required to be paid by the Obligor in
such Collection Period (without giving effect to deferments of payments
pursuant to Section 3.2 of the Sale and Servicing Agreement or any
rescheduling in any insolvency or similar proceedings).

          “Secretary
of State” shall mean the Secretary of State of the State of Delaware.

          “Securities”
shall mean the Notes and the Certificates, collectively.

          “Securities
Act” shall mean the Securities Act of 1933, as amended.

          “Securityholders”
shall mean the Noteholders and the Certificateholders, collectively.

         
“Seller” shall mean the Bank as the seller of the Receivables under the
Receivables Purchase Agreement and each successor to the Bank.

         
“Servicer” shall mean the Bank as the servicer of the Receivables under
the Sale and Servicing Agreement, and each successor to the Bank (in the same
capacity) pursuant to Section 6.3 or 7.2 of the Sale and
Servicing Agreement.

          “Servicer’s
Certificate” shall mean a certificate completed and executed by the
Servicer by the chairman of the board, the president, any executive vice president,
any vice president, the treasurer, any assistant treasurer, the controller, or
any assistant controller of the Servicer pursuant to Section 3.9 of the
Sale and Servicing Agreement.

          “Servicing
Criteria” shall mean the “servicing criteria” set forth in Item 1122(d) of
Regulation AB.

          “Servicing
Fee” shall mean, with respect to a Collection Period, the fee payable to
the Servicer for services rendered during such Collection Period, which shall
be equal to one-twelfth of the Servicing Fee Rate multiplied by the Pool
Balance as of the first day of the Collection Period.

          “Servicing
Fee Rate” shall mean 0.50% per annum.

          “Similar
Laws” shall mean federal, state or local laws that impose requirements
similar to Section 406 of ERISA or Section 4975 of the Code.

          “Simple
Interest Method” shall mean the method of allocating a fixed level payment
to principal and interest, pursuant to which the portion of such payment that
is allocated to interest is equal to the amount accrued from the date of the
preceding payment to the date of the current payment.

          “Special
Payment Date” shall mean July 11, 2008, with respect to the Class A-1 Notes
only, if any of the Class A-1 Notes are Outstanding after the Payment Date in
June 2008.

20

          “Specified
Reserve Balance” shall mean for a Payment Date the greater of (a) 1.20% of
the Pool Balance as of the last day of the related Collection Period and (b)
0.50% of the Pool Balance as of the Cut-off Date, but in any event shall not be
greater than the sum of the aggregate principal balance of the Outstanding
Notes as of the current Payment Date; provided, however, if (i) the Specified
Reserve Reduction Trigger is met on the Payment Date in June 2009, the
percentage in clause (b) will be reduced to 0.25% on such Payment Date and
shall remain at such percentage for each Payment Date thereafter; or (ii) the
Specified Reserve Reduction Trigger is met on the Payment Date in December
2009, the percentage in clause (b) will be reduced to 0.25% on such Payment
Date (regardless of whether the Specified Reserve Reduction Trigger was met on
the Payment Date in June 2009) and shall remain at such percentage for each
Payment Date thereafter. The percentage in clause (b) will not be reduced in
December 2009 if it was reduced in June 2009. The Specified Reserve Balance may
be reduced to a lesser amount as determined by the Depositor, if each of
Moody’s and Standard & Poor’s shall have confirmed in writing to the
Indenture Trustee that such action will not result in a withdrawal or reduction
in any of its ratings of the Notes.

          “Specified
Reserve Reduction Trigger” shall mean a test that will be met if the
Average Delinquency Ratio Test and the Cumulative Net Loss Ratio Test for the
Payment Date in June 2009 or in December 2009 are met.

          “Standard
& Poor’s” shall mean Standard & Poor’s Ratings Services, a division
of The McGraw-Hill Companies, Inc.

          “State”
shall mean any state or commonwealth of the United States of America, or the
District of Columbia.

          “Statutory
Trust Statute” shall mean Chapter 38 of Title 12 of the Delaware Code, 12
Delaware Code ss. 3801 et seq., as amended.

          “Subcontractor”
shall mean any vendor, subcontractor or other Person that is not responsible
for the overall servicing (as “servicing” is commonly understood by
participants in the mortgage-backed securities market) of Receivables but
performs one or more discrete functions identified in Item 1122(d) of
Regulation AB with respect to the Receivables under the direction or authority
of the Indenture Trustee.

          “Successor
Servicer” shall mean an institution appointed as successor Servicer
pursuant to Section 7.2 of the Sale and Servicing Agreement.

          “Supplemental
Servicing Fee” shall mean the fee payable to the Servicer for certain
services rendered during the respective Collection Period, determined pursuant
to and defined in Section 3.8 of the Sale and Servicing Agreement.

          “Total
Required Payment” shall mean, with respect to any Payment Date, the sum of
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods,
the Accrued Class A Note Interest, the Accrued Class B Note Interest and the
Regular Principal Distribution Amount; provided, however, that on any Final
Scheduled Payment Date the amount required to be paid pursuant to Section
4.6(c)(vi) of the Sale and Servicing Agreement shall be included in the
Total Required Payment; provided, further, that following the occurrence and
during the continuation

21

of an Event of
Default specified in Section 5.1(i), (ii), (iv) or (v)
of the Indenture, on any Payment Date until the Payment Date on which the
outstanding principal amount of all the Securities has been paid in full, the
Total Required Payment shall mean the sum of the fees, expenses and
indemnification of the Indenture Trustee and the Owner Trustee, the Servicing
Fee and all unpaid Servicing Fees from prior Collection Periods, the Accrued
Class A Note Interest, the Accrued Class B Note Interest and the amount
necessary to reduce the outstanding principal amount of all the Notes to zero.

          “Transfer
Date” shall mean the Closing Date.

          “Transferor
Certificate” shall have the meaning specified in Section 3.4(b) of
the Trust Agreement.

          “Treasury
Regulations” shall mean regulations, including proposed or temporary
regulations, promulgated under the Code. References to specific provisions of
proposed or temporary regulations shall include analogous provisions of final
Treasury Regulations or other successor Treasury Regulations.

          “Trust”
shall mean USAA Auto Owner Trust 2007-1, a Delaware statutory trust governed by
the Trust Agreement.

          “Trust
Accounts” shall have the meaning specified in Section 4.7(a) of the
Sale and Servicing Agreement.

          “Trust
Agreement” shall mean the Amended and Restated Trust Agreement of the Trust
dated as of June 19, 2007, by and between the Depositor and the Owner Trustee,
as amended and/or restated from time to time.

          “Trust
Indenture Act” or “TIA” shall mean the Trust Indenture Act of 1939,
as amended, unless otherwise specifically provided.

          “Trust
Property” shall mean, collectively, (i) the Receivables; (ii) monies
received thereunder on or after the Cut-off Date; (iii) the security interests
in the Financed Vehicles granted by Obligors pursuant to the Receivables and
any other interest of the Issuer in the Financed Vehicles; (iv) rights to
receive proceeds with respect to the Receivables from claims on any theft,
physical damage, credit life, credit disability, or other insurance policies
covering Financed Vehicles or Obligors; (v) all of the Seller’s rights to the
Receivable Files; (vi) the Trust Accounts and all amounts, securities,
investments, investment property and other property deposited in or credited to
any of the foregoing, all security entitlements relating to the foregoing and
all proceeds thereof; (vii) the Depositor’s rights under the Receivables
Purchase Agreement; (viii) payments and proceeds with respect to the
Receivables held by the Servicer; (ix) all property (including the right to
receive Liquidation Proceeds) securing a Receivable (other than a Receivable
repurchased by the Servicer or purchased by the Seller); (x) rebates of
premiums and other amounts relating to insurance policies and other items
financed under the Receivables in effect as of the Cut-off Date; and (xi) all
present and future claims, demands, causes of action and choses in action in
respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the
foregoing, including all proceeds of the conversion thereof, voluntary or
involuntary, into cash or other liquid

22

property, all
cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property which at any time constitute
all or part of or are included in the proceeds of any of the foregoing.

          “Trustee
Officer” shall mean, with respect to the Indenture Trustee, any officer
within the Corporate Trust Office of the Indenture Trustee and also, with
respect to a particular matter, any other officer to whom such matter is
referred because of such officer’s knowledge of and familiarity with the
particular subject, in each case having direct responsibility for the
administration of the Indenture and the other Basic Documents on behalf of the
Indenture Trustee and, with respect to the Owner Trustee, any officer within
the Corporate Trust Office of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the other Basic Documents on
behalf of the Owner Trustee.

          “UCC”
shall mean the Uniform Commercial Code as in effect in any relevant
jurisdiction.

          “Underwriters”
shall mean the underwriters named in Schedule I to the Underwriting Agreement.

          “Underwriting
Agreement” shall mean the Underwriting Agreement, dated June 12, 2007 among
the Seller, the Depositor and the Representatives.

          “Underwritten
Securities” shall mean the Notes.

23

APPENDIX B

Item 1119 Parties

USAA Auto
Owner Trust 2007-1

USAA Acceptance, LLC

USAA Federal Savings Bank

Wells Fargo Delaware Trust Company

The Bank of New York

B-1

APPENDIX C

Minimum Servicing Criteria to be Addressed in

Assessment of Compliance Statement

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

	
 

	
 

	
 

	
 

	
 

	
Reg AB Reference

	
 

	
Servicing Criteria

	
 

	
Applicable
  Servicing 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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(2)(ii)

	
 

	
Disbursements made via
  wire transfer on behalf of an obligor or to an investor are made only by
  authorized personnel.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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 over collateralization, are separately maintained (e.g., with respect
  to commingling of cash) as set forth in the transaction agreements.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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

	
 

	
 

C-1

	
 

	
 

	
 

	
 

	
 

	
Reg AB Reference

	
 

	
Servicing Criteria

	
 

	
Applicable
  Servicing Criteria

	

	
 

	
 

	

  institution that meets the requirements of Rule 13k-1(b)(1)
  of the Securities Exchange Act.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(2)(vi)

	
 

	
Unissued checks are
  safeguarded so as to prevent unauthorized access.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pool Asset Administration

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(4)(i)

	
 

	
Collateral or security on
  pool assets is maintained as required by the transaction agreements or
  related pool asset 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 

	
 

	
 

C-2

	
 

	
 

	
 

	
 

	
 

	
Reg AB Reference

	
 

	
Servicing Criteria

	
 

	
Applicable
  Servicing Criteria

	

	
 

	
 

	
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 pool asset documents.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(4)(v)

	
 

	
The Servicer’s records
  regarding the pool assets agree with the Servicer’s records with respect to
  an obligor’s unpaid principal balance.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(4)(vi)

	
 

	
Changes with respect to
  the terms or status of an obligor’s pool assets (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 pool asset 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 pool asset documents and state laws; and (C) such funds are
  returned to the obligor within 30 calendar days of full repayment of the
  related pool assets, or such other number of days specified in the
  transaction agreements.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1122(d)(4)(xi)

	
 

	
Payments made on behalf of
  an obligor (such as

	
 

	
 

C-3

	
 

	
 

	
 

	
 

	
 

	
Reg AB Reference

	
 

	
Servicing Criteria

	
 

	
Applicable
  Servicing Criteria

	

	
 

	
 

	
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.

	
 

	
 

	
 

	
 

	
 

	
 

	
[THE BANK OF
  NEW YORK] [USAA FEDERAL

SAVINGS BANK]

	
 

	
 

	
 

	
 

	
By:  

	
 

	

	
 

	
Name: 

	
 

	
Title:

	
 

	
 

	
 

	
Date:

	
 

	

	

C-4

APPENDIX D

Form of Performance Certification

CERTIFICATION

          Re:
USAA Auto Owner Trust 2007-1

          The
undersigned [Indenture Trustee] [Reporting Subcontractor] hereby certifies to
the [ ] and its officers, directors and Affiliates (collectively, the “Certification
Parties”) as follows, with the knowledge and intent that the Certification
Parties will rely on this Certification in connection with the certification
concerning the Trust to be signed by an officer of the Servicer and submitted
to the Securities and Exchange Commission pursuant to Rule 13a-14(d)/15d-14(d):

          1.
The [Indenture Trustee] [Reporting Subcontractor] has reviewed the information
and reports provided by it to the Depositor and the Servicer pursuant to the
Sale and Servicing Agreement with respect to the servicing criteria assessment
under Section 10.5 of the Sale and Servicing Agreement (the “Information”);

          2.
Based on the [Indenture Trustee] [Reporting Subcontractor]’s knowledge, the
Information, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact required in the Information and
necessary to make the statements made, in the light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by the 10-K report; and

          3.
The servicing criteria assessment required to be provided by the [Indenture
Trustee] [Reporting Subcontrator] pursuant to the Agreement, has been provided
to the Depositor and the Servicer. Any material instance of noncompliance with
the applicable Servicing Criteria has been disclosed in such report.

          [4.
Any assessment of compliance with servicing criteria required to be provided by
any Reporting Subcontractor of the Indenture Trustee have been provided by such
Reporting Subcontractor.]

D-1

          Capitalized
terms not otherwise defined herein have the meanings ascribed thereto in the
Sale and Servicing Agreement dated as of June 19, 2007 among USAA Federal
Savings Bank, as Seller and Servicer, USAA Auto Owner Trust 2007-1 and USAA
Acceptance, LLC.

	
 

	
 

	
 

	
 

	
[THE BANK OF
  NEW YORK, not in its individual capacity but solely as Indenture Trustee]
  
[REPORTING SUBCONTRACTOR]

	
 

	
 

	
 

	
By: 

	
 

	

	
 

	
Name:

	
 

	
Title:

	
 

	
 

	
 

	
Date: 

	
 

	
 

	

D-2

APPENDIX E

Form of Performance Certification

CERTIFICATION

          Re:
USAA Auto Owner Trust 2007-1

          The
undersigned Servicer hereby certifies to the [ ] and its officers, directors
and Affiliates (collectively, the “Certification Parties”) as follows,
with the knowledge and intent that the Certification Parties will rely on this
Certification in connection with the certification concerning the Trust to be
signed by an officer of the Servicer and submitted to the Securities and
Exchange Commission pursuant to the Rule 13a-14(d)/15d-14(d):

          1.
I have reviewed the servicer compliance statement of the Servicer provided in
accordance with Item 1123 of Regulation AB (the “Compliance Statement”),
the report on assessment of the Servicer’s compliance with the servicing
criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”),
provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation
AB (the “Servicing Assessment”), the registered public accounting firm’s
attestation report provided in accordance with Rules 13a-18 and 15d-18 under
the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation
Report”), and all servicing reports, officer’s certificates and other
information relating to the servicing of the Receivables by the Servicer during
200[ ] that were delivered by the Servicer to the Indenture Trustee pursuant to
the Agreement (collectively, the “Servicer Servicing Information”);

          2.
Based on my knowledge, the Servicer Servicing Information, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with
respect to the period of time covered by the Servicer Servicing Information;

          3.
Based on my knowledge, all of the Servicer Servicing Information required to be
provided by the Servicer under the Agreement has been provided to the Indenture
Trustee;

          4.
I am responsible for reviewing the activities performed by the Servicer as
servicer under the Sale and Servicing Agreement dated June 19, 2007 among USAA
Auto Owner Trust 2007-1, USAA Acceptance, LLC and USAA Federal Savings Bank
(the “Agreement”), and based on my knowledge and the compliance review
conducted in preparing the Compliance Statement and except as disclosed in the
Compliance Statement, the Servicing Assessment or the Attestation Report, the
Servicer has fulfilled its obligations under the Agreement in all material
respects; and

          5.
The Compliance Statement required to be delivered by the Servicer pursuant to
the Agreement, and the Servicing Assessment and Attestation Report required to
be provided by the Servicer and by any Reporting Subcontractor pursuant to the
Agreement, have been provided to the Indenture Trustee. Any material instances
of noncompliance described in such reports

E-1

have been
disclosed to the Depositor. Any material instance of noncompliance with the
Servicing Criteria has been disclosed in such reports.

          Capitalized
terms not otherwise defined herein have the meanings ascribed thereto in the
Sale and Servicing Agreement dated as of June 19, 2007 among USAA Federal
Savings Bank, as Seller and Servicer, USAA Auto Owner Trust 2007-1 and USAA
Acceptance, LLC.

	
 

	
 

	
 

	
 

	
USAA FEDERAL
  SAVINGS BANK

	
 

	
 

	
 

	
By: 

	
 

	

	
 

	
Name:

	
 

	
Title:

	
 

	
 

	
 

	
Date: 

	
 

	
 

	

E-2

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