Document:

Security and Collateral Agreement between U-Haul and BTMU

    Exhibit
      10.86

    SECURITY
      AND COLLATERAL AGENCY AGREEMENT

     

    THIS
      SECURITY AND COLLATERAL AGENCY AGREEMENT (this “Security
      Agreement”),
      dated
      as of May 31,
      2006
      is entered into by and among U-Haul Leasing & Sales Co., a Nevada
      corporation, U-Haul Co. of Arizona, an Arizona corporation, and U-Haul
      International, Inc., a Nevada corporation (“UHI”)
      (collectively, the “Borrowers”),
      BTMU
      Capital Corporation, a Delaware corporation (with its successors, indorsees,
      transferees and assigns, in such capacity, the “Lender”)
      and
Orange
      Truck Trust 2006,
      a
      Utah common law trust (with its successors, indorsees, transferees and assigns,
      the “Collateral
      Agent”).

     

    RECITALS

     

    A. Pursuant
      to a Credit Agreement, dated as of May 31,
      2006
      (the “Credit
      Agreement”),
      between the Borrowers, U-Haul International, Inc., as Servicer/Manager and
      Guarantor (the “Servicer/Manager”),
      AMERCO, as Guarantor, the Collateral Agent and the Lender, the Lender has agreed
      to extend certain credit facilities to the Borrowers to finance the purchase
      of
      certain new Vehicles (as defined below), upon the terms and subject to the
      conditions set forth therein.

     

    B. The
      parties hereto desire to arrange for the appointment of the Collateral Agent
      and
      enter into certain related covenants and agreements, as specified
      herein.

     

    C. The
      Lender’s obligation to extend the credit facilities to the Borrowers under the
      Credit Agreement and the Hedge Provider’s obligation to enter into any Hedge are
      subject, among other conditions, to receipt by the Lender and the Collateral
      Agent of this Security Agreement, duly executed by the Borrowers.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the above recitals and for other good and
      valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, the Borrowers hereby agree with the Lender as follows:

     

    Definitions
      and Interpretation.

     

    (a) Definitions.
      When
      used in this Security Agreement, the following terms shall have the following
      respective meanings:

     

    “Account
      Bank”
means,
      as applicable, the Collection Account Bank or the Collection Sub-Account
      Bank.

     

    “Account
      Debtor”
has
      the
      meaning given to that term in subsection 9(g) hereof.

     

    “Borrowers”
has
      the
      meaning given to that term in the introductory paragraph hereof.

     

    “BTMUCC”
means
      BTMU Capital Corporation, a Delaware corporation.

     

    “Collateral”
has
      the
      meaning given to that term in Section 3(a) hereof.

     

    “Collateral
      Agent”
has
      the
      meaning given to that term in the introductory paragraph hereof, in such
      capacity, on behalf of the Lender.

     

    “Credit
      Agreement”
has
      the
      meaning given to that term in Recital
      A
      hereof.

     

    “Dealer
      List”
means
      a
      list in electronic format, delivered by or on behalf of the Borrowers to the
      Lender as updated from time to time in accordance with Section 8.01(g) of the
      Credit Agreement.

     

    “Equipment”
has
      the
      meaning given to that term in Attachment
      1
      hereto.

     

    “Guarantors”
means
      each of UHI and AMERCO, as guarantors under the Guarantee
      Agreement.

     

    “Hedge
      Provider”
means
      The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as swap counterparty,
      or any other counterparty acceptable to the Lender.

     

    “Inventory”
has
      the
      meaning given to that term in Attachment
      1
      hereto.

     

    “Lender”
has
      the
      meaning given to that term in the introductory paragraph hereof.

     

    “Loan
      Documents”
means
      the Credit Agreement, the Note, the Guarantee Agreement, the Structuring Fee
      Letter, the Collection Sub-Account Control Agreement, the Collection Account
      Control Agreement, the Hedge and this Security Agreement.

     

    “Officer’s
      Certificate”
means,
      unless otherwise specified in this Security Agreement, a certificate delivered
      to the Collateral Agent signed by the chairman of the board, the president,
      any
      executive vice president, any director, any managing director, any vice
      president, the treasurer or the controller, the assistant treasurer or any
      other
      authorized officer of the Lender.

     

    “Opinion
      of Counsel”
means
      a
      written opinion of legal counsel satisfactory to the Collateral Agent, which
      counsel may be an employee of the Collateral Agent or an Affiliate or may from
      time to time provide legal services to the Collateral Agent or an
      Affiliate.

     

    “Proceeds”
means
      all proceeds of, and all other profits, products, rentals or receipts, in
      whatever form, arising from the collection, sale, lease, exchange, assignment,
      licensing or other disposition of, or other realization upon, any Collateral,
      including, without limitation, all claims of the Borrowers against third parties
      for loss of, damage to or destruction of, or for proceeds payable under, or
      unearned premiums with respect to, policies of insurance in respect of, any
      Collateral, any payments with respect to a Warranty and all claims of the
      Borrowers against the provider of any such Warranty, and any condemnation or
      requisition payments with respect to any Collateral, in each case whether now
      existing or hereafter arising, provided that, with respect to any Vehicle,
      “Proceeds” shall not include any dealer commissions, licensing fees, maintenance
      costs and insurance expenses owing under the Dealership Contracts.

     

    “Receivables”
has
      the
      meaning given to that term in Attachment
      1
      hereto.

     

    “Secured
      Obligations”
means
      the obligations secured under this Security Agreement, including (a) all
      principal of and interest (including, without limitation, any interest which
      accrues after the commencement of any case, proceeding or other action relating
      to the bankruptcy, insolvency or reorganization of any Borrower, whether or
      not
      allowed or allowable as a claim in any such case, proceeding or other action)
      on
      any Loan to the Borrowers under the Credit Agreement; (b) all other liabilities,
      debts, obligations, or amounts, howsoever arising, payable by the Borrowers
      to
      the Lender (whether evidenced by any note or instrument and whether for the
      payment of money), direct or indirect, absolute or contingent, due or to become
      due, now existing or hereafter arising, under the Credit Agreement or under
      any
      other Loan Document, including without limitation all interest, fees, charges,
      expenses, attorneys’ fees and accountants’ fees chargeable to the Borrowers or
      payable by the Borrowers thereunder; (c) any renewals or extensions of any
      of
      the foregoing; (d) all obligations owing to the Hedge Provider pursuant to
      any
      Hedge and (e) all other obligations of the Borrowers or their Affiliates under
      any Loan Document.

     

    “Secured
      Parties”
means
      the Lender and the Hedge Provider.

     

    “UCC”
means,
      unless otherwise stated, the Uniform Commercial Code as in effect in the State
      of New York as of the date hereof.

     

    “Vehicle”
means
      a
      new motor vehicle owned by any Borrower and constituting part of the Borrowers’
fleet of rental assets as identified on the Vehicle Schedule delivered by the
      Borrowers to the Lender under the Credit Agreement, a copy of which is attached
      hereto as Attachment
      4
      (as the
      same may be updated from time to time).

     

    “Warranty”
means
      any warranty with respect to any Vehicle or any component parts thereof, whether
      from the dealer, seller or manufacturer of such Vehicle or any third party
      warranty provider, relating to the merchantability of such Vehicle or parts
      or
      the life or performance of such Vehicle or parts and all available remedies
      thereunder, including payment, replacement, repair, substitution or other
      remedies.

     

    (b) Other
      Defined Terms.
      Unless
      otherwise defined herein, all other capitalized terms used herein and defined
      in
      the Credit Agreement have the respective meanings given to those terms in the
      Credit Agreement, and all terms defined in the UCC in the applicable
      jurisdiction have the respective meanings given to those terms in the UCC in
      the
      applicable jurisdiction. 

     

    (c) Other
      Interpretive Provisions.
      The
      rules of construction set forth in Section 1.02 of the Credit Agreement shall,
      to the extent not inconsistent with the terms of this Security Agreement, apply
      to this Security Agreement and are hereby incorporated by
      reference.

     

    Appointment
      of a Collateral Agent.

     

    (a) The
      Lender appoints Orange
      Truck Trust 2006
      as
      Collateral Agent under this Security Agreement. Orange
      Truck Trust 2006
      accepts
      such appointment and agrees to perform the duties of the Collateral Agent under
      this Security Agreement. 

     

    (b) The
      Collateral Agent will, all for the benefit of the Secured Parties:

     

    hold
      a
      security interest in the Collateral for the benefit of the Secured
      Parties;

    

    protect
      its interest in the Collateral upon an Event of Default (A) by entering into
      (I)
      the Collection Account Control Agreement, that certain blocked account control
      agreement (shifting control), dated as of May 31,
      2006,
      among JPMorgan Chase Bank, N.A, and its successors, or another depositary
      institution mutually acceptable to the Lender and the Borrowers (the
“Collection
      Account Bank”),
      the
      Servicer/Manager and the Collateral Agent, and (II) the Collection Sub-Account
      Control Agreement, that certain blocked account control agreement (automatic
      sweep/frozen account), dated as of May 31,
      2006
      among the Collection Account Bank, the Servicer/Manager and the Collateral
      Agent, and (B) by being named on the Certificates of Title of the Vehicles
      as
      secured party as provided in this Security Agreement;

    

    take
      such
      action as is necessary or advisable, or as determined by the Lender to be
      necessary or advisable, to authorize and file all financing statements,
      continuation statements, instruments of further assurance and other instruments
      and other evidence of its perfected security interest in the Vehicles, and
      any
      amendments to the foregoing, prior to closing, naming itself as “secured party”,
“lienholder” or the like, and shall take such action determined by the Lender to
      be necessary or advisable (including recording such financing statements,
      continuation statements, amendments or other instruments in a public filing
      office) to (A) perfect, publish notice of or protect the validity of any
      security interest granted pursuant to this Security Agreement, (B) enforce
      the
      Collateral, or (C) preserve and defend title to the Collateral and the rights
      of
      the Collateral Agent in such Collateral against the claims of all Persons;
      and

    

    take
      the
      actions required to be taken by the Collateral Agent pursuant to Section 4
      following an Event of Default.

     

    Grant
      of Security Interest. 

     

    (a)
       As
      security for the Secured Obligations, the Borrowers, jointly and severally,
      hereby pledge and assign to the Collateral Agent, as agent on behalf of the
      Secured Parties, and their respective successors, indorsees, transferees and
      assigns, and grant to the Collateral Agent, on behalf of the Secured Parties,
      a
      security interest in all right, title and interest of the Borrowers in and
      to
      the property whether now owned or hereafter acquired described in Attachment
      1
      hereto,
      as such Attachment may be amended or supplemented from time to time after the
      date hereof by a supplemental Vehicle Schedule delivered by the Borrowers to
      the
      Collateral Agent and the Lender (collectively and severally, the “Collateral”),
      which
Attachment
      1
      is
      incorporated herein by this reference. 

     

    (b) The
      Collateral Agent acknowledges such grant and agrees to perform the duties
      required in this Security Agreement so that the interests of the Secured Parties
      may be adequately and effectively protected.

     

    (c)
       Upon
      the
      release of Collateral as set forth in the Credit Agreement, and upon the request
      of, and at the expense of the Borrowers, the Collateral Agent shall execute
      and
      file such releases or assignments of financing statements or, UCC termination
      statements and other documents and instruments as may be reasonably requested
      by
      the Borrowers to effectuate release of the Collateral. The Collateral Agent
      will
      not have legal title to any part of the released Collateral on and will have
      no
      further interest in or rights with respect to such Collateral.

     

    Duties
      of the Collateral Agent.
      

     

    (a) If
      an
      Event of Default has occurred and is continuing with respect to any Secured
      Obligations, the Collateral Agent, acting at the direction of the Lender, shall
      exercise the rights and remedies with respect to the Collateral of a secured
      party under the UCC to the extent permitted by applicable law. In connection
      with the exercise of any rights or remedies with respect to the Collateral,
      the
      Collateral Agent acknowledges that it shall hold or possess any Collateral
      solely for the benefit of the Secured Parties (except to the extent of any
      excess Collateral that remains after the obligations of the Secured Parties
      have
      been paid in full).

     

    (b) The
      Collateral Agent, at the direction of the Lender, shall apply all or any part
      of
      proceeds realized from recourse against the Collateral in the following order
      of
      priority:

     

    (i) to
      the
      payment of the Secured Obligations in the priorities specified in the Credit
      Agreement; and

     

    (ii) to
      the
      payment of all remaining amounts to the Borrowers or whosoever shall be lawfully
      entitled to receive the same. 

     

    (c) Except
      during the continuance of an Event of Default:

     

    (i) the
      Collateral Agent undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Security Agreement and no implied covenants
      or
      obligations are to be read into this Security Agreement against the Collateral
      Agent; and

     

    (ii) in
      the
      absence of bad faith on its part, the Collateral Agent may conclusively rely,
      as
      to the truth of the statements and the correctness of the opinions furnished
      to
      it, upon any certificates or opinions furnished to it and, if required by the
      terms of this Security Agreement, conforming to the requirements of this
      Security Agreement, provided that the Collateral Agent will examine any such
      certificates and opinions to determine whether or not they conform on their
      face
      to the requirements of this Security Agreement.

     

    (d) The
      Collateral Agent will not be liable for any action it takes or omits to take
      in
      the absence of bad faith which it believes to be authorized or within its rights
      or powers. However, the Collateral Agent may not be relieved from liability
      for
      its own willful misconduct, negligence or bad faith, except that:

     

    (i) the
      Collateral Agent will not be liable for any error of judgment made in the
      absence of bad faith by Related Parties unless it is proved that the Collateral
      Agent was negligent in ascertaining the pertinent facts; and

     

    (ii) the
      Collateral Agent will not be liable with respect to any action it takes or
      omits
      to take in the absence of bad faith in accordance with a direction received
      by
      it from the Lender with respect to the exercise of remedies pursuant to this
      Security Agreement or other Loan Documents.

     

    (e) The
      Collateral Agent, if it has reasonable grounds to believe that repayment of
      funds advanced by it or adequate indemnity satisfactory to it against such
      risk
      or liability is not reasonably assured to it, is not required to expend or
      risk
      its own funds or otherwise incur financial liability in the performance of
      any
      of its duties under this Security Agreement or in the exercise of any of its
      rights or powers by any provision of this Security Agreement.

     

    (f) Every
      provision of this Security Agreement relating to the conduct or affecting the
      liability of or affording protection to the Collateral Agent is subject to
      the
      provisions of this Section 4.

     

    (g) The
      Collateral Agent will not be charged with knowledge of the occurrence of any
      Event of Default unless either (i) Related Parties of the Collateral Agent
      have
      actual knowledge of such occurrence or (ii) notice of such occurrence has been
      given to the Collateral Agent in accordance with the Loan
      Documents.

     

    Rights
      of the Collateral Agent.
      

     

    (a) Before
      the Collateral Agent acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel. The Collateral Agent will not be liable
      for any action it takes or omits to take in the absence of bad faith in reliance
      on an Officer’s Certificate or Opinion of Counsel. However, the Collateral Agent
      will examine any such Officer’s Certificates and Opinions of Counsel to
      determine whether or not they conform on their face to the requirements of
      this
      Security Agreement.

     

    (b) The
      Collateral Agent may execute any of the trusts or powers under this Security
      Agreement or perform any duties under this Security Agreement either directly
      or
      by or through agents or attorneys or a custodian or nominee, and the Collateral
      Agent will not be responsible for any misconduct or negligence on the part
      of,
      or for the supervision of, any such agent, counsel, custodian or nominee
      appointed with due care by it under this Security Agreement.

     

    (c) The
      Collateral Agent may consult with counsel, and the advice or opinion of counsel
      with respect to legal matters relating to this Security Agreement will be full
      and complete authorization and protection from liability in respect to any
      action taken, omitted or suffered by it under this Security Agreement in the
      absence of bad faith and in accordance with the advice or opinion of such
      counsel.

     

    (d) The
      Collateral Agent may rely and will be protected in acting or refraining from
      acting upon any resolution, certificate, statement, opinion, report, notice,
      request, direction, consent, order, bond, debenture or other paper or document
      believed by it to be genuine and to have been signed or presented by the proper
      Person. The Collateral Agent need not investigate any fact or matter stated
      in
      any such document.

     

    (e) The
      Collateral Agent will not be (a) responsible for, and does not make any
      representation as to, the validity or adequacy of this Security Agreement,
      (b)
      accountable for the Borrower’s use of the funds advanced under the Credit
      Agreement, or (c) responsible for any statement of the Borrower in this Security
      Agreement.

     

    Compensation.
      Borrowers
      will pay or cause to be paid to Collateral Agent as compensation for the
      Collateral Agent’s services under this Security Agreement such fees as have been
      separately agreed upon on the date of this Security Agreement between Borrowers
      and the Collateral Agent. The Collateral Agent’s compensation will not be
      limited by any law on compensation of a trustee of an express trust. Borrowers
      will reimburse the Collateral Agent (or cause the Collateral Agent to be
      reimbursed) for all reasonable out-of-pocket expenses incurred or made by the
      Collateral Agent, including costs of collection, and the reasonable
      compensation, expenses and disbursements of the Collateral Agent’s agents,
      counsel, accountants and experts, but excluding any expenses incurred by the
      Collateral Agent through the Collateral Agent’s own willful misconduct,
      negligence or bad faith.

     

    Replacement
      of Collateral Agent.

     

    (a) No
      resignation or removal of the Collateral Agent, and no appointment of a
      successor Collateral Agent, will become effective until the acceptance of
      appointment by the successor Collateral Agent reasonably acceptable to the
      Lender pursuant to this Section 7. The Collateral Agent may resign by notifying
      the Lender and the Borrowers. The Lender may remove the Collateral Agent at
      any
      time with or without cause by notifying other parties to this Security Agreement
      and following such removal or resignation may appoint a successor Collateral
      Agent. Following the removal or resignation of any Person in the capacity of
      Collateral Agent, the obligations (solely in the case of obligations performed,
      or required to be performed, prior to such termination) of such Person in such
      capacity will terminate.

     

    (b) If
      the
      Collateral Agent resigns or is removed or if a vacancy exists in the office
      of
      the Collateral Agent for any reason, the Lender will appoint a successor
      Collateral Agent promptly.

     

    (c) Any
      successor Collateral Agent must execute and deliver an acceptance of its
      appointment to the retiring Collateral Agent, the Lender and each other party
      to
      this Security Agreement, and thereupon the resignation or removal of the
      retiring Collateral Agent will become effective, and such successor Collateral
      Agent will have all the rights, powers, duties and obligations of the Collateral
      Agent under this Security Agreement. Borrower will pay all amounts owed to
      the
      retiring Collateral Agent upon the retiring Collateral Agent’s resignation or
      removal. The retiring Collateral Agent will promptly transfer all property
      held
      by it as Collateral Agent to the successor Collateral Agent.

     

    (d) If
      a
      successor Collateral Agent does not take office within 60 days after the
      retiring Collateral Agent resigns or is removed, the retiring Collateral Agent,
      the Borrower, or the Lender may petition any court of competent jurisdiction
      for
      the appointment of a successor Collateral Agent. 

     

    Indemnification.

     

    (a) To
      the
      extent that the Borrowers do not so indemnify the Collateral Agent in Section
      12.03 of the Credit Agreement, the Lender will indemnify, defend and hold
      harmless the Collateral Agent and its respective officers, directors, employees
      and agents (each, an “Indemnified
      Person”),
      from
      and against any and all costs, expenses, losses, damages, claims and liabilities
      incurred by it in connection with the acceptance, administration and performance
      of its respective duties and obligations under this Security Agreement,
      including the costs and expenses of defending itself against any loss, damage,
      claim or liability incurred by it in connection with the exercise or performance
      of any of its powers or duties under this Security Agreement, but excluding
      any
      cost, expense, loss, damage, claim or liability incurred by the Collateral
      Agent
      through the Collateral Agent’s own willful misconduct, negligence or bad
      faith.

     

    (b) The
      payment obligations of the Lender to the Collateral Agent pursuant to this
      Section 8 will survive the resignation or removal of the Collateral Agent and
      the termination of this Security Agreement. When the Collateral Agent incurs
      expenses after the occurrence of an Event of Default, the expenses are intended
      to constitute expenses of administration under the Bankruptcy Code or any other
      applicable federal or State bankruptcy, insolvency or similar law.

     

    Representations
      and Warranties.
      The
      Borrowers, jointly and severally, represent and warrant to the Lender and the
      Collateral Agent as follows:

     

    Each
      of
      UHI and U-Haul Sales & Leasing Co. is a corporation duly authorized and
      validly existing and in good standing under the laws of the State of Nevada.
      U-Haul Co. of Arizona is a corporation duly authorized and validly existing
      and
      in good standing under the laws of the State of Arizona. Except as disclosed
      on
Attachment
      5,
      none of
      the Borrowers has (x) had any other corporate name during the past six years,
      (y) changed its identity or corporate structure in any way within the past
      six
      years, or (z) used or operated under any other names (including trade names
      or
      other similar names) during the past six years. The exact corporate name of
      each
      Borrower as it appears on its certificate of incorporation, and location of
      its
      chief executive office are as follows:

     

    (i) U-Haul
      International, Inc., 2727 N. Central Avenue, Phoenix, Arizona
      85004;

     

    (ii) U-Haul
      Co. of Arizona, 2727 N. Central Avenue, Phoenix, Arizona 85004; and

     

    (iii) U-Haul
      Leasing & Sales Co., 1325 Airmotive Way, Reno, Nevada 89502.

     

    The
      Borrowers are the legal and beneficial owners of the Collateral (or, in the
      case
      of after-acquired Collateral, at the time the Borrowers acquire rights in the
      Collateral, will be the legal and beneficial owners thereof). No other Person
      has (or, in the case of after-acquired Collateral, at the time a Borrower
      acquires rights therein, will have) any right, title, claim or interest (by
      way
      of Lien, purchase option or otherwise) in, against or to the Collateral, other
      than Permitted Encumbrances.

     

    All
      actions have been taken that are necessary under the UCC as in effect on the
      date hereof in the applicable jurisdiction to perfect the Collateral Agent’s
      interest in the Collateral. All actions have been taken that are necessary
      under
      applicable state vehicle titling and registration law to perfect the Borrowers’
interest in Vehicles constituting the Collateral.

     

    The
      Borrowers have not performed any acts which might prevent the Collateral Agent
      or the Lender from enforcing any of the terms of this Security Agreement or
      which would limit the Collateral Agent or the Lender in any such enforcement.
      Other than financing statements or other similar or equivalent documents or
      instruments with respect to the Security Interests and Permitted Encumbrances,
      no financing statement, mortgage, security agreement or similar or equivalent
      document or instrument covering all or any part of the Collateral is on file
      or
      of record in any jurisdiction in which such filing or recording would be
      effective to perfect a Lien on such Collateral.

     

    The
      Borrowers shall furnish to the Lender on or before the Closing Date lien search
      reports or other evidence satisfactory to the Lender that no liens prior to
      the
      lien of this Security Agreement shall exist with respect to any
      Collateral.

     

    All
      Equipment and Inventory are (i) located at the locations indicated in the most
      recent Dealer List delivered to the Lender and the Collateral Agent, and have
      been consigned to the possession of a third-party dealer pursuant to the
      Dealership Contracts, except when such Equipment and Inventory have been rented
      to consumers in the ordinary course of the Borrowers’ business, as such list of
      locations may be updated by the Borrowers from time to time at the request
      of
      the Lender or the Collateral Agent, (ii) in transit to such locations or (iii)
      in transit to a third party purchaser which will become obligated on a
      Receivable to a Borrower upon receipt. Except for Equipment and Inventory
      referred to in the preceding sentence, the Borrowers have exclusive possession
      and control of the Inventory and Equipment. All Equipment and Inventory has
      been
      acquired by the Borrowers in the ordinary course of the Borrowers’
business.

     

    Each
      Receivable is genuine and enforceable against the party obligated to pay such
      Receivable (an “Account
      Debtor”)
      free
      from any right of rescission, defense, setoff or discount. Each Receivable
      was
      originated in the ordinary course of the Borrowers’ business. 

     

    Each
      insurance policy maintained by the Borrowers in accordance with Section 8.07
      of
      the Credit Agreement is validly existing and is in full force and effect. The
      Borrowers are not in default in any material respect under the provisions of
      any
      such insurance policy, and there are no facts which, with the giving of notice
      or passage of time (or both), would result in such a default under any provision
      of any such insurance policy. Set forth in Attachment
      3
      hereto
      is a complete and accurate list of the insurance of the Borrowers in effect
      on
      the date of this Security Agreement required pursuant to Section 8.07 of the
      Credit Agreement showing as of such date, (i) the type of insurance carried,
      (ii) the name of the insurance carrier, and (iii) the amount of each type of
      insurance carried.

     

    The
      information set forth in each Dealer List delivered pursuant to Section 8.01(g)
      of the Credit Agreement is true, correct and accurate.

     

    Covenants.
      The
      Borrowers, jointly and severally, hereby agree as follows:

     

    The
      Borrowers, at the Borrowers’ expense, shall promptly procure, execute and
      deliver to the Collateral Agent and the Lender all documents, instruments and
      agreements and perform all acts which are necessary or desirable, or which
      the
      Lender or the Collateral Agent may request, to establish, maintain, preserve,
      protect and perfect the Collateral, the Lien granted to the Collateral Agent
      therein and the first priority of such Lien or to enable the Collateral Agent
      to
      exercise and enforce its rights and remedies hereunder with respect to any
      Collateral.

     

    The
      Borrowers shall not use or permit any Collateral to be used in violation of
      (i)
      any provision of the Credit Agreement, this Security Agreement or any other
      Loan
      Document, (ii) any applicable Requirement of Law where such use might have
      a
      Material Adverse Effect, or (iii) any policy of insurance covering the
      Collateral.

     

    The
      Borrowers shall pay promptly when due all Taxes, all Liens and all other charges
      now or hereafter imposed upon, relating to or affecting any
      Collateral.

     

    Without
      thirty (30) days’ prior written notice to the Lender and the Collateral Agent,
      no Borrower shall (i) change its jurisdiction of organization, or the office
      in
      which such Borrower’s books and records relating to Receivables or the originals
      of Dealership Contracts or Rental Company Contracts are kept, (ii) keep
      Collateral consisting of documents at any location other than the offices of
      UHI
      or U-Haul Co. of Arizona at 2727 N. Central Avenue, Phoenix, Arizona 85004,
      or
      the offices of U-Haul Sales & Leasing Co. at 1325 Airmotive Way, Reno,
      Nevada 89502, or (iii) keep Collateral consisting of Equipment, Inventory or
      other goods at any location other than the locations permitted pursuant to
      Section 9.02 of the Credit Agreement.

     

    For
      each
      of the Collection Sub-Account and the Collection Account, UHI shall (i) execute
      and deliver to the Account Bank a Collection Sub-Account Control Agreement
      and a
      Collection Account Control Agreement substantially in the form of Attachment
      2
      hereto
      and (ii) cause the Account Bank to execute and deliver to the Collateral Agent
      such account control agreements.

     

    Commencing
      from the date hereof, the Borrowers shall make or cause to be made all deposits
      required pursuant to Section 5.03 of the Credit Agreement, at the times so
      required.

     

    The
      Borrowers shall fully comply with any shifting control notice delivered pursuant
      to the Collection Account Control Agreement.

     

    The
      Borrowers shall appear in and defend any action or proceeding which may affect
      its title to or the Collateral Agent’s interest in the Collateral.

     

    The
      Borrowers shall keep separate, accurate and complete records of the Collateral
      and shall provide the Collateral Agent and the Lender with such records and
      such
      other reports and information relating to the Collateral as the Collateral
      Agent
      or the Lender may reasonably request from time to time.

     

    The
      Borrowers shall not surrender or lose possession of (other than to the Lender),
      sell, encumber, lease, rent, option, or otherwise dispose of or transfer any
      Collateral or right or interest therein except in the ordinary course of the
      Borrowers’ business and as permitted in the Credit Agreement, and,
      notwithstanding any provision of the Credit Agreement, the Borrowers shall
      keep
      the Collateral free of all Liens except Permitted Encumbrances.

     

    The
      Borrowers shall collect, enforce and receive delivery of the Receivables in
      accordance with past practice until otherwise notified by the
      Lender.

     

    The
      Borrowers shall comply with all material Requirements of Law applicable to
      the
      Borrowers which relate to the production, possession, operation, maintenance
      and
      control of the Collateral.

     

    The
      Borrowers shall (i) maintain and keep in force public liability insurance of
      the
      types and in amounts customarily carried from time to time during the term
      of
      the Credit Agreement in its lines of business, such insurance to be carried
      with
      companies and in amounts satisfactory to the Lender, (ii) deliver to the Lender
      from time to time, as the Lender may request, schedules setting forth all
      insurance then in effect or copies of the applicable policies, and (iii) deliver
      to the Lender copies of each policy of insurance which replaces, or evidences
      the renewal of, each existing policy of insurance at least fifteen (15) days
      prior to the expiration of such policy. If required pursuant to Section 8.07
      of
      the Credit Agreement, the Collateral Agent shall be named as additional insured
      on all liability insurance of the Borrowers with respect to any Collateral,
      and
      such policies shall contain such additional endorsements as shall be required
      by
      the Lender, including the endorsements specified in Attachment
      3
      hereto.
      Prior to the occurrence and the continuance of an Event of Default, all proceeds
      of any property insurance (whether maintained by any Borrower or a third party)
      paid as a result of any event or occurrence shall be paid to the Borrowers.
      All
      proceeds of any property insurance (whether maintained by any Borrower or a
      third party) paid after the occurrence and during the continuance of an Event
      of
      Default shall be paid to the Collateral Agent or the Collection Sub-Account
      to
      be held as Collateral and applied as provided in the Credit Agreement or, at
      the
      election of the Lender, returned to the Borrowers.

     

    (n) The
      Borrowers shall (i) promptly make any applicable claims under each applicable
      Warranty and (ii) deliver to the Lender and the Collateral Agent from time
      to
      time, as the Lender or the Collateral Agent may request, schedules setting
      forth
      all Warranties then in effect or copies of such Warranties, together with a
      schedule of all Vehicles covered by such Warranty. Prior to the occurrence
      and
      the continuance of an Event of Default, all cash proceeds of any Warranty shall
      be paid to the Borrowers. All cash proceeds of any Warranty paid after the
      occurrence and during the continuance of an Event of Default shall be paid
      to
      the Collateral Agent or the Collection Sub-Account to be held as Collateral
      and
      applied as provided in the Credit Agreement or, at the election of the Lender,
      returned to the Borrowers.

     

    Authorized
      Action by Collateral Agent.
      The
      Borrowers hereby irrevocably appoint the Collateral Agent as its
      attorney-in-fact and agree that the Collateral Agent may perform (but the
      Collateral Agent shall not be obligated to and shall incur no liability to
      the
      Borrowers or any third party for failure so to do) any act which the Borrowers
      are obligated by this Security Agreement to perform, and to exercise such rights
      and powers as Borrowers might exercise with respect to the Collateral,
      including, without limitation, the right to (a) collect by legal proceedings
      or
      otherwise and endorse, receive and receipt for all dividends, interest,
      payments, proceeds and other sums and property now or hereafter payable on
      or on
      account of the Collateral; (b) enter into any extension, reorganization,
      deposit, merger, consolidation or other agreement pertaining to, or deposit,
      surrender, accept, hold or apply other property in exchange for the Collateral;
      (c) insure, process, preserve and enforce the Collateral; (d) make any
      compromise or settlement, and take any action it deems advisable, with respect
      to the Collateral; (e) pay any Indebtedness of any Borrower relating to the
      Collateral; (f) execute UCC financing statements and other documents,
      instruments and agreements required hereunder; (g) note any Borrower’s lien on
      certificates of title relating to the Collateral; provided,
      however,
      that
      the Collateral Agent may exercise such powers only after the occurrence and
      during the continuance of an Event of Default. The Borrowers agree to reimburse
      the Collateral Agent upon demand for all reasonable costs and expenses,
      including attorneys’ fees, that the Collateral Agent may incur while acting as
      the Borrowers’ attorney-in-fact hereunder, all of which costs and expenses are
      included in the Secured Obligations. The Borrowers agree that such care as
      the
      Collateral Agents gives to the safekeeping of its own property of like kind
      shall constitute reasonable care of the Collateral when in the Collateral
      Agent’s possession; provided,
      however,
      that
      Collateral Agent shall not be required to make any presentment, demand or
      protest, or give any notice and need not take any action to preserve any rights
      against any prior party or any other Person in connection with the Secured
      Obligations or with respect to the Collateral.

     

    Default
      and Remedies.
      The
      Borrowers shall be deemed in default under this Security Agreement upon the
      occurrence and during the continuance of an Event of Default, as that term
      is
      defined in the Credit Agreement. In addition to all other rights and remedies
      granted to the Lender or the Collateral Agent by this Security Agreement, the
      Credit Agreement, the other Loan Documents, the UCC and other applicable
      Requirements of Law, the Collateral Agent may, upon the occurrence and during
      the continuance of any Event of Default, exercise any one or more of the
      following rights and remedies: (a) collect, receive, appropriate or realize
      upon
      the Collateral or otherwise foreclose or enforce the Collateral Agent’s security
      interests in any or all Collateral in any manner permitted by applicable
      Requirements of Law or in this Security Agreement; (b) notify any or all Account
      Debtors to make payments on Receivables directly to the Collateral Agent; (c)
      direct the Collection Account Bank or the Collection Sub-Account Bank to
      liquidate the account(s) maintained by it, pay all amounts payable in connection
      therewith to the Collateral Agent and/or deliver any proceeds thereof to the
      Collateral Agent; (d) sell or otherwise dispose of any or all Collateral at
      one
      or more public or private sales, whether or not such Collateral is present
      at
      the place of sale, for cash or credit or future delivery, on such terms and
      in
      such manner as the Collateral Agent may determine; (e) require the Borrowers
      to
      assemble the Collateral and make it available to the Collateral Agent at a
      place
      to be designated by the Collateral Agent; (f) enter onto any property where
      any
      Collateral is located and take possession thereof with or without judicial
      process; and (g) prior to the disposition of the Collateral, store, process,
      repair or recondition any Collateral consisting of goods, perform any
      obligations and enforce any rights of the Borrowers or their Subsidiaries under
      any Dealership Contracts, any Rental Company Contracts or the Fleet Owner
      Agreement, or otherwise prepare and preserve Collateral for disposition in
      any
      manner and to the extent the Collateral Agent deems appropriate. In furtherance
      of the Collateral Agent’s rights hereunder, the Borrowers hereby grant to the
      Collateral Agent an irrevocable, non-exclusive license (exercisable without
      royalty or other payment by the Lender) to use, license or sublicense any
      patent, trademark, tradename, copyright or other intellectual property in which
      any Borrower now or hereafter has any right, title or interest, together with
      the right of access to all media in which any of the foregoing may be recorded
      or stored. In any case where notice of any sale or disposition of any Collateral
      is required, the Borrowers hereby agree that seven (7) days notice of such
      sale
      or disposition is reasonable.

     

    Miscellaneous.

     

    Notices.
      Except
      in the case of notices and other communications expressly permitted to be given
      by telephone, all notices and other communications provided for herein shall
      be
      in writing and shall be delivered by hand or overnight courier service, mailed
      by certified or registered mail or sent by telecopy, as follows:

     

    if
      to any
      Borrower, to it at 1325 Airmotive Way, Reno, NV 89502-3239, Attention: Rocky
      Wardrip (Facsimile No. (775) 688-6338), with a copy to 2727 N. Central Avenue,
      Phoenix, AZ 85004, Attention: Jennifer Settles (Facsimile No. (602) 263-6173);
      

     

    if
      to the
      Lender, to it at 111 Huntington Avenue, Suite 400, Boston, MA 02199-8001,
      Attention: Senior Vice President - Portfolio Adminstration (Facsimile No. (617)
      345-1444); and

     

    if
      to the
      Collateral Agent, to it at [Orange Truck Trust 2006 Address], Attention: [Name
      of Contact] (Facsimile No. [(____)________]).

     

    Any
      party
      hereto may change its address or telecopy number for notices and other
      communications hereunder by notice to the other parties hereto. All notices
      and
      other communications given to any party hereto in accordance with the provisions
      of this Security Agreement shall be deemed to have been given on the date of
      receipt.

     

    Waivers;
      Amendments.
      No
      failure or delay by the Lender or the Collateral Agent in exercising any right
      or power hereunder or under any other Loan Document shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such right or power,
      or
      any abandonment or discontinuance of steps to enforce such a right or power,
      preclude any other or further exercise thereof or the exercise of any other
      right or power. The rights and remedies of the Lender and the Collateral Agent
      hereunder and under the other Loan Documents are cumulative and are not
      exclusive of any rights or remedies that they would otherwise have. No waiver
      of
      any provision of any Loan Document or consent to any departure by any Loan
      Party
      therefrom shall in any event be effective unless the same shall be permitted
      by
      subsection (b) of this Section 13, and then such waiver or consent shall be
      effective only in the specific instance and for the purpose for which given.
      Without limiting the generality of the foregoing, the making of a Loan shall
      not
      be construed as a waiver of any Default, regardless of whether the Lender may
      have had notice or knowledge of such Default at the time.

     

    Neither
      this Security Agreement nor any other Loan Document nor any provision hereof
      or
      thereof may be waived, amended or modified except, in the case of this Security
      Agreement, pursuant to an agreement or agreements in writing entered into by
      the
      Borrowers, the Collateral Agent and the Lender.

     

    Successors
      and Assigns.
      The
      provisions of this Security Agreement shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors and assigns
      permitted hereby, except that a Borrower may not assign or otherwise transfer
      any of its rights or obligations hereunder without the prior written consent
      of
      the Lender and the Collateral Agent (and any attempted assignment or transfer
      by
      a Borrower without such consent shall be null and void). Nothing in this
      Security Agreement, expressed or implied, shall be construed to confer upon
      any
      Person (other than the parties hereto, their respective successors and assigns
      permitted hereby and, to the extent expressly contemplated hereby, the Related
      Parties of BTMUCC) any legal or equitable right, remedy or claim under or by
      reason of this Security Agreement:

     

    The
      Lender may, without the consent of the Borrowers, assign all or a portion of
      its
      rights and obligations under this Security Agreement; 

     

    The
      Collateral Agent may not assign, without the consent of the Lender, all or
      a
      portion of its rights and obligations under this Security Agreement;
      and

     

    The
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Security Agreement to secure obligations of
      the
      Lender, including any pledge or assignment to secure obligations to a Federal
      Reserve Bank, and this Section 13 shall not apply to any such pledge or
      assignment of a security interest; provided
      that no
      such pledge or assignment of a security interest shall release the Lender from
      any of its obligations hereunder or substitute any such pledgee or assignee
      for
      the Lender as a party hereto.

     

    Severability.
      Any
      provision of this Security Agreement held to be invalid, illegal or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such invalidity, illegality or unenforceability without
      affecting the validity, legality and enforceability of the remaining provisions
      hereof; and the invalidity of a particular provision in a particular
      jurisdiction shall not invalidate such provision in any other
      jurisdiction.

     

    Survival.
      All
      covenants, agreements, representations and warranties made by the Loan Parties
      in the Loan Documents and in the certificates or other instruments delivered
      in
      connection with or pursuant to this Security Agreement or any other Loan
      Document shall be considered to have been relied upon by the other parties
      hereto and shall survive the execution and delivery of the Loan Documents and
      the making of any Loans, regardless of any investigation made by any such other
      party or on its behalf and notwithstanding that the Lender may have had notice
      or knowledge of any Default or incorrect representation or warranty at the
      time
      any credit is extended hereunder, and shall continue in full force and effect
      as
      long as the principal of or any accrued interest on any Loan or any fee or
      any
      other amount payable under this Security Agreement is outstanding and unpaid
      and
      so long as the Commitments have not expired or terminated. 

     

    Borrowers’
      Continuing Liability.
      Notwithstanding any provision of this Security Agreement or any other Loan
      Document or any exercise by the Lender or the Collateral Agent of any of its
      rights hereunder or thereunder (including, without limitation, any right to
      collect or enforce any Collateral), (i) the Borrowers and their Subsidiaries
      shall remain liable to perform their obligations and duties in connection with
      the Collateral (including, without limitation, the Fleet Owner Agreement, the
      Rental Company Contracts, the Dealership Contracts and all other agreements
      relating to the Collateral) and (ii) neither the Lender nor the Collateral
      Agent
      shall assume any liability to perform such obligations and duties or to enforce
      any of the Borrowers’ rights in connection with the Collateral (including,
      without limitation, Fleet Owner Agreement, the Rental Company Contracts, the
      Dealership Contracts and all other agreements relating to the
      Collateral).

     

    Governing
      Law.
      THIS
      SECURITY AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
      LAW
      OF THE STATE OF NEW YORK.

     

    Each
      Borrower hereby irrevocably and unconditionally submits, for itself and its
      property, to the nonexclusive jurisdiction of the Supreme Court of the State
      of
      New York sitting in New York County and of the United States District Court
      of
      the Southern District of New York, and any appellate court from any thereof,
      in
      any action or proceeding arising out of or relating to any Loan Document, or
      for
      recognition or enforcement of any judgment, and each of the parties hereto
      hereby irrevocably and unconditionally agrees that all claims in respect of
      any
      such action or proceeding may be heard and determined in such New York State
      or,
      to the extent permitted by law, in such Federal court. Each of the parties
      hereto agrees that a final judgment in any such action or proceeding shall
      be
      conclusive and may be enforced in other jurisdictions by suit on the judgment
      or
      in any other manner provided by law. Nothing in this Security Agreement or
      any
      other Loan Document shall affect any right that the Lender may otherwise have
      to
      bring any action or proceeding relating to this Security Agreement or any other
      Loan Document against any Borrower or its properties in the courts of any
      jurisdiction.

     

    Each
      Borrower hereby irrevocably and unconditionally waives, to the fullest extent
      it
      may legally and effectively do so, any objection which it may now or hereafter
      have to the laying of venue of any suit, action or proceeding arising out of
      or
      relating to this Security Agreement or any other Loan Document in any court
      referred to in subsection (g)(i) of this Section 13. Each of the parties hereto
      hereby irrevocably waives, to the fullest extent permitted by law, the defense
      of an inconvenient forum to the maintenance of such action or proceeding in
      any
      such court.

     

    Each
      Borrower hereby irrevocably agrees that service of process in any such action
      or
      proceeding may be effected by mailing a copy thereof by registered or certified
      mail (or any substantially similar form of mail), postage prepaid, to such
      Borrower at its address set forth in Section 15(a) or at such other address
      of
      which the Lender shall have been notified pursuant thereto. Nothing in this
      Security Agreement or any other Loan Document will affect the right of any
      party
      to this Security Agreement to serve process in any other manner permitted by
      law.

     

    WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, ANY OTHER
      LOAN
      DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
      TORT OR ANY OTHER THEORY). THE BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT
      OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
      SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
      FOREGOING WAIVER.

     

    (i) Headings.
      Section
      and subsection headings used herein are for convenience of reference only,
      are
      not part of this Security Agreement and shall not affect the construction of,
      or
      be taken into consideration in interpreting, this Security
      Agreement.

     

    (j) Joint
      and Several Liability of Borrowers.
      Each
      Borrower acknowledges and agrees that, whether or not specifically indicated
      as
      such in a Loan Document, all Secured Obligations shall be joint and several
      Secured Obligations of each individual Borrower, and in furtherance of such
      joint and several Secured Obligations, each Borrower hereby irrevocably and
      unconditionally guarantees the payment of all Secured Obligations of each other
      Borrower. Each Borrower hereby acknowledges and agrees that such Borrower shall
      be jointly and severally liable to the Lender and the Collateral Agent for
      all
      representations, warranties, covenants and, obligations and indemnities of
      the
      Borrowers hereunder.

     

    [Signature
      Page Follows]

     

    

     

    
      
        
           
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Security Agreement to
      be
      executed as of the day and year first above written.

     

    U-HAUL
      LEASING & SALES CO.

     

    

     

    By:       

    Name: 

    Title: 

    

    U-HAUL
      CO. OF ARIZONA

     

    

     

    By:       

    Name: 

    Title: 

    

    U-HAUL
      INTERNATIONAL, INC.

     

    

     

    By:       

    Name: 

    Title: 

    

     

    BTMU
      CAPITAL CORPORATION

     

    

    By:       

    Name: 

    Title: 

     

     

    ORANGE
      TRUCK TRUST 2006

    By:
      Wells
      Fargo Bank Northwest, National  Association,
      solely as Trustee

    

    By:       

    Name: 

    Title: 

    

    

    

     

    

     

    
      
        
          [Signature
            Page for Security Agreement]

             

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ATTACHMENT
      1

     

    To
      Security Agreement

     

    COLLATERAL
      DESCRIPTION

     

    All
      right, title and interest of the Borrowers, whether now owned or hereafter
      acquired, in and to the following:

     

    (a) All
      equipment as defined in the UCC listed on the accompanying Vehicle Schedule,
      as
      the same may be updated from time to time pursuant to the Credit Agreement,
      including, without limitation, all Vehicles, together with all additions and
      accessions thereto and replacements therefor (collectively, the “Equipment”);

     

    (b) All
      inventory as defined in the UCC listed on the accompanying Vehicle Schedule,
      as
      the same may be updated from time to time pursuant to the Credit Agreement,
      including, without limitation, all Vehicles, together with all additions and
      accessions thereto, replacements therefor, products thereof and documents
      therefor (collectively, the “Inventory”);
      

     

    (c) All
      amounts receivable with respect to Fleet Owner Cash Flows and with respect
      to
      sales of Vehicles to third parties (the “Receivables”);

     

    (d) The
      Dealership Contracts, the Rental Company Contracts, the Fleet Owner Agreement
      and any Warranty;

     

    (e) The
      Collection Account, and all cash on deposited therein from time to
      time;

     

    (f) The
      Collection Sub-Account, and all cash deposited therein from time to time;

     

    (g) All
      payments owing to the Borrowers with respect to a Hedge; and

     

    All
      Proceeds of the foregoing (including, without limitation, whatever is receivable
      or received when Collateral or proceeds is sold, collected, exchanged, returned,
      substituted or otherwise disposed of, whether such disposition is voluntary
      or
      involuntary, including rights to payment and return premiums and insurance
      proceeds under insurance with respect to any Collateral, and all rights to
      payment with respect to any cause of action affecting or relating to the
      Collateral).

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ATTACHMENT
      2

     

    To
      Security Agreement

     

    FORM
      OF

     

    COLLECTION
      ACCOUNT CONTROL AGREEMENT

     

    AND
      COLLECTION SUB- ACCOUNT CONTROL AGREEMENT

     

    

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ATTACHMENT
      3

     

    To
      Security Agreement

     

    INSURANCE
      AND

     

    INSURANCE
      ENDORSEMENTS

     

    Pursuant
      to Section 8.07 of the Credit Agreement, each of the liability insurance
      policies of the Borrowers shall contain substantially the following
      endorsements:

     

    (a) If
      the
      Lender or the Collateral Agent shall determine that a Material Adverse Change
      has occurred or if an Event of Default shall have occurred, then within five
      Business Days after delivery by the Lender or the Collateral Agent to the
      Borrowers of a written request therefor, the Borrowers shall cause each of
      the
      Lender and Collateral Agent to be named as an additional insured.

     

    (b) In
      respect of the interests of the Collateral Agent in the policies, the insurance
      shall not be invalidated by any action or by inaction of any Borrower or by
      any
      Person having temporary possession of the property covered thereby (the
“Property”)
      while
      under contract with any Borrower to perform maintenance, repair, alteration
      or
      similar work on the Property, and shall insure the interests of the Collateral
      Agent regardless of any breach or violation of any warranty, declaration or
      condition contained in the insurance policy by any Borrower or the Collateral
      Agent or any other additional insured (other than by such additional insured,
      as
      to such additional insured) or by any Person having temporary possession of
      the
      Property while under contract with any Borrower to perform maintenance, repair,
      alteration or similar work on the Property.

     

    (c) If
      the
      insurance policy is cancelled for any reason whatsoever, or substantial change
      is made in the coverage that affects the interests of the Collateral Agent,
      or
      if the insurance coverage is allowed to lapse for non-payment of premium, such
      cancellation, change or lapse shall not be effective as to the Collateral Agent
      for 30 days (or 10 days in the case of non-payment of premium) after receipt
      by
      the Collateral Agent of written notice from the insurer of such cancellation,
      change or lapse.

     

    (d) The
      Collateral Agent shall not have any obligation or liability for premiums,
      commissions, assessments, or calls in connection with the
      insurance.

     

    (e) The
      insurer shall waive any rights of set-off or counterclaim or any other
      deduction, whether by attachment or otherwise, that it may have against the
      Collateral Agent.

     

    (f) The
      insurance shall be primary without right of contribution from any other
      insurance that may be carried by the Collateral Agent with respect to its
      interests in the Property.

     

    (g) The
      insurer shall waive any right of subrogation against the Collateral
      Agent.

     

    (h) All
      provisions of the insurance, except the limits of liability, shall operate
      in
      the same manner as if there were a separate policy covering each insured
      party.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ATTACHMENT
      4

     

    To
      Security Agreement

     

    VEHICLE
      SCHEDULE

     

    

     

    [On
      file
      with Orange
      Truck Trust 2006]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    ATTACHMENT
      5

     

    To
      Security Agreement

     

    SCHEDULE
      OF PRIOR NAMES, TRADE NAMES, PRIOR CORPORATE

     

    STRUCTURES,
      ETC.

     

    

    
      	
              COMPANY

            	
              FORMER
                NAMES

              (1998
                - Present)

            	
              CHANGES
                TO CORPORATE STRUCTURE

              (1998
                - Present)

            	
              FICTITIOUS
                NAMES

              (1998
                - Present)

            
	
              U-Haul
                International, Inc.

            	
              None

            	
              None

            	
              None

            
	
              U-Haul
                Leasing & Sales Co.

            	
              None

            	
              None

            	
              None

            
	
              U-Haul
                Co. of Arizona

            	
              None

            	
              None

            	
              U-Haul
                Co. of Southern Arizona

              U-Haul
                Co. of Western Arizona

              U-Haul
                Co. of Eastern ArizonaGuarantee between U-Haul and AMERCO and BTMU

    Exhibit
      10.87

    GUARANTEE

     

     

    GUARANTEE,
      dated as of May 31,
      2006,
      made by U-HAUL INTERNATIONAL, INC. and AMERCO (each, a “Guarantor”
and
      collectively, the “Guarantors”),
      in
      favor of BTMU CAPITAL CORPORATION, as lender (the “Lender”
and
      a
“Lender
      Party”)
      and
ORANGE
      TRUCK TRUST 2006,
      as
      collateral agent (the “Collateral
      Agent”
and
      a
“Lender
      Party”
and,
      together with the Lender, the “Lender
      Parties”),
      parties to the Credit Agreement referred to below.

     

    RECITALS

     

    Pursuant
      to the Credit Agreement, dated as of May 31, 2006 (as amended, supplemented
      or
      otherwise modified from time to time, the “Credit
      Agreement”),
      among
      U-HAUL SALES & LEASING CO., U-HAUL CO. OF ARIZONA and U-HAUL INTERNATIONAL,
      INC. (each, a “Borrower”
and
      collectively, the “Borrowers”),
      the
      Guarantors, ORANGE
      TRUCK TRUST
      2006, as
      Collateral Agent, and the Lender, the Lender has agreed to make Loans to the
      Borrowers upon the terms and subject to the conditions set forth therein, such
      loans to be evidenced by the Note issued by the Borrowers thereunder. The
      Borrowers are members of an affiliated group of corporations that includes
      the
      Guarantors. The Borrowers and the Guarantors are engaged in related businesses,
      and the Guarantors will derive substantial direct and indirect benefit from
      the
      making of the Loans. It is a condition precedent to the obligation of the Lender
      to make the Loans to the Borrowers under the Credit Agreement that the
      Guarantors hereto shall have executed and delivered this Guarantee to the Lender
      Parties.

     

    NOW,
      THEREFORE, in consideration of the premises and to induce the Lender to enter
      into the Credit Agreement and make the Loans to the Borrowers, under the Credit
      Agreement, the Guarantors hereby agree with the Lender Parties as
      follows:

     

    Defined
      Terms.

     

    Unless
      otherwise defined herein, terms defined in the Credit Agreement and used herein
      shall have the meanings given to them in the Credit Agreement.

     

    The
      words
“hereof,” “herein” and “hereunder” and words of similar import when used in this
      Guarantee shall refer to this Guarantee as a whole and not to any particular
      provision of this Guarantee, and section and paragraph references are to this
      Guarantee unless otherwise specified.

     

    The
      meanings given to terms defined herein shall be equally applicable to both
      the
      singular and plural forms of such terms.

     

    Guarantee.

     

    The
      Guarantors hereby, unconditionally and irrevocably, jointly and severally,
      guarantee to the Lender Parties and their respective successors, indorsees,
      transferees and assigns, the prompt and complete payment and performance by
      each
      of the Borrowers of their obligations under the Loan Documents, whether at
      stated maturity, by acceleration or otherwise.

     

    Anything
      herein or in any other Loan Document to the contrary notwithstanding, the
      maximum liability of the Guarantors hereunder and under the other Loan Documents
      shall in no event exceed the amount which can be guaranteed by the Guarantors
      under applicable federal and state laws relating to the insolvency of
      debtors.

     

    The
      Guarantors further agree to pay any and all expenses (including, without
      limitation, all fees and disbursements of counsel) which may be paid or incurred
      by any Lender Party in enforcing, or obtaining advice of counsel in respect
      of,
      any rights with respect to, or collecting, any or all of the Obligations and/or
      enforcing any rights with respect to, or collecting against, the Guarantors
      under this Guarantee. This Guarantee shall remain in full force and effect
      until
      the Obligations are paid in full and the Commitments are terminated,
      notwithstanding that from time to time prior thereto the Borrowers, individually
      or collectively, may be free from any Obligations.

     

    The
      Guarantors agree that the Obligations may at any time and from time to time
      exceed the amount of the liability of the Guarantors hereunder without impairing
      this Guarantee or affecting the rights and remedies of the Lender
      hereunder.

     

    No
      payment or payments made by any Borrower, the Guarantors, any other guarantor
      or
      any other Person or received or collected by any Lender Party from any Borrower,
      the Guarantors, any other guarantor or any other Person by virtue of any action
      or proceeding or any set-off or appropriation or application at any time or
      from
      time to time in reduction of or in payment of the Obligations shall be deemed
      to
      modify, reduce, release or otherwise affect the liability of the Guarantors
      hereunder which shall, notwithstanding any such payment or payments other than
      payments made by the Guarantors in respect of the Obligations or payments
      received or collected from the Guarantors in respect of the Obligations, remain
      liable for the Obligations up to the maximum liability of the Guarantors
      hereunder until the Obligations are paid in full and the Commitments are
      terminated.

     

    The
      Guarantors agree that whenever, at any time, or from time to time, it shall
      make
      any payment to any Lender Party on account of its liability hereunder, it will
      notify such Lender Party in writing that such payment is made under this
      Guarantee for such purpose..

     

    Right
      of Set-off.
      The
      Guarantors hereby irrevocably authorize each Lender Party at any time and from
      time to time without notice to the Guarantors, any such notice being expressly
      waived by the Guarantors, to set-off and appropriate and apply any and all
      deposits (general or special, time or demand, provisional or final), in any
      currency, and any other credits, indebtedness or claims, in any currency, in
      each case whether direct or indirect, absolute or contingent, matured or
      unmatured, at any time held or owing by such Lender Party to or for the credit
      or the account of the Guarantors, or any part thereof in such amounts as such
      Lender Party may elect, against and on account of the obligations and
      liabilities of the Guarantors to such Lender Party hereunder and claims of
      every
      nature and description of such Lender Party against the Guarantors, in any
      currency, whether arising hereunder, under the Credit Agreement, the Note,
      any
      Loan Documents or otherwise, as such Lender Party may elect, whether or not
      such
      Lender Party has made any demand for payment and although such obligations,
      liabilities and claims may be contingent or unmatured. Each Lender Party shall
      notify the Guarantors promptly of any such set-off and the application made
      by
      such Lender Party, provided
      that the
      failure to give such notice shall not affect the validity of such set-off and
      application. The rights of any Lender Party under this Section are in addition
      to other rights and remedies (including, without limitation, other rights of
      set-off) which each Lender Party may have.

     

    No
      Subrogation.
      Notwithstanding any payment or payments made by the Guarantors hereunder or
      any
      set-off or application of funds of the Guarantors by any Lender Party, the
      Guarantors shall not be entitled to be subrogated to any of the rights of the
      Lender Party against the Borrowers or any other guarantor or any collateral
      security or guarantee or right of offset held by any Lender Party for the
      payment of the Obligations, nor shall the Guarantors seek or be entitled to
      seek
      any contribution or reimbursement from the Borrowers or any other guarantor
      in
      respect of payments made by the Guarantors hereunder, until all amounts owing
      to
      the Lender Parties by the Borrowers on account of the Obligations are paid
      in
      full and the Commitments are terminated. If any amount shall be paid to the
      Guarantors on account of such subrogation rights at any time when all of the
      Obligations shall not have been paid in full, such amount shall be held by
      the
      Guarantors in trust for the Lender Parties, segregated from other funds of
      the
      Guarantors, and shall, forthwith upon receipt by the Guarantors, be turned
      over
      to the Lender Parties in the exact form received by the Guarantors (duly
      indorsed by the Guarantors to the Lender Parties, if required), to be applied
      against the Obligations, whether matured or unmatured, in such order as each
      Lender Party may determine.

     

    Amendments,
      etc. with respect to the Obligations; Waiver of Rights.
      The
      Guarantors shall remain obligated hereunder notwithstanding that, without any
      reservation of rights against the Guarantors and without notice to or further
      assent by the Guarantors, (a) any demand for payment of any of the Obligations
      made by any Lender Party may be rescinded by such party and any of the
      Obligations continued, (b) the Obligations, or the liability of any other party
      upon or for any part thereof, or any collateral security or guarantee therefor
      or right of offset with respect thereto, may, from time to time, in whole or
      in
      part, be renewed, extended, amended, modified, accelerated, compromised, waived,
      surrendered or released by the Lender Parties, (c) the Credit Agreement, the
      Note and the other Loan Documents and any other documents executed and delivered
      in connection therewith may be amended, modified, supplemented or terminated,
      in
      whole or in part, as the Lender Parties may deem advisable from time to time,
      and (d) any collateral security, guarantee or right of offset at any time held
      by any Lender Party for the payment of the Obligations may be sold, exchanged,
      waived, surrendered or released by such Lender Party. Neither Lender Party
      shall
      have any obligation to protect, secure, perfect or insure any Lien at any time
      held by it as security for the Obligations or for this Guarantee or any property
      subject thereto. When making any demand hereunder against the Guarantors, any
      Lender Party may, but shall be under no obligation to, make a similar demand
      on
      the Borrowers or any other guarantor, and any failure by such Lender Party
      to
      make any such demand or to collect any payments from the Borrowers or any such
      other guarantor or any release of an Borrower or such other guarantor shall
      not
      relieve the Guarantors of their obligations or liabilities hereunder, and shall
      not impair or affect the rights and remedies, express or implied, or as a matter
      of law, of any Lender Party against the Guarantors. For the purposes hereof
      “demand” shall include the commencement and continuance of any legal
      proceedings.

     

    Guarantee
      Absolute and Unconditional.
      The
      Guarantors waive (i) any and all notice of the creation, renewal, extension
      or
      accrual of any of the Obligations, (ii) notice or proof of reliance by any
      Lender Party upon this Guarantee and (iii) acceptance of this Guarantee by
      any
      Lender Party. Each of the Obligations shall conclusively be deemed to have
      been
      created, contracted or incurred, or renewed, extended, amended or waived, in
      reliance upon this Guarantee. All dealings between the Borrowers and the
      Guarantors, on the one hand, and each Lender Party and the Borrowers, on the
      other hand, likewise shall be conclusively presumed to have been had or
      consummated in reliance upon this Guarantee. The Guarantors waive diligence,
      presentment, protest, demand for payment and notice of default or nonpayment
      to
      or upon the Borrowers or the Guarantors with respect to the Obligations. The
      Guarantors understand and agree that this Guarantee shall be construed as a
      continuing, absolute and unconditional guarantee of payment without regard
      to
      (a) the validity, regularity or enforceability of the Credit Agreement, the
      Note
      or any other Loan Document, any of the Obligations or any other collateral
      security therefor or guarantee or right of offset with respect thereto at any
      time or from time to time held by any Lender Party, (b) any defense, set-off
      or
      counterclaim (other than a defense of payment or performance) which may at
      any
      time be available to or be asserted by the Borrowers against any Lender Party,
      or (c) any other circumstance whatsoever (with or without notice to or knowledge
      of any Borrower or the Guarantors) which constitutes, or might be construed
      to
      constitute, an equitable or legal discharge of any Borrower for the Obligations,
      or of the Guarantors under this Guarantee, in bankruptcy or in any other
      instance. When pursuing its rights and remedies hereunder against the
      Guarantors, any Lender Party may, but shall be under no obligation to, pursue
      such rights and remedies as it may have against any Borrower or any other Person
      or against any collateral security or guarantee for the Obligations or any
      right
      of offset with respect thereto, and any failure by the such Lender Party to
      pursue such other rights or remedies or to collect any payments from any
      Borrower or any such other Person or to realize upon any such collateral
      security or guarantee or to exercise any such right of offset, or any release
      of
      any Borrower or any such other Person or any such collateral security, guarantee
      or right of offset, shall not relieve the Guarantors of any liability hereunder,
      and shall not impair or affect the rights and remedies, whether express, implied
      or available as a matter of law, of such Lender Party against the Guarantors.
      This Guarantee shall remain in full force and effect and be binding in
      accordance with and to the extent of its terms upon each of the Guarantors
      and
      its respective successors and assigns, and shall inure to the benefit of each
      Lender Party, and its respective successors, indorsees, transferees and assigns,
      until all the Obligations and the obligations of the Guarantors under this
      Guarantee shall have been satisfied by payment in full and the Commitments
      shall
      be terminated, notwithstanding that from time to time during the term of the
      Credit Agreement the Borrowers, individually or collectively, may be free from
      any Obligations.

     

    Reinstatement.
      This
      Guarantee shall continue to be effective, or be reinstated, as the case may
      be,
      if at any time payment, or any part thereof, of any of the Obligations is
      rescinded or must otherwise be restored or returned by the Lender Parties upon
      the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
      Borrower or any Guarantor, or upon or as a result of the appointment of a
      receiver, intervenor or conservator of, or trustee or similar officer for,
      any
      Borrower or any Guarantor or any substantial part of its property, or otherwise,
      all as though such payments had not been made.

     

    Not
      Affected by Bankruptcy.
      Notwithstanding any modification, discharge or extension of the Obligations
      or
      any amendment, modification, stay or cure of each Lender Party’s rights which
      may occur in any bankruptcy or reorganization case or proceeding against any
      Borrower, whether permanent or temporary, and whether or not assented to by
      each
      Lender Party, each Guarantor hereby agrees that it shall be obligated hereunder
      to pay and perform the Obligations and discharge its other obligations in
      accordance with the terms of the Obligations and the terms of this Guarantee.
      Each Guarantor understands and acknowledges that, by virtue of this Guarantee,
      it has specifically assumed any and all risks of a bankruptcy or reorganization
      case or proceeding with respect to any or all Borrowers. Without in any way
      limiting the generality of the foregoing, any subsequent modification of the
      Obligations in any reorganization case concerning any Borrower shall not affect
      the obligation of the any Guarantor to pay and perform the Obligations in
      accordance with the original terms thereof.

     

    Payments.
      Each
      Guarantor hereby guarantees that payments hereunder will be paid to each Lender
      Party without set-off or counterclaim in U.S. Dollars at the office of each
      Lender Party specified in Section 12.01 of the Credit Agreement.

     

    Notices.
      All
      notices, requests and demands to or upon each Lender Party or each Guarantor
      to
      be effective shall be in writing (or by telex, fax or similar electronic
      transfer confirmed in writing) and shall be deemed to have been duly given
      or
      made (1) when delivered by hand or (2) if given by mail, when deposited in
      the
      mails by certified mail, return receipt requested, or (3) if by telex, fax
      or
      similar electronic transfer, when sent and receipt has been confirmed, addressed
      as follows:

     

    if
      to the
      Lender, at its address or transmission number for notices provided in Section
      12.01 of the Credit Agreement; 

     

    if
      to the
      Collateral Agent, at its address or transmission number for notices provided
      in
      Section 12.01 of the Credit Agreement; and

     

    if
      to the
      Guarantors, at their addresses or transmission number for notices set forth
      under their signatures below.

     

    The
      Lender Parties and the Guarantors may change their addresses and transmission
      numbers for notices by notice in the manner provided in this
      Section.

     

    Severability.
      Any
      provision of this Guarantee which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    Integration.
      This
      Guarantee represents the agreement of each Guarantor with respect to the subject
      matter hereof and there are no promises or representations by any Lender Party
      relative to the subject matter hereof not reflected herein.

     

    Amendments
      in Writing; No Waiver; Cumulative Remedies.
      

     

    None
      of
      the terms or provisions of this Guarantee may be waived, amended, supplemented
      or otherwise modified except by a written instrument executed by the Guarantors
      and the Lender Parties, provided that any provision of this Guarantee may be
      waived by the Lender Parties in a letter or agreement executed by the Lender
      Parties or by telex or facsimile transmission from the Lender
      Parties.

     

    Each
      Lender Party shall not by any act (except by a written instrument pursuant
      to
      Section 13(a) hereof), of delay, indulgence, omission or otherwise be deemed
      to
      have waived any right or remedy hereunder or to have acquiesced in any default
      or Event of Default or in any breach of any of the terms and conditions hereof.
      No failure to exercise, nor any delay in exercising, on the part of any Lender
      Party, any right, power or privilege hereunder shall operate as a waiver
      thereof. No single or partial exercise of any right, power or privilege
      hereunder shall preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege. A waiver by any Lender Party of any
      right or remedy hereunder on any one occasion shall not be construed as a bar
      to
      any right or remedy which such Lender Party would otherwise have on any future
      occasion.

     

    The
      rights and remedies herein provided are cumulative, may be exercised singly
      or
      concurrently and are not exclusive of any other rights or remedies provided
      by
      law.

     

    Section
      Headings.
      The
      section headings used in this Guarantee are for convenience of reference only
      and are not to affect the construction hereof or be taken into consideration
      in
      the interpretation hereof.

     

    Successors
      and Assigns.
      This
      Guarantee shall be binding upon the successors and assigns of the Guarantors
      and
      shall inure to the benefit of each Lender Party and its successors and
      assigns.

     

    GOVERNING
      LAW.
      THIS
      GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAW OF THE STATE OF NEW YORK.

     

    Submission
      to Jurisdiction; Waivers.
      Each
      Guarantor hereby irrevocably and unconditionally:

     

    submits
      for itself and its property in any legal action or proceeding relating to this
      Guarantee and the other Loan Documents to which it is a party, or for
      recognition and enforcement of any judgment in respect thereof, to the
      non-exclusive general jurisdiction of the courts of the State of New York,
      the
      courts of the United States of America for the Southern District of New York,
      and appellate courts from any thereof;

     

    consents
      that any such action or proceeding may be brought in such courts and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court or that such action or proceeding was brought
      in an
      inconvenient court and agrees not to plead or claim the same;

     

    agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form of mail), postage prepaid, to the Guarantors at their addresses
      set
      forth under their signatures below or at such other addresses of which the
      Lender Parties shall have been notified pursuant hereto;

     

    agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction; and

     

    waives,
      to the maximum extent not prohibited by law, any right it may have to claim
      or
      recover in any legal action or proceeding referred to in this Section any
      special, exemplary, punitive or consequential damages.

     

    Acknowledgments.
      Each
      Guarantor hereby acknowledges that:

     

    it
      has
      been advised by counsel in the negotiation, execution and delivery of this
      Guarantee and the other Loan Documents to which each is a party;

     

    no
      Lender
      Party has a fiduciary relationship with or a duty to the Guarantors arising
      out
      of or in connection with this Guarantee or any of the other Loan Documents
      to
      which it is a party, and the relationship between the Guarantors and the
Borrowers
      on the
      one hand, and the Guarantors and each Lender Party, on the other hand, in
      connection herewith or therewith is solely that of debtor and creditor;
      and

     

    no
      joint
      venture is created hereby or by the other Loan Documents or otherwise exists
      by
      virtue of the transactions contemplated hereby among any Guarantor, any
Borrower
      and each
      Lender Party.

     

    WAIVER
      OF JURY TRIAL.
      EACH
      GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
      LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE OR ANY OTHER LOAN DOCUMENT
      AND FOR ANY COUNTERCLAIM THEREIN.

     

    

     

    [Signature
      Pages Follow]

     

    

     

    

    
      
        
           
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

     

    IN
      WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly
      executed and delivered by its duly authorized officer as of the day and year
      first above written.

     

    U-HAUL
      INTERNATIONAL, INC.

     

    By: ______________________

     

    Name:

     

    Title:

     

    Address
      for Notices:

     

    2727
      North Central Avenue

     

    Phoenix,
      Arizona 85004

     

    Tel: (775)
      688-6300

     

    Fax: (775)
      688-6338

     

    AMERCO

     

    By: ______________________

     

    Name:

     

    Title:

     

    Address
      for Notices:

     

    1325
      Airmotive Way, Ste. 100

     

    Reno,
      Nevada 89502-3239

     

    Tel: [(775)
      688-6300]

     

    Fax: [(775)
      688-[____]]

    

    

    
      
        

             

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    
      	
               

              Date:
                May __, 2006

               

              ACCEPTED
                AND AGREED:

               

              BTMU
                CAPITAL CORPORATION

               

              By: ______________________

              Name:

              Title:

               

              ORANGE
                TRUCK TRUST 2006

               

              By:
                Wells Fargo Bank Northwest, National Association, solely as
                Trustee

               

              By: ______________________

              Name:

              Title:

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