Venders Part Two INTERSTATE
Comprehensive This Declaration Page and FIRE & CASUALTY
Single Interest Policy Policy Provisions (Part COMPANY
One), with Coverage Executive Offices: 55 E. Monroe Street
Parts/Forms and Chicago, Illinois 60603
Endorsements issued to form
a part thereof complete the
below numbered policy.
Policy Number CA4-1000024
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Declarations Renewal of No.
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Item 1. Named Insured Auto Bond Acceptance Corporation
The Named Insured is: [ ] Individual [ ] Partnership [ ] Joint
Venture [X] Corporation [ ] Other
Street Address 8080 N. Central Expressway, Suite 1620
City, State, Zip Dallas, TX 75206
Item 2. Policy Period From: Producer: Intercontinental Brokerage, Inc.
12:01 AM Std. Time at the 5-01-94 Office Address: 445 Livernois, Suite 233
address of the Named Insured as To: City, State, Zip: Rochester Hills, MI 48063
stated herein. 5-01-95 No.:
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ATTENTION The insurance afforded is only with of such coverage shall be as stated
respect to the following coverage herein, subject to all the terms and
where a premium charge is shown. The conditions of this policy having
limit of the company's liability reference thereto.
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Item 3. Coverage Coverage Limit of Liability Premium
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A. All Risk Physical States in Policy $82.00
Damage Conditions #21
Loan Insurance
$40,000 per vehicle
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B. Instrument Non- State in Policy $ Included
Filing Conditions #21
Insurance
$40,000 per vehicle
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C. Confiscation and Stated in Policy $ Included
Skip Insurance Conditions #21
$40,000 per vehicle
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D. Repossessed Vehicles $25,000 per Occurrence $ Included
Coverage
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Subject to Endorsements ABAC-1, ABAC-2, ABAC-3, ABAC-4, ABAC-5, ABAC-6,
and Coverage Form(s) ABAC-7.
Part(s) identified
here by number
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Subject to a Minimum Total Premium $82.00 per vehicle
Monthly Premium of Deposit Premium $N/A
$5,000, plus applicable
surplus lines taxes.
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Item 4. Rate Calculation Rate of Premium Calculation (per loan)
Per Vehicle Per Watercraft Per Recreational Per Chattel
Vehicle
$82.00 $ N/A $82.00 $ N/A
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All premiums shall be fully earned when paid and no refund of premium be
made by the Company upon concellation for any reason whatsoever.
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Item 5. Audit Period [X] Monthly [ ] Quarter [ ] Semi-annually
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This policy is made and accepted subject to the foregoing provisions and
stipulations and those hereinafter stated which are hereby made a part
of this Policy, together with such other provisions, stipulations, and
agreements as may be added hereto.
5/9/94 /s/ [SIGNATURE]
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Date Prepared Authorized Representative
ONE OF THE INTERSTATE INSURANCE COMPANIES
AS DESIGNATED ON THE DECLARATIONS PAGE
(A Stock Company, herein called the Company)
Mailing Address: 55 E. Monroe Street, Chicago, Il 60603
In consideration of the payment of the premium, in reliance upon the statements
made a part hereof and subject to all the terms of this Policy, the Company
shown on the Declarations page agrees with the Named Insured as follows:
I. INSURING AGREEMENTS
COVERAGE A-ALL RISK PHYSICAL DAMAGE INSTALLMENT LOAN INSURANCE-To indemnify the
Named Insured against all risks of physical loss or damage from any external
cause to vehicles, except as hereinafter excluded, which the Named Insured holds
as collateral for an installment or deferred payment loan under an instrument,
as hereinafter defined.
COVERAGE B-INSTRUMENT NON-FILING INSURANCE-To indemnify the Named Insured
against any direct loss which the Named Insured may sustain during the term of
this Policy by reason of having in good faith, and in the usual course of
business, taken, received, made advances on, made loans against or extended
credit upon an instrument as hereinafter defined, as security for a loan to a
customer of the Named Insured, or purchased from a dealer of the Named Insured,
but only insofar as the Named Insured is damaged solely through being prevented
from:
1. Obtaining possession of the vehicle represented by such instrument and/or
retaining the proceeds thereof; and/or
2. Enforcing its rights under such instrument;
Solely because the Named Insured has UNINTENTIONALLY not recorded or filed the
instrument with the proper Public Officer or Public Office, or has not had the
proper Public Officer or Public Office show the Named Insured's encumbrance
thereon if the Instrument be a Certificate of Title.
COVERAGE C-CONFISCATION AND SKIP INSURANCE-To indemnify the Named Insured
against any direct loss which the Named Insured, may sustain during the term of
this Policy:
1. By reason of the inability of the Named Insured to locate neither the
borrower, the vehicle nor any obligee of the instrument; or
2. By reason of the confiscation of the vehicle by a Public Officer or Public
Office;
But only in the event that the Named Insured shall have in good faith and in the
usual course of business taken, received, made advances on, made loans against,
or extended credit upon an instrument, as security for a loan to a customer of
the Named Insured, or purchased such instrument for a dealer of the Named
Insured.
COVERAGED D-REPOSSESSED VEHICLES INSURANCE-To indemnify the Named Insured for a
period not to exceed sixty (60) days, against all risk of physical loss or
damage from any external cause to repossessed vehicles as hereinafter defined.
Repossessed Vehicle insurance will cover:
1. Repossessed vehicles that the Named Insured has possession of and exercises
rights of ownership over; and/or
2. Vehicles while being repossessed by the Named Insured; or
3. While such repossessed vehicles are held by the Named Insured for sale but
excluding:
a. Vehicles owned by the Named Insured for use in its business;
b. Vehicles rented or leased to others;
c. Vehicles sold by the Named Insured subject to any security interest of
the Named Insured; or
d. Vehicles in the care, custody or control of sales agencies or dealers.
II. DEFINITIONS
For the purpose of this insurance:
A. Instrument-'Instrument' shall be understood to mean a Chattel Mortgage, a
Security Agreement, a Conditional Bill of Sale, a Conditional Sales Contract, a
Chattel Trust Deed, a Trust Deed, A Trust Receipt, a Deed of Trust or a Bill of
Sale to Secure Debt, all creating or reserving a lien in chattels which is held
as Collateral for a loan made by the Named Insured and scheduled for payment on
a monthly basis, of not less than three (3) consecutive months.
B. Vehicle-'Vehicle' shall be defined as a four wheeled land motor vehicle of
the private passenger type including walk-in type vans and pick-up trucks with a
loan capacity of no more than 2,000 pounds which have been licensed for road use
through the Motor Vehicle Commissioner or through the appropriate licensing
authority of a State or territory or possession of the United States.
C. Repossessed Vehicles-'Repossessed Vehicles' shall mean any vehicle, insured
by this Policy, of which the Named Insured has gained possession peacefully or
through legal process, by virtue of a legal right to such possession.
D. Date of Loss-
1. The Date of Loss under Coverage A shall be the date on which the
actual physical loss or damage occurred to the vehicle insured
hereunder. If such date is undeterminable the Date of Loss shall be
the date the vehicle is repossessed.
2. The Date of Loss under Coverage B shall be the date on which the
adverse party filed its lien on the vehicle insured hereunder which
lien is superior to that of the Name Insured.
3. The Date of Loss under Coverage C shall be the date that the first
delinquency occurs.
4. The date of Loss under Coverage D shall be the date on which the
actual physical loss or damage occurred to the vehicle insured
hereunder.
E. Named Insured-Named Insured shall mean the entity(ies) or organization named
in Item 1. of the Declarations of this Policy.
Page 1 of 5
III. EXCLUSIONS
This insurance shall not indemnify the Named Insured in respect of any loss or
losses:
A. resulting from losses occurring prior to the effective date of this Policy;
B. resulting directly or indirectly from any dishonest, fraudulent or criminal
act of any officer or employee of the Named Insured or of any dealer from which
the Named Insured acquired the instrument or of any officer or employee of such
dealer, or anyone acting in any capacity as agent for the Named Insured in
obtaining a loan;
C. resulting from forgery, or use of an alias;
D. resulting from any lien, encumbrance or defect in title which existed at the
time the loan was made by the Named Insured;
E. resulting from any instrument due and payable more than sixty (60) calendar
months after the making thereof, even though on the date of loss the date of
maturity of the instrument may be less than sixty (60) months.
F. under Coverage A and D, caused by or resulting from wear and tear, gradual
deterioration, obsolescence, rust, corrosion, latent defect, inherent vice,
freezing or overheating;
G. under Coverage A and D, caused by or resulting from any repairing or
restoration or remodeling process, structural, mechanical or electrical
breakdown or failure unless fire or other accident ensues and then only for the
loss or damage by such ensuing fire or accident;
H. to vehicles held as collateral under any floor plan or field warehouse type
of financing;
I. resulting from any loan made to a dealer, or their employees, whether or not
the property is held for resale;
J. on loans on any vehicles designed for racing or modified for use as a public
livery vehicle;
K. resulting from the Named Insured's failure to initiate a professional attempt
to repossess the security (vehicle) within ninety (90) days after the account
becomes delinquent;
L. under Coverage A, B and C to any loan made to a borrower who was responsible
for a claim being paid under this Policy;
M. caused by or resulting from:
1. hostile or warlike action in time of peace or war, including action in
hindering, combating or defending against an actual impending or
expected attack;
a. by any government or sovereign power (de jure or de facto), or by
any authority maintaining or using military, naval or air forces;
or
b. by military, naval or air forces, or
c. by any agent of any such government, power, authority or forces;
2. any weapon of war employing atomic fission or radioactive force
whether in time of peace or war;
3. insurrection, rebellion, revolution, civil war, usurped power, or
action taken by governmental authority in hindering, combating or
defending against such an occurrence, seizure or destruction under
quarantine or customs regulations, confiscation by order of any
government or public authority, unless Coverage C is provided and is
so indicated in the Declarations, risks or contraband or illegal
transportation or trade;
N. caused by or resulting from nuclear reaction or nuclear radiation or
radioactive contamination, all whether controlled or uncontrolled, and whether
such loss be direct or indirect, proximate or remote, or be in whole or in part
caused by, contributed to, or aggravated by the peril(s) insured against in this
Policy.
IV. CONDITIONS
(UNLESS OTHERWISE NOTED, THESE CONDITIONS APPLY TO ALL COVERAGES.)
1. POLICY PERIOD, TERRITORY-This Policy shall be effective from the date
of inception as shown on the Declarations and shall remain
continuously in effect until terminated as hereinafter provided. This
policy applies only to loss during the policy period within the United
States of America, its territories or possessions, or Canada. There
shall be no coverage under this Policy when it is determined that the
vehicle has been removed from the United States of America, its
territories or possessions, or Canada.
2. NOTICE OF LOSS-COVERAGES A,B & D- The Named Insured shall as soon as
practicable reort to this Company or its agent every loss or damage
which may become a claim under this Policy and shall also file with
the Company or its agent within ninety (90) days from date of loss, as
herein defined, a detailed sworn proof of loss. Failure by the Named
Insured to report the said loss or damage and to file such sworn proof
of loss as hereinbefore provided shall invalidate any claim under this
Policy for such loss.
COVERAGE C-Notice shall be filed, as above, within one hundred eighty
(180) days from the date of loss as herein defined.
3. EXAMINATION UNDER OATH-The Named Insured shall submit, and so far as
is within its power, shall cause all other persons interested in the
vehicle insured and members of the household and employees to submit
to examinations under oath by any persons named by the Company,
relative to any and all matters in connection with a claim and
subscribe the same; and shall produce for examination all books of
account, bills, invoices, and other vouchers or certified copies
thereof it originals be lost, at such reasonable time and place as may
be designated by the Company or its representatives, and shall permit
extracts and copies thereof to be made.
4. VALUATION-Unless otherwise provided, this Company shall not be liable
beyond the actual cash value of the vehicle at the date of loss and
the loss or damage shall be ascertained or estimated according to such
actual cash value with proper deduction for depreciation, however
caused, and shall in no event exceed what it would then cost to repair
or replace the same with material of like kind and quality.
Page 2 of 5
5. SETTLEMENT OF CLAIMS-All adjusted claims shall be paid or made good to
the Named Insured within sixty (60) days after presentation and
acceptance of satisfactory proof of interest and loss at the office of
this Company. No claim shall be paid hereunder if the Named Insured
can collect the same from others.
6. NO BENEFIT TO BAILEE-This insurance shall in no way inure directly or
indirectly to the benefit of any carrier, bailee, borrower or any
other person or entity other than the Named Insured.
7. SUBROGATION-In the event of any payment under this Policy the Company
shall be subrogated to all the Named Insured's rights of recovery
therefor against any person or organization and the Named Insured
shall execute and deliver instruments and papers and do whatever else
is necessary to secure such rights. The Named Insured shall do nothing
after loss to prejudice such rights.
8. PARTS-In case of loss or injury to any part of the insured vehicle
consisting, when complete for sale or use, of several parts this
Company shall only be liable for the insured value of the insured part
lost or damaged.
9. DUTIES OF THE NAMED INSURED-In the event of loss or damage, the Named
Insured shall:
(a) make every professional effort at its own expense to recover and
safeguard the vehicles, or any part thereof, insured under this
Policy, initiate suit or cooperate with the Company in the
conduct of any suit and enforce any right of contribution or
indemnify against any person or organization who may be liable to
the Named Insured because of loss to which this insurance applies
but there shall be no abandonment to the Company;
(b) do all things a professional should do to avoid or diminish any
loss covered under this Policy;
(c) protect the vehicle from any further loss or damage; expenses
incurred in affording such protection and any further loss or
damage due to the Named Insured's failure to protect shall not be
recoverable under this Policy.
10. SUIT AGAINST COMPANY-No suit, action or proceeding for the recovery of
any claim under this Policy shall be sustainable in any court of law
or equity unless the same be commenced within twelve (12) months next
after discovery by the Named Insured of the occurrence which gives
rise to the claim. Provided, however, that if by the laws of the State
within which this Policy is issued such limitation is invalid, than
any such claim(s) shall be void unless such action, suit or proceeding
be commenced within the shortest limit of time permitted by the laws
of such State to be fixed herein.
11. APPRAISAL-If the Named Insured and the Company fail to agree as to the
amount of loss, each shall, on the written demand of either, made
within sixty (60) days after receipt of proof of loss by the Company,
select a competent and disinterested appraiser and the appraisal shall
be made at a reasonable time and place. The appraisers shall first
select a competent and disinterested umpire and, failing for fifteen
(15) days to agree upon such umpire, then on the request of the Named
Insured or the Company, such umpire shall be selected by a judge of a
court of record in the State in which such appraisal is pending. The
appraisers shall than appraise the loss, stating separately the actual
cash value at the date of loss and the amount of loss, and failing to
agree shall submit their differences to the umpire. An award in
writing of any two shall determine the amount of loss. The Named
Insured and the Company shall bear equally the expenses of the
appraisal and umpire. The Company shall not be held to have waived any
of its rights by an act relating to appraisal.
12. CONFORMITY TO STATUTE-Terms of this Policy which are in conflict with
the statutes of the State wherein this Policy is issued are hereby
amended to conform to such statutes.
13. CHANGES-Notice to any agent or knowledge possessed by any agent or by
any other person shall not effect a waiver or a change in any part of
this Policy, or estop the Company from asserting any right under the
terms of this Policy, nor shall the terms of this Policy be waived or
changed except by endorsement issued to form a part of this Policy.
14. DECLARATIONS-By acceptance of this Policy, the Named Insured agrees
that the statements in the Declarations are its agreements and
representations, that this Policy is issued in reliance upon the truth
of such representations and that this Policy, together with any
application(s) or representations in connection therewith, embodies
all agreements existing between itself and the Company or any of its
agents relating to this insurance.
15. PRIMARY INSURANCE-COVERAGE A-It is understood and agreed that the
Named Insured will require all borrowers to agree to carry physical
damage insurance with loss payable clause in favor of the Named
Insured, for such insurance and in such amounts as normally would be
required had not this insurance be effected. Failure on the part of
the borrower to provide such insurance shall not be deemed a violation
of this Policy provided the Named Insured has obtained agreement
from borrower to carry insurance.
16. IMPAIRMENT OF INTEREST-Under no circumstances will any payment be made
for a loss under this Policy unless the interest of the Named Insured
is impaired by reason of the borrower having defaulted in his
obligation to the Named Insured.
17. LOCATION OF VEHICLE-COVERAGE A-As respects damage, it shall be
necessary for the Named Insured to locate and to take title to the
vehicle or be in a position to convey good title to the Company upon
demand, before any loss shall be paid under this coverage.
18. LOCATION OF VEHICLE-COVERAGE B-There shall be no liability, under this
policy unless at the time claim is made the vehicle represented by the
Instrument has been located by the Named Insured or the person,
persons, or corporation who has title to the vehicle has been located
by the Named Insured and it definitely has been determined that such
person, persons, or corporation has claim or title lawfully superior
to the lien held by the Named Insured. The company shall not be liable
for the expenses of the Named Insured in locating the person or
vehicle or determining the status of title described above.
Page 3 of 5
19. LOCATION OF VEHICLE-COVERAGE C
A. 'SKIP' LOSSES ONLY
This policy shall not apply (1) unless every professional effort
is made to (a) locate the vehicle represented by the instrument
and (b) locate the person or obligee of the instrument, or
(2) if the Named Insured is successful as respects (1)(a) or
(1)(b) preceding. Expenses so incurred by the Named Insured shall
not be recoverable under this Policy. When within one hundred
eighty (180) days from the date of delinquency, the Named Insured
determines that a 'SKIP' has occurred within the meaning of this
Policy, as distinquished from a borrower who is merely delinquent
in his obligation to the Named Insured, prompt written notice
shall be given to the Company or its agent setting forth all
circumstances concerning the loss and particularly the efforts
that have been made pursuant to the paragraph above. The Company
shall then have sixty (60) days in which to locate either the
vehicle represented by the instrument or any obligee of the
Instrument.
If the Company locates the vehicle represented by the instrument
prior to payment of the claim, its maximum liability shall be
100% of the reasonable expense of locating and returning the
vehicle to the office of the Named Insured, subject however to a
maximum limit of liability to the Company of $250.00 for this
purpose.
B. CONFISCATION LOSSES ONLY-This Policy shall not apply unless the
Named Insured locates the vehicle and follows all necessary
procedures to reclaim the vehicle. Expenses so incurred by the
Named Insured shall not be recoverable.
20. VEHICLES HELD AS COLLATERAL-With regard to vehicles, as herein
defined, held as collateral for loans, it is agreed that:
A. The Named Insured will hold the Certificate of Title with its
records until the loan has been satisfied;
B. The Named Insured will file or record its lien with the Motor
Vehicle Commissioner or with the appropriate authority of a State
or territory or possession of the United States;
C. Unintentional error or omission in filing a lien with the Motor
Vehicle Commissioner or appropriate authority of a State or
territory or possession of the United States shall not violate
this requirement.
21. LIMITS OF LIABILITY-This Company shall not be liable under this Policy
for
A. an amount exceeding the lowest of the following:
1. cost of repair or replacement of the vehicle; or
2. the actual cash value of the vehicle at time of loss or
damage, less salvage value; or
3. the amount of any impairment of the Named Insured's interest
as represented by his customer's unpaid balance not more
than 90 days past due less interest, insurance, finance, and
other carrying charges, computed pro rata as of the date of
loss, less salvage value. Such carrying charges shall be
deemed to accrue in equal installments on the payment dates
fixed by the purchase contract or loan agreement and shall
not include penalties or other charges which may have been
added to such unpaid balance after the inception date of
purchase contract or loan agreement.
B. More than the balance due the Named Insured under 21.A. less the
amount due under all other valid insurance on the damaged or
destroyed vehicle, less salvage value.
22. PAYMENT OF LOSS-The Company shall have the option of paying the loss
in money or pay repair or replace the vehicle or damaged part thereof
with other of like kind and quality, with deduction for depreciation,
or may return any stolen vehicle with payment of any resultant damage
thereto at any time before the loss is paid or the vehicle is so
replaced, or may take all or such part of the vehicle at the agreed or
appraised value, but there shall be no abandonment to the Company.
23. OTHER INSURANCE-coverage under this Policy is excess insurance over
any other insurance or indemnity and shall not be treated as
contributing with any other insurance or indemnity.
24. ASSISTANCE AND COOPERATION OF THE NAMED INSURED-The Named Insured
shall use due diligence and do and concur in doing all things
reasonable and practicable to avoid or diminish any loss covered under
this insurance; failure to record or file an instrument with the
proper Public Officer or Public Office shall not be considered as
failure by the Named Insured to use due diligence.
25. EXTENSION OF MATURITY-The Named Insured may grant extensions of
maturity without the consent of the Company as it may be deemed
advisable in the regular course of business, without prejudice to the
rights of the Named Insured hereunder; but in no event shall the total
period of the loan, including extensions, exceeds sixty-two (62)
calendar months in all, provided that this limitation shall not apply
to any extension which involves any increase in the balance due before
interest and carrying charges, it being agreed that such extension
shall be considered a new loan and that premium thereon shall be paid
accordingly.
26. SETTLEMENT BY NAMED INSURED, INVALID-any settlement made by or for the
Named Insured on any loan secured by an instrument in respect of which
there is a claim under this insurance without written authority from
the Company or its representatives to make such settlement shall
render this insurance void as to any loss in respect of that loan.
27. INSPECTION OF NAMED INSURED'S RECORDS-The Company or its
representatives may at any reasonable time during business hours
inspect the Named Insured's records for the purpose of determining the
amount of premium due the Company under this insurance.
Page 4 of 5
28. CANCELLATION CLAUSE - This Policy may be cancelled by the Named
Insured by surrender of the Policy to the Company or its authorized
agent or by mailing written notice to the Company stating therein the
date cancellation shall be effected. This Policy may be cancelled by
the Company by mailing to the Named Insured at the address shown in
the Policy written notice stating when not less than thirty (30) days
thereafter such cancellation shall be effective; provided that, if the
Named Insured fails to discharge when due any of its obligations in
connection with the payment of premium for this Policy or any
installment thereof, whether payable directly to the Company or its
agent or indirectly under any premium finance plan or extension of
credit, this Policy may be cancelled by the Company by mailing to such
Named Insured written notice stating when not less than ten (10) days
thereafter such cancellation shall be effective. The effective date by
cancellation stated in the notice shall become the end of the policy
period.
29. REPORTS AND PREMIUM - The Named Insured agrees to keep accurate
records of notes or Instruments having collateral of a type coverage
herein as normally processed, purchased or made by the Named Insured
and shall render to the Company or its authorized representative, on
forms provided by the Company, a statement of such transactions
required for determination of premiums not later than the fifteenth
(15) day of the month following the close of each Audit Period as
specified in Item 5 of the Declarations. On this date the premium is
due and payable. Premium for this policy shall be computed in
accordance with the Company's rules, rates and rating plans applicable
to the insurance afforded herein.
30. MISREPRESENTATION AND FRAUD - This Policy shall be void if the Named
Insured has concealed or misrepresented any material fact or
circumstance concerning this insurance or the subject thereof or in
case of any fraud, attempted fraud or false swearing by the Named
Insured touching any matter relating to this insurance or the subject
thereof, whetehr before or after a loss.
31. ASSIGNMENT - Assignment of this Policy shallnot be valid unless the
company gives its written consent.
The policy provisions included herein along with the Declarations Page and any
endorsements issued complete the policy.
IN WITNESS WHEREOF, the Company indicated on the Declarations Page of the policy
has caused the policy to be signed by its president and secretary, but this
policy shall not be valid unless the Declarations are countersigned, when
necessary, by a duly authorized representative of the Company.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
Page 5 of 5
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CHANGE ENDORSEMENT
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THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED
The following is hereby noted and agreed:
The following is added as an Additional Insured:
Auto Bond, Inc. (a Colorado Corporation)
Auto Bond Receivables Corporation (a Delware Corporation)
or any affiliate, subsidiary, partnership or joint venture thereof
This policy is extended to include the above Additional
Insured but only for its interest as such. All rights and
conditions of the policy remain with the insured named in
Item 1 of the Policy Declarations.
Such inclusion of Additional Insured shall not increase the
Company's liability under this policy.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
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ENDORSEMENT NO.: 1 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto and Acceptance Corporation
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Dated Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
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CHANGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED
The following is hereby noted and agreed:
The following is added as an Additional Insured:
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, TRUSTEE FOR
AUTO BOND RECEIVABLES TRUST 1994-__
NORWEST CENTER, SIXTH AND MARQUETTE
MINNEAPOLIS, MN 55479-0069
This policy is extended to include the above Additional insured but only for its
interest in property itemized in the attached schedule which becomes a part of
the policy, herein identified as:
Schedule ___________________________________, which is hereby covered under this
policy. All rights and conditions of the policy remain with the insured named in
Item 1 of the policy Declarations.
Such inclusion of Additional Insured shall not increase the Company's liability
under this policy.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.:2 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-100024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
CHANGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
IN CONSIDERATION OF THE PREMIUM CHARGED AND ALL OTHER TERMS AND CONDITIONS OF
THE POLICY, A $500.00 DEDUCTIBLE SHALL BE APPLIED PER LOSS; AND THE POLICY IS
HEREBY AMENDED AS FOLLOWS:
I. INSURING AGREEMENTS, COVERAGE C - CONFISCATION AND SKIP INSURANCE, Part 1. is
deleted and replaced by:
1. By reason of the inability of the Named Insured to locate either the
borrower, the vehicle or any obligee of the instrument; or
I. INSURING AGREEMENTS, COVERAGE D - REPOSSESSED VEHICLE INSURANCE is deleted
and replaced by:
COVERAGE D - REPOSSESSED VEHICLE INSURANCE - To indemnify the Named Insured
for a period not to exceed sixty (60) days, against all risk of physical loss
or damage from any external cause to repossessed vehicles as hereinafter
defined.
Repossessed Vehicle insurance will cover:
1. Repossessed vehicles that the Named insured or their authorized
representative has possession of and exercise rights of ownership over;
and/or
2. Vehicles while being repossessed by the Named Insured or their authorized
representative; or
3. While such repossessed vehicles are held by the Named Insured for sale but
excluding:
a. Vehicles owned by the Named Insured for use in its business;
b. Vehicles rented or leased by others;
c. Vehicles sold by the Named Insured subject to any security interest of
the Named Insured; or
d. Vehicles in the care, custody or control of sales agencies or dealers,
with the exception of dealerships owned by the Named Insured.
II. DEFINITIONS, Part A. is hereby revised to include Certificates of Title or
other evidence of title.
II. DEFINITIONS, Part D.3. is deleted and replaced by:
D. Date of Loss -
3. The Date of Loss under Coverage C shall be the date that the Named
Insured notifies the Company of the loss.
II. DEFINITIONS, is revised by the addition of the following:
F. ACTUAL CASH VALUE - 'Actual Cash Value' shall be defined to mean 100% of
the retail value of the vehicle on the Date of Loss, as listed in the
Kelly Blue Book for the territory in which the vehicle is principally
garaged; less all deductions, including but not limited to depreciation
and mileage adjustments, as prescribed in the Kelly Blue Book. For
vehicles which have no Kelly Retail Value available, or when the vehicle
is located in a territory where Kelly is not customarily used, actual cash
value will be determined using the best information available, which the
Company believes accurately reflects the retail value of the vehicle and
is customarily used as the basis for establishing retail value for
vehicles in the territory in which the vehicle is principally garaged.
III. EXCLUSIONS, Part E. is deleted and replaced by:
E. resulting from any instrument due and payable more than seventy-two (72)
calendar months after the making thereof, even though on the date of loss
the date of maturity of the instrument may be less than seventy-two
(72) months.
III. EXCLUSIONS, Part I. is deleted and replaced by:
I. resulting from any loan made to a dealer, whether or not the property is
held for resale.
IV. CONDITIONS, Part 2. NOTICE OF LOSS is deleted and replaced by:
2. NOTICE OF LOSS - COVERAGES A, B & D - The Named Insured or their duly
authorized representative shall as soon as practicable report to this
Company or its agent every loss or damage which may become a claim under
this Policy and shall also file with the Company or its agent within
ninety (90) days from date of loss, as herein defined, a detailed sworn
proof of loss. Failure by the Named Insured or their duly authorized
representative to report the said loss or damage and to file such sworn
proof of loss as hereinbefore provided shall invalidate any claim under
this policy for such loss.
Page 1 of 2
IV. CONDITIONS, Part 9. DUTIES OF THE NAMED INSURED is deleted in its entirety
and replaced by:
9. DUTIES OF THE NAMED INSURED
A. Promptly notify the Company of the loss.
B. Provide details as to how when and where the loss occurred.
C. Provide a copy of the police report if the loss is caused by theft,
vandalism or malicious mischief.
D. Cooperate with the Company in the investigation, settlement or the
conduct of any suit. The Named Insured will not make settlement with
others for loss to any vehicle. The Named Insured will not, except at
its own cost, voluntarily make any payment, assume any obligation to
incur any expense.
E. Permit the Company to inspect and appraise the damaged vehicle before
its repair or disposition.
F. Take reasonable steps after loss to protect the vehicle from further
loss. If the Named Insured does not protect the vehicle, such
additional loss will be deducted from the Company's payment.
G. Not, except at the Named Insured's expense offer any reward, assume any
other obligations or expense unless specifically authorized in
writing by the Company.
H. Submit a Proof Of Loss as required by the Company.
IV. CONDITIONS, Part 15. PRIMARY INSURANCE - COVERAGE A is hereby amended as
follows:
15. PRIMARY INSURANCE - COVERAGE A - It is understood and agreed that the
Named Insured will require all borrowers to agree to carry physical
damage insurance with loss payable clause in favor of the Named Insured,
for such insurance and in such amounts as normally would be required had
not this insured been effected. Failure on the part of the borrower to
provide such insurance shall not be deemed a violation of this Policy
provided the Named Insured has complied with the following monitoring
provisions.
As a condition precedent for coverage, the Named Insured shall at all
times monitor each instrument for other insurance or indemnity by a
Company approved automated insurance monitoring system. Through this
automated insurance monitoring system, the Named Insured must notify any
borrower identified as not having physical damage insurance, naming you
as loss payee, in writing, of the lack of primary insurance protecting
the interest of the Named Insured. This requirement shall remain in
effect for as long as coverage exists on ay instrument written through
this policy, and as long as coverage exists under any instrument written
through this policy, the Company shall retain the right to examine the
Named Insured's records to verify that this requirement is being
maintained.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.: 3 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
Page 2 of 2
CHANGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
IN CONSIDERATION OF THE PREMIUM CHARGED AND ALL OTHER TERMS AND CONDITIONS OF
THE POLICY, THE POLICY IS HEREBY AMENDED AS FOLLOWS:
IV. CONDITIONS, Part 20. VEHICLES HELD AS COLLATERAL are deleted and replaced
by:
20. VEHICLES HELD AS COLLATERAL - With regard to vehicles, as herein defined
as collateral for loans, it is agreed that:
A. The Named Insured, an Additional Insured or an assign will hold the
Certificate of Title with its record until the loan has been
satisfied.
B. The Named Insured, and Additional Insured or an assign will file or
record its lien with the Motor Vehicle Commissioner or with the
appropriate authority of a State or territory or possession of the
United States;
C. Unintentional error or omission in filing a lien with the Motor
Vehicle Commissioner or appropriate authority of a State or territory
or possession of the United States shall not violate this requirement.
IV. CONDITIONS, Part 25. EXTENSION OF MATURITY is hereby revised to limit the
total period of the loan, including extensions to not exceed seventy-two
(72) months in all.
IV. CONDITIONS, Part 28. CANCELLATION CLAUSE is deleted in its entirety and
replaced with the following:
28. CANCELLATION CLAUSE - The Named Insured may cancel this policy by
returning it to the Company or by giving the Company written notice
stating when thereafter such cancellation shall be effective. The
Company may cancel this policy by mailing or delivering to the Named
Insured and all Additional Insureds at least thirty (30) days written
notice at each party's last mailing address known by the Company. Proof
of mailing of any notice will be sufficient proof of notice. The
effective date of cancellation stated in the notice shall become the end
of the policy period. Cancellation of this policy by either the Named
Insured or the Company will not affect coverage for any vehicle which
was reported to the Company prior to cancellation of this policy and for
which premiums were paid. Coverage of these loans will remain in force
for the term of the instrument and are non-cancelable. Premium for each
vehicle insured hereunder is fully earned at inception and
non-refundable.
IV. CONDITIONS, Part 31. ASSIGNMENT is deleted in its entirety and replaced with
the following:
31. ASSIGNMENT - Assignment of the policy shall not be valid unless the
Company gives its written consent. In the event of assignment, the
obligation to pay all premiums shall remain with the Named Insured.
IV. CONDITIONS, Part 5. SETTLEMENT OF CLAIMS is deleted and replaced by:
5. SETTLEMENT OF CLAIMS - All adjusted claims shall be paid or made good
to the Named Insured or their duly appointed agent or representative
within sixty (60) days after presentation and acceptance of
satisfactory proof of interest and loss at the office of this
Company. No claim shall be paid hereunder if the Named Insured or
their duly appointed agent or representative can collect the same
from others.
It is agreed that neither the Named Insured nor the Company may make subsequent
revisions to the terms and conditions of this policy, with the exception of the
premium rate per vehicle, without notifying all Additional Insureds in writing.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.:4 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
CHANGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
In consideration of the premium charged and all other terms and
conditions, Article IV. CONDITIONS, 1. POLICY PERIOD, TERRITORY is
amended to include the following:
MEXICO COVERAGE EXTENSION
DAMAGE TO INSURED VEHICLES WHILE OPERATED IN MEXICO
WARNING
NOTHING IN THIS POLICY AFFORDS BODILY INJURY LIABILITY, PROPERTY DAMAGE
LIABILITY, PERSONAL INJURY LIABILITY, OR OTHER LIABILITY INSURANCE FOR
CLAIMS OR SUITS RESULTING FROM INJURY TO A PERSON OR DAMAGE TO THE
PROPERTY OF OTHERS RESULTING, OR ALLEGEDLY RESULTING, FROM ANY ACTION
OR NON-ACTION OF A PERSON OR ORGANIZATION INSURED UNDER THIS POLICY.
UNLESS THE INSURED HAS AUTOMOBILE LIABILITY INSURANCE WRITTEN BY A
MEXICAN INSURANCE COMPANY, THE DRIVER OF A VEHICLE MAY SPEND MANY HOURS
OR DAYS IN JAIL IF INVOLVED IN AN ACCIDENT IN MEXICO. INSURANCE
COVERAGE SHOULD BE SECURED FROM A COMPANY LICENSED UNDER THE LAWS OF
MEXICO TO WRITE SUCH INSURANCE IN ORDER TO AVOID COMPLICATIONS AND
OTHER PENALTIES POSSIBLE UNDER THE LAWS OF MEXICO, INCLUDING THE
POSSIBLE IMPOUNDMENT OF A VEHICLE IMPROPERLY INSURED UNDER MEXICAN LAW.
Provided that the place of residence of the purchaser or borrower was
established as being within the United States at the time that coverage
attached under this policy, this policy is hereby extended to cover
damage to an insured vehicle while such vehicle is located within the
Republic of Mexico.
In the event of loss or damage to an insured vehicle while in Mexican
territory, the adjustment of a claim for such loss or damage shall be
at the nearest point in the United States where such adjustment can be
made.
The cost of towing, transportation or salvage of an insured vehicle
while within Mexican territory shall not be recoverable hereunder and
is not a contingency insured against.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.:5 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
LENDER'S COMPREHENSIVE SINGLE
LICENSE INSURANCE
DEFICIENCY BALANCE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
In consideration of the premium charged and subject to all conditions,
limitations and exclusions of this policy, our liability to you is amended to
include direct loss you have sustained due to a deficiency which was the result
of the actual amount obtained in liquidating the repossessed vehicle including
the total amount recoverable from all other applicable insurance being less than
the Net Payoff Balance as of the date of loss, subject to a maximum limit of
liability of $15,000 per instrument. Our liability for physical damage
insurance and deficiency in Net Payoff Balance shall not exceed the Net Payoff
Balance.
LIMITS OF LIABILITY, SETTLEMENT PROCEDURE, AND MAXIMUM COVERAGE
(1) Under no circumstances shall the Company's liability for Loss exceed
the amount financed, as shown on the original loan.
(2) Any claim due the Insured shall be payable within sixty (60) days after
the Insured's compliance with each of the conditions precedent to
settlement of the claim, including the Company's receipt of the claim
for loss.
(3) Payment of a claim shall be a full and final discharge of the Company's
liability with respect to the original loan giving rise to such claim.
(4) No original loan agreement insured by this Policy may exceed
ninety-five percent (95%) of the manufacturer's suggested retail price
(MSRP) plus approved cancelable items for new vehicles or ninety-five
percent (95%) of the retail amount listed in an approved Automobile
guide approved by the Company, plus approved cancelable items for used
vehicles. Sales tax, title fees and license fees are excluded.
(6) All modifications of the original loan agreement such as rescheduling
of payments, substitution of collateral and transfer of equity must be
approved in writing by the Company.
(7) No claim will be paid unless the repossessed vehicle is sold, in
accordance with the applicable federal and state laws and the approved
remarketing plan filed with the insurer.
Coverage under this Endorsement is strictly and absolutely conditional to the
Insured maintaining and adhering to the credit underwriting criteria provided
and approved by the Company prior to the inception of this insurance coverage as
follows:
(1) One year continuous employment.
(2) Minumum annual income of $12,000 U.S. Proof of all income, to be
considered as a basis for repaying the obligation, (including alimony,
child support, rental income, disability or pension income, etc.) must
be verified and documented in writing by the Purchaser and the Insured.
If self-employed, only the last two (2) years Federal Income Tax
Returns can be used for verification. There can be no exceptions to
this.
(3) Lives in Metropolitan area for a minimum of three (3) years with six
month's continuous residence. Consideration will be given for
transferred employees with the same employer or within the same
industry.
(4) The monthly payment on any original loan covering Subject Vehicle can
not exceed twenty percent (20%) of the Purchaser(s) monthly Gross
Income. Purchaser(s) overall Debt Ratio can not exceed fifty percent
(50%) of monthly Gross Income.
(5) If the Purchaser does not have a credit history the application must
be accompanied by an acceptable endorser or guarantor.
(6) An acceptable endorser or guarantor must meet all credit requirements.
Additionally, the Purchaser must meet income, employment and residence
requirements.
(7) There can be no unresolved bankruptcies.
(8) There can be no more than (1) foreclosure or repossession.
(9) There can be no open tax liens, judgements or lawsuits pending.
(10) There can be no delinquent automobile notes for any amount other than
the repossession referred to in #(8) above.
(11) If married, both husband and wife must sign the note regardless of
whether or not both are employed.
Page 1 of 2
SUBROGATION
Anything contained in the Policy to the contrary notwithstanding, in the
event of any payment of a claim under this Policy endorsement, all of the
Insured's rights of recovery against the Purchaser for any of its losses,
including costs of repossession or loss due to a sale price of the
repossessed Vehicle being less than that of the Net Payoff Balance as of the
Date of Loss shall be subrogated to the Company and the Insured shall
execute and deliver to the Company any and all instruments or documents
requested by Company and do whatever else may be required pursuant to such
rights of subrogation. The Insured shall do nothing to prejudice the
subrogation rights of the Company.
DEFINITIONS
Net Payoff Balance means the outstanding balance plus any loan pre-payment
provisions, sales tax, license and registration fees, late fees and approved
Over-Advances included in the original instrument financing; less all payments
and corresponding interest more than 90 days after the date of default and the
unearned portion of cancelable items.
In no event shall Net Payoff Balance include repossession, disposition,
collection or remarketing expense, or any other fee, penalties or assessment
included in the instrument.
Over-Advances means the cost of insurance premiums and vehicle service
contracts, including, but not limited to warranty insurance, accident and
health, credit life and credit physical damage premiums and factory installed
items listed in an N.A.D.A. guide, Official Car Guide, Kelley Blue Book or an
equivalent Automobile Guide approved by the Company. Conversion packages and
customizing packages are excluded for advance purposes.
Date of Loss shall mean the date of sale of the repossessed Vehicle.
The premium for this endorsement is included in the premium shown on the
declarations unless a specific amount is shown here.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.: 6 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
Page 2 of 2
CHANGE ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
It is hereby agreed that the Insured's credit underwriting criteria and
Remarketing Agreement (which is attached hereto) becomes a part of the policy
conditions.
Premium for the Deficiency Balance coverage as provided in Endorsement #6
(ABAC-6) shall be based on the outstanding loan balance per vehicle at
origination of the loan per the following schedule:
Months 49 and over: 4.25%
Months 37 - 48: 4.00%
Months 36 and under: 3.25%
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is included in the Additional Premium $
premium shown on the declarations unless a specific Return Premium $
amount is shown here.
ENDORSEMENT NO.: 7 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
- --------------------------------------------------------------------------------
CHANGE ENDORSEMENT
- --------------------------------------------------------------------------------
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
IN CONSIDERATION OF THE PREMIUM CHARGED AND ALL OTHER TERMS AND CONDITIONS OF
THE POLICY, THE POLICY IS HEREBY AMENDED AS FOLLOWS:
1. INSURING AGREEMENTS, COVERAGE D - REPOSSESSED VEHICLE INSURANCE is deleted
and replaced by:
COVERAGE D - REPOSSESSED VEHICLES INSURANCE - To indemnify the Named
Insured for a period not to exceed ninety (90) days, against all risk of
physical loss or damage from any external cause to repossessed vehicles as
hereinafter defined. Repossessed Vehicle insurance will cover:
1. Repossessed vehicles that the Named Insured or their authorized
representative has possession of and exercises rights of ownership
over, and/or
2. Vehicles while being repossessed by the Named Insured or their
authorized representative; or
3. While such repossessed vehicles are held by the Named Insured or
approved remarketing facility for sale but excluding:
a. Vehicles owned by the Named Insured for use in its business;
b. Vehicles rented or leased to others;
c. Vehicles sold by the Named Insured subject to any security
interest of the Named Insured; or
d. Vehicles in the care, custody or control of sales agencies or
dealers, with the exception of dealerships owned by the Named
Insured or an approved remarketing facility.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
ENDORSEMENT NO.: 8 Effective: 05/01/94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation
Date Issued: Authorized Representative:
5/9/94 /s/ [SIGNATURE]
- --------------------------------------------------------------------------------
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DEFICIENCY BALANCE ENDORSEMENT
- --------------------------------------------------------------------------------
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
It is hereby noted that this Endorsement will supercede Endorsement #6 (ABAC-6)
in its entirety.
In consideration of the premium charged and subject to all conditions,
limitations and exclusions of this policy, our liability to you is amended to
include direct loss you have sustained due to a deficiency which was the result
of the actual amount obtained in liquidating the repossessed vehicle including
the total amount recoverable from all other applicable insurance being less than
the Net Payoff Balance as of the date of loss, subject to a maximum limit of
liability of $15,000 per instrument. Our liability for physical damage insurance
and deficiency in Net Payoff Balance shall not exceed the Net Payoff Balance.
LIMITS OF LIABILITY, SETTLEMENT PROCEDURE, AND MAXIMUM COVERAGE
(1) Under no circumstances shall the Company's liability for Loss exceed the
amount financed, as shown on the original loan.
(2) Any claim due the Insured shall be payable within sixty (60) days after
the Insured's compliance with each of the conditions precedent to
settlement of the claim, including the Company's receipt of the claim for
loss.
(3) Payment of a claim shall be a full and final discharge of the Company's
liability with respect to the original loan giving rise to such claim.
(4) No original loan agreement insured by this Policy may exceed ninety-five
percent (95%) of the manufacturer's suggested retail price (MSRP) plus
approved cancelable items for new vehicles or ninety-five percent (95%) of
the retail amount listed in an approved Automobile guide approved by the
Company, plus approved cancelable items for used vehicles. Sales tax,
title fees and license fees are excluded.
(6) All modifications of the original loan agreement such as rescheduling of
payments, substitution of collateral and transfer of equity must be
approved in writing by the Company.
(7) No claim will be paid unless the repossessed vehicle is sold, in
accordance with the applicable federal and state laws and the approved
remarketing plan filed with the insurer.
Coverage under this Endorsement is strictly and absolutely conditional to the
Insured maintaining and adhering to the credit underwriting criteria provided
and approved by the Company prior to the inception of this insurance coverage as
follows:
(1) One year continuous employment. Any transition period in employment (i.e.,
employment gap) will not exceed 28 calendar days.
(2) Minimum annual income of $12,000 U.S. Proof of all income, to be
considered as a basis for repaying the obligation, (including alimony,
child support, rental income, disability or pension income, etc.) must be
verified and documented in writing by the Purchaser and the Insured. If
self-employed, only the last two (2) years Federal Income Tax Returns can
be used for verification. There can be no exceptions to this.
(3) Has residence history for a minimum of three (3) years with six month's
continuous residence. Consideration will be given for transferred
employees with the same employer or within the same industry.
(4) The monthly payment on any original loan covering Subject Vehicle can not
exceed twenty percent (22%) of the Purchaser(s) monthly Gross Income.
Purchaser(s) overall Debt Ratio can not exceed fifty percent (50%) of
monthly Gross Income.
(5) If the Purchaser does not have a credit history the applicable must be
accompanied by an acceptable endorser or guarantor.
(6) An acceptable endorser or guarantor must need all credit requirements.
Additionally, the Purchaser must meet income, employment and residence
requirements.
(7) There can be no unresolved bankruptcies.
(8) There can be no more than (1) foreclosure or repossession.
(9) There can be no open tax liens or unsatisfied judgements aggregating in
excess of $1,000.00.
(10) There can be no open auto loans with delinquency presently 45 or more days
past the time of approval for the auto loan.
(11) If the income of the applicant's spouse is being considered during the
approval process, both husband and wife shall sign the original loan
agreement.
1 of 2
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SCHEDULE OF NAMED INSUREDS
- --------------------------------------------------------------------------------
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
DECLARATIONS
(Supplement)
The Declarations of the policy is amended to include as Named Insured the
organization(s) shown in the SCHEDULE below, to the extent of their collateral
interest:
SCHEDULE
Name of organization(s)
SENTRY FINANCIAL CORPORATION
ONE UTAH CENTER
201 SOUTH MAIN, SUITE 1400
SALT LAKE CITY, UTAH 84111-2215
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
ENDORSEMENT NO.: 9 Effective: ATTACHED TO POLICY WHEN ISSUED
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by one of the Interstate Insurance Companies as named in the policy.
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation & Sentry Financial Corporation,
As Their Interest May Appear.
Dated Issued: Authorized Representative:
10-6-94 /s/ [SIGNATURE]
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SUBROGATION
Anything contained in the Policy to the contrary notwithstanding, in the
event of any payment of a claim under this Policy endorsement, all of
the Insured's rights of recovery against the Purchaser for any of its
losses, including costs of repossession or loss due to a sale price of
the repossessed Vehicle being less than that of the Net Payoff Balance
as of the Date of Loss shall be subrogated to the Company and the
Insured shall execute and deliver to the Company any and all instruments
or documents requested by Company and do whatever else may be required
pursuant to such rights of subrogation. The Insured shall do nothing to
prejudice the subrogation rights of the Company.
DEFINITIONS
Net Payoff Balance means the outstanding balance plus any loan pre-payment
provisions, sales tax, license and registration fees, late fees and approved
Over-Advances included in the original instrument financing; less all payments
and corresponding interest more than 90 days after the date of default and the
unearned portion of cancelable items.
In no event shall Net Payoff Balance include repossession, disposition,
collection or remarketing expense, or any other fee, penalties or assessment
included in the instrument.
Over-Advances means the cost of insurance premiums and vehicle service
contracts, including, but not limited to warranty insurance, accident and
health, credit life and credit physical damage premiums and factory installed
items listed in an N.A.D.A. guide, Official Car Guide, Kelley Blue Book or an
equivalent Automobile Guide approved by the Company. Conversion packages and
customizing packages are excluded for advance purposes.
Date of Loss shall mean the date of sale of the repossessed Vehicle.
The premium for this endorsement is included in the premium shown on the
declarations unless a specific amount is shown here.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
- --------------------------------------------------------------------------------
The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
ENDORSEMENT NO.: 10 Effective: 5-1-94
Is attached to and forms part of your evidence of insurance no.:
Issued by: Interstate Fire & Casualty
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation & Sentry Financial Corporation,
As Their Interest May Appear
Dated Issued: Authorized Representative:
12-27-94
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CHANGE ENDORSEMENT
- --------------------------------------------------------------------------------
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
In consideration of the premium charged, it is hereby understood and agreed that
Item 2. POLICY PERIOD on the Declaration Page is amended to read:
2. POLICY PERIOD
Effective Date: May 1, 1994
Expiration Date: Continuous Until Canceled
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
ENDORSEMENT NO.: 11 Effective: 5-1-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation & Sentry Financial Corporation,
As Their Interest May Appear.
Dated Issued: Authorized Representative:
5-12-95
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LENDER'S COMPREHENSIVE SINGLE INTEREST INSURANCE
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DEFICIENCY BALANCE ENDORSEMENT
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
It is hereby noted that this Endorsement will supercede Endorsement #10
(ABAC-10) in its entirety.
In consideration of the premium charged and subject to all conditions,
limitations and exclusions of this policy, our liability to you is amended to
include direct loss you have sustained due to a deficiency balance which was the
result of the Actual Cash Value plus the total amount recoverable from all other
applicable insurance, being less than the Net Payoff Balance as of the Date of
Loss, subject to a maximum limit of liability of $15,000.00 per Instrument. Our
liability for physical damage insurance and deficiency balance insurance,
combined, shall not exceed the Net Payoff Balance.
LIMITS OF LIABILITY, SETTLEMENT PROCEDURE, AND MAXIMUM COVERAGE:
(1) Under no circumstances shall the Company's liability for Loss exceed
the amount financed, as shown on the original Instrument.
(2) Any claim due the Insured shall be payable within sixty (60) days
after the Insured's compliance with each of the conditions precedent
to settlement of the claim.
(3) Payment of a claim shall be full and final discharge of the Company's
liability with respect to the original Instrument giving rise to such
claim.
(4) No original Instrument insured by this Policy may exceed ninety-five
percent (95%) of the manufacture's suggested retail price (MSRP) plus
approved cancelable items for new vehicles or ninety-five percent
(95%) of the retail amount listed in an automobile guide approved by
the Company plus approved cancelable items for used vehicles. Sales
tax, license or title fees, inventory tax, and documentation or
preparation fees are excluded.
(5) All modifications of the original Instrument such as rescheduling of
payments, substitution of collateral and transfer of equity must be
approved in writing by the Company.
(6) No claim will be paid unless the repossessed vehicle is sold in
accordance with the applicable federal and state laws.
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Coverage under this Endorsement is strictly and absolutely conditional to the
Insured maintaining and adhering to the following credit underwriting criteria.
On the date of the original Instrument, the Purchaser(s) must:
(1) Be employed and must have been employed at least one continuous year
immediately preceding the date of the original Instrument. Any
transition period of unemployment (i.e. employment gap) can not exceed
28 calendar days and Purchaser shall not be in any transition period
of unemployment on the date of the original instrument.
(2) Have a minimum annual gross income of $12,000 (U.S. dollars). Proof of
all income to be considered as a basis for repaying the obligation
must be verified and documented in writing by the Purchaser and the
Insured. If Purchaser is self-employed, only the last two (2) years
Federal Income Tax Returns can be used for verification. If the
Purchaser has been self-employed less than two (2) years, Federal
Income Tax Returns for the years of self-employment and proof of
income prior to self-employment must be used for verification.
(3) Have verified residence history for a minimum of three (3) years
immediately preceding the original instrument date with six (6) months
continuous residence in the same community or metropolitan area.
Consideration will be given for transferred employees with the same
employer or within the same industry or profession, students and home
buyers.
(4) Have an overall debt ratio, including the monthly payment on the
original Instrument, which does not exceed fifty percent (50%) of
Purchaser(s)' monthly gross income. Additionally, the monthly payment
on any original Instrument covering subject vehicle can not exceed
twenty-two percent (22%) of the Purchaser(s)' monthly gross income.
(5) Have the original Instrument co-signed by an acceptable Co-Obligor, if
the Purchaser does not have a credit history or meet all of this
credit underwriting criteria An acceptable Co-Obligor must meet all
credit underwriting criteria. Additionally, the Purchaser must meet
income, employment and residence requirements.
(6) Have no unresolved bankruptcies.
(7) Have no more than either one (1) foreclosure or one (1) repossession.
(8) Have no open tax liens or unsatisfied judgments with current balances
aggregating in excess of $1,000.00.
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(9) Have no open automobile loans with delinquency presently forty-five
(45) or more days past due.
All individuals whose income and/or credit histories are being considered during
the approval process of the original Instrument must sign the original
Instrument and become liable thereunder.
SUBROGATION:
Anything contained in the Policy to the contrary notwithstanding, in the event
of any payment of a claim under this Policy endorsement, all of the Insured's
rights of recovery against the Purchaser(s) for any of its losses, including
costs of repossession or loss due to the Actual Cash Value plus the total amount
recoverable from all other applicable insurance being less than the Net Payoff
Balance as of the Date of Loss shall be subrogated to the Company and the
Insured shall execute and deliver to the Company any and all instruments and
documents required by Company and do whatever else may be required pursuant to
such rights of subrogation. The Insured shall do nothing to prejudice the
subrogation rights of the Company.
DEFINITIONS:
Actual Cash Value, for the purposes of this Endorsement only, means the greater
of the price for which the Subject Vehicle is sold or the wholesale market value
at the time of the loss as determined by an Automobile Guide approved by the
Company applicable to the region in which the vehicle is sold.
Co-Obligor means a Co-Buyer, Co-Purchaser, Co-Signer, Endorser, Guarantor or any
other designation for a second individual who signs the original Instrument and
becomes jointly and severally liable for the debt and obligation owed on the
original Instrument.
Net Payoff Balance means the outstanding balance plus any loan pre-payment
provisions, sales tax, license and registration fees, late fees and approved
Over-Advances included in the original Instrument financing: less all payments
and corresponding interest more than ninety (90) days after the date of default
and the unearned portion of cancelable items. In no event shall Net-Payoff
Balance include destination fees, document preparation fees, or any other fees,
additional taxes, penalties or assessments included in the original Instrument,
or repossession, disposition, collection, remarketing expenses or any other
fees, taxes and expenses incurred.
Over-Advances means the cost of insurance premiums and vehicle service
contracts, including, but not limited to warranty insurance, credit life and
disability insurance and financed physical damage and/or liability insurance
premiums and factory or dealer installed items listed in NADA Official Used Car
Guide or an equivalent Automobile Guide approved by the Company for new vehicles
or factory installed items listed in NADA Official Used Car Guide or an
equivalent Automobile Guide approved by the Company for used vehicles.
Conversion packages and customization packages or items are excluded for
Over-Advance purposes.
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Instrument, for the purpose of this endorsement, in addition to the definition
of "Instrument" in the original policy itself, shall be understood to mean any
loan, lease or other agreement, e.g., a conditional sales contract, motor
vehicle retail sales contract, etc. which is scheduled for payment on a monthly
basis of not less than three (3) consecutive months and which (a) creates or
reserves a lien in chattels that is held as collateral for the loan made by the
named Insured or its assignor or (b) is a lease for a motor vehicle titled in
the name of the Insured.
Date of Loss shall mean the date of sale of the repossessed Vehicle.
The premium for this endorsement is included in the premium endorsement attached
to this policy.
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
/s/ [SIGNATURE] /s/ [SIGNATURE]
Secretary President
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The premium for this endorsement is Additional Premium $
included in the premium shown on the Return Premium $
declarations unless a specific amount is
shown here.
ENDORSEMENT NO.: 12 Effective: 5-01-94
Is attached to and forms part of your evidence of insurance no.: CA4-1000024
Issued by: Interstate Fire & Casualty Company
Executive Offices: 55 E. Monroe St.
Chicago, Illinois 60603
Insured: Auto Bond Acceptance Corporation & Sentry Financial Corporation,
As Their Interest May Appear.
Dated Issued: Authorized Representative:
5/31/95
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