Exhibit 4.2
EXECUTION COPY
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WILMINGTON TRUST COMPANY,
not in its individual capacity but solely as
Owner Trustee for Capital One Auto Finance Trust 2002-C
and
JPMORGAN CHASE BANK
Indenture Trustee
INDENTURE
Dated as of December 17, 2002
$842,553,191
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A NOTES AND CLASS B NOTES
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CROSS REFERENCE TABLE/1/
TIA Section Section of Indenture
310 (a)(1) 7.08
(a)(2) 7.08
(a)(3) 7.13
(a)(4) 7.20
(a)(5) 7.08
(b) 7.08, 7.11
(c) N.A.
311 (a) 7.19
(b) 7.19
(c) N.A
312 (a) 12.01
(b) 12.02
(c) 12.03
(d) 12.04
313 (a) 12.04
(b)(1) 12.04
(b)(2) 14.05
(c) 12.04
(d) 12.03
314 (a) 14.16
(b) 3.06
(c)(1) 14.01
(c)(2) 14.01
(c)(3) 14.01
(d) 14.01
(e) 14.01
(f) 14.01
315 (a) 7.01
(b) 7.02
(c) 7.01
(d) 7.01
(e) 9.13
316 (a)(last sentence) 2.03
(a)(1)(A) 9.11
(a)(1)(B) 9.02(b)
(a)(2) Omitted
(b) 9.07
(c) 2.12
317 (a)(1) 9.03
(a)(2) 9.03
(b) 3.03
318 (a) 14.21
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Note: This Cross Reference Table shall not, for any purpose, be deemed to be
part of this Indenture
TABLE OF CONTENTS
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE...............................3
Section 1.01 General Definitions...................................................3
Section 1.02 Calculations.........................................................36
Section 1.03 Incorporation by Reference of Trust Indenture Act....................36
Section 1.04 Other Interpretive Provisions........................................37
ARTICLE II THE NOTES; RECONVEYANCE.................................................37
Section 2.01 General..............................................................37
Section 2.02 Forms of Notes.......................................................39
Section 2.03 Payment of Principal and Interest....................................39
Section 2.04 Payments to Noteholders..............................................41
Section 2.05 Execution, Authentication, Delivery and Dating.......................41
Section 2.06 Temporary Notes......................................................42
Section 2.07 Registration, Registration of Transfer and Exchange..................43
Section 2.08 Mutilated, Destroyed, Lost or Stolen Notes...........................49
Section 2.09 Persons Deemed Noteholders...........................................50
Section 2.10 Cancellation of Notes................................................50
Section 2.11 Conditions to Closing................................................51
Section 2.12 Book-Entry Notes.....................................................54
Section 2.13 Definitive Notes.....................................................55
Section 2.14 Reconveyance.........................................................56
Section 2.15 Reconveyance of Nonconforming Receivables............................56
Section 2.16 Funding Events.......................................................57
Section 2.17 Authenticating Agents................................................59
Section 2.18 Release of Collateral................................................60
ARTICLE III COVENANTS; COLLATERAL; REPRESENTATIONS; WARRANTIES......................60
Section 3.01 Performance of Obligations...........................................60
Section 3.02 Negative Covenants...................................................61
Section 3.03 Money for Note Payments..............................................62
Section 3.04 Restriction of Owner Trustee Activities..............................64
Section 3.05 Protection of Trust Property.........................................65
Section 3.06 Opinions as to Trust Property........................................66
Section 3.07 Statement as to Compliance...........................................67
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TABLE OF CONTENTS
Section 3.08 Limitations on Liens.................................................68
Section 3.09 Recording............................................................68
Section 3.10 Agreements Not to Institute Bankruptcy Proceedings;
Additional Covenants.................................................68
Section 3.11 Providing of Notice..................................................71
Section 3.12 Representations and Warranties of the Owner Trustee..................71
Section 3.13 Representations and Warranties of the Indenture Trustee..............74
Section 3.14 Maintenance of Office or Agency......................................75
ARTICLE IV ADMINISTRATION AND SERVICING OF RECEIVABLES.............................75
Section 4.01 Servicing Agreement..................................................75
ARTICLE V ACCOUNTS, COLLECTIONS, PAYMENTS OF INTEREST AND
PRINCIPAL, RELEASES, RESERVE FUND, AND STATEMENTS TO
NOTEHOLDERS.............................................................76
Section 5.01 Accounts.............................................................76
Section 5.02 Collections..........................................................77
Section 5.03 Application of Collections...........................................77
Section 5.04 Collection Account...................................................77
Section 5.05 Deposit of Funds in the Revenue Fund and Transfer of
Funds from the Revenue Fund and the Reserve Fund.....................78
Section 5.06 Issuance Fund........................................................83
Section 5.07 Account Property.....................................................83
Section 5.08 Pre-Funding Account..................................................84
Section 5.09 Note Payments........................................................84
Section 5.10 Use of Moneys in the Reserve Fund....................................85
Section 5.11 Statements to Noteholders; Tax Returns...............................85
Section 5.12 Reports by the Indenture Trustee.....................................85
Section 5.13 Final Balance........................................................85
Section 5.14 Officer's Certificates...............................................86
Section 5.15 The Note Guaranty Insurance Policy...................................87
Section 5.16 Release of Trust Estate..............................................88
Section 5.17 Opinion of Counsel...................................................88
ARTICLE VI REDEMPTION OF NOTES.....................................................89
Section 6.01 Privilege of Redemption and Redemption Price.........................89
Section 6.02 Optional Redemption..................................................89
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TABLE OF CONTENTS
Section 6.03 Notice of Redemption.................................................90
Section 6.04 Redemption Payments..................................................90
Section 6.05 Cancellation of Notes................................................91
ARTICLE VII THE INDENTURE TRUSTEE...................................................91
Section 7.01 Duties of the Indenture Trustee......................................91
Section 7.02 Notice of Event of Insolvency or Event of Default....................93
Section 7.03 Rights of the Indenture Trustee......................................93
Section 7.04 Not Responsible for Recitals, Issuance of Notes or
Application of Moneys as Directed....................................94
Section 7.05 May Hold Notes.......................................................94
Section 7.06 Money Held in Trust..................................................94
Section 7.07 Compensation and Indemnity...........................................94
Section 7.08 Eligibility; Disqualification........................................96
Section 7.09 [Reserved]...........................................................97
Section 7.10 Resignation and Removal; Appointment of Successor....................97
Section 7.11 Acceptance of Appointment by Successor...............................98
Section 7.12 Merger, Conversion, Consolidation or Succession to
Business of the Indenture Trustee....................................98
Section 7.13 Co-trustees and Separate Trustees....................................99
Section 7.14 Books and Records...................................................100
Section 7.15 Control.............................................................100
Section 7.16 Suits for Enforcement...............................................101
Section 7.17 Noteholder Characterization.........................................101
Section 7.18 Documents Held by COAF as Custodian; Indication of Trust
Ownership; Inspection and Release of Custodian Files................101
Section 7.19 Preferential Collection of Claims Against Owner Trustee.............104
Section 7.20 The Indenture Trustee May Enforce Claims Without
Possession of Notes.................................................104
ARTICLE VIII INTEREST RATE SWAP AGREEMENT...........................................104
Section 8.01 Interest Rate Swap Agreement Provisions; Defaulted
Interest Rate Swap Agreement........................................104
ARTICLE IX EVENTS OF INSOLVENCY; EVENT OF DEFAULT.................................106
Section 9.01 Events of Insolvency; Events of Default.............................106
Section 9.02 Acceleration of Maturity; Rescission and Annulment..................107
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TABLE OF CONTENTS
Section 9.03 Collection of Indebtedness and Suits for Enforcement by
the Indenture Trustee...............................................109
Section 9.04 Remedies; Priorities................................................112
Section 9.05 [Reserved]..........................................................113
Section 9.06 Limitation of Suits.................................................113
Section 9.07 Unconditional Rights of Noteholders to Receive
Principal and Interest..............................................114
Section 9.08 Restoration of Rights and Remedies..................................114
Section 9.09 Rights and Remedies Cumulative......................................114
Section 9.10 Delay or Omission Not a Waiver......................................115
Section 9.11 Control by Controlling Note Class of Noteholders....................115
Section 9.12 [Reserved]..........................................................115
Section 9.13 Undertaking for Costs...............................................115
Section 9.14 Waiver of Stay or Extension Laws....................................116
ARTICLE X SUPPLEMENTAL INDENTURES................................................116
Section 10.01 Supplemental Indentures Without Noteholder Approval.................116
Section 10.02 Supplemental Indentures With Consent of Noteholders.................117
Section 10.03 Supplemental Indentures Without Consent of Noteholders..............118
Section 10.04 Execution of Supplemental Indentures................................119
Section 10.05 Effect of Supplemental Indentures...................................119
Section 10.06 Reference in Notes to Supplemental Indentures.......................119
Section 10.07 The Indenture Trustee To Act On Instructions........................119
ARTICLE XI NOTE GUARANTY INSURANCE POLICY.........................................120
Section 11.01 Note Guaranty Insurance Policy......................................120
Section 11.02 Transfer of Class A Notes to Note Insurer...........................120
Section 11.03 Note Insurer Access to Information, Books and Records...............120
Section 11.04 The Indenture Trustee To Notify Note Insurer of
Proposed Changes....................................................120
Section 11.05 No Advance of Final Scheduled Payment Date..........................121
Section 11.06 Note Insurer Rights in the Event of Nonpayment......................121
Section 11.07 Note Insurer Approval of Changes in Terms of Notes or
Indenture...........................................................122
Section 11.08 Note Insurer Removal of the Indenture Trustee.......................122
Section 11.09 Parties Interested Herein...........................................122
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TABLE OF CONTENTS
Section 11.10 Rights of Note Insurer Controlling..................................123
Section 11.11 Payments Under the Note Guaranty Insurance Policy...................123
Section 11.12 Default of Note Insurer.............................................124
Section 11.13 Rights and Obligations of Note Insurer..............................124
Section 11.14 Note Insurer's Rights Regarding Actions, Proceedings or
Investigations......................................................124
ARTICLE XII NOTEHOLDERS' LISTS AND REPORTS.........................................126
Section 12.01 Owner Trustee to Furnish the Indenture Trustee Names and
Addresses of Noteholders............................................126
Section 12.02 Preservation of Information; Communications to
Noteholders.........................................................126
Section 12.03 Reports by the Owner Trustee........................................127
Section 12.04 Reports by the Indenture Trustee....................................127
ARTICLE XIII SATISFACTION AND DISCHARGE.............................................127
Section 13.01 Satisfaction and Discharge of the Indenture.........................127
Section 13.02 Application of Trust Money..........................................129
Section 13.03 Repayment of Moneys Held by Paying Agent............................129
ARTICLE XIV MISCELLANEOUS..........................................................129
Section 14.01 Compliance Certificates and Opinions; Furnishing of Information.....129
Section 14.02 Form of Documents Delivered to the Indenture Trustee................131
Section 14.03 Acts of Noteholders.................................................132
Section 14.04 Notices, Etc........................................................133
Section 14.05 Notices and Reports to Noteholders; Waiver of Notices...............135
Section 14.06 Rules by the Indenture Trustee......................................136
Section 14.07 Owner Trustee Obligation............................................136
Section 14.08 Enforcement of Benefits.............................................136
Section 14.09 Effect of Headings and Table of Content.............................136
Section 14.10 Successors and Assigns..............................................136
Section 14.11 Separability........................................................136
Section 14.12 Benefits of Indenture...............................................136
Section 14.13 Legal Holidays......................................................137
Section 14.14 Governing Law.......................................................137
Section 14.15 Counterparts........................................................137
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TABLE OF CONTENTS
Section 14.16 Recording of Indenture.............................................137
Section 14.17 Further Assurances.................................................137
Section 14.18 No Bankruptcy Petition Against the Owner Trustee...................137
Section 14.19 Subordination......................................................137
Section 14.20 Limitation on Liability............................................138
Section 14.21 Limitation of Liability............................................139
Section 14.22 Conflict with Trust Indenture Act..................................139
Section 14.23 Perfection Representations.........................................139
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TABLE OF CONTENTS
SCHEDULE 1 - Schedule of Opinions
SCHEDULE 2 - Perfection Representations, Warranties and Covenants
EXHIBIT A - Form of Class A Notes
EXHIBIT B - Form of Class B Note
EXHIBIT C - [Reserved]
EXHIBIT D - Form of Assignment
EXHIBIT E - Notice of Funding
EXHIBIT F - Officer's Certificate
EXHIBIT G-1 - Form of Receivable Characteristics (Closing Date)
EXHIBIT G-2 - Form of Receivable Characteristics (Funding Date)
EXHIBIT H - Indenture Trustee Fee Agreement
EXHIBIT I - Form of Transferee Agreement (Class B Notes)
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This Indenture is dated and made as of December 17, 2002, between
WILMINGTON TRUST COMPANY, not on an individual basis but solely as owner trustee
of CAPITAL ONE AUTO FINANCE TRUST 2002-C (the "Owner Trustee"), and JPMORGAN
CHASE BANK, as indenture trustee (the "Indenture Trustee").
PRELIMINARY STATEMENT
Pursuant to this Indenture, there is hereby duly authorized the execution
and delivery of eight Classes of Notes, designated as Class A-1 Notes, Class A-2
Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes
and Class B-2 Notes. All covenants and agreements made by the Owner Trustee
herein are for the benefit and security of the Holders of the Class A Notes, as
further defined herein, and the Class B Notes, the Swap Counterparty (as
specified herein) and the Note Insurer (as specified herein). The Owner Trustee
is entering into this Indenture, and the Indenture Trustee is accepting the
trusts created hereby, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged. Simultaneously with the issuance
of the Class A Notes and the Class B Notes, there is also being issued the
Certificate pursuant to the Trust Agreement.
The Owner Trustee hereby Grants to the Indenture Trustee, for the benefit
of the Holders of the Class A Notes and the Class B Notes, as their interests
appear, and, subject to the provisions hereof, for the benefit of the Note
Insurer and the Swap Counterparty (until such time as the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty have
been paid in full), all of the Owner Trustee's right, title and interest in and
to:
GRANTING CLAUSE FIRST
All of the Owner Trustee's right, title and interest, whether now or
hereafter existing, in and to (a) the Receivables identified on the Schedule of
Receivables absolutely assigned by the Transferor to the Seller and contributed
by the Seller to the Owner Trustee from time to time and all moneys received
thereon (including amounts received on any Extended Service Agreements relating
thereto) after the respective Cutoff Dates (except for interest accrued as of
the applicable Cutoff Date if paid by the respective Obligor after such Cutoff
Date, which will be paid to the Transferor); (b) the security interest in the
Financed Vehicles granted by the Obligors pursuant to the Receivables and all
Certificates of Title to such Financed Vehicles; (c) the interest of the Owner
Trustee in any proceeds from claims on any risk default, physical damage, credit
life, disability or other insurance policies covering the Financed Vehicles or
the Obligors or refunds in connection with Extended Service Agreements relating
to Defaulted Receivables from the respective Cutoff Dates; (d) any property
(including the right to receive future Liquidation Proceeds) that shall secure a
Receivable; (e) the Contribution Agreement, the Transfer and Assignment
Agreement and the Dealer Agreements (to the extent related to the financed
Receivables); (f) the original retail installment contracts and security
agreements and/or installment loans evidencing the Receivables; (g) the Interest
Rate Swap Agreement; and (h) the proceeds of any and all of the foregoing;
GRANTING CLAUSE SECOND
All funds deposited in the Accounts and Eligible Investments thereof, to
the extent provided in this Indenture, and proceeds thereof;
GRANTING CLAUSE THIRD
The rights and benefits of the Owner Trustee under the Servicing Agreement
and the Limited Guaranty;
GRANTING CLAUSE FOURTH
Any recourse at law, in equity or by contract to the Seller, COAF or
Dealers whether pursuant to the Contribution Agreement, the Transfer and
Assignment Agreement, Dealer Agreements (to the extent related to the
Receivables) or otherwise; and
GRANTING CLAUSE FIFTH
All proceeds of the conversion, voluntary or involuntary, of any of the
foregoing into cash or other property whether now existing or hereinafter
arising (collectively, the "Collateral").
Such Grants are made in trust, to secure payments of amounts due with
respect to the Class A Notes and the Class B Notes ratably and without
prejudice, priority or distinction between the Class A Notes and the Class B
Notes (except that payments with respect to principal on the different Classes
of Class A Notes shall be subject to the priority of payments set forth herein
and payments of principal with respect to the Class B Notes shall be subordinate
to payments of principal and interest with respect to the Class A Notes and to
the Note Insurer's rights to Premiums and Reimbursement Obligations and payments
of interest with respect to the Class B Notes shall be subordinate to payments
of interest with respect to the Class A Notes, all to the extent provided
herein), and to secure (i) the payment of all amounts scheduled to be made on
the Class A Notes and the Class B Notes as such amounts become due in accordance
with their terms, (ii) the payment of all amounts payable to the Swap
Counterparty under the Interest Rate Swap Agreement, (iii) the payment of all
other sums payable in accordance with the provisions of this Indenture,
including, but not limited to, Reimbursement Obligations and reimbursements to
the Note Insurer for Swap Termination Payments paid under the Swap Policy, and
(iv) compliance with the provisions of this Indenture, all as provided in this
Indenture.
The Indenture Trustee acknowledges such Grants, accepts the trusts
hereunder in accordance with the provisions of this Indenture, and agrees to
perform the duties herein required pursuant to the terms and provisions of this
Indenture and subject to the conditions hereof to the end that the interests of
the Holders of the Notes may be adequately and effectively protected.
PROVIDED, HOWEVER, that if there shall well and truly be paid the principal
of the Class A Notes and the Class B Notes and the interest payable or to become
payable on the Notes, at the times and in the manner mentioned in the Notes,
according to the true intent and meaning thereof, the Interest Rate Swap
Agreement shall be terminated and all amounts payable thereunder to the Swap
Counterparty shall be paid in full and the Owner Trustee shall cause all
Reimbursement Obligations and reimbursement for all Swap Termination Payments
paid under
2
the Swap Policy to be paid to the Note Insurer and payments shall be made into
the Revenue Fund as required under this Indenture and shall well and truly keep,
perform and observe all the covenants and conditions pursuant to the terms of
this Indenture to be kept, performed and observed by the Owner Trustee, and the
Owner Trustee shall pay or cause to be paid to the Indenture Trustee and all of
its agents for the registration, authentication, transfer or exchange of the
Class A Notes and the Class B Notes all sums of money due or to become due to it
or them in accordance with the terms and provisions hereof, then this Indenture
and the rights hereby granted shall cease, terminate and be void; otherwise,
except as provided in Article XIV hereof, this Indenture shall be and remain in
full force and effect.
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
Section 1.01 General Definitions. Except as otherwise specified or as the
context may otherwise require, the following terms have the respective meanings
set forth below for all purposes of this Indenture, and the definitions of such
terms are applicable to the singular as well as to the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such
terms.
"1940 Act" means the Investment Company Act of 1940, as amended.
"Accelerated Reserve Fund Event" has the meaning specified in the Insurance
Agreement.
"Account Property" means the Accounts and all proceeds of the Accounts,
including, without limitation, all amounts and investments held from time to
time in any Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities, security entitlements (as
defined in Section 8-102(a)(17) of the UCC as enacted in the States of Minnesota
and Texas), financial assets (as defined in Section 8-102(a)(9) of the UCC), or
any other investment property (as defined in Section 9-102 of the UCC)).
"Accounts" has the meaning specified in Section 5.01 hereof.
"Act" has the meaning specified in Section 14.03 hereof.
"Actual Payment" means, with respect to a Collection Period and a
Receivable, all Scheduled Payments and prepayments received from or on behalf of
an Obligor with respect to such Receivable, all of which amounts shall be
deposited into the Collection Account during such Collection Period. An Actual
Payment does not include Repurchase Prices.
"Administration Agreement" means the Administration Agreement among COAF,
as Administrator, Wilmington Trust Company, not in its individual capacity, but
solely as Owner Trustee for Capital One Auto Finance Trust 2002-C, and JPMorgan
Chase Bank, as the Indenture Trustee, dated as of the Closing Date, as the same
may be amended and supplemented from time to time.
"Administration Fee" has the meaning specified in Section 4 of the
Administration Agreement.
3
"Administrative Expenses" means the fees and expenses payable to the Rating
Agencies, the expenses payable on behalf of or reimbursable to the Owner Trustee
and other fees, expenses or costs related to the Trust Property, payable
pursuant to this Indenture, the Trust Agreement or the Servicing Agreement, as
certified by the Servicer.
"Administrator" means COAF, in its capacity as Administrator under the
Administration Agreement and each successor Administrator thereunder.
"Affiliate" of any specified Person means any other Person controlling or
controlled by or under common control with such specified Person. For the
purposes of this definition, "control" when used with respect to any specified
Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.
"Agent Member" means a member of, or participant in, the Securities
Depository.
"Aggregate Outstanding Principal Balance" means, with respect to the Notes
of any Class or group of Classes, the aggregate of the Outstanding Principal
Balance of all Outstanding Notes of that Class or group of Classes at the time
of determination.
"Aggregate Receivable Balance" means, (i) with respect to the Closing Date,
the aggregate Receivable Balance of the Receivables as of the initial Cutoff
Date, (ii) with respect to any Funding Date, the aggregate Receivable Balance of
the related Subsequent Receivables as of the related Cutoff Date plus the
aggregate Receivable Balance of all other Receivables as of such Funding Date
and (iii) with respect to any other date of determination, the aggregate
Receivable Balance of all Receivables owned by the Owner Trustee and Granted to
the Indenture Trustee as of such date of determination.
"Amount Financed" means, with respect to a Receivable, the amount advanced
under the Receivable toward the purchase price of the Financed Vehicle and any
related costs, including service warranties and service contracts, but exclusive
of any amount allocable to the premium of force-placed physical damage insurance
covering the Financed Vehicle.
"Authorized Officer" means, with respect to any Person, the Chairman,
Co-Chairman or Vice Chairman of the Board of Directors, the President, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
the Treasurer, any Assistant Treasurer or any other authorized officer of the
Person who is authorized to act for the Person and whose name appears on a list
of such authorized officers furnished by the Person to the Indenture Trustee
(containing the specimen signature of such officers), as such list may be
amended or supplemented from time to time.
"Benefit Plan Investor" has the meaning specified in Section 2.07(g)(v) of
this Indenture.
"Book-Entry Notes" means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Securities Depository
as described in Section 2.12 of this Indenture.
4
"Business Day" means any day that is not a Saturday, Sunday or other day on
which commercial banking or federal institutions in New York, New York; Falls
Church, Virginia; or Plano, Texas, or in the city in which the principal trust
office of the Indenture Trustee, or the principal office of the Note Insurer, is
located are authorized or obligated by law or executive order to be closed.
"Certificate" means the beneficial interest issued pursuant to the Trust
Agreement in connection with the issuance of the Notes under this Indenture,
evidencing rights to receive certain amounts, subject to prior claims, in
accordance with Section 5.05(c) hereof to be derived from the Trust Property as
more fully described herein. The Certificate shall initially be issued to the
Seller.
"Certificate Distribution Account" is defined in Section 5.1 of the Trust
Agreement.
"Certificate of Title" means, with regard to each Financed Vehicle (i) the
original certificate of title relating thereto, or copies of correspondence to
the appropriate State Title Registration Agency, and all enclosures thereto, for
issuance of its original Certificate of Title or (ii) if the appropriate State
Title Registration Agency issues a letter or other form of evidence of lien in
lieu of a Certificate of Title (including electronic titling), the original lien
entry letter or form or copies of correspondence to such State title
registration agency, and all enclosures thereto, for issuance of the original
lien entry letter or form (including electronically), which, in either case,
shall name the related Obligor as the owner of such Financed Vehicle and the
Transferor, PeopleFirst Finance, LLC, the applicable Referral Originator, the
Seller or the Indenture Trustee as secured party.
"Certificate Paying Agent" shall mean any paying agent or co-paying agent
appointed pursuant to Section 3.9 of the Trust Agreement and shall initially be
the Owner Trustee.
"Certificate Percentage Interest" shall mean with respect to any
Certificate, the percentage interest of ownership in the Trust represented
thereby as set forth on the face thereof.
"Certificate Register" and "Certificate Registrar" means the register
mentioned and the registrar appointed pursuant to Section 3.4 of the Trust
Agreement.
"Certificateholder" means the Person in whose name a Certificate is
registered on the Certificate Register. The Certificate shall initially be
registered in the name of the Seller.
"Class" means all of the Notes of a series having the same Final Scheduled
Payment Date, interest rate, priority of payments and designation.
"Class A Initial Bond Percentage" means the fraction, expressed as a
percentage, the numerator of which is the Aggregate Outstanding Principal
Balance of the Class A Notes as of the Closing Date and the denominator of which
is the sum of (a) the Aggregate Outstanding Principal Balance of the Class A
Notes as of the Closing Date and (b) the Aggregate Outstanding Principal Balance
of the Class B Notes as of the Closing Date.
5
"Class A Note Interest" means, with respect to any Payment Date, the sum of
the Class A-1 Note Interest, Class A-2 Note Interest, Class A-3-A Note Interest,
Class A-3-B Note Interest and Class A-4 Note Interest.
"Class A Noteholder" means the Holder of a Class A Note.
"Class A Noteholder Approval" means, unless expressly provided to the
contrary, the approval or consent by the Holders of not less than 66-2/3% of the
Aggregate Outstanding Principal Balance of all Outstanding Classes of Class A
Notes collectively.
"Class A Notes" means, collectively, the Class A-1 Notes, the Class A-2
Notes, the Class A-3-A Notes, the Class A-3-B Notes and the Class A-4 Notes.
"Class A Overdue Interest" means, with respect to any Payment Date, the sum
of Class A-1 Overdue Interest, Class A-2 Overdue Interest, Class A-3-A Overdue
Interest, Class A-3-B Overdue Interest and Class A-4 Overdue Interest.
"Class A Overdue Principal" means, with respect to any Payment Date, the
difference, if any, between (a) the Class A Principal Payment Amount payable on
the prior Payment Date and (b) the amount of the Class A Principal Payment
Amount (from whatever source) actually paid to Class A Noteholders on the prior
Payment Date.
"Class A Principal Payment Amount" means, with respect to any Payment Date
until the Aggregate Outstanding Principal Balance of the Class A Notes is
reduced to zero, the greater of (A) the lesser of (1) the sum of (a) Principal
Collections for the related Collection Period and (b) the amount of the Class A
Principal Payment Amount payable on the prior Payment Date and not paid, if any,
and (2) the amount necessary to reduce the Aggregate Outstanding Principal
Balance of the Class A Notes to an amount equal to the sum of (x) 91.00% of the
Aggregate Receivable Balance as of the end of the related Collection Period and
(y) the product of the Class A Initial Bond Percentage and the amount on deposit
in the Pre-Funding Account, if any; provided, however, that (1) on the Class A-1
Final Scheduled Payment Date, the Class A Principal Payment Amount shall be at
least equal to the Aggregate Outstanding Principal Balance of the Class A-1
Notes, (2) on the Class A-2 Final Scheduled Payment Date, the Class A Principal
Payment Amount shall be at least equal to the Aggregate Outstanding Principal
Balance of the Class A-2 Notes, (3) on the Class A-3-A Final Scheduled Payment
Date and the Class A-3-B Final Scheduled Payment Date, the Class A Principal
Payment Amount shall be at least equal to the Aggregate Outstanding Principal
Balance of the Class A-3-A Notes and the Class A-3-B Notes, respectively, and
(4) on the Class A-4 Final Scheduled Payment Date, the Class A Principal Payment
Amount shall be at least equal to the Aggregate Outstanding Principal Balance of
the Class A-4 Notes; and (B) the amount necessary to reduce the Aggregate
Outstanding Principal Balance of the Class A Notes and the Class B Notes to (1)
an amount equal to the Aggregate Receivables Balance as of the end of the
related Collection Period and the amount on deposit in the Pre-Funding Account,
if any, as of the end of the related Collection Period less (2) $8,510,638.30.
"Class A-1 Final Scheduled Payment Date" means December 15, 2003 or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
6
"Class A-1 Interest Rate" means 1.4348% per annum.
"Class A-1 Note Interest" means, (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class A-1 Interest Rate times (y) the
actual number of days from and including the Closing Date through the day
immediately preceding the initial Payment Date times (z) the Aggregate
Outstanding Principal Balance of the Class A-1 Notes as of the Closing Date; and
(b) with respect to any subsequent Payment Date, the sum of (i) the product of
(x) 1/360 of the Class A-1 Interest Rate times (y) the actual number of days
from and including the immediately preceding Payment Date through the day
immediately preceding such subsequent Payment Date times (z) the Aggregate
Outstanding Principal Balance of the Class A-1 Notes as of the immediately
preceding Payment Date after giving effect to all payments of principal of the
Class A-1 Notes on such immediately preceding Payment Date and (ii) the Class
A-1 Overdue Interest, if any.
"Class A-1 Noteholder" means the holder of a Class A-1 Note.
"Class A-1 Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as Class A-1 Notes, issued in accordance with the provisions of this
Indenture.
"Class A-1 Overdue Interest" means, with respect to any Payment Date, the
difference, if any, between (a) the amount of Class A-1 Note Interest payable on
the prior Payment Date and (b) the amount of Class A-1 Note Interest (from
whatever source) actually paid to Class A-1 Noteholders on the prior Payment
Date, plus (to the extent permitted by law) interest on any shortfall in the
payment of interest on the prior Payment Date at the Class A-1 Interest Rate
from and including the prior Payment Date through the day immediately preceding
the Payment Date of such calculation.
"Class A-2 Final Scheduled Payment Date" means November 15, 2005, or
earlier upon redemption, acceleration or otherwise in accordance with the terms
hereof.
"Class A-2 Interest Rate" means 1.87% per annum.
"Class A-2 Note Interest" means, (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class A-2 Interest Rate times (y) the
number of days from and including the Closing Date through the day immediately
preceding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months) times (z) the Aggregate Outstanding
Principal Balance of the Class A-2 Notes as of the Closing Date; and (b) with
respect to any subsequent Payment Date, the sum of (i) the product of (x)
one-twelfth of the Class A-2 Interest Rate times (y) the Aggregate Outstanding
Principal Balance of the Class A-2 Notes as of the immediately preceding Payment
Date after giving effect to all payments of principal of the Class A-2 Notes on
such immediately preceding Payment Date and (ii) the Class A-2 Overdue Interest,
if any.
"Class A-2 Noteholder" means the holder of a Class A-2 Note.
"Class A-2 Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as the Class A-2 Notes, issued in accordance with the provisions of
this Indenture.
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"Class A-2 Overdue Interest" means, with respect to any Payment Date, the
difference, if any, between (a) the amount of Class A-2 Note Interest payable on
the prior Payment Date and (b) the amount of Class A-2 Note Interest (from
whatever source) actually paid to Class A-2 Noteholders on the prior Payment
Date, plus (to the extent permitted by law) interest on any shortfall in the
payment of interest on the prior Payment Date at the Class A-2 Interest Rate
from and including the prior Payment Date through the day immediately preceding
the Payment Date of such calculation.
"Class A-3-A Final Scheduled Payment Date" means April 16, 2007, or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
"Class A-3-A Interest Rate" means 2.65% per annum.
"Class A-3-A Note Interest" means, (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class A-3-A Interest Rate times (y) the
number of days from and including the Closing Date through the day immediately
preceding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months) times (z) the Aggregate Outstanding
Principal Balance of the Class A-3-A Notes as of the Closing Date; and (b) with
respect to any subsequent Payment Date, the sum of (i) the product of (x) 1/360
of the Class A-3-A Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class A-3-A Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal of the Class A-3-A Notes on
such immediately preceding Payment Date and (ii) the Class A-3-A Overdue
Interest, if any.
"Class A-3-A Noteholder" means the holder of a Class A-3-A Note.
"Class A-3-A Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as the Class A-3-A Notes, issued in accordance with the provisions of
this Indenture.
"Class A-3-A Overdue Interest" means, with respect to any Payment Date, the
difference, if any, between (a) the amount of Class A-3-A Note Interest payable
on the prior Payment Date and (b) the amount of Class A-3-A Note Interest (from
whatever source) actually paid to Class A-3-A Noteholders on the prior Payment
Date, plus (to the extent permitted by law) interest on any shortfall in the
payment of interest on the prior Payment Date at the Class A-3-A Interest Rate
from and including the prior Payment Date through the day immediately preceding
the Payment Date of such calculation.
"Class A-3-B Final Scheduled Payment Date" means April 16, 2007, or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
"Class A-3-B Interest Accrual Period" means with respect to any Payment
Date, the period commencing on and including the immediately preceding Payment
Date (or Closing Date, in the case of the first Payment Date) through and
including the day immediately preceding such Payment Date.
"Class A-3-B Interest Rate" means the sum of LIBOR plus 0.23% per annum.
8
"Class A-3-B Note Interest" means, (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class A-3-B Interest Rate times (y) the
actual number of days in the Class A-3-B Interest Accrual Period times (z) the
Aggregate Outstanding Principal Balance as of the Closing Date; and (b) with
respect to any subsequent Payment Date, the sum of (i) the product of (x) 1/360
of the Class A-3-B Interest Rate times (y) the actual number of days in the
Class A-3-B Interest Accrual Period times (z) the Aggregate Outstanding
Principal Balance of the Class A-3-B Notes as of the immediately preceding
Payment Date after giving effect to all payments of principal on such
immediately preceding Payment Date and (ii) the Class A-3-B Overdue Interest, if
any.
"Class A-3-B Noteholder" means the holder of a Class A-3-B Note.
"Class A-3-B Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as the Class A-3-B Notes, issued in accordance with the provisions of
this Indenture.
"Class A-3-B Overdue Interest" means, with respect to any Payment Date, the
difference, if any, between (a) the amount of Class A-3-B Interest due on the
prior Payment Date and (b) the amount of Class A-3-B Note Interest (from
whatever source) actually paid to Class A-3-B Noteholders on the prior Payment
Date, plus (to the extent permitted by law) interest on any shortfall in the
payment of interest on the prior Payment Date at the Class A-3-B Interest Rate
from and including the prior Payment Date through the day immediately preceding
the Payment Date of such calculation.
"Class A-4 Final Scheduled Payment Date" means June 15, 2009, or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
"Class A-4 Interest Rate" means 3.44% per annum.
"Class A-4 Note Interest" means, (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class A-4 Interest Rate times (y) the
number of days from and including the Closing Date through the day immediately
preceding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months) times (z) the Aggregate Outstanding
Principal Balance of the Class A-4 Notes as of the Closing Date; and (b) with
respect to any subsequent Payment Date, the sum of (i) the product of (x) 1/360
of the Class A-4 Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class A-4 Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal of the Class A-4 Notes on such
immediately preceding Payment Date and (ii) the Class A-4 Overdue Interest, if
any.
"Class A-4 Noteholder" means the holder of a Class A-4 Note.
"Class A-4 Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as the Class A-4 Notes, issued in accordance with the provisions of
this Indenture.
"Class A-4 Overdue Interest" means, with respect to any Payment Date, the
difference, if any, between (a) the amount of Class A-4 Note Interest payable on
the prior Payment Date and (b) the amount of Class A-4 Note Interest (from
whatever source) actually paid to Class A-4 Noteholders on the prior Payment
Date, plus (to the extent permitted by law) interest on any
9
shortfall in the payment of interest on the prior Payment Date at the Class A-4
Interest Rate from and including the prior Payment Date through the day
immediately preceding the Payment Date of such calculation.
"Class B Basic Note Interest" means the Class B-1 Basic Note Interest and
the Class B-2 Basic Note Interest, collectively.
"Class B Basic Overdue Interest" means Class B-1 Basic Overdue Interest and
Class B-2 Basic Overdue Interest, collectively.
"Class B Interest Adjustment Factor" means the fraction, expressed as a
percentage, equal to (i) the excess of (A) the Aggregate Receivables Balance
plus the amount on deposit in the Reserve Fund plus the amount on deposit in the
Pre-Funding account over (B) the Aggregate Outstanding Principal Balance of the
Class A Notes, divided by (ii) the Aggregate Outstanding Principal Balance of
the Class B Notes but in any event not less than zero.
"Class B Noteholder" means the Holder of a Class B Note.
"Class B Noteholder Approval" means, unless expressly provided to the
contrary, the approval or consent by the Holders of not less than 66-2/3% of the
Aggregate Outstanding Principal Balance of all Outstanding Classes of Class B
Notes, collectively.
"Class B Notes" means the Class B-1 Notes and the Class B-2 Notes.
"Class B Supplemental Interest" means the Class B-1 Supplemental Interest
and the Class B-2 Supplemental Interest, collectively.
"Class B Supplemental Overdue Interest" means the Class B-1 Supplemental
Overdue Interest and the Class B-2 Supplemental Overdue Interest.
"Class B-1 Basic Interest Rate" means the lesser of (a) the Class B-1
Interest Rate and (b) the product of (x) the Class B-1 Interest Rate, times (y)
the Class B Interest Adjustment Factor.
"Class B-1 Basic Note Interest" means, (a) with respect to the initial
Payment Date, the product of (x) 1/360 of the Class B-1 Basic Interest Rate
times (y) the number of days from and including the Closing Date through the day
immediately preceding the initial Payment Date (calculated on the basis of a
360-day year consisting of twelve 30-day months) times (z) the Aggregate
Outstanding Principal Balance of the Class B-1 Notes as of the Closing Date and
(b) with respect to any subsequent Payment Date, the sum of (i) the product of
(x) one-twelfth of the Class B-1 Basic Interest Rate times (y) the Aggregate
Outstanding Principal Balance of the Class B-1 Notes outstanding as of the
immediately preceding Payment Date after giving effect to all payments of
principal of the Class B-1 Notes on such immediately preceding Payment Date and
(ii) the Class B-1 Basic Overdue Interest, if any.
"Class B-1 Basic Overdue Interest" means, with respect to any Payment Date,
the difference, if any, between (a) the amount of Class B-1 Basic Note Interest
payable on the prior Payment Date and (b) the amount of Class B-1 Basic Note
Interest (from whatever source)
10
actually paid to Class B-1 Noteholders on the prior Payment Date, plus (to the
extent permitted by law) interest on any shortfall in the payment of interest on
the prior Payment Date at the Class B-1 Interest Rate from and including the
prior Payment Date through the day immediately preceding the Payment Date of
such calculation.
"Class B-1 Final Scheduled Payment Date" means June 15, 2009, or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
"Class B-1 Formula Note Interest" means (a) with respect to the initial
Payment Date, the product of (x) 1/360 of the Class B-1 Interest Rate times (y)
the number of days from and including the Closing Date through the day
immediately preceding the initial Payment Date (calculated on the basis of a
360-day year consisting of twelve 30-day months) times (z) the Aggregate
Outstanding Principal Balance of the Class B-1 Notes as of the Closing Date, and
(b) with respect to any subsequent Payment Date, the product of (x) one-twelfth
of the Class B-1 Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class B-1 Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal on the Class B-1 Notes on such
immediately preceding Payment Date.
"Class B-1 Interest Rate" means 9.80%.
"Class B-1 Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as Class B-1 Notes, issued in accordance with the provisions of this
Indenture.
"Class B-1 Supplemental Interest" means, (a) with respect to the initial
Payment Date, the excess of (x) the Class B-1 Formula Note Interest for such
Payment Date, over (y) the Class B-1 Basic Note Interest for such Payment Date,
and (b) with respect to any subsequent Payment Date, the sum of (x) the excess
of (A) the Class B-1 Formula Note Interest for such Payment Date, over (B) the
Class B-1 Basic Note Interest for such Payment Date and (y) the Class B-1
Supplemental Overdue Interest.
"Class B-1 Supplemental Overdue Interest" means any unpaid Class B-1
Supplemental Interest payable on the prior Payment Date but not paid, if any,
together with interest thereon (to the extent permitted by law) at the Class B-1
Interest Rate.
"Class B-2 Basic Interest Rate" means the lesser of (a) the Class B-2
Interest Rate and (b) the product of (x) the Class B-2 Interest Rate, times (y)
the Class B Interest Adjustment Factor.
"Class B-2 Basic Note Interest" means, (a) with respect to the initial
Payment Date, the product of (x) 1/360 of the Class B-2 Basic Interest Rate
times (y) the number of days from and including the Closing Date through the day
immediately preceding the initial Payment Date (calculated on the basis of a
360-day year consisting of twelve 30-day months) times (z) the Aggregate
Outstanding Principal Balance of the Class B-2 Notes as of the Closing Date and
(b) with respect to any subsequent Payment Date, the sum of (i) the product of
(x) one-twelfth of the Class B-2 Basic Interest Rate times (y) the Aggregate
Outstanding Principal Balance of the Class B-1 Notes outstanding as of the
immediately preceding Payment Date after giving effect to all payments of
principal of the Class B-2 Notes on such immediately preceding Payment Date and
(ii) the Class B-2 Basic Overdue Interest, if any.
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"Class B-2 Basic Overdue Interest" means, with respect to any Payment Date,
the difference, if any, between (a) the amount of Class B-2 Basic Note Interest
payable on the prior Payment Date and (b) the amount of Class B-2 Basic Note
Interest (from whatever source) actually paid to Class B-2 Noteholders on the
prior Payment Date, plus (to the extent permitted by law) interest on any
shortfall in the payment of interest on the prior Payment Date at the Class B-2
Interest Rate from and including the prior Payment Date through the day
immediately preceding the Payment Date of such calculation.
"Class B-2 Final Scheduled Payment Date" means June 15, 2009, or earlier
upon redemption, acceleration or otherwise in accordance with the terms hereof.
"Class B-2 Formula Note Interest" means, (a) with respect to the initial
Payment Date, the product of (x) 1/360 of the Class B-2 Interest Rate times (y)
the number of days from and including the Closing Date through the day
immediately preceding the initial Payment Date (calculated on the basis of a
360-day year consisting of twelve 30-day months) times (z) the Aggregate
Outstanding Principal Balance of the Class B-2 Notes as of the Closing Date, and
(b) with respect to any subsequent Payment Date, the product of (x) one-twelfth
of the Class B-2 Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class B-2 Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal on the Class B-2 Notes on such
immediately preceding Payment Date.
"Class B-2 Interest Rate" means 11.72%.
"Class B-2 Notes" means the Class of Asset Backed Notes, Series 2002-C,
designated as Class B-2 Notes, issued in accordance with the provisions of this
Indenture.
"Class B-2 Supplemental Interest" means, (a) with respect to the initial
Payment Date, the excess of (x) the Class B-2 Formula Note Interest for such
Payment Date, over (y) the Class B-2 Basic Note Interest for such Payment Date,
and (b) with respect to any subsequent Payment Date, the sum of (x) the excess
of (A) the Class B-2 Formula Note Interest for such Payment Date, over (B) the
Class B-2 Basic Note Interest for such Payment Date and (y) the Class B-2
Supplemental Overdue Interest.
"Class B-2 Supplemental Overdue Interest" means any unpaid Class B-2
Supplemental Interest payable on the prior Payment Date but not paid, if any,
together with interest thereon (to the extent permitted by law) at the Class B-2
Interest Rate
"Closing Date" means December 17, 2002.
"COAF" means Capital One Auto Finance, Inc., a Texas corporation and its
successors and assigns.
"Code" means the Internal Revenue Code of 1986, as amended, including any
successor or amendatory statutes and U.S. Department of the Treasury regulations
promulgated thereunder.
"Collateral" means the collateral specified in the Granting Clause of this
Indenture.
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"Collection Account" means the account or accounts established with a
Collection Account Depository for the deposit of all payments received with
respect to the Receivables pursuant to Section 5.01 hereof.
"Collection Account Depository" means a national bank or banks acting as
the Collection Account Depository under this Indenture, its or their successors
in interest and any successors in interest pursuant to Section 5.04(a) hereof,
which has a combined capital and surplus of at least $50,000,000 and whose
long-term debt or bank deposit obligations are rated at least Baa3 by Moody's.
The initial Collection Account Depository is JPMorgan Chase Bank.
"Collection Period" means, with respect to a Payment Date or a
Determination Date immediately preceding any Payment Date, the period beginning
on the first day of the calendar month preceding such Payment Date or
Determination Date and ending on the last day of such calendar month (each such
calendar month and portion thereof being referred to as the "related" Collection
Period with respect to a Payment Date or Determination Date); provided that the
initial Collection Period shall begin on the Cutoff Date with respect to the
Closing Date and shall end on January 31, 2003.
"Collection Policy" means the written servicing policies and procedures
utilized by COAF in connection with its servicing of the Receivables, a copy of
which is attached to the Servicing Agreement as Exhibit E.
"Contract Rate" means, with respect to a Receivable, the rate of finance
charges stated in the retail installment contract and security agreement
evidencing such Receivable.
"Contribution Agreement" means the Contribution Agreement dated as of the
Closing Date between the Seller and the Owner Trustee relating to the transfer
of Receivables by the Seller to the Owner Trustee.
"Controlling Note Class" means the holders of the Class A Notes (voting
together as a single class) as long as any Class A Notes are Outstanding and
thereafter the holders of the Class B Notes as long as any Class B Notes are
Outstanding.
"Corporate Trust Office" means:
(a) as used in the Indenture, or otherwise with respect to the Indenture
Trustee, the principal office of the Indenture Trustee at which at any
particular time its corporate trust business shall be administered which office
at date of the execution of the Indenture is located at 450 West 33rd Street,
14th Floor, New York, New York 10001, Attention: Institutional Trust Services -
Capital Auto Finance 2002-C, or at such other address as the Indenture Trustee
may designate from time to time by notice to the Noteholders, the Swap
Counterparty, the Servicer and the Owner Trustee, or the principal corporate
trust office of any successor Indenture Trustee (the address of which the
successor Indenture Trustee will notify the Noteholders and the Owner Trustee);
and
(b) as used in the Trust Agreement, or otherwise with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-0001,
Attention: Corporate Trust Administration,
13
or at such other address as the Owner Trustee may designate by notice to the
Certificateholders, the Indenture Trustee and the Depositor, or the principal
corporate trust office of any successor the Owner Trustee (the address of which
the successor owner trustee will notify the Certificateholders and Depositors).
"Costs of Issuance" means those costs which are directly or indirectly
payable by or reimbursable by the Seller and related to the authorization,
issuance, sale and delivery of the Notes, including, but not limited to,
advertising and printing costs, costs of preparation and reproduction of
documents, filing and recording fees, initial fees, charges and expenses of the
Indenture Trustee in its capacity as such (including the Indenture Trustee's
acceptance fee) and as paying agent and registrar, legal fees and expenses
(including outside counsel fees) charges and expenses of the Note Insurer, legal
fees and expenses (including outside counsel fees), the underwriting fees and
structuring fees and expenses payable to the Underwriters pursuant to the
Underwriting Agreement on the Closing Date, fees and disbursements of
consultants, accountants and professionals, rating agency fees and expenses,
fees and charges for preparation, execution, transportation and safekeeping of
Notes, and any other cost, charge or fee in connection with the issuance of the
Notes set forth in the Underwriting Agreement and directly or indirectly payable
or reimbursable by the Seller.
"Cram Down Loss" means, with respect to any Receivable (other than a
Defaulted Receivable) as to which any court in any bankruptcy, insolvency or
other similar proceeding issues an order reducing the principal amount to be
paid on such Receivable or otherwise modifies any payment terms with respect
thereto, an amount equal to the greater of (i) the amount of the principal
reduction ordered by such court and (ii) the difference between the Receivable
Balance of such Receivable at the time of such court order and the net present
value (using a discount rate which is the higher of the Contract Rate of such
Receivable or the rate of interest specified by such court order) of the
Scheduled Payments remaining on such Receivable as modified or restructured. A
Cram Down Loss will be deemed to have occurred on the date of issuance of such
court's order.
"Credit Policy" means, collectively, the written underwriting and
origination policies and procedures utilized by COAF in connection with its
underwriting and origination of the Receivables, a copy of which is attached to
the Servicing Agreement as Exhibit D.
"Cumulative Net Charge-Off Ratio" means, as of any Determination Date, the
ratio of (i) the aggregate Receivable Balance of Receivables that became
Defaulted Receivables plus all the Cram Down Losses which occurred during the
period from the initial Cutoff Date through the end of the related Collection
Period reduced by the amount of Defaulted Receivable Recoveries received during
such period which are applied to principal of the Defaulted Receivables to (ii)
the sum of (A) the initial Aggregate Receivable Balance of the Initial
Receivables plus (B) the initial aggregate Receivable Balance of the Subsequent
Receivables as of their respective Cutoff Dates.
"Custodian" means COAF, in its capacity as custodian of the Custodian Files
pursuant to Section 7.18 hereof and its permitted successors and assigns.
"Custodian File" means, with respect to each Receivable, the following
documents:
14
(a) the sole original counterpart of the retail installment contract and
security agreement evidencing each such Receivable and any and all amendments
thereto; and
(b) the Certificate of Title; provided, however, that in lieu of being held
in the Custodial File the Certificate of Title may be held by a third party
servicer provider engaged by COAF to obtain and hold Certificates of Title for
the owner of the related Receivable.
"Custodian Receipt" means, with respect to each Custodian File, a receipt
executed by the Custodian, (a) acknowledging delivery to the Custodian of (i)
the executed original counterpart of the retail installment contract and
security agreement evidencing the Receivable; and (ii) the Certificate of Title;
or (b) stating that one or more of the foregoing documents has not been
delivered to the Custodian, or is mutilated or damaged in any material respect.
"Cutoff Date" means, with respect to the Closing Date, the close of
business four (4) Business Days prior to the Closing Date and with respect to a
Funding Date, the close of business two (2) Business Days prior to such Funding
Date.
"Dealer" means an automobile dealer which sold a Financed Vehicle to an
Obligor and through which the respective Receivable was originated by the
Transferor, which Receivable was assigned by such Dealer to the Transferor
pursuant to the related Dealer Agreement and is being assigned by the Transferor
to the Seller pursuant to the Transfer and Assignment Agreement, transferred by
the Seller to the Owner Trustee pursuant to the Contribution Agreement and
Granted to the Indenture Trustee hereunder; provided, however, that with respect
to Referral Receivables, the term "Dealer" shall mean, collectively, the
automobile dealer which sold a Financed Vehicle to an Obligor and the related
Referral Originator which acquired the Referral Receivable from such dealer and
then assigned such Referral Receivable to the Transferor.
"Dealer Agreement" means an agreement between a Dealer and the Transferor
regarding the terms and conditions of the acquisition by the Transferor from
such Dealer of Receivables which agreement includes (a) certain representations,
warranties and covenants of such Dealer with respect to the Receivables sold by
such Dealer and (b) the agreement of such Dealer to repurchase any Receivable
with respect to which one or more of such representations and warranties has
been breached; provided, however, that with respect to Referral Receivables, the
term "Dealer Agreement" shall mean, collectively, the agreement between the
Dealer and the applicable Referral Originator regarding the acquisition by such
Referral Originator of Referral Receivables and the agreement between such
Referral Originator and the Transferor pursuant to which such Referral
Receivables were acquired by the Transferor.
"Default" means any event which results, or which with the giving of notice
or the lapse of time or both would result, in an Event of Default or an Event of
Servicing Default.
"Defaulted Receivable" means any Receivable as to which the first of any of
the following has occurred (a) a Scheduled Payment or any portion thereof is
more than 120 days delinquent (or if the related Obligor thereof is insolvent or
has sought protection under the United States Bankruptcy Code, such Receivable
is more than 180 days delinquent), (b) ninety (90) days (after any Obligor cure
period) have elapsed since the Servicer repossessed the related
15
Financed Vehicle, (c) the related Financed Vehicle has been repossessed and
sold, (d) proceeds have been received which, in the Servicer's good faith
judgment, constitute the final amounts recoverable in respect of such Receivable
or (e) consistent with the Servicer's Collection Policy, the Receivable has been
or should be written off as uncollectible.
"Defaulted Receivable Deposit Amount" means, as of any date of calculation
with respect to a Defaulted Receivable as to which no repurchase pursuant to
Section 7.02 of the Transfer and Assignment Agreement has occurred, 100% of the
outstanding Receivable Balance of the Defaulted Receivable at the time it became
a Defaulted Receivable.
"Defaulted Receivable Recoveries" means those funds collected from the
Obligor or otherwise on a Defaulted Receivable including Liquidation Proceeds,
but excluding Repurchase Prices and Defaulted Receivable Deposit Amounts.
"Definitive Notes" has the meaning specified in Section 2.13 hereof.
"Delinquency Ratio" means, as of a Determination Date, the ratio of (i) the
Aggregate Receivable Balance of Receivables that were Delinquent Receivables at
the end of the related Collection Period to (ii) the Aggregate Receivable
Balance of all Receivables as of the first day of such related Collection
Period.
"Delinquent Receivable" means any Receivable (other than a Defaulted
Receivable) as to which any Scheduled Payment or portion of a Scheduled Payment
remains unpaid for more than sixty (60) days from the date on which it is due
and payable.
"Delivery" when used with respect to Account Property means:
(a) with respect to bankers' acceptances, commercial paper, negotiable
certificates of deposit and other obligations that constitute "instruments"
within the meaning of Section 9-102(47) of the UCC and are susceptible of
physical delivery, transfer thereof to the Indenture Trustee by physical
delivery to the Indenture Trustee indorsed to, or registered in the name of, the
Indenture Trustee or indorsed in blank, and, with respect to a certificated
security (as defined in Section 8-102 (a)(4) of the UCC) when (i) the Indenture
Trustee acquires possession of the security certificate (as defined in Section
8-102(a)(16) of the UCC); (ii) another person, other than a securities
intermediary (as defined in Section 8-102(a)(14) of the UCC), either acquires
possession of the security certificate on behalf of the Indenture Trustee or,
having previously acquired possession of the certificate, acknowledges that it
holds for the Indenture Trustee; or (iii) a securities intermediary acting on
behalf of the Indenture Trustee acquires possession of the security certificate,
if the certificate is in registered form and has been specially indorsed (as
defined in Section 8-304(a) of the UCC) to the Indenture Trustee by an effective
endorsement (all of the foregoing, "Physical Property"), and, in any event, any
such Physical Property in registered form shall be in the name of the Indenture
Trustee or its nominee; and such additional or alternative procedures as may
hereafter become appropriate to effect the complete transfer of ownership of any
such Account Property to, and control (as defined in Section 8-106 of the UCC)
by, the Indenture Trustee (as defined herein), consistent with changes in
applicable law or regulations or the interpretation thereof;
16
(b) with respect to any securities issued by the U.S. Treasury, the Federal
Home Loan Mortgage Corporation or by the Federal National Mortgage Association
that is a book-entry security held through the Federal Reserve System pursuant
to Federal book-entry regulations, the following procedures, all in accordance
with applicable law, including applicable federal regulations and Articles 8 and
9 of the UCC: book-entry registration of such security to an appropriate
book-entry account maintained with a Federal Reserve Bank by a securities
intermediary which is also a "depositary" pursuant to applicable federal
regulations and issuance by such securities intermediary of a deposit advice or
other written confirmation of such book-entry registration to the Indenture
Trustee of the purchase by the Indenture Trustee of such book-entry securities;
the making by such securities intermediary of entries in its books and records
identifying such book-entry security held through the Federal Reserve System
pursuant to Federal book-entry regulations as belonging to the Indenture Trustee
acting in its capacity under Section 5.07 and indicating that such custodian
holds such Account Property solely as agent for the Indenture Trustee; and such
additional or alternative procedures as may hereafter become appropriate to
effect complete transfer of ownership of any such Account Property to, and
control (as defined in Section 8-106 of the UCC), by, the Indenture Trustee,
consistent with changes in applicable law or regulations or the interpretation
thereof; and
(c) with respect to any item of Account Property which is a financial asset
(as defined in section 8-102(a)(9) of the UCC) that is not governed by clause
(a) or (b) above, when the Indenture Trustee acquires control (as defined in
Section 8-106 of the UCC) of a security entitlement (as defined in Section
8-102(a)(17) of the UCC) therein by reason of a securities intermediary: (i)
indicating by book entry that such financial asset has been credited to the
Indenture Trustee's security account (as defined in Section 8-501(a) of the
UCC); (ii) receiving such financial asset for the Indenture Trustee and
accepting it for credit to the Indenture Trustee's securities account; or (iii)
becoming obligated under other law, regulation, or rule to credit such financial
asset to the Indenture Trustee's securities account.
"Delivery Date" has the meaning specified in Section 2.16(b) hereof.
"Depositor" means Seller in its capacity as Depositor under the Trust
Agreement.
"Determination Date" means, with respect to a Payment Date or a redemption
date, the last Business Day of the calendar month immediately preceding the
month of such Payment Date or redemption date.
"Eligible Account" means either (a) a segregated account or accounts
maintained with an institution whose deposits are insured by the Federal Deposit
Insurance Corporation, the unsecured and uncollateralized long term debt
obligations of which institution shall be rated "AA" or higher by S&P and "Aa2"
or higher by Moody's and in the highest short term rating by each of the Rating
Agencies, and which is (i) a federal savings and loan association duly
organized, validly existing and in good standing under the federal banking laws,
(ii) an institution duly organized, validly existing and in good standing under
the applicable banking laws of any state, (iii) a national banking association
duly organized, validly existing and in good standing under the federal banking
laws, (iv) a principal subsidiary of a bank holding company, or (v) approved in
writing by the Note Insurer and as to which each of the Rating Agencies has
indicated that the use of such account shall not cause the withdrawal of its
rating on any Notes or
17
(b) a segregated trust account or accounts maintained with the trust department
of a federal or state chartered depository institution acceptable to each Rating
Agency and the Note Insurer, having capital and surplus of not less than
$100,000,000, acting in its fiduciary capacity.
"Eligible Investments" means any one or more of the following obligations
or securities:
(a) (i) direct interest-bearing obligations of, and interest-bearing
obligations guaranteed as to payment of principal and interest by, the United
States or any agency or instrumentality of the United States the obligations of
which are backed by the full faith and credit of the United States; and (ii)
direct interest-bearing obligations of, and interest-bearing obligations
guaranteed as to payment of principal and interest by, the Federal National
Mortgage Association or the Federal Home Loan Mortgage Corporation, but only if,
at the time of investment, such obligations are assigned the highest credit
rating by each Rating Agency;
(b) demand and time deposits in, certificates of deposit of, or bankers
acceptances issued by, any depository institution or trust company (including
the Indenture Trustee or any affiliate of the Indenture Trustee, acting in their
respective commercial capacities) incorporated under the laws of the United
States of America or any State thereof and subject to supervision and
examination by federal or state banking authorities, the commercial paper or
other short-term debt obligations of such depository institution or trust
company (or, in the case of a depository institution which is the principal
subsidiary of a holding company, the commercial paper or other short-term debt
obligations of such holding company) having a rating of no less than "A-1+" by
Standard & Poor's and "P-1" by Moody's and a maturity of not more than 365 days;
provided, however, that in order to be an "Eligible Investment" such security or
obligation must have characteristics consistent with the Trust's status as a
"Qualifying SPE" (within the meaning of the Statement of Financial Accounting
Standards No. 140 ("FAS 140")) under FAS 140 or any successor accounting
standard thereto, including but not limited to being a passive non-voting
security or obligation.
(c) securities (which shall be commercial paper, federal funds, money
market funds, unsecured certificates of deposit, time deposits or banker's
acceptances) bearing interest or sold at a discount issued by any corporation
incorporated under the laws of the United States of America or any State thereof
which have a rating of no less than "A-1" by Standard & Poor's and "P-1" by
Moody's, provided, however, that (i) securities issued by any particular
corporation will not be Eligible Investments to the extent that investment
therein will cause the then outstanding principal amount of securities issued by
such corporation and held as part of the Trust Property to exceed ten percent
(10%) of the sum of the Aggregate Outstanding Principal Balance of the Notes of
each Class and the aggregate principal amount of all Eligible Investments held
as part of the Trust Property and (ii) each investment should not mature beyond
thirty (30) days and is not eligible for the Reserve Fund;
(d) commercial paper (including both non-interest bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more than one year after the closing date thereof) having the highest
commercial paper rating from Standard & Poor's and Moody's and a maturity of not
more than 365 days;
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(e) money market mutual funds registered under the 1940 Act which invest
only in other Eligible Investments, having a rating, at the time of such
investment, of no less than "Aaa" by Moody's and "AAA" by Standard & Poor's; or
(f) any investment approved in writing by the Note Insurer and with respect
to which there is written evidence that such investment will not result in a
downgrading or withdrawal of the rating on any Note by a Rating Agency.
The Indenture Trustee may purchase from or sell to itself or an Affiliate,
as principal or agent, the Eligible Investments listed above. All Eligible
Investments in a pledged Account shall be made in the name of the Indenture
Trustee for the benefit of the Noteholders, the Note Insurer and the Swap
Counterparty.
"Eligible Receivable" means a Receivable meeting all of the requirements of
Section 3.02(b) of the Transfer and Assignment Agreement as of the Closing Date
or the applicable Funding Date, as the case may be.
"Eligible Servicer" means the Servicer or an entity which, at the time of
its appointment as Servicer, (a) is legally qualified and has the capacity to
service the Receivables, (b) has demonstrated the ability to professionally and
competently service a portfolio of motor vehicle retail installment sale
contracts in accordance with high standards of skill and care and (c) is
approved in writing by the Note Insurer. The determination of the qualifications
specified in subsections (a) and (b) of this definition shall be made by the
Indenture Trustee with the prior written approval of the Note Insurer.
"Event of Default" has the meaning specified in Section 9.01 of this
Indenture.
"Event of Insolvency" has the meaning specified in Section 9.01 of this
Indenture.
"Event of Servicing Default" has the meaning specified in Article V of the
Servicing Agreement.
"Extended Service Agreement" shall mean a service contract covering repairs
to a Financed Vehicle, entered into between the related Obligor and the related
Dealer at the time of origination of the related Receivable and the cost of
which is included in the Amount Financed.
"Final Scheduled Payment Date" means, with respect to the Class A-1 Notes,
the Class A-1 Final Scheduled Payment Date; with respect to the Class A-2 Notes,
the Class A-2 Final Scheduled Payment Date; with respect to the Class A-3-A
Notes, the Class A-3-A Final Scheduled Payment Date; with respect to the Class
A-3-B Notes, the Class A-3-B Final Scheduled Payment Date; with respect to the
Class A-4 Notes, the Class A-4 Final Scheduled Payment Date; with respect to the
Class B-1 Notes, the Class B-1 Final Scheduled Payment Date; and with respect to
the Class B-2 Notes, the Class B-2 Final Scheduled Payment Date.
"Financed Vehicle" means a new or used automobile and/or light-duty truck,
together with all accessions thereto, securing an Obligor's indebtedness under
the respective Receivable.
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"Financing Statement" means, collectively, the Transferor Financing
Statement, the Seller Financing Statement and the Owner Trustee Financing
Statement.
"Fiscal Agent" shall have the meaning ascribed to such term as set forth in
the Note Policy.
"Fitch" means Fitch Inc.
"Funding Date" means a date occurring not more than once per calendar week
during the Funding Period and on which the Subsequent Receivables are
transferred by the Transferor to the Seller, contributed by the Seller to the
Owner Trustee and Granted by the Owner Trustee to the Indenture Trustee.
"Funding Period" means the period beginning on the Closing Date and ending
upon the earliest to occur of (i) the last day of the third full calendar month
following the Closing Date, (ii) the date upon which an Event of Default occurs
and (iii) the date on which the amount on deposit in the Pre-Funding Amount has
been reduced to $10,000 or less.
"Grant" means to pledge, create and grant a first priority security
interest in and with regard to property. A Grant of a Receivable or of any other
instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including without limitation the
immediate and continuing right to claim for, collect, receive and give receipts
for principal and interest payments in respect of such collateral and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise, and generally
to do and receive anything which the granting party is or may be entitled to do
or receive thereunder or with respect thereto.
"Holder" means a Noteholder and, as the context requires, the holder of the
Certificate.
"Indenture" or "this Indenture" means this Indenture as of the date hereof,
as supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof. All references in this
Indenture to designated "Sections," "Subsections" and other subdivisions are to
the designated Sections, Subsections and other subdivisions of this Indenture.
The words "herein," "hereof," "hereunder" and other words of similar import
refer to this Indenture as a whole and not to any particular Section, Subsection
or other subdivision.
"Indenture Trustee" means JPMorgan Chase Bank, until a successor Person
shall have become the Indenture Trustee pursuant to the applicable provisions of
this Indenture, and thereafter "Indenture Trustee" means such successor Person.
"Indenture Trustee Fee" means the fee payable to the Indenture Trustee for
services rendered, determined pursuant to the fee agreement between the
Indenture Trustee and COAF, a copy of which is attached hereto as Exhibit H.
"Independent" means, when used with respect to any specified Person, that
the Person (i) is in fact independent of the Trust, the Owner Trustee, any other
obligor upon the Notes, the
20
Seller and any Affiliate of any of the foregoing Persons, (ii) does not have any
direct financial interest or any material indirect financial interest in the
Trust, the Trust Property or the Owner Trustee, any such other obligor, the
Seller or any Affiliate of any of the foregoing Persons and (iii) is not
connected with the Owner Trustee, any such other obligor, the Seller or any
Affiliate of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.
"Independent Certificate" means a certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 14.01 of this Indenture,
made by an Independent appraiser or other expert appointed by an Issuer Order
and approved by the Indenture Trustee in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.
"Independent Director" means any person who (a) is not and for the prior
five years has not been (i) a stockholder, officer, director, partner or
employee or a significant customer, creditor, supplier or independent contractor
of the Seller, its ultimate parent or any subsidiaries or Affiliates thereof, or
(ii) a member of the immediate family of any person described above, and (b)
does not directly or indirectly own any membership interest of the Seller or any
of its Affiliates.
"Independent Public Accountants" means any of (a) Arthur Andersen LLP, (b)
Deloitte & Touche, (c) PricewaterhouseCoopers, LLP, (d) Ernst & Young LLP, (e)
KPMG LLP, (f) any successor to any of the foregoing or (g) any other firm
approved by the Note Insurer or, if a Note Insurer Default has occurred and is
continuing, the Noteholders constituting Noteholder Approval; provided that such
firm is independent with respect to the Servicer within the meaning of the
Securities Act.
"Initial Interest Rate Swap Agreement" means the ISDA Master Agreement,
dated as of December 6, 2002, between the Swap Counterparty and Capital One Auto
Finance Trust 2002-C, acting by and through Wilmington Trust Company as Owner
Trustee, the Schedule thereto, dated as of December 6, 2002, and the
Confirmation identified as Swap Counterparty Reference Nos. 7326796 and 7326797
entered into pursuant to such ISDA Master Agreement, as the same may be amended
from time to time in accordance with the terms thereof.
"Initial Receivables" means the Receivables acquired by the Seller from the
Transferor, contributed to the Owner Trustee and Granted to the Indenture
Trustee on the Closing Date.
"Initial Reserve Fund Deposit" means an amount equal to $17,021,277.
"Initial Swap Counterparty" means Bank of America, N.A., as the swap
counterparty under the Initial Interest Rate Swap Agreement.
"Insurance Agreement" means the Insurance Agreement dated as of the Closing
Date among the Note Insurer, the Owner Trustee, the Seller, the Transferor, the
Servicer, and the Indenture Trustee.
21
"Insurance Agreement Event of Default" has the meaning specified in Article
I of the Insurance Agreement.
"Insurance Proceeds" means, with respect to a Financed Vehicle and the
related Receivable, any amount received during the related Collection Period
pursuant to any risk default policy, physical damage policy or any other
casualty insurance policy required to be maintained by an Obligor pursuant to
the related Receivable that covers physical damage to the Financed Vehicle
(including policies procured by the Transferor or the Servicer on behalf of such
Obligor), which shall be allocated first, to interest on and second, to the
principal balance of such Receivable, all of which amounts shall be deposited to
the Collection Account.
"Insurer Insolvency" means (a) the entry of a decree or order of a court or
agency having jurisdiction in respect of the Note Insurer in an involuntary case
under any present or future federal or state bankruptcy, insolvency or similar
law or appointing a conservator or receiver or liquidator or rehabilitator or
other similar official of the Note Insurer or of any substantial part of its
property, or the entering of an order for the winding up or liquidation of the
affairs of the Note Insurer and the continuance of any such decree or order
undischarged or unstayed and in force for a period of ninety (90) consecutive
days; (b) the Note Insurer shall consent to the appointment of a conservator or
receiver or liquidator or other similar official in any insolvency, readjustment
of debt, marshaling of assets and liabilities, rehabilitation or similar
proceedings of or relating to the Note Insurer or of or relating to all or
substantially all of its property; or (c) the Note Insurer shall admit in
writing its inability to pay its debts generally as they become due, file a
petition to take advantage of or otherwise voluntarily commence a case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar statute, make an assignment for the benefit of its creditors, or
voluntarily suspend payments of its obligations.
"Interest Rate Swap Agreement" means the Initial Interest Rate Swap
Agreement and any Replacement Interest Rate Swap Agreement.
"Issuance Fund" means the account by that name established pursuant to
Section 5.01 hereof.
"Issuer Order" or "Issuer Request" means a written order or request signed
in the name of the Owner Trustee by an Authorized Officer and delivered to the
Indenture Trustee.
"Late Payment Rate" has the meaning set forth in the Insurance Agreement.
"LIBOR" means, with respect to any Class A-3-B Interest Accrual Period, the
London interbank offered rate for deposits in U.S. dollars having a maturity of
one month commencing on the related LIBOR Determination Date which appears on
Telerate Page 3750 as of 11:00 a.m., London Time, on such LIBOR Determination
Date. If the rates used to determine LIBOR do not appear on the Telerate Page
3750, the rates for that day will be determined on the basis of the rates at
which deposits in U.S. dollars, having a maturity of one month and in a
principal amount of not less than U.S. $1,000,000 are offered at approximately
11:00 a.m. London time, on such LIBOR Determination Date to prime banks in the
London interbank market by the reference banks. The Indenture Trustee will
request the principal London office of each of such reference banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate
for
22
that day will be the arithmetic mean to the nearest 1/100,000 of 1.00%
(0.0000001), with five one-millionths of a percentage point rounded upward, of
all such quotations. If fewer than two such quotations are provided, the rate
for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00%
(0.0000001), with five-millionths of a percentage point rounded upward, of the
offered per annum rates that one or more leading banks in New York City,
selected by the Indenture Trustee, are quoting as of approximately 11:00 a.m.,
New York time, on such LIBOR Determination Date to leading European banks for
United States dollar deposits for that maturity; provided that if the banks
selected as aforesaid are not quoting as mentioned in this sentence, LIBOR in
effect for the applicable Class A-3-B Interest Accrual Period will be LIBOR in
effect for the previous Class A-3-B Interest Accrual Period. The "Telerate Page
3750" is the display page named on the Dow Jones Telerate Services (or any other
page that replaces that page on that service for the purpose of displaying
comparable name of rates). The reference banks are the four major banks in the
London interbank market selected by the Indenture Trustee.
"LIBOR Determination Date" means the second London Business Day prior to
the Closing Date with respect to the first Payment Date and, as to each
subsequent Payment Date, the second London Business Day prior to the immediately
preceding Payment Date.
"Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind other than liens created by the Transaction Documents,
liens for taxes due and payable after the respective Cutoff Date, mechanics'
liens filed after such Cutoff Date, any liens that attach after such Cutoff Date
by operation of law and any liens being released contemporaneously with the
transfer of the Receivables under the Transaction Documents.
"Limited Guaranty" means the Guaranty dated as of the Closing Date issued
by Capital One Financial Corporation for the benefit of the Owner Trustee, the
Note Insurer and the Indenture Trustee.
"Limited Liability Company Agreement" means the Amended and Restated
Limited Liability Company Agreement dated as of July 26, 2001 of Capital One
Auto Receivables, LLC.
"Liquidated Receivable" means any Receivable liquidated by the Servicer
through sale of the Financed Vehicle or otherwise.
"Liquidation Proceeds" means the moneys collected from whatever source,
during the respective Collection Period, on a Liquidated Receivable, including
Insurance Proceeds but excluding Repurchase Prices and Defaulted Receivable
Deposit Amounts, net of any amounts required by law to be remitted to the
related Obligor; such proceeds shall be applied: first, to principal due on the
Receivable; second, to interest due on the Receivable; and third, to outstanding
late fees and prepayment charges allowed by applicable law.
"Loan to Value Ratio" means, with respect to any Receivable, the ratio of
(x) the original Receivable Balance to (y) either (a) with respect to a
Receivable arising from the sale of a new Financed Vehicle, the manufacturer's
wholesale price or (b) with respect to a Receivable arising from the sale of a
used Financed Vehicle, the wholesale value of such Financed Vehicle at the
23
date of origination of the Receivable as set forth in the NADA Used Car Guide
for the appropriate region.
"London Business Day" means any day other than a Saturday, Sunday or a day
on which banking institutions in London, England are authorized or obligated by
law or government decree to be closed.
"Maturity Event" means the failure of the Owner Trustee to pay (a) the
entire Outstanding Principal Balance of all of the Class A Notes on or prior to
the date which is three (3) months after the Class A-4 Final Scheduled Payment
Date or (b) the entire Outstanding Principal Balance of all the Class B-1 Notes
and the Class B-2 Notes on or prior to the date which is three (3) months after
the Class B-1 Final Scheduled Payment Date and the Class B-2 Final Scheduled
Payment Date.
"Monthly Available Funds" means, with respect to the immediately preceding
Collection Period, (a) collections and payments received with respect to the
Receivables and other items of Trust Property, including, without limitation,
Actual Payments, Repurchase Prices, Insurance Proceeds, and Defaulted Receivable
Recoveries representing cleared funds transferred from the Collection Account to
the Revenue Fund and (b) earnings on Eligible Investments on deposit in the
Revenue Fund, the Collection Account and the Reserve Fund as reported in the
Monthly Servicer Report with respect to such Collection Period.
"Monthly Securityholders' Report" means the report described in Section
3.04 of the Servicing Agreement delivered by the Servicer on each Payment Date.
"Monthly Servicer Report" means a report substantially in the form of
Exhibit A to the Servicing Agreement, delivered to the Indenture Trustee by the
Servicer pursuant to the Servicing Agreement.
"Moody's" means Moody's Investors Service, Inc. and its successors and
assigns.
"Net Swap Payment" means for the Interest Rate Swap Agreement, the net
amount with respect to regularly scheduled payments owed by the Owner Trustee to
the Swap Counterparty on any Payment Date, including any interest accrued
thereon, under the Interest Rate Swap Agreement, excluding Swap Termination
Payments.
"Net Swap Receipt" means for the Interest Rate Swap Agreement, the net
amounts owed by the Swap Counterparty to the Owner Trustee, if any, on any date
any such amount is due under the Interest Rate Swap Agreement, including,
without limitation, any Swap Termination Payments.
"Nonconforming Receivable" means a Receivable with respect to which it is
determined, at any time, that the Transferor, the Seller or the Owner Trustee
breached one or more of the representations or warranties defining Eligible
Receivables contained in the Transfer and Assignment Agreement, the Contribution
Agreement or this Indenture, respectively, at the time of transfer by the
Transferor to the Seller under the Transfer and Assignment Agreement, or
contribution by the Seller to the Owner Trustee under the Contribution Agreement
or Grant by
24
the Owner Trustee to the Indenture Trustee hereunder, unless such breach has
been waived, in writing, by the Note Insurer.
"Nonpayment" means that on the Transfer Date relating to any Payment Date,
there exists a Deficiency Amount (as defined in the Note Policy).
"Note" or "Notes" means the Class A Notes and the Class B Notes, issued in
accordance with the provisions of this Indenture. The term "Notes" specifically
does not include the Certificate.
"Note Depository Agreement" means (i) the Letter of Representation among
the Owner Trustee, the Indenture Trustee and the Depository Trust Company, as
the initial Clearing Agency, dated as of the Closing Date, relating to the Class
A Notes, the same as may be amended or supplemented from time to time and (ii)
the Letter of Representation among the Owner Trustee, the Indenture Trustee and
the Depository Trust Company, as the initial Clearing Agency, dated as of the
Closing Date, relating to the Class B Notes, the same as may be amended or
supplemented from time to time.
"Note Guaranty Insurance Policy" or "Note Policy" means the Note Guaranty
Insurance Policy dated the Closing Date issued by the Note Insurer with respect
to the Class A Notes.
"Note Insurer" means MBIA Insurance Corporation, a New York stock insurance
corporation, and its successors and assigns.
"Note Insurer Default" means the occurrence and continuation of any of the
following events: (a) the Note Insurer fails to make a payment required under
the Note Policy or the Swap Policy in accordance with their terms or (b) the
occurrence of an Insurer Insolvency; provided, however, that all rights of the
Note Insurer shall be immediately reinstated following a cure of such Note
Insurer Default.
"Note Owner" means, with respect to a Book-Entry Note, the Person who is
the beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an Indirect
Participant, in each case in accordance with the rules of such Clearing Agency).
"Note Register" and "Note Registrar" have the meanings specified in Section
2.07.
"Noteholder" means the Person in whose name a Note is registered in the
Note Register.
"Noteholder Approval" means, unless expressly provided to the contrary, the
approval or consent by the Holders of not less than 66-2/3% Aggregate
Outstanding Principal Balance of the Outstanding Notes of all Classes,
collectively.
"Notice of Funding" means a notice in the form of Exhibit E hereto.
25
"Obligor" means, with respect to a Receivable, the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes payments
under such Receivable whether as maker, co-maker, guarantor or otherwise.
"Officer's or Officers' Certificate" means a certificate signed by an
Authorized Officer or two Authorized Officers, respectively.
"Opinion of Counsel" means a written opinion of counsel who may, except as
otherwise expressly provided in this Indenture, be outside counsel for the Trust
or the Indenture Trustee and who shall be satisfactory to the Indenture Trustee
and the Note Insurer, and to the extent such opinion is addressed to the Swap
Counterparty, the Swap Counterparty.
"Original Principal Balance" means, with respect to any Class or group of
Classes of Notes, the original stated principal balance of such Class or group
of Classes of Notes, as of the Closing Date.
"Outstanding" means with respect to all, or any Class or group of Classes
of, Notes as of the date of determination, all such Notes authenticated on or
prior to such date and delivered under this Indenture except:
(a) Notes theretofore canceled by the Note Registrar or delivered to the
Note Registrar for cancellation;
(b) Notes or portions thereof for whose payment money in the necessary
amount in redemption thereof has been theretofore deposited with the Indenture
Trustee in trust for the Holders of such Notes;
(c) Notes in exchange for or in lieu of which other Notes of the same Class
have been authenticated and delivered pursuant to this Indenture; and
(d) Notes alleged to have been destroyed, lost or stolen for which
replacement Notes of the same Class have been issued as provided for in Section
2.08 unless proof satisfactory to the Indenture Trustee is presented that any
such Notes are held by a bona fide purchaser;
provided, however, that in determining whether the Noteholders of the
requisite percentage of the Aggregate Outstanding Principal Balance of the Class
A Notes or Class B Notes have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Notes of such Class owned by the
Transferor, the Seller, the Owner Trustee or any Affiliate thereof shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be fully protected in relying upon any such
request, demand, authorization, direction, notice, consent, or waiver, only
Notes which the Indenture Trustee actually knows to be so owned shall be so
disregarded. Notes so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Indenture Trustee, in its sole discretion, the pledgee's right so to act with
respect to such Notes and that the pledgee is not the Transferor, the Seller,
the Owner Trustee or any Affiliate thereof.
26
"Outstanding Principal Balance" means, with respect to any Note as of any
date of determination, the difference between (x) the Original Principal Balance
of such Note, and (y) all prior payments, if any, made with respect to principal
on such Note.
"Owner Trustee" means Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as the Owner Trustee of
Capital One Auto Finance Trust 2002-C under the Trust Agreement, and any
successor Owner Trustee under the Trust Agreement.
"Owner Trustee Fee" means the fee payable to the Owner Trustee for services
rendered, determined pursuant to the fee agreement between Wilmington Trust
Company, in its individual capacity, and COAF.
"Owner Trustee Financing Statement" means a UCC-1 financing statement
naming the Indenture Trustee as the secured party/creditor and the Owner Trustee
as the debtor.
"Ownership Interest" means, with respect to any Note, any ownership
interest in such Note, including any interest in such Note as the Noteholder
thereof and any other interest therein, whether direct or indirect, legal or
beneficial.
"Paying Agent" means: (a) when used in the Indenture or otherwise with
respect to the Notes, the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 7.08 of
this Indenture and is authorized by the Owner Trustee to make the payments to
and distributions from the Revenue Fund, including payment of principal of or
interest on the Notes on behalf of Owner Trustee; and (b) when used in the Trust
Agreement or otherwise with respect to the Certificates, the Owner Trustee or
any other payment agent or co-paying agent appointed pursuant to Section 3.9 of
the Trust Agreement.
"Payment Date" means the 15th day of each month during which any of the
Notes remain Outstanding (provided, if any such date is not a Business Day, then
the Payment Date shall be the next succeeding Business Day) beginning on
February 18, 2003. To the extent set forth in this Indenture, if the Aggregate
Outstanding Principal Balance of the Class A-1 Notes has not been reduced to
zero on or before the Class A-1 Final Scheduled Payment Date, the Indenture
Trustee will be required to make payments to the Class A-1 Noteholders on the
Class A-1 Final Scheduled Payment Date.
"Perfection Representations" means the representations, warranties and
covenants set forth in Schedule 2 attached hereto.
"Perfection UCCs" means, with respect to each Receivable and the related
Trust Property, (a) the date stamped original of the filed Transferor Financing
Statement covering such Receivable and the related Trust Property, (b) the date
stamped original of the filed Seller Financing Statement covering such
Receivable and the related Trust Property, (c) the date stamped original of the
filed Owner Trustee Financing Statement covering such Receivable and the related
Trust Property and (d) the date stamped original of the filed Termination
Statements releasing the liens held by creditors of the Transferor covering such
Receivable and the related Trust Property, or, in the case of (d) above, one of
(y) a copy of search results performed by a national search company, or (z) a
copy of search results obtained through a national data base
27
system, indicating that such Termination Statements have been filed in the UCC
filing offices of the States in which the Financing Statements being terminated
were originally filed.
"Performance Guarantor" means Capital One Financial Corporation or any
successor thereto under the Limited Guaranty.
"Person" means any individual, corporation, partnership, joint venture,
association, limited liability company, limited liability partnership, joint
stock company, trust (including any beneficiary thereof), unincorporated
organization or government or any agency or political subdivision thereof.
"Physical Property" has the meaning set forth in paragraph (a) of the
definition of "Delivery" herein.
"Policy" or "Policies" means the Note Policy and/or the Swap Policy, as
applicable.
"Predecessor Notes" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.08 in lieu of a lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the lost, destroyed or
stolen Note.
"Pre-Funding Account" means the account by that name established pursuant
to Section 5.01 and maintained pursuant to Section 5.08.
"Premium" means the insurance premium payable to the Note Insurer pursuant
to the Insurance Agreement.
"Principal Collections" means, with respect to any Payment Date, the sum,
without duplication, of: (a) the principal portion of all Scheduled Payments
collected during the preceding Collection Period with respect to each Receivable
that has not become a Defaulted Receivable; plus (b) for each Receivable that
became a Defaulted Receivable during the related Collection Period (other than a
Defaulted Receivable with respect to which a repurchase has occurred), the
Defaulted Receivable Deposit Amount; plus (c) the principal portion of all
prepayments received during the preceding Collection Period; plus (d) the
Receivable Balance of each Receivable immediately prior to repurchase that
became a Repurchased Receivable under an obligation that arose during the
preceding Collection Period; plus (e) all Cram Down Losses which occurred during
the related Collection Period, to the extent not included in prior Principal
Collections on prior Payment Dates; plus (f) the principal portion of Insurance
Proceeds collected during the preceding Collection Period; provided, however,
that in calculating the Principal Collections the following will be excluded:
(x) all payments and proceeds of any Repurchased Receivables the Repurchase
Price of which has been included in the Principal Collections in a prior
Collection Period, (y) Liquidation Proceeds attributable to principal on
Liquidated Receivables included in the Principal Collections in a prior
Collection Period and (z) Defaulted Receivable Recoveries with respect to
Defaulted Receivables for which Defaulted Receivable Deposit Amounts were
included in the Principal Collections in a prior Collection Period.
28
"Prospectus" means, collectively, the preliminary Prospectus Supplement,
dated December 2, 2002, to the Prospectus dated December 2, 2002, and the final
Prospectus Supplement, dated December 6, 2002, to the Prospectus dated December
2, 2002, each relating to the offer and sale of the Class A Notes on the Closing
Date.
"Rating Agencies" means Standard & Poor's, Moody's and Fitch.
"Rating Agency Condition": With respect to any action taken or to be taken
hereunder, a condition that is satisfied when each of the Rating Agencies shall
have notified the Servicer, the Note Insurer and the Indenture Trustee in
writing that such action will not result in the immediate reduction or
withdrawal with respect to any then-current rating of any Class of Notes
(determined without regard to the Policies, as applicable).
"Receivable" means the obligation of an Obligor, as evidenced by a retail
installment contract and security agreement and/or installment loans
substantially in one of the forms included in Exhibit B to the Transfer and
Assignment Agreement, or such other forms as may be added by amendment or
supplement to the Transfer and Assignment Agreement.
"Receivable Balance" means with respect to a Simple Interest Receivable,
the Simple Interest Receivable Balance and, with respect to a Scheduled Interest
Receivable, the Scheduled Interest Receivable Balance.
"Receivables Pool" means, with respect to any date of determination, all
the Receivables then Granted to the Indenture Trustee pursuant to the terms of
this Indenture.
"Receivables Purchase Price" means, with respect to any Receivables, 99.00%
of the Aggregate Receivable Balance of such Receivables as of the applicable
Cutoff Date plus the right to receive interest accrued thereon prior to such
Cutoff Date if paid by the respective Obligor after such Cutoff Date.
"Record Date" means, with respect to a Payment Date or a redemption date,
(i) in the case of Notes maintained in book-entry form, the close of business on
the Business Day prior to such Payment Date or redemption date, and (ii) in the
case of Definitive Notes, the close of business on the last day of the calendar
month immediately preceding the month of such Payment Date or redemption date.
"Redemption Date" means the Payment Date fixed for the optional redemption
of the Notes under Section 6.02 of this Indenture.
"Referral Originator" means a bank, finance company, car rental company or
factory authorized dealer or its affiliates or any other entity approved in
writing by the Note Insurer which has entered into an agreement with the
Transferor regarding the purchase by the Transferor of Receivables from such
entity.
"Referral Receivable" means a Receivable originated by a Referral
Originator through the COAF referral program which has been validly assigned to
the Transferor, but for which the Transferor is not noted as the lienholder on
the related Certificate of Title.
29
"Reimbursement Obligations" means the sum of (a) the aggregate unreimbursed
amount of any payments made by the Note Insurer under the Note Policy and the
Swap Policy (excluding reimbursements for Swap Termination Payments made under
the Swap Policy), together with interest on such amount from the date of payment
by the Note Insurer until paid in full at a rate of interest equal to the Late
Payment Rate (as defined in the Insurance Agreement), (b) all costs and expenses
of the Note Insurer in connection with any action, proceeding or investigation
affecting the Trust, the Trust Estate or the rights or obligations of the Note
Insurer hereunder or under the Note Policy and the Swap Policy (excluding
reimbursements for Swap Termination Payments made under the Swap Policy) or the
Transaction Documents, including (without limitation) any judgment or settlement
entered into affecting the Note Insurer or the Note Insurer's interests,
together with interest thereon at a rate equal to the Late Payment Rate and (c)
any other amounts owed to the Note Insurer under the Insurance Agreements,
together with interest thereon at a rate equal to the Late Payment Rate.
"Re-Liening Expenses" means the fees and expenses incurred by the Indenture
Trustee following the occurrence of a Re-Liening Trigger in connection with the
amendment of title documents or other evidence of lien with respect to the
Financed Vehicles to reflect the security interest of the Indenture Trustee in
such Financed Vehicles.
"Re-Liening Trigger" means the occurrence of one or more of the following:
(a) COAF shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, marshaling of assets and liabilities or similar
proceedings or relating to COAF or relating to all or substantially all of the
property of COAF, or a decree or order of a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a
conservator or receiver or liquidator in any insolvency, marshaling of assets
and liabilities or similar proceedings shall have been entered against COAF; or
COAF shall admit in writing its inability to pay all or substantially all of its
debts generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute or make an assignment of all or
substantially all of its property for the benefit of its creditors;
(b) one or more courts of competent jurisdiction have issued final,
non-appealable orders to the effect that the Indenture Trustee is not the
secured party with respect to Financed Vehicles financed under Receivables with
an initial aggregate Receivable Balance (as of the date upon which such
Receivables were acquired by COAF), equal to 5.00% or more of the Aggregate
Receivable Balance as of the Closing Date; or
(c) an Event of Default.
"Replacement Interest Rate Swap Agreement" means, with respect to any Swap
Counterparty, any replacement Interest Rate Swap Agreement entered into pursuant
to the conditions set forth in the Interest Rate Swap Agreement.
"Replacement Swap Counterparty" means, with respect to any Swap
Counterparty, any replacement Swap Counterparty that satisfies the conditions
set forth in the Interest Rate Swap Agreement.
30
"Repurchase Price" means 100% of the outstanding Receivable Balance of a
Receivable (without giving effect to any previous reduction in the Receivable
Balance as a result of such Receivable becoming a Defaulted Receivable) on the
date of repurchase, plus the pro rata portion of the accrued and unpaid
Servicing Fee and Premium allocable to such Receivable, plus accrued and unpaid
interest, if any, to the date of repurchase provided for in the retail
installment contract and/or installment loan evidencing such Receivable.
"Repurchased Receivable" means a Receivable released from the lien hereof
pursuant to Section 2.15 hereof and, if applicable, transferred to the Seller
pursuant to the Contribution Agreement and repurchased by the Transferor
pursuant to the Transfer and Assignment Agreement.
"Reserve Fund" means the account by that name established pursuant to
Section 5.01 hereof and maintained pursuant to Section 5.10 hereof.
"Reserve Fund Minimum" means on any date of determination an amount which
shall be equal to the greater of 2.00% of the current Aggregate Receivables
Balance and 1.00% of the sum of the Aggregate Receivable Balance as of the
initial Cutoff Date and the Aggregate Receivable Balance of all Subsequent
Receivables as of their respective Cutoff Dates; provided, that on each day on
and after the Aggregate Receivable Balance has been reduced to zero and all
amounts owing to the Class A Noteholders, the Note Insurer and the Swap
Counterparty have been paid in full the "Reserve Fund Minimum" will be zero;
provided, further, that on any date of determination prior to the end of the
Funding Period, the "Reserve Fund Minimum" shall equal the amount set forth
above plus an amount equal to any remaining funds on deposit in the Reserve Fund
which were deposited therein on the Closing Date to cover the negative arbitrage
with respect to the funds deposited in the Pre-Funding Account on the Closing
Date.
"Reserve Fund Requirement" means, with respect to the Closing Date, the
Initial Reserve Fund Deposit. Following the Closing Date, the Reserve Fund
Requirement, on each Payment Date, shall be equal to the Reserve Fund Minimum;
provided that on each Payment Date related to a Collection Period during which
an Accelerated Reserve Fund Event has occurred and is continuing, and thereafter
(unless such Accelerated Reserve Fund Event has been cured) the Reserve Fund
Requirement, on each Payment Date, shall be equal to the greater of (i) 6.00% of
the Aggregate Outstanding Principal Balance of the Class A Notes after giving
effect to the Class A Principal Payment Amount paid on such Payment Date and
(ii) 3.00% of the sum of the Aggregate Receivable Balance as of the initial
Cutoff Date and the aggregate Receivable Balance of all Subsequent Receivables
as of their respective Cutoff Dates and provided, further, however, that on each
Payment Date on which the Aggregate Outstanding Principal Balance of the Class A
Notes plus the Aggregate Outstanding Principal Balance of the Class B Notes,
after giving effect to the Class A Principal Payment Amount and principal on the
Class B Notes paid on such Payment Date, is less than $8,510,639, the Reserve
Fund Requirement shall equal the Aggregate Outstanding Principal Balance of the
Class A Notes plus the Aggregate Outstanding Principal Balance of the Class B
Notes, after giving effect to the Class A Principal Payment Amount and principal
on the Class B Notes paid on such Payment Date.
"Responsible Officer" means, when used with respect to the Indenture
Trustee, any officer assigned to the Corporate Trust Office of the Indenture
Trustee (or any successor thereto),
31
including any Vice President, Senior Trust Officer, Trust Officer, Authorized
Signer, Assistant Trust Officer, any Assistant Secretary, any trust officer or
any other officer of the Indenture Trustee customarily performing functions
similar to those performed by any of the above designated officers and having
direct responsibility for the administration of this Indenture, and also, with
respect to a particular matter, any other officer, to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.
"Revenue Fund" means the fund by that name established pursuant to Section
5.01 hereof.
"S&P" or "Standard & Poor's" means Standard & Poor's Rating Services, a
division of The McGraw-Hill Companies, Inc., a corporation organized and
existing under the laws of the State of Delaware, and its successors and
assigns.
"Schedule of Receivables" means, as the context may require, (i) the
schedule of Initial Receivables or Subsequent Receivables, as the case may be,
transferred to the Seller by the Transferor, contributed to the Owner Trustee by
the Seller and Granted to the Indenture Trustee by the Owner Trustee on the
Closing Date or a Funding Date, respectively, which schedule is attached to an
assignment substantially in the form of Exhibit D hereto, or (ii) collectively,
the schedules of all Receivables assigned to the Seller by the Transferor,
contributed to the Owner Trustee by the Seller and Granted to the Indenture
Trustee by the Owner Trustee as of the date of determination.
"Scheduled Interest Receivable" means any Receivable under which the
portion of a payment allocable to earned interest (which may be referred to in
the related contract as an add-on finance charge) and the portion allocable to
the Amount Financed is determined according to the sum of periodic balances, the
sum of monthly balances, the "Rule of 78's" or any equivalent method.
"Scheduled Interest Receivable Balance" means, with respect to any
Scheduled Interest Receivable, as of the close of business on the related Cutoff
Date, or the last day of a Collection Period, the gross principal balance of
such Scheduled Interest Receivable on the records of the Servicer as of the
related Cutoff Date, net of unearned or accrued interest reflected therein minus
(i) that portion of all payments received with respect to such Scheduled
Interest Receivable since the related Cutoff Date allocable to principal of such
Scheduled Interest Receivable using the actuarial or constant yield method, (ii)
any payment of the Repurchase Price with respect to the Scheduled Interest
Receivable allocable to principal, (iii) the aggregate amount of Cram Down
Losses, if any, which have occurred with respect to such Scheduled Interest
Receivable and (iv) any refunded portion of extended warranty protection plan
costs, or of physical damage, credit life or disability insurance premiums
included in the gross principal balance of such Scheduled Interest Receivable;
provided that the Scheduled Interest Receivable Balance of any Scheduled
Interest Receivable (A) as to which the Defaulted Receivable Deposit Amount was
previously included in Principal Collections or (B) which has become a
Repurchased Receivable shall be zero.
"Scheduled Payment" means the fixed payment required to be made by the
Obligor during the respective Collection Period sufficient to amortize the
Receivable Balance over the
32
stated term of the Receivable and to provide interest at the fixed contract
rate; provided, however, that "Scheduled Payment" does not include late fees,
prepayment charges allowed by applicable law, finance charges or payments for
physical damage, credit life, credit disability or mechanical repair insurance
premiums whether such insurance was purchased by the Obligor or by a creditor on
behalf of the Obligor; provided, further, that "Scheduled Payment" may, for
purposes only of determining the existence or classification of Defaulted
Receivables and Delinquent Receivables, in accordance with normal servicing
procedures in the applicable jurisdiction, as determined in the sole discretion
of the Servicer, mean an amount equal to no less than 90% of the fixed or
Scheduled Payment; provided, further, that in no event shall any such shortfalls
in the fixed or Scheduled Payment received from or on behalf of the Obligor be
forgiven.
"Securities Act" means the Securities Act of 1933, as amended.
"Securities Depository" means The Depository Trust Company and its
successors and assigns or if (i) the then Securities Depository resigns from its
functions as depository of the Notes or (ii) the Owner Trustee discontinues use
of the Securities Depository pursuant to Section 2.12 of this Indenture, any
other securities depository which agrees to follow the procedures required to be
followed by a securities depository in connection with the Notes and which is
selected by the Seller with the consent of the Indenture Trustee.
"Seller" means Capital One Auto Receivables, LLC, a Delaware limited
liability company.
"Seller Financing Statement" means a UCC-1 financing statement naming the
Owner Trustee as the secured party/creditor and the Seller as the debtor.
"Servicer" means COAF as the Servicer of the Receivables or any other
Eligible Servicer acting as servicer pursuant to the Servicing Agreement. Unless
the context otherwise requires, "Servicer" also refers to any successor Servicer
appointed hereunder or pursuant to the Servicing Agreement.
"Servicer Files" has the meaning set forth in Section 2.16 of the Servicing
Agreement.
"Servicing Agreement" means that certain Servicing Agreement dated as of
the date hereof among the Owner Trustee, the Indenture Trustee and the Servicer,
relating to the servicing of the Receivables.
"Servicing Fee" means the fee by that name payable to the Servicer for
services rendered determined pursuant to Section 2.08 of the Servicing
Agreement.
"Servicing Officer" means those officers of the Servicer involved in, or
responsible for, the administration and servicing of the Receivables, as
identified on the list of Servicing Officers furnished by the Servicer to the
Indenture Trustee and the Note Insurer from time to time.
"Simple Interest Method" means the method of allocating a fixed level
payment to principal and interest, pursuant to which the portion of such payment
that is allocated to interest
33
is equal to the product of the fixed rate of interest multiplied by the unpaid
principal balance multiplied by the period of time elapsed since the preceding
payment of interest was made.
"Simple Interest Receivable" means any Receivable under which the portion
of a payment allocable to interest and the portion allocable to principal is
determined in accordance with the Simple Interest Method.
"Simple Interest Receivable Balance" means, with respect to a Simple
Interest Receivable, as of the close of business on the related Cutoff Date, or
the last day of a Collection Period, the Amount Financed minus the sum of (i)
the portion of all payments made by the related Obligor on or prior to such day
(including prepayments) and allocable to principal using the Simple Interest
Method, (ii) any payment of the Repurchase Price with respect to the Simple
Interest Receivable allocable to principal, (iii) the aggregate amount of Cram
Down Losses, if any, which have occurred with respect to such Simple Interest
Receivable and (iv) any refunded portion of extended warranty protection plan
costs, or of physical damage, credit life or disability insurance premiums
included in the Amount Financed; provided that the Simple Interest Receivable
Balance of any Simple Interest Receivable (A) as to which the Defaulted
Receivable Deposit Amount was previously included in Principal Collections or
(B) which has become a Repurchased Receivable shall be zero.
"State" means any one or more of the United States and the District of
Columbia.
"Subsequent Receivables" means the Eligible Receivables acquired by the
Seller from the Transferor, contributed to the Owner Trustee and Granted to the
Indenture Trustee on a Funding Date.
"Subsequent Reserve Fund Deposit" means, with respect to a Funding Date, an
amount equal to 2.00% of the Aggregate Receivable Balance of the Subsequent
Receivables with respect to such Funding Date.
"Successor Servicer" means that person succeeding the Servicer under and
pursuant to the Servicing Agreement.
"Swap Collateral Account" means a single, segregated trust account in the
name of the Indenture Trustee, which shall be designated as the "Swap Collateral
Account" which shall be held in trust for the benefit of the Noteholders
established pursuant to Section 8.01(e) hereof.
"Swap Counterparty" means the Initial Swap Counterparty and any Replacement
Swap Counterparty.
"Swap Payment Date" means the date on which Net Swap Receipts or Net Swap
Payments, as applicable, are made pursuant to the Interest Rate Swap Agreement.
"Swap Policy" means the Interest Rate Swap Insurance Policy dated as of
December 17, 2002 issued by the Note Insurer for the benefit of the Initial Swap
Counterparty with respect to the Initial Interest Rate Swap Agreement.
34
"Swap Replacement Proceeds" means any amounts received from a Replacement
Swap Counterparty in consideration for entering into a Replacement Swap
Agreement for the terminated Interest Rate Swap Agreement.
"Swap Termination Payments" means payment due to the Swap Counterparty by
the Owner Trustee or to the Owner Trustee by the Swap Counterparty, including
interest that may accrue thereon, under the Interest Rate Swap Agreement due to
a termination of the Interest Rate Swap Agreement due to an "event of default"
or "termination event" under the Interest Rate Swap Agreement.
"Swap Termination Payment Account" means a single segregated account held
in the United States in the name of the Indenture Trustee for the benefit of the
holders of the Notes under this Indenture pursuant to Section 8.01(c) hereof.
"Termination Statement" has the meaning set forth in Section 2.11(l)
hereof.
"Transaction Documents" means the Indenture, the Insurance Agreement, the
Transfer and Assignment Agreement, the Contribution Agreement, the Servicing
Agreement, the Limited Liability Company Agreement, the Trust Agreement, the
Underwriting Agreement, the Note Depository Agreement, the Administration
Agreement, the Limited Guaranty, the Interest Rate Swap Agreement, the Notes and
the Certificate.
"Transfer" means any direct or indirect transfer or sale of any Ownership
Interest in a Note.
"Transfer and Assignment Agreement" means the Transfer and Assignment
Agreement dated as of the date hereof between the Transferor and the Seller
relating to the absolute assignment of Receivables by the Transferor to the
Seller.
"Transfer Date" means the date three (3) Business Days prior to each
Payment Date.
"Transferee" means any Person who is acquiring by Transfer any Ownership
Interest in a Note.
"Transferor" means COAF in its capacity as Transferor under the Transfer
and Assignment Agreement.
"Transferor Financing Statement" means a UCC-1 financing statement naming
the Transferor as the debtor/seller and the Seller as the secured
party/purchaser.
"Transition Costs" means an amount necessary to reimburse the successor to
the Servicer, the Indenture Trustee or the Owner Trustee, as the case may be,
for reasonable costs and expenses not to exceed the total amount of $35,000 on a
cumulative basis incurred in connection with the transition of certain duties
from the Servicer to a successor.
"Trust" shall mean Capital One Auto Finance Trust 2002-C, a Delaware common
law trust established pursuant to the Trust Agreement, acting by and through
Wilmington Trust Company, as the Owner Trustee.
35
"Trust Agreement" means the Amended and Restated Trust Agreement dated as
of December 17, 2002 amending and restating that certain Trust Agreement dated
as of November 15, 2002, between the Depositor and the Owner Trustee, as the
same may be amended and supplemented from time to time.
"Trust Estate" means all money, instruments, rights and other property that
are subject or intended to be subject to the lien and security interest of the
Indenture for the benefit of the Noteholders and the Swap Counterparty
(including all property and interests Granted to the Indenture Trustee),
including all proceeds thereof.
"Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 and
the rules and regulations promulgated thereunder, as in force on the date
hereof, unless otherwise specifically provided.
"Trust Property" means the property and rights Granted to the Indenture
Trustee pursuant to this Indenture for the benefit of the Noteholders, the Note
Insurer and the Swap Counterparty pursuant to the Granting Clauses hereof.
"UCC" means the Uniform Commercial Code as adopted in the State of Texas,
and in any other state having jurisdiction over the assignment, transfer,
contribution or pledge of the Receivables from the Transferor to the Seller or
from the Seller to the Owner Trustee or from the Owner Trustee to the Indenture
Trustee.
"Underwriters" means Banc of America Securities LLC, J.P. Morgan Securities
Inc., Barclays Capital, Inc. and Lehman Brothers Inc. and their respective
successors and assigns.
"Underwriting Agreement" means that certain Underwriting Agreement dated
December 6, 2002, among the Seller, the Transferor and Banc of America
Securities LLC, as representative of the Underwriters, as amended, modified or
restated from time to time.
"Vice President" means, with respect to the Transferor, the Seller, the
Servicer or the Indenture Trustee, any vice president, whether or not designated
by a number or a word or words added before or after the title "vice president."
Section 1.02 Calculations. Calculations required to be made pursuant to
this Indenture shall be made on the basis of information or accountings as to
payments on each Note furnished by the Servicer. Except to the extent they are
incorrect on their face, such information or accountings may be conclusively
relied upon in making such calculations, but to the extent that it is later
determined that any such information or accountings are incorrect, appropriate
corrections or adjustments will be made.
Section 1.03 Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:
"Commission" means the Securities and Exchange Commission.
36
"indenture securities" means the Notes.
"indenture security holder" means a Noteholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Indenture Trustee.
"obligor" on the indenture securities means the Owner Trustee and any other
obligor on the indenture securities.
All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meanings assigned to them by such definitions.
Section 1.04 Other Interpretive Provisions. All terms defined in this
Indenture shall have the defined meanings when used in any certificate or other
document delivered pursuant hereto unless otherwise defined therein. For
purposes of this Indenture and all such certificates and other documents, unless
the context otherwise requires: (a) accounting terms not otherwise defined in
this Indenture, and accounting terms partly defined in this Indenture to the
extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles; (b) the words "hereof," "herein" and
"hereunder" and words of similar import refer to this Indenture as a whole and
not to any particular provision of this Indenture; (c) references to any
Article, Section, Schedule or Exhibit are references to Articles, Section,
Schedules and Exhibits in or to this Indenture and references to any paragraph,
subsection, clause or other subdivision within any Section or definition refer
to such paragraph, subsection, clause or other subdivision of such Section or
definition; (d) the term "including" means "including without limitation"; (e)
except as otherwise expressly provided herein, references to any law or
regulation refer to that law or regulation as amended from time to time and
include any successor law or regulation; (f) references to any Person include
that Person's successors and assigns; and (g) headings are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.
ARTICLE II
THE NOTES; RECONVEYANCE
Section 2.01 General.
(a) The Notes shall be designated as Class A-1 Notes, Class A-2 Notes,
Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes and Class
B-2 Notes.
(b) All payments of principal and interest with respect to the Notes shall
be made only from the Trust Property and the Note Policy on the terms and
conditions specified herein. Each Noteholder (and each Note Owner by its
acceptance of its interest in the applicable Book-Entry Note), by its acceptance
of the Notes, agrees that, subject to the repurchase obligations of the
Transferor, the Seller and the Owner Trustee and the indemnification obligations
provided for herein, in the Servicing Agreement, in the Contribution Agreement
and in the Transfer and
37
Assignment Agreement, it will have recourse solely against such Trust Property
and such repurchase and indemnification obligations.
(c) Except as otherwise provided herein, all Notes shall be substantially
identical in all respects. Except as specifically provided herein, all Notes
issued, authenticated and delivered under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture;
except that payments of principal with respect to the Class B Notes shall be
subordinate in all respects to payments of principal and interest with respect
to the Class A Notes and certain other amounts as specified in Section 5.05(c)
hereof and payments of interest with respect to the Class B Notes shall be
subordinate to payments of interest with respect to the Class A Notes.
(d) The aggregate Original Principal Balance of the Class A-1 Notes, Class
A-2 Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1
Notes and Class B-2 Notes that may be executed by the Owner Trustee and
authenticated and delivered by the Indenture Trustee under this Indenture is
limited to $165,000,000, $203,000,000, $115,000,000, $126,000,000, $191,000,000,
$34,043,000 and $8,510,191 respectively.
Holders of the Class A Notes and the Class B Notes shall be entitled to
payments of interest as provided herein. The Class A-1 Notes shall have a final
maturity on the Class A-1 Final Scheduled Payment Date, the Class A-2 Notes
shall have a final maturity on the Class A-2 Final Scheduled Payment Date, the
Class A-3-A Notes shall have a final maturity on the Class A-3-A Final Scheduled
Payment Date, the Class A-3-B Notes shall have a final maturity on the Class
A-3-B Final Scheduled Payment Date, the Class A-4 Notes shall have a final
maturity on the Class A-4 Final Scheduled Payment Date, the Class B-1 Notes
shall have a final maturity on the Class B-1 Final Scheduled Payment Date and
the Class B-2 Notes shall have a final maturity on the Class B-2 Final Scheduled
Payment Date assuming that (i) scheduled interest and principal payments on each
Receivable are timely received, (ii) no prepayments of principal are received
with respect to any Receivable and (iii) there is no Event of Default or
optional redemption of the Notes. All Notes of the same Class shall be secured
on parity with one another, with no Note of any Class having any priority over
any other Note of that same Class.
(e) The Notes that are authenticated and delivered to the Noteholders by
the Indenture Trustee to or upon an Issuer Order on the Closing Date shall be
dated as of the Closing Date. Any Note issued later in exchange for, or in
replacement of, any Note issued on the Closing Date shall be dated the date of
its authentication.
(f) Each Note is issuable in the initial denomination of $250,000, and
integral multiples of $1,000 in excess thereof; provided that one Note of each
Class may be issued in an additional amount equal to any remaining portion of
the applicable Original Principal Balance of such Class.
(g) The Certificate will be issued to, and shall be owned by, the Seller
pursuant to the Trust Agreement. The Certificate shall not be entitled to any
stated rate of interest, but shall represent the rights of the holder thereof to
receive certain residual amounts derived from the assets of the Trust Property
on the terms and conditions specified herein; provided, however, that
38
any such rights shall be wholly and completely subordinate and inferior to the
rights of the Noteholders to receive payments of principal and interest as
provided herein, to the rights of the Note Insurer to be paid all Reimbursement
Obligations and reimbursement for any Swap Termination Payments paid under the
Swap Policy and to the payment of certain other amounts as provided herein.
Section 2.02 Forms of Notes
(a) The Notes of each Class shall be issuable only as registered Notes. The
initial Class A Notes and the Indenture Trustee's certificate of authentication
shall be in substantially the form set forth in Exhibit A to this Indenture and
the initial Class B Note and the Indenture Trustee's certificate of
authentication shall be in substantially the form set forth in Exhibit B to this
Indenture, with such appropriate restrictive legends, insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture or as may in the Owner Trustee's judgment be necessary, appropriate or
convenient to establish entitlement to an exemption from United States
withholding tax or reporting requirements with respect to payments on the Notes,
or to comply, or facilitate compliance, with other applicable laws, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required by any applicable regulation
(whether proposed, temporary or final) promulgated pursuant to the Code,
including, without limitation, any legend required in respect of original issue
discount on any Note, or as may, consistently herewith, be determined by the
Owner Trustee executing such Notes, as evidenced by their execution thereof. Any
portion of the text of any Note may be set forth on the reverse thereof with an
appropriate reference on the face of the Note.
(b) The Class A Notes (if they are no longer represented by global notes)
and the Class B-1 Notes (if they are no longer represented by global notes)
shall be printed, typewritten, lithographed, engraved or produced by any
combination of these methods on certificates with or without steel engraved
borders or may be produced in any other manner determined by the Owner Trustee,
all as determined by the officers executing such Class A Notes and Class B-1
Notes, as evidenced by their execution thereof.
Section 2.03 Payment of Principal and Interest.
(a) Until the Aggregate Outstanding Principal Balance of the Class A Notes
is reduced to zero, principal payments on the Class A Notes will be made on each
Payment Date in an amount equal to the Class A Principal Payment Amount. The
remaining principal balance of each Class A Note shall be payable no later than
its respective Final Scheduled Payment Date, unless the maturity of such Class A
Note is accelerated following an Event of Insolvency pursuant to Section 9.02.
The amount of principal payments on the Class A Notes shall be made pursuant to
the provisions of Section 5.05(c) hereof.
(b) Interest shall be payable on the Aggregate Outstanding Principal
Balance of such Class of Class A Notes as provided herein and on the applicable
Class A Notes from the Closing Date until the Aggregate Outstanding Principal
Balance of each Class of Class A Notes is reduced to zero or until payment is
provided therefor as set forth in Article VI hereof, except that on each Payment
Date in which there is a shortfall in the amount of moneys to pay interest on
39
such Class of Class A Notes that arises because the Indenture Trustee has not
received sufficient funds in the Revenue Fund to pay such interest on such Class
of Class A Notes (including any Class A Overdue Interest), such shortfall shall
be paid from the funds and moneys made available to the Indenture Trustee for
such purposes hereunder. After the initial Payment Date, payments of interest
accrued on each Class of Class A Notes will be calculated on the Aggregate
Outstanding Principal Balance of the applicable Class of Class A Notes as of the
Payment Date immediately preceding such Payment Date after giving effect to any
payments of principal on such immediately preceding Payment Date. With respect
to the initial Payment Date, interest will be calculated on the Original
Principal Balance of each Class of Class A Notes from the Closing Date through
the day preceding the initial Payment Date.
(c) If the entire amount of the Class A-1 Note Interest, Class A-2 Note
Interest, Class A-3-A Note Interest, Class A-3-B Note Interest and Class A-4
Note Interest which is payable on any Payment Date shall not have been
punctually made or duly provided for when and as payable (after giving effect to
any applicable cure or grace period), then interest on the applicable Class A
Overdue Interest, as the case may be, shall accrue, from the date such amount
was payable until paid, at the Class A-1 Interest Rate, Class A-2 Interest Rate,
Class A-3-A Interest Rate, Class A-3-B Note Interest Rate or Class A-4 Note
Interest Rate, as applicable, in effect from time to time during such period.
(d) Until the Aggregate Outstanding Principal Balance of the Class B-1
Notes and the Class B-2 Notes is reduced to zero, principal payments on the
Class B-1 Notes and the Class B-2 Notes will be made on each Payment Date
(subject to the provisions of Section 5.05(c) Twelfth) in an amount equal to the
principal paid on the Class B-1 Notes and the Class B-2 Notes; provided that the
remaining principal balance of each Class B-1 Note and Class B-2 Note shall be
due and payable no later than the Class B-1 Final Scheduled Payment Date and the
Class B-2 Final Scheduled Payment Date, as applicable, unless the maturity of
such Class B-1 Note or Class B-2 Note is accelerated following an Event of
Insolvency pursuant to Section 9.02. The principal payments on the Class B-1
Notes and the Class B-2 Notes shall be made pursuant to the provisions of
Section 5.05(c) hereof.
(e) Interest shall be payable on the Aggregate Outstanding Principal
Balance of such Class of Class B Notes as provided herein and on the applicable
Class B Notes from the Closing Date until the Aggregate Outstanding Principal
Balance of each Class of Class B Notes is reduced to zero or until payment is
provided therefor as set forth in Article VI hereof, except that on each Payment
Date in which there is a shortfall in the amount of moneys to pay interest on
the Class B Notes that arises because the Indenture Trustee has not received
sufficient funds in the Revenue Fund to pay such interest on the Class B Notes
(including any Class B Basic Overdue Interest), such shortfall shall be paid
from the funds and moneys made available to the Indenture Trustee for such
purposes hereunder. After the initial Payment Date, payments of interest accrued
on the Class B Notes will be calculated on the Aggregate Outstanding Principal
Balance of the Class B Notes as of the Payment Date immediately preceding such
Payment Date after giving effect to any payments of principal on such
immediately preceding Payment Date. With respect to the initial Payment Date,
interest will be calculated on the Original Principal Balance of the Class B
Notes from the Closing Date through the day preceding the initial Payment Date.
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(f) If the entire amount of the Class B-1 Basic Note Interest and the Class
B-2 Basic Note Interest which is payable on any Payment Date shall not have been
punctually made or duly provided for when and as payable (after giving effect to
any applicable cure or grace period), then interest on the Class B-1 Basic
Overdue Interest and Class B-2 Basic Overdue Interest shall accrue, from the
date such amount was payable until paid, at the Class B-1 Interest Rate and the
Class B-2 Interest Rate, as applicable, in effect from time to time during such
period. If the entire amount of the Class B-1 Supplemental Interest and the
Class B-2 Supplemental Interest which is payable on any Payment Date shall not
have been punctually made or duly provided for when and as payable (after giving
effect to any applicable cure or grace period), then interest on the Class B-1
Supplemental Overdue Interest and Class B-2 Supplemental Overdue Interest shall
accrue, from the date such amount was payable until paid, at the Class B-1
Interest Rate and the Class B-2 Interest Rate, as applicable, in effect from
time to time during such period.
Section 2.04 Payments to Noteholders.
(a) Noteholders of each Class shall, subject to the priorities and
conditions set forth in Section 5.05(c), be entitled to receive payments of
interest and principal on each Payment Date (including any Class A Overdue
Interest, Class A Overdue Principal, Class B Basic Overdue Interest and Class B
Supplemental Overdue Interest). Any payment of interest or principal payable
with respect to the Notes on the applicable Payment Date shall be made to the
Person in whose name such Note is registered at the close of business on the
Record Date for such Payment Date in the manner provided in Section 5.09 hereof.
(b) All reductions in the principal balance of a Note (or one or more
Predecessor Notes) effected by payments of principal made on any Payment Date
shall be binding upon all Holders of such Note and of any Note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof,
whether or not such payment is noted on such Note.
Section 2.05 Execution, Authentication, Delivery and Dating.
(a) The Notes shall be executed on behalf of the Trust by one of the Owner
Trustee's Authorized Officers. The signature of such Authorized Officer on the
Notes may be manual or facsimile. Notes bearing the manual or facsimile
signatures of any individual who was, at the time of execution thereof, an
Authorized Officer of the Owner Trustee, on behalf of the Trust, shall bind the
Owner Trustee on behalf of the Trust, notwithstanding the fact that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices at the
date of issuance of such Notes.
(b) At any time and from time to time after the execution and delivery of
this Indenture, the Owner Trustee may deliver Notes executed by the Owner
Trustee to the Indenture Trustee for authentication and the Indenture Trustee,
upon receipt of the Notes and of an Issuer Order, shall authenticate and deliver
such Notes; provided, however, that the Indenture Trustee shall not authenticate
any Note which on its face and based upon the last information received by the
Indenture Trustee from the Servicer does not comply with the provisions of this
Indenture; provided, further, that the Indenture Trustee shall not authenticate
the initial Notes unless and until it shall have received the documents listed
in Section 2.11 hereof.
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(c) Each Note authenticated and delivered by the Indenture Trustee to or
upon Issuer Order on or prior to the Closing Date shall be dated the Closing
Date. All other Notes that are authenticated after the Closing Date for any
other purposes under the Indenture shall be dated the date of their
authentication.
(d) Notes issued upon transfer, exchange or replacement of other Notes
shall be issued in authorized denominations reflecting the Original Principal
Balance of the Notes so transferred, exchanged or replaced, but shall represent
only the Outstanding Principal Balance of the Notes so transferred, exchanged or
replaced. In the event that any Note is divided into more than one Note in
accordance with this Article II, the Outstanding Principal Balance of such Note
shall be proportionately divided among the Notes delivered in exchange therefor.
(e) No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication, substantially in the form provided for herein,
executed by the Indenture Trustee by the manual signature of at least one of its
Responsible Officers, and such executed certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered.
Section 2.06 Temporary Notes. Unless the Notes are maintained in book-entry
form pursuant to Section 2.12, temporary Notes shall be issuable in any
authorized denomination, and substantially in the form of the Definitive Notes
but with such omissions, insertions and variations as may be appropriate for
temporary Notes, all as may be determined by the Owner Trustee. Every such
temporary Note shall be executed by the Owner Trustee on behalf of Trust and
authenticated by the Indenture Trustee upon the same conditions and in
substantially the same manner, and with the same effect, as the Definitive
Notes. Without unreasonable delay the Owner Trustee on behalf of Trust will
execute and deliver to the Indenture Trustee Definitive Notes (other than in the
case of Notes in global form) and thereupon any or all temporary Notes (other
than in the case of Notes in global form) may be surrendered in exchange
therefor, at the Corporate Trust Office of the Indenture Trustee and the
Indenture Trustee shall authenticate and deliver in exchange for such temporary
Notes an equal aggregate principal amount of Definitive Notes. Such exchange
shall be made by the Owner Trustee at its own expense and without any charge
therefor. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits and subject to the same limitations under this
Indenture as Definitive Notes authenticated and delivered hereunder.
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Section 2.07 Registration, Registration of Transfer and Exchange.
(a) The Owner Trustee shall cause to be kept a register (the "Note
Register") in which the Owner Trustee shall provide for the registration of
Notes and the registration of transfers of Notes. The Indenture Trustee is
hereby initially appointed "Note Registrar," and hereby accepts such
appointment, for the purpose of registering Notes and transfers of Notes as
herein provided subject to such reasonable regulations as the Indenture Trustee
may prescribe. Upon any resignation of any Note Registrar appointed by the Owner
Trustee, the Owner Trustee shall promptly appoint a successor or, in the absence
of such appointment, shall assume the duties of Note Registrar.
(b) Each Person who has or who acquires any Ownership Interest in a Note
shall be deemed by the acceptance or acquisition of such Ownership Interest to
have agreed to be bound by the provisions of this Section 2.07.
(c) All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Owner Trustee, evidencing the same debt
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.
(d) Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Note Registrar duly executed
by, the Holder thereof or such Holder's attorney duly authorized in writing,
with such signature guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar which requirements include membership or
participation in a Securities Transfer Agents Medallion Program ("Stamp") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, Stamp, all in accordance with
the Exchange Act, and (ii) accompanied by such other documents as the Indenture
Trustee may require.
(e) No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Owner Trustee or Indenture Trustee may
require payment of a sum sufficient, to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.06 or 10.06 not
involving any transfer.
(f) No Class A Note, or any interest therein, may be acquired by or
transferred to an "employee benefit plan" within the meaning of Section 3(3) of
ERISA that is subject to ERISA, a "plan" described in Section 4975(e)(1) of the
Code, any entity that is deemed to hold "plan assets" of any of the foregoing by
reason of an employee benefit plan's or other plan's investment in such entity,
or any governmental plan subject to applicable law that is substantially similar
to the fiduciary responsibility provisions of ERISA or Section 4975 of the Code,
unless such transferee represents, warrants and covenants that its purchase and
holding of such Class A Note is and will be eligible for, and satisfies and will
satisfy all the requirements of, Department of Labor prohibited transaction
class exemption ("PTE") 90-1; PTE 96-23; PTE 95-60: PTE 91-38; PTE 84-14 or
another applicable prohibited transaction exemption (or in the case of a
governmental plan, will not violate any applicable law that is substantially
similar to ERISA or
43
Section 4975 of the Code). By its acquisition of a Class A Note or any interest
therein, each purchaser or transferee will be deemed to have represented,
warranted and covenanted that it satisfies the foregoing requirements and the
Indenture Trustee may rely conclusively on the same for purposes hereof.
(g) Each Person who has or who acquires any Ownership Interest in a Class B
Note issued in the form of a Book-Entry Note shall be deemed to have
acknowledged, represented to and agreed with the Indenture Trustee as follows:
(i) It understands and acknowledges that the Class B Notes have not
been registered under the Securities Act or the securities law of any state
or other jurisdiction, and may not be offered, sold or otherwise
transferred except in compliance with the registration requirements of the
Securities Act or any other applicable blue sky laws, pursuant to an
exemption therefrom or in a transaction not subject thereto.
(ii) It understands and acknowledges that it is a qualified
institutional buyer within the meaning of Rule 144A under the Securities
Act ("QIB") and is purchasing for its own account (and not for the account
of others) or as a fiduciary or agent for others to whom notice is given
that the sale, pledge or other transfer is being made in reliance on Rule
144A. It is aware that it (or any account for which it is purchasing) may
be required to bear the economic risk of an investment in the Class B Notes
for an indefinite period, and it (or such account) is able to bear such
risk for an indefinite period.
(iii) It understands and acknowledges that no sale, pledge or other
transfer of any Class B Note may be made by any person unless (a) either
(1) such sale, pledge or other transfer is made to the Seller or is made to
a person whom the transferor reasonably believes after due inquiry is a QIB
acting for its own account (and not for the account of others) or as a
fiduciary or agent for others (which others also are QIBs) to whom notice
is given that the sale, pledge or transfer is being made in reliance on
Rule 144A and (2) such sale, pledge or other transfer is made in a
transaction exempt from the registration requirements of the Securities
Act.
(iv) It understands that the Class B Notes will bear a legend to the
following effect unless the Seller determines otherwise consistent with
applicable law:
THIS CLASS B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE IN THE UNITED
STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CLASS
B NOTE THE HOLDER OF THIS CLASS B NOTE IS DEEMED TO REPRESENT TO
CAPITAL ONE AUTO RECEIVABLES, LLC (THE "SELLER") AND THE INDENTURE
TRUSTEE THAT IT (I) IS A "QUALIFIED INSTITUTIONAL BUYER" WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT (A "QIB") AND IS
ACQUIRING SUCH CLASS B NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR
44
AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QIBS) TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (II) IS
CAPITAL ONE AUTO RECEIVABLES, LLC.
NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CLASS B NOTE MAY BE
MADE BY ANY PERSON UNLESS (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS
MADE TO THE SELLER OR IS MADE TO A PERSON WHOM THE TRANSFEROR
REASONABLY BELIEVES AFTER DUE INQUIRY IS A QIB ACTING FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT
FOR OTHERS (WHICH OTHERS ALSO ARE QIBS) TO WHOM NOTICE IS GIVEN THAT
THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A
AND (II) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE IN A TRANSFER
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
NEITHER THIS CLASS B NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED
BY OR FOR THE ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN
SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED, ("ERISA")), WHETHER OR NOT SUBJECT TO ERISA, (II) A PLAN
DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR (III) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF INVESTMENT BY ANY
OF THE FOREGOING IN THE ENTITY (EACH A "BENEFIT PLAN INVESTOR") UNLESS
THE PURCHASER IS AN INSURANCE COMPANY USING THE ASSETS OF ITS GENERAL
ACCOUNT TO PURCHASE THE CLASS B NOTES, AND AT THE TIME OF PURCHASE AND
THROUGHOUT THE PERIOD IT HOLDS THE CLASS B NOTES, (I) IT IS ELIGIBLE
FOR AND MEETS THE REQUIREMENTS OF THE DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60 (II) LESS THAN 25% OF THE ASSETS OF
THE GENERAL ACCOUNT ARE (OR REPRESENT) ASSETS OF A BENEFIT PLAN
INVESTOR, AND (III) IT IS NOT THE SERVICER OR ANY OTHER SERVICE
PROVIDER TO THE TRUST OR AN AFFILIATE OF THE ABOVE, AND WOULD NOT
OTHERWISE BE EXCLUDED UNDER 29 C.F.R. SECTION 2510.3-101(f)(1). EACH
PURCHASER AND TRANSFEREE OF A CLASS B NOTE SHALL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT IT MEETS THE FOREGOING REQUIREMENTS.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE FOREGOING
RESTRICTIONS WILL BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL
CONTINUE TO BE TREATED AS THE OWNER OF THE CLASS B NOTES FOR ALL
PURPOSES.
45
(v) It understands that the Class B Notes may not be acquired by or
with the assets of a "benefit plan investor" as defined in 29 C.F.R.
Section 2510.3(f), which includes (i) an "employee benefit plan" (as
defined in section 3(3) of the Employee Retirement Security Act of 1974, as
amended ("ERISA")), whether or not subject to ERISA, (ii) a plan described
in Section 4975(e)(1) of the Code or (iii) any entity whose underlying
assets include plan assets of its general account to purchase its interest
in the Class B Notes, and at the time of purchase and throughout the period
it holds an interest in the Class B Notes, (i) it is eligible for and meets
the requirements of the Department of Labor Prohibited Transaction Class
Exemption 95-60, (ii) less than 25% of the assets of the general account
are (or represent) assets of a Benefit Plan Investor, and (iii) it is not
the Servicer or any other service provider to the Trust or an affiliate of
the above, and would not otherwise be excluded as a benefit plan investor
under 29 C.F.R. Section 2510.3-101(f). The holder thereof and any related
holder of any interest in a Class B Notes shall be deemed to have
represented and warranted that it meets the foregoing requirements.
(vi) It acknowledges that it has been afforded an opportunity to
request from the Owner Trustee, the Seller and the Servicer and any initial
purchaser, and has received and reviewed, all information which it has
deemed necessary in connection with its decision to purchase the Class B
Notes. It acknowledges that none of the Owner Trustee, the Seller, the
Servicer, any initial purchaser nor any of their respective affiliates or
any person representing any of them has made any representation to it with
respect to any information relating to the offering or sale of the Class B
Notes, other than the information contained in this Indenture or in any
private placement memorandum, a copy of which has been delivered to it (if
applicable).
(vii) It understands that all information furnished to it by the
Seller or representatives of the Seller in connection with its evaluation
of an investment in the Class B Notes was provided to it on a confidential
basis and it agrees not to disclose such information, in whole or in part,
to any other person.
(viii) It acknowledges that any attempted transfer in contravention of
the foregoing instructions will be void ab initio and the purported
transferor will continue to be treated as the owner of the Class B Notes
for all purposes.
(h) Each Person who has or who acquires any Ownership Interest in a Class B
Note issued as a Definitive Note on the Closing Date shall acknowledge,
represent to and agree with the Owner Trustee as follows:
(i) It understands and acknowledges that the Class B Notes have not
been registered under the Securities Act or the securities law of any state
or other jurisdiction, and may not be offered, sold or otherwise
transferred except in compliance with the registration requirements of the
Securities Act or any other applicable blue sky laws, pursuant to an
exemption therefrom or in a transaction not subject thereto. It understands
that none of the Owner Trustee, the Seller, the Servicer, the Indenture
Trustee or any other Person is obligated to register the Class B Notes
under the Securities Act or to register to qualify the Class B Notes under
any state securities laws.
46
(ii) It understands and acknowledges that the Class B Notes may be
offered and resold to qualified institutional buyers ("QIBs") pursuant to
Rule 144A under the Securities Act.
(iii) It understands and acknowledges that if in the future it decides
to reoffer, resell, pledge or otherwise transfer a Class B-Note it will do
so only to the Owner Trustee pursuant to the terms of this Indenture or
pursuant to Rule 144A to a Person whom the seller reasonably believes is a
QIB in a transaction meeting the requirements of Rule 144A, purchasing for
its own account or for the account of a QIB, whom the holder has informed
that such reoffer, resale, pledge or other transfer is being made in
reliance on Rule 144A and who has executed a certificate substantially in
the form set forth in Exhibit I (a "Transferee Agreement (Class B Notes)").
(iv) It understands that the Class B Notes will bear a legend to the
following effect unless the Owner Trustee determines otherwise consistent
with applicable law:
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE
"SECURITIES DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE
TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE
SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A
NOMINEE OR SUCCESSOR SECURITIES DEPOSITORY.
THIS Class B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE,
AGREES (1) THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR
47
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND
OTHER APPLICABLE LAWS AND ONLY PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT TO A PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE 144A,
PURCHASING FOR ITS OWN ACCOUNT, OR A QIB PURCHASING FOR THE ACCOUNT OF
A QIB, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR TO
THE OWNER TRUSTEE PURSUANT TO THE TERMS OF THE INDENTURE AND (2) THAT
IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN
IS TO BE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND. THE INDENTURE RELATING TO THIS NOTE CONTAINS A PROVISION
REQUIRING THE INDENTURE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF
THIS NOTE OR ANY INTEREST HEREIN IN VIOLATION OF THE FOREGOING. EACH
TRANSFEREE ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE IS DEEMED TO
REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A
QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.
NEITHER THIS CLASS B NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED
BY OR FOR THE ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN
SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED, ("ERISA")), WHETHER OR NOT SUBJECT TO ERISA, (II) A PLAN
DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR (III) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF INVESTMENT BY ANY
OF THE FOREGOING IN THE ENTITY (EACH A "BENEFIT PLAN INVESTOR") UNLESS
THE PURCHASER IS AN INSURANCE COMPANY USING THE ASSETS OF ITS GENERAL
ACCOUNT TO PURCHASE THE CLASS B NOTES, AND AT THE TIME OF PURCHASE AND
THROUGHOUT THE PERIOD IT HOLDS THE CLASS B NOTES, (I) IT IS ELIGIBLE
FOR AND MEETS THE REQUIREMENTS OF THE DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60 (II) LESS THAN 25% OF THE ASSETS OF
THE GENERAL ACCOUNT ARE (OR REPRESENT) ASSETS OF A BENEFIT PLAN
INVESTOR, AND (III) IT IS NOT THE SERVICER OR ANY OTHER SERVICE
PROVIDER TO THE TRUST OR AN AFFILIATE OF THE ABOVE, AND WOULD NOT
OTHERWISE BE EXCLUDED UNDER 29 C.F.R. SECTION 2510.3-101(f)(1). EACH
PURCHASER AND TRANSFEREE OF A CLASS B NOTE SHALL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT IT MEETS THE FOREGOING REQUIREMENTS.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE FOREGOING
RESTRICTIONS WILL BE VOID AB INITIO AND THE
48
PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THE
CLASS B NOTES FOR ALL PURPOSES.
(v) It understands that the Class B Notes may not be acquired by or
with the assets of a "benefit plan investor" as defined in 29 C.F.R.
Section 2510.3(f), which includes (i) an "employee benefit plan" (as
defined in section 3(3) of the Employee Retirement Security Act of 1974, as
amended ("ERISA")), whether or not subject to ERISA, (ii) a plan described
in Section 4975(e)(1) of the Code or (iii) any entity whose underlying
assets include plan assets of its general account to purchase its interest
in the Class B Notes, and at the time of purchase and throughout the period
it holds an interest in the Class B Notes, (i) it is eligible for and meets
the requirements of the Department of Labor Prohibited Transaction Class
Exemption 95-60, (ii) less than 25% of the assets of the general account
are (or represent) assets of a Benefit Plan Investor, and (iii) it is not
the Servicer or any other service provider to the Trust or an affiliate of
the above, and would not otherwise be excluded as a benefit plan investor
under 29 C.F.R. Section 2510.3-101(f). The holder thereof and any related
holder of any interest in a Class B Note shall be deemed to have
represented and warranted that it meets the foregoing requirements.
(vi) If it is acquiring any Class B Note as a fiduciary or agent for
one or more investor accounts, it represents that it has sole investment
discretion with respect to such account and that it has full power to make
the acknowledgements, representations and agreements contained herein on
behalf of each such account.
(vii) It acknowledges that it has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits
and risks of purchasing the Class B Notes.
(viii) It agrees that, prior to the date that is one year and one day
after the payment in full of all amounts payable with respect to the Class
B Notes, it will not institute against the Owner Trustee or the Transferor,
or join any other Person in instituting against the Owner Trustee or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceeding under the laws of the United
States or any state of the United States and it will not enter into any
voluntary bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceeding under the laws of the United
States or any state of the United States.
(ix) It acknowledges that the Owner Trustee and others will rely on
the truth and accuracy of the foregoing acknowledgments, representations
and agreements, and agrees that if any of the foregoing acknowledgments,
representations and agreements deemed to have been made by it are no longer
accurate, it shall promptly notify the Owner Trustee.
Section 2.08 Mutilated, Destroyed, Lost or Stolen Notes.
(a) If (i) any mutilated Note is surrendered to the Indenture Trustee or
the Indenture Trustee receives evidence to its satisfaction of the destruction,
loss or theft of any Note, and
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(ii) there is delivered to the Indenture Trustee and the Note Insurer such
security or indemnity as may be required by the Indenture Trustee or the Note
Insurer to hold each of the Owner Trustee, the Note Insurer and the Indenture
Trustee harmless, then, in the absence of actual notice to the Owner Trustee or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
the Owner Trustee shall execute, and the Indenture Trustee shall authenticate
and deliver upon Issuer Order, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a new Note or Notes of the same tenor and Class,
and Original Principal Balance bearing a number not contemporaneously
Outstanding; provided, however, that if any such mutilated, destroyed, lost or
stolen Note shall have become subject to receipt of payment in full, instead of
issuing a new Note, the Indenture Trustee may make a payment with respect to
such Note without surrender thereof, except that any mutilated Note shall be
surrendered. If, after the delivery of such new Note or payment with respect to
a destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such new
Note was issued presents for receipt of payments such original Note, the Owner
Trustee and the Indenture Trustee shall be entitled to recover such new Note (or
such payment) from the Person to whom it was delivered or any Person taking such
new Note from such Person, except a bona fide purchaser, and each of the Owner
Trustee, the Indenture Trustee and the Note Insurer shall be entitled to recover
upon the security or indemnity provided therefor to the extent of any loss,
damage or cost incurred by the Owner Trustee or the Indenture Trustee or the
Note Insurer in connection therewith.
(b) Upon the issuance of any new Note under this Section, the Owner Trustee
or the Indenture Trustee may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto.
(c) Every new Note issued pursuant to this Section 2.08 in lieu of any
destroyed, lost or stolen Note shall constitute an original additional
contractual obligation of the Owner Trustee, whether or not the destroyed, lost
or stolen Note shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and
all other Notes duly issued hereunder.
(d) The provisions of this Section 2.08 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment with respect to mutilated, destroyed, lost or stolen
Notes.
Section 2.09 Persons Deemed Noteholders. Before due presentment for
registration of transfer of any Note, the Owner Trustee, the Indenture Trustee,
the Note Insurer and any agent of the Owner Trustee, the Indenture Trustee or
the Note Insurer may treat the Person in whose name any Note is registered as
the owner of such Note (a) on the applicable Record Date for the purpose of
receiving payments with respect to principal and interest on such Note and (b)
on any date for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Owner Trustee, the Indenture Trustee, the Note Insurer
nor any agent of the Owner Trustee, the Indenture Trustee or the Note Insurer
shall be affected by any notice to the contrary.
Section 2.10 Cancellation of Notes. All certificated Notes surrendered for
payment, registration of transfer, exchange or prepayment shall, if surrendered
to any Person other than the Indenture Trustee, be delivered to the Indenture
Trustee and shall be promptly canceled by it;
50
provided that no Note shall be canceled if such payment is made from funds paid
under the Note Policy until the Note Insurer has received all Reimbursement
Obligations. The Owner Trustee may at any time deliver to the Indenture Trustee
for cancellation any Note previously authenticated and delivered hereunder which
the Owner Trustee may have acquired in any manner whatsoever, and all Notes so
delivered shall be promptly canceled by the Indenture Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes canceled as provided in
this Section 2.10 except as expressly permitted by this Indenture. All canceled
Notes shall be held and disposed of by the Indenture Trustee in accordance with
its standard retention and disposal policy.
Section 2.11 Conditions to Closing. The Notes shall be executed,
authenticated and delivered on the Closing Date in accordance with Sections 2.05
and 2.12, upon receipt by the Indenture Trustee and the Note Insurer of the
following:
(a) an Issuer Order authorizing the authentication and delivery of such
Notes by the Indenture Trustee;
(b) an Opinion or Opinions of Counsel as listed on Schedule 1 hereto;
(c) an Officer's Certificate of an Authorized Representative of the Owner
Trustee, on behalf of the Trust, stating that:
(i) all representations and warranties of the Owner Trustee on behalf
of the Trust contained in this Indenture, the Trust Agreement, the
Contribution Agreement and the Servicing Agreement are true and correct and
no defaults exist under the Contribution Agreement or the Servicing
Agreement;
(ii) the Owner Trustee on behalf of the Trust is not in default under
this Indenture, the issuance of the Notes will not result in any breach of
any of the terms, conditions or provisions of, or constitute a material
default under, this Indenture, the organizational documents or any other
constituting documents of the Owner Trustee or any indenture, mortgage,
deed of trust or other agreement or instrument to which the Owner Trustee
is a party or by which it is bound, or any order of any court or
administrative agency entered in any proceeding to which the Owner Trustee
is a party or by which it may be bound or to which it may be subject, and
that all conditions precedent provided in this Indenture relating to the
authentication and delivery of the Notes have been fully satisfied;
(iii) the Owner Trustee on behalf of the Trust is the owner of the
Trust Property Granted to the Indenture Trustee for the benefit of the
Noteholders, the Note Insurer and the Swap Counterparty as of the Closing
Date free and clear of any Lien other than the Lien of this Indenture, has
not assigned any interest or participation in the Trust Property (or, if
any such interest or participation has been assigned, it has been fully
released), and has the right to Grant the Trust Property to the Indenture
Trustee for the benefit of the Noteholders, the Note Insurer and the Swap
Counterparty pursuant to this Indenture;
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(iv) the Owner Trustee on behalf of the Trust has Granted to the
Indenture Trustee for the benefit of the Noteholders, the Note Insurer and
the Swap Counterparty, all of its right, title, and interest in the Trust
Property to be Granted on the Closing Date free and clear of any Lien; and
(v) the Owner Trustee, on behalf of the Trust, has obtained a sales
finance company license issued by the Pennsylvania Department of Banking;
(d) an Officer's Certificate dated as of the Closing Date, of an officer of
the Seller that:
(i) the Seller is not in default under the Transfer and Assignment
Agreement or the Contribution Agreement, the transfer of the Receivables to
the Owner Trustee will not result in any breach of any of the terms,
conditions or provisions of, or constitute a material default under, the
organizational documents or any other constituent documents of the Seller
or any indenture, mortgage, deed of trust or other agreement or instrument
to which the Seller is a party or by which it is bound, or any order of any
court or administrative agency entered in any proceeding to which the
Seller is a party or by which it may be bound or to which it may be
subject;
(ii) all representations and warranties of the Seller contained in the
Contribution Agreement are true and correct;
(iii) the Seller has contributed to the Owner Trustee, without
recourse except as provided in the Contribution Agreement, all of its
right, title and interest in the Receivables free and clear of any lien,
security interest or charge; and
(iv) the Seller has not assigned any interest or participation in any
of the Receivables transferred to the Owner Trustee pursuant to the
Contribution Agreement and has the right to contribute all such Receivables
to the Owner Trustee;
(e) an Officer's Certificate dated as of the Closing Date, of an officer of
the Transferor stating that:
(i) the Receivables and files and computer records pertaining thereto
have been marked to reflect the absolute assignment thereof from the
Transferor to the Seller, the transfer thereof from the Seller to the Owner
Trustee and the Grant thereof by the Owner Trustee to the Indenture Trustee
for the benefit of the Noteholders, the Note Insurer and the Swap
Counterparty;
(ii) the originals of all documents required to be delivered to the
Custodian pursuant to Section 7.18 hereof have been or will be delivered
pursuant to such Section;
(iii) all representations and warranties of the Transferor contained
in the Transfer and Assignment Agreement are true and correct and no
defaults exist under the Transfer and Assignment Agreement; and
(iv) the Transferor is not in default under the Transfer and
Assignment Agreement and the assignment of the Receivables to the Seller
will not result in any
52
material breach of any of the terms, conditions or provisions of, or
constitute a material default under, the organizational documents or any
other constituting documents of the Transferor or any indenture, mortgage,
deed of trust or other agreement or instrument to which the Transferor is a
party or by which it is bound, or any order of any court or administrative
agency entered in any proceeding to which the Transferor is a party or by
which it may be bound or to which it may be subject;
(f) an Officer's Certificate of the Servicer certifying to the Indenture
Trustee and the Note Insurer that no Event of Servicing Default has occurred and
is continuing under the Servicing Agreement and no Event of Default has occurred
and is continuing under the Indenture;
(g) delivery by the Note Insurer to the Indenture Trustee of an executed
copy of the Note Policy;
(h) delivery by the Note Insurer to the Swap Counterparty of an executed
copy of the Swap Policy;
(i) an assignment to the Seller by the Transferor of its rights under the
Dealer Agreements (to the extent related to the financed Receivables), duly
executed by the Transferor;
(j) an assignment to the Owner Trustee by the Seller of its rights under
the Transfer and Assignment Agreement and the Dealer Agreements (to the extent
related to the financed Receivables), duly executed by the Seller;
(k) an assignment to the Indenture Trustee by the Owner Trustee of its
rights under the Contribution Agreement, the Transfer and Assignment Agreement
and the Dealer Agreements (to the extent related to the financed Receivables),
duly executed by the Owner Trustee;
(l) evidence of execution of the Financing Statements with respect to the
Collateral and, to the extent available and necessary, all applicable UCC
termination statements or partial releases ("Termination Statements")
terminating the liens of creditors of the Transferor or any other Person and
presentment of the Financing Statements and Termination Statements (which shall
constitute all of the Perfection UCCs with respect to the Closing Date) to the
proper Person for recording to perfect the Indenture Trustee's first priority
security interest in such Trust Property Granted on the Closing Date registered
in the name of the Indenture Trustee or its nominee and agent (a copy of the
file stamped Financing Statements and Termination Statements shall be delivered
to the Custodian in accordance with Section 7.18 hereof);
(m) an Officer's Certificate of the Owner Trustee to the effect that
attached thereto are true and correct copies of letters signed on behalf of
Standard & Poor's, Moody's and Fitch confirming that the Class A-1 Notes have
been rated in the highest short-term rating category of each Rating Agency and
that each of the Class A-2 Notes, the Class A-3-A Notes, the Class A-3-B Notes
and the Class A-4 Notes have been rated at least in the highest long-term rating
category of each Rating Agency;
(n) a true and correct listing of all Receivables being Granted to the
Indenture Trustee on the Closing Date certified by the Owner Trustee and a
certificate of the Owner Trustee to the
53
effect that the information provided on such list of Receivables is true,
correct and complete as of the initial Cutoff Date and otherwise in form and
substance acceptable to the Indenture Trustee;
(o) a description of the Receivable characteristics of all Receivables
being Granted to the Indenture Trustee on the Closing Date substantially in the
form of Exhibit G-1 hereto, with a certification of the Owner Trustee to the
effect that the information provided in such description is true, correct and
complete as of the initial Cutoff Date and otherwise in form and substance
acceptable to the Indenture Trustee;
(p) evidence that cash in the amount of the Initial Reserve Fund Deposit
has been deposited into the Reserve Fund held by the Indenture Trustee and that
cash in the amount of $0 has been deposited in the Pre-Funding Account;
(q) evidence that the Collection Account has been established pursuant to a
deposit agreement acceptable to the Indenture Trustee and the Note Insurer; and
(r) fully executed originals of this Indenture, the Trust Agreement, the
Underwriting Agreement, the Intercompany Agreement, the Transfer and Assignment
Agreement, the Insurance Agreement, the Contribution Agreement, the
Administration Agreement, the Servicing Agreement, the Initial Interest Rate
Swap Agreement and the Limited Liability Company Agreement.
Section 2.12 Book-Entry Notes. Except as otherwise provided in this
Section, the Notes shall be issued in the form of one global note with respect
to each Class of Notes and shall be registered in the name of the Securities
Depository or its nominee and ownership thereof shall be maintained in
book-entry form by the Securities Depository for the account of the Agent
Members. Initially, each Class A-1 Note, Class A-2 Note, Class A-3-A Note, Class
A-3-B Note and Class A-4 Note shall be registered in the name of Cede & Co., as
the nominee of The Depository Trust Company. The Class B-1 Notes and Class B-2
Notes shall be issued as Definitive Notes pursuant to Section 2.13 herein and
shall be eligible to be transferred to global notes upon completion of
acceptable transfer thereof. Except as provided in this Section, the Notes of a
Class of Notes may be transferred, in whole but not in part, only to the
Securities Depository or a nominee of the Securities Depository or to a
successor Securities Depository selected or approved by the Owner Trustee or to
a nominee of such successor Securities Depository. Each global note shall bear a
legend substantially to the following effect: "EXCEPT AS OTHERWISE PROVIDED
HEREIN, THIS GLOBAL CERTIFICATE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART,
ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (AS DEFINED HEREIN) OR TO A
SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY."
Except as otherwise provided herein, the Owner Trustee, the Note Insurer
and the Indenture Trustee shall have no responsibility or obligation with
respect to (i) the accuracy of the records of the Securities Depository or any
Agent Member with respect to any beneficial ownership interest in the Notes,
(ii) the delivery to any Agent Member, beneficial owner of any Class of the
Notes or other Person, other than the Securities Depository, of any notice with
54
respect to the Notes or (iii) the payment to any Agent Member, beneficial owner
of any Class of the Notes or other Person, other than the Securities Depository,
of any amount with respect to the payment of principal of or interest on any
Class of the Notes. So long as Definitive Notes for any Class of the Notes
issued under this Indenture are not issued pursuant to this Section, the Owner
Trustee, the Note Insurer and the Indenture Trustee shall treat the Securities
Depository as, and deem the Securities Depository to be, the absolute owner of
such Class of the Notes for all purposes whatsoever, including, without
limitation, (i) the payment of principal of and interest on such Notes, (ii)
giving notices of redemption and other matters with respect to such Notes and
(iii) registering transfers with respect to such Notes. In connection with any
notice or other communication to be provided to the Noteholders pursuant to this
Indenture by the Owner Trustee or the Indenture Trustee with respect to any
consent or other action to be taken by Noteholders, the Owner Trustee or the
Indenture Trustee, as the case may be, shall establish a record date for such
consent or other action and, if the Securities Depository shall hold all of the
Notes of the applicable Class of the Notes, give the Securities Depository
notice of such record date not less than fifteen (15) calendar days in advance
of such record date to the extent possible. Such notice to the Securities
Depository shall be given only when the Securities Depository is the sole
Noteholder of a Class of Notes.
If at any time the Securities Depository notifies the Owner Trustee and the
Indenture Trustee that it is unwilling or unable to continue as Securities
Depository with respect to any or all of the Notes or if at any time the
Securities Depository shall no longer be registered or in good standing under
the Securities Exchange Act of 1934, as amended, or any other applicable statute
or regulation and a successor Securities Depository is not appointed by the
Owner Trustee within ninety (90) days after the Owner Trustee receives notice or
becomes aware of such condition, as the case may be, then the two preceding
paragraphs shall no longer be applicable and the Owner Trustee shall execute and
the Indenture Trustee shall authenticate and deliver notes representing each
Class of the Notes as provided otherwise in this Article II and the Indenture
Trustee shall thereafter recognize the Noteholders as the record Holders of the
Notes under this Indenture. In addition, the Owner Trustee may determine at any
time that the Notes shall no longer be represented by global notes and that the
provisions of the two preceding paragraphs of this Section shall no longer apply
to the Notes. In such event, the Owner Trustee shall execute and the Indenture
Trustee shall authenticate and deliver certificates representing the Notes as
provided otherwise in this Article II. Notes issued in exchange for a global
certificate pursuant to this Section 2.12 shall be registered in such names and
authorized denominations as the Securities Depository, pursuant to the
instructions from the Agent Members or otherwise, shall instruct the Owner
Trustee and the Indenture Trustee. The Indenture Trustee shall promptly deliver
such certificates representing the Notes to the Persons in whose names such
Notes are so registered.
Whenever a notice or other communication to the Noteholders is required
under this Indenture, unless and until Definitive Notes shall have been issued
to Note Owners pursuant to this Section, the Indenture Trustee shall give all
notices and communications specified herein to be given to Noteholders to the
Securities Depository.
Section 2.13 Definitive Notes. Unless the Notes are maintained in
book-entry form pursuant to Section 2.12, the Note Registrar shall issue
definitive notes registered in the name or names of the Noteholders (the
"Definitive Notes"). Upon the issuance of Definitive Notes, the
55
Indenture Trustee shall recognize the Holders of the Definitive Notes as
Noteholders of each such Class hereunder.
Section 2.14 Reconveyance. In the case of any Receivable which has been
prepaid in full after the respective Cutoff Date and prior to the Closing Date
or a Funding Date, as applicable, the Owner Trustee shall, on the Closing Date
or a Funding Date, as applicable, deposit the Repurchase Price therefor in the
Collection Account in lieu of delivering the Custodian File with respect to such
Receivable to the Custodian or authorizing any UCC statements with respect
thereto.
Section 2.15 Reconveyance of Nonconforming Receivables.
(a) Upon discovery by any of the Transferor, the Seller, the Owner Trustee,
the Indenture Trustee, the Note Insurer or the Servicer of (i) a Nonconforming
Receivable or (ii) failure to deliver to the Custodian either (A) any document
required to be included in the Custodian File, or (B) the Perfection UCCs,
pursuant to Section 7.18 hereof, the party discovering such breach or failure to
deliver shall give prompt written notice to each of the other foregoing parties.
Except as specifically provided in the Servicing Agreement or herein, the
Indenture Trustee has no obligation to review or monitor the Trust Property for
compliance with representations and warranties or delivery requirements. If (i)
the breach of representations or warranties causing such Receivable to be a
Nonconforming Receivable shall not have been (A) cured within thirty (30) days
following notice thereof or (B) waived by the Note Insurer following notice
thereof or (ii) the failure to deliver to the Custodian the Custodian File
documents or the Perfection UCCs shall not have been cured within seven (7)
calendar days following notice thereof, the Owner Trustee shall transfer to the
Seller and the Seller shall assign to the Transferor the Receivable and the
other related items of the Trust Property affected by such breach. Failure to
deliver within the earlier of five (5) Business Days following the applicable
cure period, if any, or two (2) Business Days following receipt by the
Transferor of notice from the Note Insurer that the Note Insurer will not waive
the breach of representations or warranties causing such Receivable to be a
Nonconforming Receivable; provided that such transfer and assignment shall only
be made upon receipt by the Owner Trustee of notice from the Servicer (pursuant
to the terms of the Servicing Agreement) that the Repurchase Price has been
remitted to the Servicer and deposited into the Collection Account. In
consideration of the removal of such Receivable and the other related items of
the Trust Property, the Owner Trustee shall cause the Seller and the Transferor,
no later than the fifth Business Day following the cure period, if any, to pay
the Repurchase Price to the Servicer for deposit into the Collection Account.
The Owner Trustee shall be entitled to enforce the obligations of the Seller,
the Transferor and the applicable Dealer under the Contribution Agreement, the
Transfer and Assignment Agreement and the Dealer Agreement (to the extent
related to the Receivables), respectively, to remit the Repurchase Price to the
Servicer for deposit into the Collection Account. The Indenture Trustee and the
Note Insurer are authorized to take action on behalf of the Owner Trustee to
enforce the obligations of the Seller and the Transferor to repurchase such
Receivable under the Contribution Agreement or the Transfer and Assignment
Agreement, respectively, and to enforce the obligation of a Dealer to repurchase
such Receivable under the applicable Dealer Agreement.
(b) The obligations of the Transferor, the Seller and the Owner Trustee to
remove any Receivable and the other related items of the Trust Property and to
remit the Repurchase Price
56
with respect to a Nonconforming Receivable or as to which a failure to deliver
has occurred and is continuing shall constitute the sole remedy, except for the
indemnification provisions expressly set forth herein, in the Servicing
Agreement, the Contribution Agreement, the Transfer and Assignment Agreement and
the Insurance Agreement, against the Transferor, the Seller and the Owner
Trustee for such breach or failure to deliver available to the Indenture Trustee
or the Noteholders.
Section 2.16 Funding Events.
(a) A funding event (each a "Funding Event") shall occur upon a Funding
Date and in accordance with the requirements of this Section 2.16.
(b) During the Funding Period, the Owner Trustee shall, on Funding Dates,
(i) acquire Subsequent Receivables from the Seller pursuant to the Contribution
Agreement (and the Seller shall acquire such Subsequent Receivables from the
Transferor pursuant to the Transfer and Assignment Agreement) and (ii) Grant all
of the Owner Trustee's right, title and interest in and to such Subsequent
Receivables and related items of the Trust Property to the Indenture Trustee for
the benefit of the Holders of the Notes and the Swap Counterparty and, subject
to the provisions hereof, for the benefit of the Note Insurer. Such Subsequent
Receivables shall be acquired at the option of the Owner Trustee upon
instruction from the Servicer.
The following procedures shall be followed to effect a Funding Event:
(i) The Transferor will package and forward or cause to be packaged
and forwarded to the Custodian or its bailee for receipt within two (2)
Business Days preceding the applicable Funding Date (each, a "Delivery
Date") the following documents for the Subsequent Receivables to be
acquired:
(A) the sole original executed retail installment contract and
security agreement evidencing each such Subsequent Receivable; and
(B) the Certificate of Title for each Financed Vehicle, or, in
the case of a recently originated loan for which COAF has not yet
received a definitive certificate of title or other evidence of lien
from the applicable Department of Motor Vehicles ("DMV"), a copy of a
properly completed and signed application to such DMV requesting the
issuance of a certificate of title or other evidence (including
electronic titling) of lien noting COAF's (or, in the case of a
Referral Receivable, the applicable Referral Originator's) position as
lienholder.
(ii) By the Funding Date, the Owner Trustee shall deliver, or cause to
be delivered, to the Indenture Trustee, the Custodian and the Note Insurer,
the following:
(A) Assignment of the Transferor (in the form of Exhibit A to the
Transfer and Assignment Agreement) with the Schedule of Receivables
attached to such Assignment;
(B) Certificate of Delivery (in the form of Exhibit D to the
Transfer and Assignment Agreement);
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(C) Assignment of the Seller (in the form of Exhibit A to the
Contribution Agreement);
(D) Assignment of the Owner Trustee (in the form of Exhibit D
hereto);
(E) Notice of Funding (in the form of Exhibit E hereto);
(F) Officer's Certificate (in the form of Exhibit F hereto);
(G) With respect to the final Funding Date only, Officer's
Certificates of the Owner Trustee, the Transferor and the Servicer
substantially in the form of the Officer's Certificates described in
Section 2.11(c), (d), (e), and (f) hereof;
(H) With respect to the final Funding Date only, an Opinion or
Opinions of Counsel addressed to the Indenture Trustee and the Note
Insurer, in form and substance satisfactory to the Indenture Trustee
and the Note Insurer, with respect to UCC perfection issues, the
enforceability of the assignments executed in connection with respect
to the Subsequent Receivables and tax matters regarding the Notes
either (i) stating that the opinions delivered on the Closing Date
pursuant to Section 2.11(b) hereof remain in full force and effect or
(ii) otherwise in form and substance similar to the Opinions delivered
on the Closing Date;
(I) Copies of Financing Statements and/or Termination Statements;
(J) With respect to each Funding Date, a Receivables
Characteristics report substantially in the form of Exhibit G-2 hereto
with respect to all Receivables acquired on and prior to such Funding
Date (to the Note Insurer three days prior to such Funding Date); and
(K) With respect to each Funding Date, consent of the Note
Insurer; provided, however, that the giving or withholding of such
consent shall be based solely on the credit quality of the subsequent
Receivables Pool in relation to the initial Receivables Pool.
(iii) The Custodian shall within 180 days after the Closing Date or
the Funding Date, as the case may be, (A) confirm receipt of the documents
listed in Section 2.16(b)(ii); and (B) acknowledge receipt but have no duty
to confirm the contents of the documents listed in Section 2.16(b)(i)
above. Only those Subsequent Receivables for which the documents listed in
Section 2.16(b)(i) and (ii) are delivered to the Custodian on or before the
Delivery Date and Funding Date, respectively, will be included in the
Funding Event.
(iv) The Owner Trustee will forward to the Note Insurer, the Rating
Agencies, the Servicer, the Class B Noteholders and the Seller via
facsimile on the Funding Date, followed by overnight courier to be received
by the Note Insurer, the Servicer and the Seller, copies of the documents
specified in Section 2.16(b)(ii).
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(v) Upon satisfaction of the above requirements with respect to events
to occur on or before 2:00 p.m. CST or CDT, as applicable, on the Funding
Date, the Indenture Trustee will, on the Funding Date, withdraw funds from
the Pre-Funding Account in an amount equal to the Receivables Purchase
Price of the Subsequent Receivables acquired on such Funding Date and shall
forward such funds to the Seller (or the Transferor on behalf of the
Seller) or its designee, in cash by federal wire transfer funds, pursuant
to the written directions provided to the Indenture Trustee in the Notice
of Funding.
(vi) The Indenture Trustee, on behalf of the Seller, shall deposit
into the Reserve Fund, from amounts which would otherwise be released to
the Seller from the Pre-Funding Account, an amount equal to the Subsequent
Reserve Fund Deposit for such Funding Date.
(c) Any funds on deposit in the Pre-Funding Account after the termination
of the Funding Period (excluding investment earnings and income) shall be used
for the purpose of reducing the Aggregate Outstanding Principal Balance of the
Class A Notes and the Class B Notes in accordance with Section 5.05(c) hereof.
Any amounts payable to the Holders of the Class A Notes and the Class B Notes
from the remaining balance in the Pre-Funding Account shall be paid on the
Payment Date immediately following the termination of the Funding Period.
Section 2.17 Authenticating Agents.
(a) The Indenture Trustee may appoint one or more Persons (each, an
"Authenticating Agent") with power to act on its behalf and subject to its
direction in the authentication of Notes in connection with issuance, transfers
and exchanges under Sections 2.05, 2.06, 2.07, 2.08 and 10.06, as fully to all
intents and purposes as though each such Authenticating Agent had been expressly
authorized by those Sections to authenticate such Notes. For all purposes of
this Indenture, the authentication of Notes by an Authenticating Agent pursuant
to this Section shall be deemed to be the authentication of Notes "by the
Indenture Trustee." The Indenture Trustee shall be the Authenticating Agent in
the absence of any appointment thereof.
(b) Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, without the execution or filing of any
further act on the part of the parties hereto or such Authenticating Agent or
such successor corporation.
(c) Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Indenture Trustee and the Owner Trustee. The
Indenture Trustee may at any time terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
the Owner Trustee. Upon receiving such notice of resignation or upon such a
termination, the Indenture Trustee may appoint a successor Authenticating Agent
and shall give written notice of any such appointment to the Owner Trustee.
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(d) The Administrator agrees to pay to each Authenticating Agent (other
than the Indenture Trustee) from time to time reasonable compensation for its
services as agreed upon between the Authenticating Agent and the Administrative
Agent. The provisions of Sections 2.10 and 7.19 shall be applicable to any
Authenticating Agent.
Section 2.18 Release of Collateral. Subject to Section 14.01, the Indenture
Trustee shall release property from the Lien of this Indenture only in
accordance hereby with the Transaction Documents and upon receipt of an Issuer
Request accompanied by an Officer's Certificate, an Opinion of Counsel and
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or
an Opinion of Counsel in lieu of such Independent Certificates to the effect
that the TIA does not require any such Independent Certificates. If the
Commission shall issue an exemptive order under TIA Section 304(d) modifying the
Owner Trustee's obligations under TIA Sections 314(c) and 314(d)(1), subject to
Section 14.01 and the terms of the Transaction Documents, the Indenture Trustee
shall release property from the lien of this Indenture in accordance with the
conditions and procedures set forth in such exemptive order.
ARTICLE III
COVENANTS; COLLATERAL; REPRESENTATIONS; WARRANTIES
Section 3.01 Performance of Obligations.
(a) The Owner Trustee will not take any action or permit any action to be
taken by others which would release any Person from any of such Person's
covenants or obligations under any instrument included in the Trust Estate, or
which would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such
instrument, except as expressly provided in this Indenture.
(b) The Owner Trustee may contract with other Persons to assist it in
performing its duties hereunder, and any performance of such duties (other than
the execution of Officers' Certificates of the Owner Trustee and Issuer Orders
by a Person identified to the Indenture Trustee in an Officers' Certificate of
the Owner Trustee) shall be deemed to be action taken by the Owner Trustee. To
the extent that the Owner Trustee contracts with other Persons which include or
may include the furnishing of reports, notices or correspondence to the
Indenture Trustee, the Owner Trustee shall identify such Persons in a written
notice to the Indenture Trustee and the Note Insurer. Initially, the Owner
Trustee has contracted with the Servicer and the Administrator to assist the
Owner Trustee in performing its duties under this Indenture.
(c) The Owner Trustee, the Seller and the Indenture Trustee will
characterize (i) the assignment of the Receivables by the Transferor to the
Seller pursuant to the Transfer and Assignment Agreement as a sale for financial
accounting purposes, (ii) the transfer of the Receivables by the Seller to the
Owner Trustee pursuant to the Contribution Agreement as a financing for
financial accounting purposes, (iii) the Grant of the Receivables by the Owner
Trustee under this Indenture as a pledge for federal income tax purposes and as
a pledge for financial accounting purposes, and (iv) the Transferor as the owner
of the Receivables for federal income tax purposes and the Class A Notes and the
Class B Notes as indebtedness of the Transferor for federal income tax purposes.
The Owner Trustee and the Seller and, at the direction and with the assistance
of the Seller, the Indenture Trustee, will file all required tax
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returns and associated forms, reports, schedules and supplements thereto in a
manner consistent with such characterizations.
(d) The Owner Trustee covenants to use its best efforts to pay all taxes or
other similar charges levied by any governmental authority with regard to the
Trust Property, except to the extent that the validity or amount of such taxes
is contested in good faith, via appropriate proceedings and with adequate
reserves established and maintained therefor in accordance with generally
accepted accounting principles.
(e) The Owner Trustee hereby assumes liability for all liabilities
associated with the Trust Property or created under this Indenture, including
but not limited to any obligation arising from the breach or inaccuracy of any
representation, warranty or covenant of the Owner Trustee set forth herein.
Notwithstanding the foregoing, the Owner Trustee has and shall have no liability
with respect to the payment of principal and interest on the Notes, except as
otherwise provided in this Indenture.
(f) Upon the occurrence of a Re-Liening Trigger, the Owner Trustee may
instruct the Indenture Trustee and the Servicer to take or cause to be taken
such action as may, in the judgment of the Note Insurer or its counsel, be
necessary to perfect or re-perfect the security interests in the Financed
Vehicles in the name of the Indenture Trustee by amending the title documents
relating to such Financed Vehicles or by such other reasonable means as may, in
the judgment of the Note Insurer or its counsel, be necessary or prudent.
Pursuant to the terms of the Servicing Agreement, the Indenture Trustee and the
Servicer shall take or cause to be taken such actions and the Servicer has
agreed to reimburse the Indenture Trustee for all Re-Liening Expenses related to
such perfection or re-perfection and to take all action necessary therefor,
including the preparation, execution and delivery of all such documents as may
be requested by the Indenture Trustee or the Servicer in connection therewith.
In addition, as provided in Section 5.05(c) hereof, the Indenture Trustee shall
be entitled to be reimbursed for Re-Liening Expenses incurred in connection with
taking or causing to be taken such actions, to the extent not paid by the
Servicer. Pursuant to the terms of the Servicing Agreement, on the Closing Date,
the Servicer shall grant to the Indenture Trustee an irrevocable power of
attorney, pursuant to which the Servicer shall appoint the Indenture Trustee as
its attorney-in-fact, such appointment being coupled with an interest, to take
any and all steps required to be performed by it pursuant to Section 2.29 of the
Servicing Agreement including execution of certificates of title or any other
documents in the name and stead of the Servicer. Pursuant to the terms of the
Servicing Agreement, at any time a Person other than COAF becomes the Servicer,
COAF shall grant to such successor Servicer, promptly after its appointment as
such, a power of attorney as described in the preceding sentence.
Section 3.02 Negative Covenants. The Owner Trustee will not:
(a) sell, transfer, exchange or otherwise dispose of any portion of its
interest in the Trust Property except as expressly permitted by this Indenture;
(b) claim any credit on, or make any deduction from, the principal of or
interest on any of the Notes by reason of the payment of any taxes levied or
assessed upon any portion of the Trust Property;
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(c) merge or consolidate in whole or in part, except (i) as permitted in
paragraph (ii) of Section 3.10(b) or (ii) with the prior written consent of the
Note Insurer and the Swap Counterparty (unless the Interest Rate Swap Agreement
has been terminated and all amounts owed to the Swap Counterparty have been paid
in full) and prior written confirmation from the Rating Agencies that the
ratings on the Class A Notes will not be reduced or withdrawn;
(d) permit the validity or effectiveness of this Indenture or any Grant
hereunder to be impaired, or permit the lien of this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to be
released from any covenants or obligations under this Indenture, except as may
be expressly permitted hereby;
(e) permit any lien (other than the Lien) to be created on or extend to or
otherwise arise upon or burden the Trust Property or any part thereof or any
interest therein or the proceeds thereof;
(f) permit the lien of this Indenture not to constitute a valid first
priority, perfected security interest in the Trust Property;
(g) incur, assume or guarantee any indebtedness of any Person secured by
any Receivables pledged under this Indenture, except (i) for such obligations as
may be incurred by the Owner Trustee in connection with the issuance of the
Notes pursuant to this Indenture and (ii) as permitted herein; or
(h) amend or otherwise modify the Contribution Agreement or the Servicing
Agreement unless (i) such amendment is consented to in writing by the Note
Insurer, the Indenture Trustee and, if such amendment materially adversely
affects the Swap Counterparty, the Swap Counterparty, and (ii) as a result of
the amendment, there is no adverse effect on the ratings of any Class A Note or
any Class B Note, if applicable, by any of the Rating Agencies.
Section 3.03 Money for Note Payments.
(a) All payments with respect to any Notes which are to be made from
amounts withdrawn from the Revenue Fund pursuant to Section 5.05 hereof shall be
punctually made on behalf of the Owner Trustee by the Indenture Trustee or by a
Paying Agent, and no amounts so withdrawn from an Account for payments with
respect to Notes shall be paid over to the Owner Trustee under any circumstances
except as provided in this Section 3.03 and Article V hereof.
(b) When there shall be a Paying Agent that is not also the Note Registrar,
the Owner Trustee shall furnish, or cause the Note Registrar to furnish, no
later than the first Business Day after each Record Date, a list, in such form
as such Paying Agent may reasonably require, of the names and addresses of the
Noteholders and of the number of individual Notes held by each such Noteholder.
(c) Whenever there shall be a Paying Agent other than the Indenture
Trustee, the Owner Trustee will, on or before the Business Day next preceding
each Payment Date, direct the Indenture Trustee to deposit with such Paying
Agent an aggregate sum sufficient to distribute the amounts then becoming
payable (to the extent funds are then available for such purpose in the Revenue
Fund and the Reserve Fund), such sums to be held in trust for the benefit of the
Persons
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entitled thereto pursuant to this Indenture. Any moneys deposited with a Paying
Agent in excess of an amount sufficient to distribute the amounts then becoming
due on the Notes with respect to which such deposit was made shall, upon Issuer
Order, be paid over by such Paying Agent to the Indenture Trustee for
application in accordance with Article V hereof.
(d) The initial Paying Agent with respect to the Notes shall be the
Indenture Trustee and the Initial Paying Agent with respect to the Certificate
shall be the Owner Trustee. Any additional or successor Paying Agent shall be
appointed by Issuer Order with the prior written consent of the Note Insurer and
with written notice to the Administrator. The Owner Trustee shall not appoint
any Paying Agent that is not, at the time of such appointment, a depository
institution or trust company incorporated under the laws of the United States of
America or any State thereof and subject to supervision and examination by
federal or state banking authorities.
(e) The Owner Trustee will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee, and if the Indenture
Trustee acts as Paying Agent, it hereby so agrees, subject to the provisions of
this Section 3.03, that such Paying Agent will:
(i) allocate all sums received for payment to the Holders for which it
is acting as Paying Agent on each Payment Date among such Holders in the
proportion specified in the applicable servicer's report in the form of
Exhibit A to the Servicing Agreement to the extent permitted by applicable
law;
(ii) hold all sums held by it for the payment of amounts due with
respect to the Notes in trust for the benefit of the Persons entitled
thereto until such sums shall be distributed to such Persons or otherwise
disposed of as herein provided and distribute such sums to such Persons as
herein provided;
(iii) if such Paying Agent is not the Indenture Trustee, immediately
resign as a Paying Agent and forthwith pay to the Indenture Trustee all
sums held by it in trust for payment with respect to the Notes if at any
time it ceases to meet the standards set forth in clause (d) above required
to be met by a Paying Agent at the time of its appointment;
(iv) if such Paying Agent is not the Indenture Trustee, give the
Indenture Trustee and the Note Insurer notice of any Default, Event of
Default or Event of Servicing Default coming to its attention in the making
of any payments required to be made with respect to the Notes for which it
is acting as Paying Agent;
(v) if such Paying Agent is not the Indenture Trustee, at any time
during the continuance of any such Event of Default or Event of Servicing
Default, upon the written request of the Indenture Trustee, forthwith pay
to the Indenture Trustee all sums so held in trust by such Paying Agent;
and
(vi) comply with all requirements of the Code and all regulations
thereunder, with respect to the withholding from any payment made by it on
any Notes of any applicable withholding taxes imposed thereon and with
respect to any applicable reporting requirements in connection therewith;
provided, however, that with respect to withholding and reporting
requirements applicable to original issue discount (if any) on
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the Notes, the Paying Agent shall have first provided the calculations
pertaining thereto to the Indenture Trustee.
(f) The Owner Trustee may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent, if other than the Indenture Trustee, to pay to
the Indenture Trustee all sums held in trust by such Paying Agent, such sums to
be held by the Indenture Trustee upon the same terms as those upon which such
sums were held by such Paying Agent; and upon such payment by any Paying Agent
to the Indenture Trustee, such Paying Agent shall be released from all further
liability with respect to such money.
(g) Any money held by the Indenture Trustee or any Paying Agent in trust
for the payment of any amount distributable but unclaimed with respect to any
Note shall be held in a non-interest bearing trust account, and if the same
remains unclaimed for two years after such amount has become due to the
Noteholder, it shall be discharged from such trust and paid to the Owner Trustee
without any further action by any Person; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Owner Trustee for
payment thereof (but only to the extent of the amounts so paid to the Owner
Trustee), and all liability of the Indenture Trustee or such Paying Agent with
respect to such trust money shall thereupon cease. The Indenture Trustee may
adopt and employ, at the expense of the Owner Trustee, any reasonable means of
notification of such payment (including, but not limited to, mailing notice of
such payment to Noteholders whose Notes have been called but have not been
surrendered for prepayment or whose right to or interest in moneys due and
payable but not claimed is determinable from the records of the Indenture
Trustee or any Paying Agent, at the last address of record for each such
Noteholder).
Section 3.04 Restriction of Owner Trustee Activities. Until the date that
is one year and one day after the payment by the Owner Trustee in full of all
payments on the Notes and any amount owed to the Note Insurer, the Owner
Trustee, as owner trustee for the Trust, will not on or after the date of
execution of this Indenture (i) permit the Trust to engage in any business or
investment activities other than those necessary for, incident to, connected
with or arising out of, owning and Granting the Trust Property to the Indenture
Trustee for the benefit of the Noteholders and the Swap Counterparty, and,
subject to the provisions hereof, the Note Insurer, or contemplated hereby, in
the Trust Agreement, the Contribution Agreement and the Servicing Agreement
(which business and investment activities will not be contrary to the Trust's
status as a "Qualifying SPE" under FAS 140 or any successor accounting standard
thereto), (ii) incur any indebtedness secured in any manner by, or having any
claim against, the Trust Property or the Owner Trustee, except the Certificate
or indebtedness arising under the Servicing Agreement, the Insurance Agreement,
the Interest Rate Swap Agreement or the Indenture Trustee fee letter, or (iii)
incur any other indebtedness except as permitted in the Trust Agreement, without
giving notice thereof in writing, not less than thirty (30) nor more than ninety
(90) days prior to the date on which such amendment is to become effective, to
the Indenture Trustee and the Rating Agencies by delivery of an Officer's
Certificate and obtaining the prior written consent thereto of the Note Insurer
and the Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in
full).
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Section 3.05 Protection of Trust Property.
(a) The Owner Trustee will from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance, and other instruments
(all as presented to it in final execution form), and will take such other
action as may be necessary or advisable to:
(i) grant more effectively all or any portion of the Trust Property,
(ii) maintain, preserve or enforce the terms and provisions of this
Indenture or carry out more effectively the purposes hereof,
(iii) perfect, publish notice of, or protect the validity of, any
Grant made or to be made by this Indenture,
(iv) enforce any of the Receivables, or
(v) preserve and defend title to any Receivable or other instrument
included in the Trust Property and the rights of the Indenture Trustee, the
Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in
full) and of the Noteholders or the Note Insurer in such Receivable or
other instrument against the claims of all persons and parties.
The Owner Trustee shall deliver or cause to be delivered to the Indenture
Trustee and the Note Insurer file-stamped copies of, or filing receipts for, any
document recorded, registered or filed as provided above, as soon as available
following such recording, registration or filing. The Owner Trustee shall
cooperate fully with the Indenture Trustee and the Note Insurer in connection
with the obligations set forth above and will execute any and all documents
reasonably required to fulfill the intent of this Section 3.05.
(b) The Owner Trustee hereby irrevocably appoints the Indenture Trustee as
its agent and attorney-in-fact (such appointment being coupled with an interest)
to authorize, upon the Owner Trustee's failure to do so, any financing
statement, continuation statement or other instrument, document, certificate or
agreement required pursuant to this Section 3.05; provided, however, that such
designation shall not be deemed to create any duty in the Indenture Trustee to
monitor the compliance of the Owner Trustee with the foregoing covenants; and
provided further, however, that the duty of the Indenture Trustee to execute any
instrument required pursuant to this Section 3.05 shall arise only if the
Indenture Trustee has actual knowledge of any default by the Owner Trustee in
complying with the provisions of Section 3.05(a) and the Indenture Trustee shall
have previously received a file stamped copy of the related original document or
financing statement. The Owner Trustee shall cooperate with the Indenture
Trustee and provide to the Indenture Trustee any information, documents or
instruments with respect to such financing statement, continuation statement or
other instrument that the Indenture Trustee may reasonably require. For purposes
of this Section 3.05(b), the Indenture Trustee will not be deemed to have actual
knowledge of any such default if the Indenture Trustee has not, but should have,
received an Opinion of Counsel pursuant to Section 3.06 addressing the facts
surrounding such default.
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(c) Except as necessary or advisable in connection with the fulfillment by
the Indenture Trustee of its duties and obligations described herein or in the
Servicing Agreement, the Indenture Trustee shall not remove any portion of the
Trust Property that consists of money or is evidenced by an instrument,
certificate or other writing from the jurisdiction in which it was held at the
date the most recent Opinion of Counsel was delivered pursuant to Section 3.06
(or from the jurisdiction in which it was held as described in the Opinion of
Counsel delivered at the Closing Date pursuant to Section 2.11(b), if no Opinion
of Counsel has yet been delivered pursuant to Section 3.06) unless the Indenture
Trustee shall have first received an Opinion of Counsel to the effect that the
lien created by this Indenture with respect to such property will continue to be
maintained after giving effect to such action or actions.
(d) Within thirty (30) days after the Transferor, the Seller or the Owner
Trustee makes any change in its or their name, identity, jurisdiction of
organization or structure which would make any financing statement or
continuation statement filed in accordance with paragraph (a) above seriously
misleading within the meaning of the UCC as in effect in Texas, Delaware or
Virginia or wherever else necessary or appropriate under applicable law, or
otherwise impair the perfection of the security interest referred to in Article
II hereof, the Owner Trustee shall give or cause to be given to the Indenture
Trustee, the Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in full)
and the Note Insurer written notice of any such change and shall file such
financing statements or amendments as may be necessary to continue the
perfection of the Indenture Trustee's security interest in the Receivables and
the proceeds thereof.
(e) The Owner Trustee shall give the Indenture Trustee, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full) and the Note
Insurer (and the Owner Trustee shall require the Servicer to give the Indenture
Trustee, the Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in full)
and the Note Insurer) prompt written notice of any change in appointment of the
Owner Trustee if, as a result of such change, the applicable provisions of
relevant law or the UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement and shall file such financing statements or amendments as may be
necessary to continue the perfection of the Indenture Trustee's security
interest in the Receivables and the proceeds thereof. The Owner Trustee shall at
all times maintain its chief executive office within the United States of
America.
Section 3.06 Opinions as to Trust Property. (a) If the Opinion of Counsel
delivered at the Closing Date pursuant to Section 2.11(b) specifies any future
action that the Owner Trustee must take to maintain the lien and security
interest hereof, no later than the time so specified in such Opinion (or any
subsequent Opinion of Counsel delivered pursuant to this Section 3.06), and in
any event within three months prior to the fifth anniversary of the Closing
Date, the Owner Trustee shall furnish to the Indenture Trustee, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full) and the Note
Insurer an Opinion of Counsel stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
re-filing of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation
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statements as is necessary to maintain the lien and security interest created by
this Indenture with respect to the Trust Property and reciting the details of
such action. The Owner Trustee shall also provide the Indenture Trustee and the
Note Insurer with a file stamped copy of any document or instrument filed as
described in such Opinion of Counsel contemporaneously with the delivery of such
Opinion of Counsel. Such Opinion of Counsel shall also describe the recording,
filing, re-recording and re-filing of this Indenture, any indentures
supplemental hereto and any other requisite documents and the execution and
filing of any financing statements and continuation statements that will, in the
opinion of such counsel, be required to maintain the lien and security interest
of this Indenture with respect to the Trust Property. If the Opinion of Counsel
delivered to the Indenture Trustee, the Swap Counterparty (unless the Interest
Rate Swap Agreement has been terminated and all amounts owed to the Swap
Counterparty have been paid in full) and the Note Insurer hereunder specifies
future action to be taken by the Owner Trustee, the Owner Trustee shall furnish
a further Opinion of Counsel no later than the time so specified in such former
Opinion to the effect required hereby.
(b) On or before April 15 in each calendar year, beginning April 15, 2003,
the Owner Trustee shall furnish to the Indenture Trustee, the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) and the Note Insurer an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
Lien and security interest created by this Indenture and reciting the details of
such action or stating that in the opinion of such counsel no such action is
necessary to maintain the Lien and security interest created by this Indenture.
Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the Lien and security interest of this Indenture until April 15 in
the following calendar year.
Section 3.07 Statement as to Compliance. The Owner Trustee will deliver to
the Indenture Trustee, the Swap Counterparty (unless the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty have
been paid in full) and the Note Insurer, within 120 days after the end of each
fiscal year of the Trust (commencing 120 days after the fiscal year ended
December 31, 2002, and otherwise in compliance with the requirements of TIA
Section 314(a)(4)) an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that:
(a) a review of the activities of the Owner Trustee during such year and of
performance under this Indenture has been made under such Authorized Officer's
supervision;
(b) to the best of such Authorized Officer's knowledge, based on such
review, the Owner Trustee has complied with all conditions and covenants under
this Indenture throughout such year, or, if there has been a default in the
compliance of any such condition or covenant, specifying each such default known
to such Authorized Officer and the nature and status thereof; and
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(c) no event has occurred and is continuing which is, or after notice or
lapse of time or both would become, an Event of Default hereunder or, if such an
event has occurred and is continuing, specifying each such event known to him or
her and the nature and status thereof and remedies therefore being pursued.
Section 3.08 Limitations on Liens. Except for the Lien (as defined herein),
neither the Owner Trustee nor the Indenture Trustee will create, incur or
suffer, or permit to be created or incurred or to exist, any lien on any of the
Trust Property.
Section 3.09 Recording. The Owner Trustee will, upon the Closing Date and
thereafter from time to time, cause financing statements and such other
instruments as may be required with respect thereto, including without
limitation, the Financing Statements (collectively called the "Recordable
Documents") to be filed, registered and recorded as may be required by present
or future law (with file stamped copies thereof delivered to the Indenture
Trustee), publish notice thereof and create, perfect and protect the lien hereof
upon the Receivables and the other items of the Trust Property, and publish
notice of and protect the validity of this Indenture. The Owner Trustee will,
from time to time, perform or cause to be performed any other act as required by
law and will execute or cause to be executed any and all further instruments
(including financing statements, continuation statements and similar statements
with respect to any of said documents with file stamped copies thereof delivered
to the Indenture Trustee) that are necessary for such creation, perfection,
publication and protection. The Owner Trustee shall pay, or shall cause to be
paid, all filing, registration and recording taxes and fees incident thereto,
and all expenses, taxes and other governmental charges incident to or in
connection with the preparation, execution, delivery or acknowledgment of the
recordable documents, any instruments of further assurance, and the Notes.
Section 3.10 Agreements Not to Institute Bankruptcy Proceedings; Additional
Covenants.
(a) The Owner Trustee shall not voluntarily institute any proceedings to
adjudicate the Trust as bankrupt or insolvent, consent to the institution of
bankruptcy or insolvency proceedings against the Trust, file a petition seeking
or consenting to reorganization or relief under any applicable federal or state
law relating to bankruptcy, consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of the
Trust or a substantial part of its property or admit its inability to pay its
debts generally as they become due or authorize any of the foregoing to be done
or taken on behalf of the Trust.
(b) So long as any of the Notes are Outstanding, any amount is owed to the
Note Insurer or any amount is owed to the Swap Counterparty:
(i) The Owner Trustee will keep in full effect its existence, rights
and franchises as a banking corporation under the laws of the State of
Delaware.
(ii) The Owner Trustee shall not cause the Trust to consolidate or
merge with or into any other entity or convey or transfer its properties
and assets substantially as an entirety to any entity unless (A) the entity
(if other than the Trust) formed or surviving such consolidation or merger,
or that acquires by conveyance or transfer the properties
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and assets of the Trust substantially as an entirety, shall be organized
and existing under the laws of the United States of America or any State
thereof or the District of Columbia as a special purpose bankruptcy remote
entity, and shall expressly assume in form satisfactory to the Note
Insurer, the Swap Counterparty (unless the Interest Rate Swap Agreement has
been terminated and all amounts owed to the Swap Counterparty have been
paid in full), the Rating Agencies, the Indenture Trustee and, if a Note
Insurer Default has occurred and is continuing, the Noteholders
constituting Noteholder Approval the obligation to make due and punctual
payments of principal and interest on the Notes then Outstanding and the
performance of every covenant on the part of the Owner Trustee to be
performed or observed pursuant to the Indenture, (B) immediately after
giving effect to such transaction, no Event of Default under this Indenture
shall have occurred and be continuing, (C) the Owner Trustee shall have
delivered to the Note Insurer, the Swap Counterparty (unless the Interest
Rate Swap Agreement has been terminated and all amounts owed to the Swap
Counterparty have been paid in full), the Rating Agencies and the Indenture
Trustee an Officers' Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, conveyance or transfer complies with this
Indenture, (D) the Owner Trustee shall have obtained prior written
confirmation from the Rating Agencies that the ratings on the Notes will
not be reduced or withdrawn, (E) the Note Insurer and the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all
amounts owed to the Swap Counterparty have been paid in full) shall have
given its prior written consent, and (F) the entity formed or surviving
such consolidation or merger (which may be the Trust), or that acquires the
properties and assets of the Trust substantially as an entirety, shall be a
"Qualifying SPE" under FAS 140 or any successor accounting standard
thereto; provided, however, that in no event shall the Owner Trustee have
the power to cause the Trust to consolidate or merge with or into any other
entity unless FAS 140 or any successor standard thereto specifically
permits a "Qualifying SPE" to have the power to consolidate or merge with
or into another entity.
(iii) The funds and other assets of the Owner Trustee shall not be
commingled with those of any other Person (other than the temporary
commingling of payments on the Receivables by the Servicer).
(iv) The Owner Trustee shall not be, become or hold itself out as
being liable for the debts of any other Person.
(v) The Owner Trustee shall not cause or permit the Trust to form, or
cause to be formed, any subsidiaries.
(vi) The Owner Trustee shall act solely in its own name and through
its duly authorized officers or agents in the conduct of its business, and
shall conduct its business so as not to mislead others as to the identity
of the entity with which they are concerned. The Owner Trustee shall not
permit the Trust to have any employees.
(vii) The Owner Trustee shall maintain its records and books of
account and shall not commingle its records and books of account with the
records and books of account of any other Person. The books of the Owner
Trustee may be kept (subject to
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any provision contained in the applicable statutes) inside or outside the
State of Delaware at such place or places as may be designated from time to
time by the Trust Agreement.
(viii) All actions of the Trust shall be taken by the Owner Trustee or
the Administrator.
(ix) The Owner Trustee shall not amend, alter, change or repeal any
provision contained in this Section 3.10(b) without (A) the prior written
consent of the Note Insurer, the Swap Counterparty (unless the Interest
Rate Swap Agreement has been terminated and all amounts owed to the Swap
Counterparty have been paid in full) and the Indenture Trustee and (B)
prior written confirmation from the Rating Agencies (a copy of which shall
be provided to the Indenture Trustee and the Note Insurer) that such
amendment, alteration, change or repeal will have no adverse effect on the
ratings assigned to the Notes. Notwithstanding the foregoing, the
provisions in Section 3.10(b) shall not be amended, changed, altered or
repeated so as to permit the Owner Trustee to change the permitted
activities of the Trust set forth in Section II.3 of the Trust Agreement in
a manner that would cause the Trust to cease to qualify as a "Qualifying
SPE" under FAS 140 or any successor accounting standard thereto.
(x) The Seller shall not amend its Limited Liability Company Agreement
and at all times shall have at least two Independent Directors.
If an Independent Director resigns, dies or becomes
incapacitated, or such position is otherwise vacant, no action requiring
the unanimous affirmative vote of the Board of Directors shall be taken
until a successor Independent Director is elected and qualified and
approves such action. In the event of the death, incapacity, or resignation
of an Independent Director, or a vacancy for any other reason, a successor
Independent Director shall be appointed by the remaining directors. The
Independent Directors, in voting on matters subject to the approval of the
Board of Directors, shall at all times take into account the interests of
creditors of the Seller and the Trust. No Independent Director may be
removed unless his or her successor is appointed.
(xi) The Owner Trustee shall not cause or permit the Trust to dissolve
or liquidate, in whole or in part, except with the prior written consent of
the Note Insurer and with prior written confirmation from the Rating
Agencies that such dissolution or liquidation will have no adverse effect
on the ratings assigned to the Notes.
(xii) The Owner Trustee maintains and will maintain separate records
and books of account from the Seller and the formalities of the form of its
organization.
(xiii) The annual financial statements of the Transferor and the
annual financial statements of the Seller will disclose the effects of
these transactions in accordance with generally accepted accounting
principles. Any consolidated financial statements which consolidate the
assets and earnings of the Transferor with those of the Seller will contain
a footnote stating that the assets of the Seller will not be available to
creditors or any stockholder of the Transferor. The financial statements of
the Seller will disclose that the assets of the Seller are not available to
pay creditors of the Transferor.
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(xiv) Other than certain Costs of Issuance, certain other costs and
expenses related to the issuance of the Notes and amounts set forth in
Section 7.07(a) and the payment of the fees and expenses of Wilmington
Trust Company pursuant to a fee agreement between Wilmington Trust Company,
in its individual capacity, and COAF, none of the Transferor, the Servicer
or the Seller shall pay the Owner Trustee's expenses, guarantee the Owner
Trustee's obligations or advance funds to the Owner Trustee for payment of
expenses.
(xv) All business correspondences of the Owner Trustee are and will be
conducted in the Owner Trustee's own name.
(xvi) Neither the Transferor nor the Seller does act nor will act as
agent of the Owner Trustee and the Owner Trustee does not and will not act
as agent of the Transferor or the Seller.
Section 3.11 Providing of Notice. The Owner Trustee, upon learning of any
failure on its part to observe or perform in any material respect any covenant,
representation or warranty of the Owner Trustee set forth in this Indenture or
the Contribution Agreement, or of any failure on the part of the Seller or the
Transferor to observe or perform in any material respect any covenant,
representation or warranty of the Seller or the Transferor set forth in the
Contribution Agreement or the Transfer and Assignment Agreement, respectively,
shall promptly notify the Indenture Trustee, the Note Insurer, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full), the
Noteholders, and the Transferor of such failure.
Section 3.12 Representations and Warranties of the Owner Trustee. The Owner
Trustee hereby represents, warrants and covenants to the Indenture Trustee, the
Noteholders, the Note Insurer, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full) and the Rating Agencies that as of the Closing Date and
each Funding Date:
(a) The Owner Trustee is validly existing with its full rights and
franchises as a Delaware banking corporation with full power and authority to
execute and deliver this Indenture, the Contribution Agreement, the Interest
Rate Swap Agreement, the Administration Agreement and the Servicing Agreement
and to perform the terms and provisions hereof and thereof; the Owner Trustee
has obtained all required licenses and approvals, if any, in all jurisdictions
in which the ownership or lease of property or the conduct of its business
requires such qualifications except those jurisdictions in which failure to be
so qualified would not have a material adverse effect on the business or
operations of the Owner Trustee or the Trust Property.
(b) All necessary action has been taken by the Owner Trustee on behalf of
the Trust to authorize and empower the Owner Trustee on behalf of the Trust, and
the Owner Trustee has full power and authority to execute, deliver and perform
its obligations under this Indenture, the Contribution Agreement, the Interest
Rate Swap Agreement, the Administration Agreement and the Servicing Agreement,
and the Owner Trustee has full power and is duly authorized to execute, deliver
and perform its obligations under this Indenture, the Interest Rate Swap
Agreement, the Contribution Agreement and the Servicing Agreement, and no
consent or
71
approval of any Person is required with the execution, delivery or performance
by the Owner Trustee of this Indenture, the Interest Rate Swap Agreement, the
Contribution Agreement and the Servicing Agreement.
(c) This Indenture, the Administration Agreement, the Interest Rate Swap
Agreement, the Contribution Agreement and the Servicing Agreement have been duly
executed and delivered and the execution and delivery of this Indenture, the
Administration Agreement, the Interest Rate Swap Agreement, the Contribution
Agreement and the Servicing Agreement by the Owner Trustee and its performance
and compliance with the terms hereof and thereof will not violate the Trust
Agreement or constitute a default (or an event which, with notice or lapse of
time, or both, would constitute a default) under, or result in the breach of,
any material contract, indenture, loan, credit agreement or any other agreement
or instrument to which the Owner Trustee is a party or which may be applicable
to the Owner Trustee or any of its assets.
(d) This Indenture, the Administration Agreement, the Interest Rate Swap
Agreement, the Contribution Agreement and the Servicing Agreement constitute
valid, legal and binding obligations of the Owner Trustee, enforceable against
it in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting the
enforcement of creditors' rights generally and to general principles of equity.
(e) The Owner Trustee is not in violation of, and the execution, delivery
and performance of this Indenture, the Administration Agreement, the Interest
Rate Swap Agreement, the Contribution Agreement and the Servicing Agreement by
the Owner Trustee will not constitute a violation with respect to, any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which violation might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Owner Trustee or its properties or might have consequences
that would materially affect the performance of its duties hereunder or
thereunder.
(f) No proceeding of any kind, including but not limited to litigation,
arbitration, judicial or administrative, is pending or, to the Owner Trustee's
knowledge, threatened against or contemplated by the Owner Trustee which would
under any circumstance have an adverse effect on the execution, delivery,
performance or enforceability of this Indenture, the Administration Agreement,
the Interest Rate Swap Agreement, the Contribution Agreement and the Servicing
Agreement.
(g) Each of the representations and warranties of the Owner Trustee, the
Seller, the Transferor and the Servicer set forth in the Contribution Agreement
and the Servicing Agreement is, as of the Closing Date and, as of each Funding
Date will be, to the best knowledge of the Owner Trustee, true and correct in
all material respects and each such representation and warranty is hereby
incorporated in this Indenture as if set forth herein in full.
(h) The Contribution Agreement and all related documents describe the
transfer of the Receivables from the Seller on the Closing Date and the Funding
Dates as transferred by the Seller to the Owner Trustee and evidence the clear
intention by the Seller and the Owner Trustee to effectuate transfer of such
Receivables.
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(i) The consideration received by the Seller for the Receivables is or will
be paid in full to the Seller immediately upon their transfer, and no provision
exists whereby the consideration will be modified after the date of transfer.
The consideration paid or to be paid for the Receivables is equivalent to the
fair market value of the Receivables transferred to the Owner Trustee.
(j) The Owner Trustee has not incurred debt or engaged in activities not
related to the transactions contemplated hereunder except as permitted by the
Trust Agreement or Section 3.04 hereof.
(k) The Owner Trustee is not insolvent and did not become insolvent as a
result of the Grant pursuant to this Indenture; the Owner Trustee is not engaged
and is not about to engage in any business or transaction for which any property
remaining with the Owner Trustee is unreasonably small capital or for which the
remaining assets of the Owner Trustee are unreasonably small in relation to the
business of the Owner Trustee or the transaction; the Owner Trustee does not
intend to incur, and does not believe or reasonably should not have believed
that it would incur, debts beyond its ability to pay as they become due; and the
Owner Trustee has not made a transfer or incurred an obligation and does not
intend to make such a transfer or incur such an obligation with actual intent to
hinder, delay or defraud any entity to which the Owner Trustee was or became, on
or after the date that such transfer was made or such obligation was incurred,
indebted. The consideration received by the Owner Trustee for the Trust Property
is being paid in full to the Owner Trustee immediately upon the Grant thereof to
the Indenture Trustee, and no provision exists whereby the consideration will be
modified after the date of transfer. The consideration paid for the Trust
Property is equivalent to the fair market value thereof.
(l) (i) The transfer of the Trust Property by the Seller to the Owner
Trustee pursuant to the Contribution Agreement is a financing for financial
accounting purposes, (ii) the Grant of the Receivables by the Transferor
pursuant to the terms of this Indenture is a pledge for financial accounting
purposes and tax purposes, (iii) the Class A Notes and the Class B Notes are
indebtedness of the Transferor for federal income tax purposes.
(m) As of the Cutoff Date with respect to the Closing Date, the Aggregate
Receivable Balance is $851,076,306.98.
(n) The legal name of the Owner Trustee is as set forth in this Indenture;
the Owner Trustee has no trade-names, fictitious names, assumed names or "doing
business as" names.
(o) Upon the delivery to the Custodian of the Receivables and the
Perfection UCCs, the Indenture Trustee, for the benefit of the Noteholders, the
Note Insurer and the Swap Counterparty, shall have a first priority perfected
security interest in the Receivables and in the proceeds thereof, limited with
respect to proceeds to the extent set forth in the UCC as in effect in the
applicable jurisdiction. Other than with respect to the Financed Vehicles, all
filings (including, without limitation, UCC filings) and other actions as are
necessary in any jurisdiction to perfect the ownership, security interest, or
other interest of the Indenture Trustee in the related Trust Property, including
delivery of the Receivables, the Custodian Files and the related Perfection UCCs
to the applicable Custodian, and the payment of any fees, have been made.
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(p) The absolute assignment of the Receivables and security interest in the
Financed Vehicles by the Transferor to the Seller pursuant to the Transfer and
Assignment Agreement, the transfer by the Seller to the Owner Trustee pursuant
to the Contribution Agreement or the Grant by the Owner Trustee to the Indenture
Trustee pursuant to this Indenture is not subject to the bulk transfer or any
similar statutory provisions in effect in any applicable jurisdiction.
(q) The Trust is not an "investment company" as such term is defined in the
1940 Act.
(r) The principal place of business of the Owner Trustee and the chief
executive office of the Owner Trustee are located at the address set forth in
this Indenture and there are no other such locations.
Section 3.13 Representations and Warranties of the Indenture Trustee. The
Indenture Trustee hereby represents and warrants to the Rating Agencies, the
Note Insurer, the Swap Counterparty (unless the Interest Rate Swap Agreement has
been terminated and all amounts owed to the Swap Counterparty have been paid in
full) and the Noteholders that as of the Closing Date and each Funding Date:
(a) The Indenture Trustee has been duly organized and is validly existing
as a banking corporation under the laws of the State of New York;
(b) The Indenture Trustee has full power and authority and legal right to
execute, deliver and perform its obligations under this Indenture and has taken
all necessary action to authorize the execution, delivery and performance by it
of this Indenture;
(c) This Indenture has been duly executed and delivered by the Indenture
Trustee and constitutes the legal, valid, and binding obligation of the
Indenture Trustee, enforceable against the Indenture Trustee in accordance with
its terms, except as such enforceability may be limited by applicable
bankruptcy, reorganization, insolvency, liquidation, moratorium, fraudulent
conveyance, or similar laws affecting creditors' or creditors of banks' rights
and/or remedies generally or by general principles of equity (regardless of
whether such enforcement is sought in a proceeding in equity or at law);
(d) The execution, delivery and performance of this Indenture by the
Indenture Trustee will not constitute a violation with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency binding on the Indenture Trustee or such of its
property which is material to it, which violation might have consequences that
would materially and adversely affect the performance of its duties under this
Indenture;
(e) The execution, delivery and performance of this Indenture by the
Indenture Trustee do not require any approval or consent of any Person, do not
conflict with the Articles of Association and Bylaws of the Indenture Trustee,
and do not and will not conflict with or result in a breach which would
constitute a material default under any agreement applicable to it or such of
its property which is material to it; and
(f) No proceeding of any kind, including but not limited to litigation,
arbitration, judicial or administrative, is pending or, to the Indenture
Trustee's knowledge, threatened against or
74
contemplated by the Indenture Trustee which would have a reasonable likelihood
of having an adverse effect on the execution, delivery, performance or
enforceability of this Indenture by or against the Indenture Trustee.
Section 3.14 Maintenance of Office or Agency. The Owner Trustee will
maintain an office or agency where Notes may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Owner Trustee
in respect of the Notes and this Indenture may be served. The Owner Trustee
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes. Such office will initially be located at the Indenture
Trustee's Corporate Trust Office.
ARTICLE IV
ADMINISTRATION AND SERVICING OF RECEIVABLES
Section 4.01 Servicing Agreement.
(a) The Servicing Agreement, duly executed counterparts of which have been
filed with the Indenture Trustee, sets forth the covenants and obligations of
the Servicer with respect to the Trust Property and other matters addressed in
the Servicing Agreement, and reference is hereby made to the Servicing Agreement
for a detailed statement of said covenants and obligations of the Servicer
thereunder. The Owner Trustee agrees that the Indenture Trustee, in its name or
(to the extent required by law) in the name of the Owner Trustee, may (but is
not required to) enforce all rights of the Owner Trustee and all obligations of
the Servicer under and pursuant to the Servicing Agreement for and on behalf of
the Noteholders, the Swap Counterparty (unless the Interest Rate Swap Agreement
has been terminated and all amounts owed to the Swap Counterparty have been paid
in full) and the Note Insurer whether or not the Owner Trustee is in default
hereunder.
(b) The Owner Trustee shall, at its own expense, duly and punctually
perform and observe each of its obligations to the Servicer under the Servicing
Agreement in accordance with the terms thereof. In addition, promptly following
a request from the Indenture Trustee to do so, the Owner Trustee shall take all
such lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Servicer of each of its obligations to the
Owner Trustee under or in connection with the Servicing Agreement, in accordance
with the terms thereof, and in effecting such request shall exercise any and all
rights, remedies, powers and privileges lawfully available to the Owner Trustee
under or in connection with the Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, including, without limitation, the
transmission of notices of default on the part of the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Servicer of each of its obligations under the
Servicing Agreement.
(c) The Owner Trustee agrees to give the Indenture Trustee, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full), the Note
Insurer, the Class A Noteholders, the Class B Noteholders and the Rating
Agencies prompt written notice of each Default, Event of Default or Event of
Servicing Default on the part of the Servicer of its obligations under the
Servicing Agreement and any material adverse information regarding the
Servicer's servicing
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activities of which the Owner Trustee becomes aware. In the event of termination
of the Servicer due to an Event of Servicing Default under the Servicing
Agreement, a Successor Servicer which is an Eligible Servicer selected by the
Note Insurer shall assume the duties and responsibilities of the Servicer under
the procedures specified in the Servicing Agreement.
(d) The Owner Trustee shall not waive any default by the Servicer under the
Servicing Agreement without the written consent of (x) the Note Insurer or, if a
Note Insurer Default has occurred and is continuing, the Class A Noteholders
constituting Class A Noteholder Approval, or (y) the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full), if the effect thereof would adversely
affect the Swap Counterparty or (z) if the Aggregate Outstanding Principal
Balance of the Class A Notes has been reduced to zero and the Note Insurer has
been paid in full the amounts then owing to it, the Noteholders constituting
Class B Noteholder Approval.
(e) The Indenture Trustee does not assume any duty or obligation of the
Owner Trustee under the Servicing Agreement, and the rights given to the
Indenture Trustee thereunder are subject to the provisions of Article VII
hereof.
ARTICLE V
ACCOUNTS, COLLECTIONS, PAYMENTS OF INTEREST
AND PRINCIPAL, RELEASES, RESERVE FUND,
AND STATEMENTS TO NOTEHOLDERS
Section 5.01 Accounts. The Indenture Trustee shall establish the Issuance
Fund, the Revenue Fund, the Reserve Fund, the Pre-Funding Account and the
Collection Account (collectively, the "Accounts") in the name of the Indenture
Trustee for the benefit of the Noteholders, the Swap Counterparty (unless the
Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full) and the Note Insurer, as their
interests may appear. The Collection Account shall be a segregated account
established with the Collection Account Depository and the remaining foregoing
Accounts and funds shall be segregated accounts established with the Corporate
Trust Office of the Indenture Trustee. Each Account shall be an Eligible
Account; provided that if an Account ceases to be an Eligible Account, all funds
in such Account shall be deposited into an Eligible Account within 30 days of
the date an Authorized Officer of the Indenture Trustee first has knowledge of,
or receives written notice of, the fact that an Account is no longer an Eligible
Account.
Amounts held in the Accounts (other than the Collection Account) shall be
invested by the Indenture Trustee, upon the written direction of the
Administrator, in Eligible Investments; provided that amounts paid under the
Note Policy shall not be invested. Each investment shall mature no later than
the applicable Transfer Date, except that investments in funds or accounts under
which JPMorgan Chase Bank or an Affiliate thereof is the investment adviser or
the investment manager may be held until the date on which funds are intended to
be used. The Indenture Trustee shall not be responsible for any losses incurred
on any such investments unless the Indenture Trustee or an Affiliate thereof is
the obligor under such investments. The Indenture Trustee shall have no
liability in respect of losses incurred as a result of the liquidation of any
investments prior to its stated maturity or the failure of the Administrator to
provide written directions. Any written investment direction from the
Administrator shall certify that any
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such investment is authorized by this Section 5.01 and is an Eligible
Investment. All amounts received as earnings on or income from any investments
or reinvestments of funds in any Account shall be credited to such Account;
provided, however, that on each Transfer Date, the Indenture Trustee shall
transfer all amounts received as earnings on or income from any investments or
reinvestments of funds in the Accounts to the Revenue Fund prior to making any
of the transfers or payments referred to in Section 5.05(c) hereof.
Section 5.02 Collections. Pursuant to the Servicing Agreement, the Owner
Trustee shall cause the Servicer to remit to the Collection Account established
pursuant to Sections 5.01 and 5.04 hereof, and to no other account, as soon as
practicable, but in no event later than the Collection Account Depository's
close of business on the second Business Day following the date of receipt
thereof by the Servicer, any payments received by the Servicer from or on behalf
of Obligors including Actual Payments, Insurance Proceeds, Defaulted Receivable
Recoveries, Repurchase Prices and all proceeds relating to the repossession or
disposition of the Financed Vehicles.
Section 5.03 Application of Collections. All amounts transferred to the
Revenue Fund with respect to any Collection Period shall be allocated by the
Indenture Trustee based solely upon the calculations and other written
information provided to the Indenture Trustee by the Servicer as set forth in
the relevant Monthly Servicer Report. The Indenture Trustee shall have the right
but not the obligation to determine, confirm or recalculate such information
provided by the Servicer.
Section 5.04 Collection Account.
(a) JPMorgan Chase Bank is hereby appointed as the initial Collection
Account Depository under this Indenture. Upon thirty (30) days' prior written
notice to the Indenture Trustee, the Note Insurer, the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full) and the Servicer, the Owner Trustee
may, at any time and from time to time, appoint a successor Collection Account
Depository for the Collection Account and, upon prior written notice to the
Indenture Trustee and the Note Insurer certifying that the transfer complies
with the provisions of this Section 5.04, transfer the Collection Account from a
depository institution then serving as the Collection Account Depository to
another Collection Account Depository. If at any time the institution then
serving as the Collection Account Depository or the Collection Account ceases to
qualify as an eligible Collection Account Depository or Eligible Account,
respectively, then the Owner Trustee shall give written direction to the
Indenture Trustee to transfer the Collection Account to an Eligible Account at
an eligible Collection Account Depository chosen by the Owner Trustee and
approved in writing by the Note Insurer. Upon any such transfer, such successor
institution shall be deemed to be the Collection Account Depository with respect
to the Collection Account so transferred.
(b) The Owner Trustee shall establish the Collection Account in the name of
the Indenture Trustee for the benefit of the Noteholders, the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) and the Note Insurer and
the Indenture Trustee shall maintain the Collection Account with the Collection
Account Depository as an account into which all amounts
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(including late payments) remitted directly by Obligors and all amounts received
by the Servicer from or on behalf of Obligors under the terms of the
Receivables, and all amounts required to be deposited therein pursuant to
Section 5.02, will be deposited in accordance with the provisions of Section
5.02. The Collection Account Depository shall be deemed to hold all funds on
deposit for the account of the Indenture Trustee and the Servicer shall transmit
monthly statements on all amounts received in the Collection Account to the
Indenture Trustee upon request.
(c) The Indenture Trustee shall provide written instruction to the
Collection Account Depository (an "Acknowledgment Letter"), to the effect that
(i) the Collection Account Depository shall transfer cleared funds from the
Collection Account as instructed by the Indenture Trustee unless revised
instructions are given by the Indenture Trustee and (ii) the Collection Account
Depository shall follow any written instructions provided by the Indenture
Trustee with respect to the Collection Account. Such Acknowledgment Letter shall
be acknowledged in writing by the Collection Account Depository as of the date
hereof. The Owner Trustee shall obtain an Acknowledgment Letter from each
successor Collection Account Depository on or prior to the effectiveness of the
transfer of the Collection Account to such successor Collection Account
Depository.
Section 5.05 Deposit of Funds in the Revenue Fund and Transfer of Funds
from the Revenue Fund and the Reserve Fund.
(a) There shall be deposited into the Revenue Fund, from time to time, the
amounts specified in this Article V. All amounts on deposit in the Collection
Account representing collected funds at 11:00 a.m., New York, New York time, on
each Business Day on which any of the Notes are Outstanding shall be transferred
by the Collection Account Depository that day to the Indenture Trustee for
deposit into the Revenue Fund upon receipt.
(b) On each Swap Payment Date when a Net Swap Receipt is received by the
Indenture Trustee on behalf of the Owner Trustee, the Indenture Trustee shall
deposit such Net Swap Receipt into the Revenue Fund on the same day as it is
received. On each Payment Date, commencing with the Payment Date in February,
2003, the Indenture Trustee shall, based on the information set forth in the
Monthly Servicer Report, pay amounts on deposit in the Revenue Fund and, to the
extent provided in Section 5.05(c) below, the Reserve Fund to the Persons, in
the order of priority and in the amounts specified in Section 5.05(c).
(c) (i) On each Transfer Date, the Indenture Trustee shall, based on the
information set forth in the related Monthly Servicer Report, allocate funds for
payment from the Revenue Fund and, as applicable, the Reserve Fund, in the
following manner and order of priority and (ii) on the Payment Date, apply
amounts on deposit in such Accounts specified below in the following manner and
order of priority:
First, from the Revenue Fund in an amount not to exceed the Monthly
Available Funds and thereafter from the Reserve Fund, to pay the Indenture
Trustee an amount equal to the Indenture Trustee Fee (including any prior
unpaid Indenture Trustee Fees) and any reasonable expenses (including
attorneys' fees and expenses) of the Indenture Trustee and to pay the Owner
Trustee an amount equal to the Owner Trustee Fee (including any prior
unpaid Owner Trustee Fees) and any reasonable expenses (including
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attorney's fees and expenses) of the Owner Trustee; provided, however, that
unless (A) an Event of Default or an Event of Servicing Default has
occurred and is continuing or (B) (x) the Note Insurer shall consent
otherwise, or, if a Note Insurer Default has occurred and is continuing,
Class A Noteholders constituting Class A Noteholder Approval shall consent
otherwise, or (y) if the Aggregate Outstanding Principal Balance of the
Class A Notes has been reduced to zero and the Note Insurer has been paid
in full the amounts then owing to it, Noteholders constituting Class B
Noteholder Approval shall consent otherwise, aggregate expenses payable to
the Indenture Trustee and the Owner Trustee pursuant to this clause First
shall be limited to $150,000 per annum;
Second, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds and thereafter from the Reserve Fund, to pay the
Servicer, an amount equal to the Servicing Fee (including any prior unpaid
Servicing Fees) and expenses of the Servicer permitted under Section
2.13(b) of the Servicing Agreement (including any prior unpaid expenses) of
the Servicer;
Third, from the Revenue Fund in an amount not to exceed the Monthly
Available Funds and thereafter from the Reserve Fund, to pay the Swap
Counterparty an amount equal to the Net Swap Payments;
Fourth, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds and thereafter from the Reserve Fund, to pay to the
Holders of each Class of Class A Notes, concurrently, an amount which is
equal to the Class A-1 Note Interest, Class A-2 Note Interest, Class A-3-A
Note Interest, Class A-3-B Note Interest and Class A-4 Note Interest, as
applicable, to each such Class;
Fifth, provided that no Note Insurer Default has occurred and is
continuing, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds and thereafter from the Reserve Fund, to pay to the
Note Insurer, first an amount equal to the Premium (including any prior
unpaid Premiums) and second an amount which is equal to the Reimbursement
Obligations due to the Note Insurer, excluding Reimbursement Obligations
relating to payments made under the Note Policy with respect to principal
on the Class A Notes;
Sixth, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds and thereafter from the Reserve Fund, to pay to the
Holders of each Class of Class B Notes, sequentially, (i) first, to the
Class B-1 Noteholders, the Class B-1 Basic Note Interest and (ii) second,
to the Class B-2 Noteholders, the Class B-2 Basic Note Interest;
Seventh, from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund to
pay sequentially (i) first, to the Class A-1 Noteholders, an amount equal
to the Class A Principal Payment Amount for such Payment Date until the
Aggregate Outstanding Principal Balance of the Class A-1 Notes is reduced
to zero, (ii) second, to the Class A-2 Noteholders and an amount equal to
the Class A Principal Payment Amount for such Payment Date until the
Aggregate Outstanding Principal Balance of the Class A-2 Notes is reduced
to zero, (iii)
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third, to the Class A-3-A Noteholders and the Class A-3-B Noteholders on a
pro rata basis (based on the Aggregate Outstanding Principal Balance of
each Class of Class A-3 Notes), an amount equal to the Class A Principal
Payment Amount for such Payment Date until the Aggregate Outstanding
Principal Balance of the Class A-3-A Notes and the Class A-3-B Notes, is
reduced to zero, and (iv) fourth, to the Class A-4 Noteholders, an amount
equal to the Class A Principal Payment Amount for such Payment Date until
the Aggregate Outstanding Principal Balance of the Class A-4 Notes, is
reduced to zero; provided, however, that after the occurrence of an Event
of Default under this Indenture, the available amounts shall be paid to the
Holders of each Class of the Class A Notes on a pro rata basis (based on
the Aggregate Outstanding Principal Balance of each Class of Class A Notes
as a fraction of the Aggregate Outstanding Principal Balance of the Class A
Notes) until the Aggregate Outstanding Principal Balance of the Class A
Notes has been reduced to zero;
Eighth, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds, to pay the Note Insurer, an amount equal to all
accrued and unpaid Premium and Reimbursement Obligations to the extent not
paid pursuant to clause Fifth;
Ninth, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds, for deposit into the Reserve Fund, an amount equal
to any deficiency between the amount then on deposit in the Reserve Fund
(after giving effect to any withdrawals made or to be made from the Reserve
Fund for payments on such Payment Date) and the Reserve Fund Requirement,
calculated as of the close of business on the related Payment Date;
provided, however, that if an Event of Default has occurred and is
continuing, funds which otherwise would be deposited into the Reserve Fund
pursuant to this clause Ninth shall be paid to the Noteholders pursuant to
the provisions of clause Nineteenth of this Section 5.05(c);
Tenth, from the Revenue Fund in an amount not to exceed the remaining
Monthly Available Funds to pay to the Class A Noteholders, sequentially,
(i) first, to the Class A-1 Notes, (ii) second, to the Class A-2 Notes,
(iii) third, to the Class A-3-A Notes and the Class A-3-B Notes on a pro
rata basis (based on the Aggregate Outstanding Principal Balance of each
Class of Class A-3 Notes), and (iv) fourth, to the Class A-4 Notes, an
amount necessary to reduce the Outstanding Principal Balance of the Class A
Notes to the lesser of (x) 91.00% of the Aggregate Receivables Balance as
of the end of the related Collection Period and (y) the Aggregate
Receivables Balance as of the end of the related Collection Period less
1.00% of the initial Aggregate Receivables Balance; provided, however, that
after the occurrence of an Event of Default under this Indenture, the
available amounts shall be paid to the Holders of each class of the Class A
Notes on a pro rata basis (based on the Aggregate Outstanding Principal
Balance of each Class of Class A Notes as a fraction of the Aggregate
Outstanding Principal Balance of the Class A Notes) until the Aggregate
Outstanding Principal Balance of the Class A Notes has been reduced to
zero;
Eleventh, from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund to
pay sequentially (i)
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first, to the Holders of the Class B-1 Notes an amount equal to the Class
B-1 Supplemental Interest and (ii) second, to the Holders of the Class B-2
Notes an amount equal to the Class B-2 Supplemental Interest on a pro rata
basis; provided, however, that any payment made under this clause Eleventh
from the Reserve Fund may be made only to the extent funds on deposit in
the Reserve Fund are in excess of the Reserve Fund Requirement (after
giving effect to any withdrawals made or to be made from the Reserve Fund
for payment on such Payment Date pursuant to clauses First through Seventh
and Thirteenth);
Twelfth, from the Revenue Fund, in an amount not to exceed the
remaining Monthly Available Funds, sequentially (i) first the amount
necessary to reduce the Aggregate Outstanding Principal Balance of the
Class B-1 Notes to zero and (ii) second the amount necessary to reduce the
Aggregate Outstanding Principal Balance of the Class B-2 Notes to zero;
provided, however, that if an Event of Default has occurred and is
continuing, payments under this clause Twelfh shall be paid to the Holders
of the Class A Notes on a pro rata basis (based on the respective Aggregate
Outstanding Principal Balance of each Class of Class A Notes) until
Aggregate Outstanding Principal Balance of the Class A Notes have been
reduced to zero and then to the Holders of the Class B Notes sequentially
until the Aggregate Outstanding Principal Balance of the Class B Notes have
been reduced to zero;
Thirteenth, from the Revenue Fund and thereafter from the Reserve Fund
to pay sequentially (i) to the Class B-1 Noteholders, an amount to reduce
the Outstanding Principal Balance of the Class B-1 Notes to zero on the
Class B-1 Final Scheduled Payment Date and (ii) to the Class B-2
Noteholders, an amount to reduce the Outstanding Principal Balance of the
Class B-2 Notes to zero on the Class B-2 Final Scheduled Payment Date;
Fourteenth, in connection with an optional redemption of the Notes, if
any, occurring on such Payment Date pursuant to Section 6.02 hereof, from
the Revenue Fund and thereafter from the Reserve Fund, an amount equal to
the sum of any shortfall of funds therein available in the following order
of priority, (A) to pay any accrued Class A Note Interest, (B) to pay any
accrued Class B Note Interest, (C) to reduce the Aggregate Outstanding
Principal Balance of the Class A Notes to zero, (D) to pay to the Note
Insurer any Premiums, Reimbursement Obligations and any other amounts
payable upon optional redemption, (E) to reduce the Aggregate Outstanding
Principal Balance of the Class B Notes to zero, (F) to pay the Swap
Counterparty any Swap Termination Payments and any other amounts payable
upon optional redemption and (G) to pay to the Indenture Trustee and the
Servicer any fees and expenses payable upon optional redemption;
Fifteenth, from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund but
only to the extent of funds therein in excess of the Reserve Fund
Requirement, to pay concurrently, to the Note Insurer, any reimbursement of
payments made under the Swap Policy in respect of Swap Termination Payments
and to the Swap Counterparty, any Swap Termination Payments payable to the
Swap Counterparty;
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Sixteenth, (A) from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund but
only to the extent of funds therein in excess of the Reserve Fund
Requirement, to pay the Indenture Trustee, expenses of the Indenture
Trustee permitted hereunder and not previously paid (including any prior
unpaid expenses of the Indenture Trustee), to pay the Owner Trustee
expenses of the Owner Trustee permitted under the Trust Agreement and not
previously paid (including any prior unpaid expenses of the Owner Trustee)
and (B) solely from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds, to pay to the Indenture Trustee, the
Owner Trustee, the Servicer and other specified Persons, as the case may
be, amounts payable to the Indenture Trustee and the Owner Trustee, if any,
pursuant to the indemnification provisions hereof (including any prior
unpaid indemnities of the Indenture Trustee and the Owner Trustee), to the
applicable Persons, indemnities (including any prior unpaid indemnities by
the Owner Trustee) and the Administrative Expenses, which amounts shall be
calculated by the Servicer for inclusion in the Monthly Servicer Report;
Seventeenth, from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund, but
only to the extent of funds therein in excess of the Reserve Fund
Requirement up to $35,000, to pay to the applicable Person, an amount equal
to the Transition Costs, if any, in connection with the transition of
duties from the Servicer to a substitute Servicer;
Eighteenth, from the Revenue Fund in an amount not to exceed the
remaining Monthly Available Funds and thereafter from the Reserve Fund, but
only to the extent of funds therein in excess of the Reserve Fund
Requirement, to pay to the applicable Person (other than the Servicer), an
amount equal to the Re-Liening Expenses, if any, to the extent not paid by
the Servicer; and
Nineteenth, any amounts remaining from the Revenue Fund in an amount
not to exceed the remaining Monthly Available Funds, as appropriate, to the
Certificate Distribution Account, an amount equal to the sum of such
remaining balance of funds in the Revenue Fund plus all cash amounts held
in the Reserve Fund in excess of the Reserve Fund Requirement (after giving
effect to any withdrawals from the Reserve Fund on such Payment Date
pursuant to clauses First through Seventh and Thirteenth); provided that
upon the occurrence or continuation of an Event of Default any amounts
which otherwise would be payable to the Certificate Distribution Account
pursuant to this clause Nineteenth shall be paid to the Holders of the
Class A Notes (on a pro rata basis, based on the Aggregate Outstanding
Principal Balance of each Class of Class A Notes as a fraction of the
Aggregate Outstanding Principal Balance of the Class A Notes) until the
Aggregate Outstanding Principal Balance of the Class A Notes has been
reduced to zero and then to the Note Insurer until the Note Insurer has
been paid all amounts then owing to it and, thereafter, to the Holders of
each Class of Class B Notes sequentially until the Aggregate Outstanding
Principal Balance of the Class B Notes has been reduced to zero, unless the
Note Insurer has, or, if a Note Insurer Default has occurred and is
continuing, Class A Noteholders constituting Class A Noteholder Approval
have, delivered a written waiver of an Event of Default, and the
Noteholders constituting Class B Noteholder Approval have not given written
direction to the Indenture Trustee to the contrary, in
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which case the amounts available for payment pursuant to this clause
Nineteenth shall be paid to the Certificate Distribution Account.
On the first Payment Date following the termination of the Funding Period,
the Indenture Trustee shall, based on the information set forth in the related
Monthly Servicer Report, (I) withdraw any remaining funds on deposit in the
Pre-Funding Account (other than investment earnings or income) and (i) pay an
amount equal to (A) the Class B Initial Bond Percentage multiplied by (B) the
amount of such funds to the Holders of the Class B Notes, (ii) if the aggregate
amount of such funds exceeds $100,000, pay an amount equal to (A) the Class A
Initial Bond Percentage multiplied by (B) the amount of such funds to the Class
A Noteholders on a pro rata basis (based on the Original Principal Balance of
each Class of Class A Notes as a fraction of the Original Principal Balance of
the Class A Notes) (provided that if the pro rata portion of such amount payable
to any Class of Class A Notes exceeds the Aggregate Outstanding Principal
Balance of such Class, such excess shall be distributed to each other Class of
Class A Notes on a pro rata basis), and (iii) if the aggregate amount of such
funds is less than or equal to $100,000, pay an amount equal to (A) the Class A
Initial Bond Percentage multiplied by (B) the amount of such funds to the
Holders of the Class A Notes in sequential order of priority beginning with the
Class A-1 Notes until the Aggregate Outstanding Principal Balance of each Class
is reduced to zero, and (II) withdraw any remaining funds on deposit in the
Reserve Fund which were deposited therein on the Closing Date to cover negative
arbitrage with respect to the funds deposited in the Pre-Funding Account on the
Closing Date (after making all withdrawals from the Reserve Fund on such Payment
Date) and pay such funds directly to the Transferor on such Payment Date.
Section 5.06 Issuance Fund. On the Closing Date there shall be deposited
into the Issuance Fund an amount equal to (a) the gross proceeds from the sale
of the Class A Notes and Class B Notes plus (b) the Costs of Issuance of the
offering of the Notes and the Initial Reserve Fund Deposit to be supplied by the
Seller. The amounts on deposit in the Issuance Fund shall be paid or transferred
on the Closing Date (i) to the Reserve Fund, an amount equal to the Initial
Reserve Fund Deposit, (ii) to the Pre-Funding Account, the amount of $0, (iii)
to the Persons and in the amounts set forth in an Officers' Certificate of the
Owner Trustee stating the Costs of Issuance of the Notes, and (iv) at the
direction of the Owner Trustee, to the lienholders, the amounts required to pay
off existing lienholders with respect to the Receivables Granted to the
Indenture Trustee on the Closing Date pursuant to the terms hereof. Subsequent
to the disbursement of all funds initially deposited into the Issuance Fund, the
Issuance Fund shall be terminated and closed. Any amounts estimated for
disbursement as Costs of Issuance hereunder and not so disbursed shall, at the
written direction of the Seller, be disbursed by the Indenture Trustee to the
Seller.
Section 5.07 Account Property. With respect to the Account Property, the
Owner Trustee and the Indenture Trustee agree that:
(a) Any Account Property that constitutes Physical Property shall be
delivered to the Indenture Trustee in accordance with paragraph (a) of the
definition of "Delivery" and shall be held, pending maturity or disposition,
solely by the Indenture Trustee or a securities intermediary (as such term is
defined in Section 8-102(a)(14) of the UCC) acting solely for the Indenture
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Trustee so as to continuously establish control (as defined in Section 8-106 of
the UCC) thereof by the Indenture Trustee.
(b) Any Account Property that is a book-entry security held through the
Federal Reserve System pursuant to federal book-entry regulations shall be
delivered in accordance with paragraph (b) of the definition of "Delivery" and
shall be maintained by the Indenture Trustee, pending maturity or disposition,
through continued book-entry registration of such Account Property as described
in such paragraph so as to continuously establish control (as defined in Section
8-106 of the UCC) thereof by the Indenture Trustee.
(c) Any Account Property which is an investment property (as defined in
Section 9-102 of the UCC) and that is not governed by clause (a) or (b) above
shall be delivered to the Indenture Trustee in accordance with paragraph (c) of
the definition of "Delivery" and shall be maintained by the Indenture Trustee,
pending maturity or disposition, through continued registration of the Indenture
Trustee's (or its nominee's) ownership of such security so as to continuously
establish control (as defined in Section 8-106 of the UCC) thereof by the
Indenture Trustee.
Section 5.08 Pre-Funding Account.
(a) The Indenture Trustee shall credit to the Pre-Funding Account, pursuant
to an Officer's Certificate, an amount equal to $0 transferred thereto from the
Issuance Fund representing a portion of the proceeds from the sale of the Class
A Notes and the Class B Notes.
(b) The Indenture Trustee shall, upon receipt of written direction from the
Owner Trustee, withdraw funds on deposit in the Pre-Funding Account on a Funding
Date and remit such amount to the Transferor (on behalf of the Seller) for the
acquisition, transfer and Grant of the Subsequent Receivables. In addition, the
Indenture Trustee, on behalf of the Seller, shall deposit into the Reserve Fund
an amount equal to the Subsequent Reserve Fund Deposit for such Funding Date.
The amount of funds withdrawn from the Pre-Funding Account for such acquisition
of Subsequent Receivables will be equal to of the Receivables Purchase Price of
the Subsequent Receivables, as of the applicable Cutoff Date; provided that
Subsequent Receivables may not be purchased through the Pre-Funding Account
unless the addition of such Subsequent Receivables to the Receivables Pool meets
the requirements set forth in Section 2.16(b) hereof. Except as expressly set
forth herein and in the Servicing Agreement, the Indenture Trustee shall have no
duty to verify that the Subsequent Receivables meet the requirements set forth
in Section 2.16 hereof.
(c) To the extent that any funds remain in the Pre-Funding Account after
termination of the Funding Period, such funds will be paid on the first Payment
Date occurring after termination of the Funding Period in accordance with
Section 5.05(c).
Section 5.09 Note Payments. The Indenture Trustee shall pay to each
Noteholder of record on the preceding Record Date either (i) by wire transfer,
in immediately available funds to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Indenture Trustee appropriate written instructions three
(3) Business Days prior to the Record Date and such Noteholder's Notes in the
aggregate
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evidence a denomination of not less than $250,000 (which instructions may remain
in effect for subsequent Payment Dates), or (ii) if not, by check mailed to such
Noteholder at the address of such Noteholder appearing in the Note Register, the
amounts to be paid to such Noteholder pursuant to such Noteholder's Notes;
provided that so long as the Class A Notes or the Class B Notes are registered
in the name of the Securities Depository such respective payments shall be made
to the nominee thereof in immediately available funds. All payments to the Note
Insurer shall be made by wire transfer.
Section 5.10 Use of Moneys in the Reserve Fund. Pursuant to the uses and
purposes set forth in Section 5.05(c) hereof, the Indenture Trustee shall use
funds in the Reserve Fund for the uses and purposes and in the priority set
forth in Section 5.05(c) hereof.
Section 5.11 Statements to Noteholders; Tax Returns. Within forty-five (45)
days after the end of each calendar year, the Owner Trustee shall cause the
Indenture Trustee to furnish to each Person who at any time during such calendar
year was a Noteholder of record and received any payment thereon (a) a report as
to the aggregate of amounts paid during such calendar year to each such
Noteholder allocable to principal and allocable to interest for such calendar
year or applicable portion thereof during which such Person was a Noteholder and
(b) such information required by the Code and regulations thereunder, to enable
such Noteholders to prepare their federal and state income tax returns. Within
thirty (30) days after the end of each calendar year, the Indenture Trustee
shall furnish to the Seller a statement containing such of the information
provided pursuant to this Section 5.11 as relates to payments to the Seller,
aggregated for such calendar year. The obligation of the Indenture Trustee set
forth in this paragraph shall be deemed to have been satisfied to the extent
that information shall be provided by the Indenture Trustee, in the form of Form
1099 or other comparable form, pursuant to any requirements of the Code.
The Owner Trustee shall cause the Servicer to cause a firm of Independent
Public Accountants to prepare any tax returns required to be filed by the Owner
Trustee on behalf of the Trust.
Section 5.12 Reports by the Indenture Trustee. The Indenture Trustee shall
deliver to the Note Insurer, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full) the Seller and the Servicer, within ten (10) Business
Days after the end of each Collection Period, a written report setting forth the
amount of the Reserve Fund and the identity of the investments included therein.
Without limiting the generality of the foregoing, the Indenture Trustee shall,
upon the written request of the Seller or the Note Insurer, promptly transmit to
the Seller or the Note Insurer, as the case may be, copies of all accountings
of, and information with respect to, the Reserve Fund, investments thereof, and
payments thereto and therefrom.
Section 5.13 Final Balance. Upon payment of all principal and interest with
regard to the Notes, payment of all Premiums, reimbursement of all Swap
Termination Payments paid under the Swap Policy and Reimbursement Obligations to
the Note Insurer, termination of the Interest Rate Swap Agreement and payment of
all amounts payable to the Swap Counterparty and payment of all reasonable fees,
charges and other expenses, such as fees and expenses of the Indenture Trustee,
all moneys remaining in all Accounts, except moneys necessary to make
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payments equal to such amounts and payments of principal and interest with
respect to the Notes and payments with respect to the Interest Rate Swap
Agreement, which moneys shall be held and disbursed by the Indenture Trustee
pursuant to this Article V, shall be remitted to the Seller.
Section 5.14 Officer's Certificates.
(a) The Seller will deliver or cause to be delivered or otherwise make
available through electronic media to the Rating Agencies, the Note Insurer, the
Swap Counterparty (unless the Interest Rate Swap Agreement has been terminated
and all amounts owed to the Swap Counterparty have been paid in full), the Class
B Noteholders and the Indenture Trustee:
(i) as soon as available, but in no event later than forty-five (45)
days after the end of each fiscal quarter of Capital One Financial
Corporation ("COFC") (commencing with the quarter ending December 31,
2002), (A) an unaudited balance sheet and income statement (prepared in
accordance with generally accepted accounting principles applied on a
consistent basis, other than the absence of explanatory footnotes, and
subject to year end adjustments) for COFC and its consolidated subsidiaries
covering the preceding quarter, in each case certified by an Authorized
Officer of each of such Person to be true, accurate and complete copies of
such financial statements and (B) an Officer's Certificate of each of the
Servicer and Seller certifying as to the existence or nonexistence of an
Event of Default; and
(ii) on or before 120 days after the end of each fiscal year of COFC
(commencing with the fiscal year ending December 31, 2002) (A) a copy of
the audited annual financial statement of COFC included in the report filed
on Form 10K with the Securities Exchange Commission and (B) an Officer's
Certificate of each of the Servicer and Seller certifying as to the
existence or nonexistence of an Event of Default;
(iii) as soon as practicable and in any event within five (5) days
after such filing, any financial reports filed by the Servicer with the
Securities and Exchange Commission; and
(iv) prompt notice of any change in the Servicer's fiscal year.
(b) Except to the extent specifically provided in this Indenture, the
Indenture Trustee shall have no responsibility to review or any liability
whatsoever for the review of and/or reporting to the Noteholders, the Note
Insurer or otherwise of the results of any financial statements received by the
Indenture Trustee under this Section 5.14.
(c) The Seller will cause a firm of Independent Public Accountants to
deliver to the Rating Agencies, the Class B Noteholders, the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) and the Note Insurer, upon
receipt of such covenants and representations from such Persons as such
Independent Accountants may require and as soon as practicable, but in any event
within 120 days after the end of each fiscal year, an annual review of the
Servicer's procedures and operations in form and substance reasonably
satisfactory to the Note Insurer, prepared by such firm of Independent Public
Accountants, dated as of December 31 of each year beginning December 31, 2002
and substantially stating to the effect that (i) such accountants
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have examined the accounts and records of the Servicer relating to the Trust
Property and the conveyed property in all securitizations sponsored by the Owner
Trustee or an affiliate thereof (which records shall be described in one or more
schedules to such statement), (ii) such firm has compared the information
contained in certain Monthly Servicer Reports (and similar reports for other
securitization transactions sponsored by the Owner Trustee or an affiliate
thereof) delivered in the relevant period with information contained in the
accounts and records and other relevant source documents for such period, and
(iii) on the basis of the procedures performed, whether the information
contained in such Monthly Servicer Reports (and similar reports for such other
securitization transactions) delivered on the relevant period reconciles and
agrees with the information contained in the accounts and records and other
relevant source documents except for such exceptions as such Independent Public
Accountants believe to be immaterial and such other exceptions as shall be set
forth in such statement.
Section 5.15 The Note Guaranty Insurance Policy.
(a) No later than three (3) Business Days prior to each Payment Date, the
Indenture Trustee shall determine whether a Deficiency Amount (as defined in the
Note Policy) exists. If the Indenture Trustee determines that a Deficiency
Amount exists, the Indenture Trustee shall complete a notice in the form of
Exhibit A to the Note Policy (the "Notice") and submit the Notice to the Note
Insurer or its agent no later than 12:00 noon, New York City time, on the second
Business Day preceding such Payment Date, as a claim for an Insured Payment (as
defined in the Note Policy) in an amount equal to such Deficiency Amount. The
Indenture Trustee shall, as necessary, make a claim on the Note Policy in
respect of Preference Amounts (as defined in the Note Policy) in accordance with
the terms of the Note Policy.
(b) The Indenture Trustee shall establish and maintain an Eligible Account
for the benefit of the Class A Noteholders for the exclusive use as an account
into which to deposit any proceeds of the Note Policy (the "Insurance Account").
Upon receipt of an Insured Payment from the Insurer, the Indenture Trustee shall
deposit such Insured Payment in the Insurance Account. All amounts on deposit in
the Insurance Account shall remain uninvested. On each Payment Date, the
Indenture Trustee shall (i) transfer any Deficiency Amount then on deposit in
the Insurance Account to the Revenue Fund and (ii) return any money in the
Insurance Account which does not constitute an Insured Payment (as defined in
the Note Policy) to the Note Insurer. The Indenture Trustee shall distribute on
each Payment Date, to the Class A Noteholders, the Deficiency Amount for such
Payment Date from the Revenue Fund in accordance with the priorities set forth
in Sections 5.05(c) hereof.
(c) The Indenture Trustee shall (i) receive as attorney-in-fact of each
Class A Noteholder any Insured Payment from the Note Insurer and (ii) distribute
such Insured Payment as set forth in subsection (b) above. Insured payments
disbursed by the Indenture Trustee from the proceeds of the Note Policy shall
not be considered payment by the Owner Trustee with respect to the Class A
Notes, nor shall such disbursement of such Insured Payments discharge the
obligations of the Owner Trustee with respect to the amounts thereof, and the
Insurer shall become the owner of such amounts as the deemed assignee and
subrogee of such Class A Noteholder. The Indenture Trustee hereby agrees on
behalf of each Class A Noteholder (and each Class A Noteholder, by its
acceptance of its Class A Notes, hereby agrees) for the benefit of the Note
Insurer that the Indenture Trustee shall recognize that to the extent the Note
Insurer makes
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Insured Payments, either directly or indirectly (as by paying through the
Indenture Trustee), to the Class A Noteholders, the Note Insurer will be
entitled to receive the reimbursements in accordance with the priority set forth
in Section 5.05(c) hereof.
Section 5.16 Release of Trust Estate. (a) Subject to the payment of its
fees and expenses pursuant to Section 7.07, the Indenture Trustee shall, when
required by the provisions of this Indenture, execute instruments to release
property from the Lien of this Indenture or any other Transaction Document, or
convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture or
such other document. No party relying upon an instrument executed by the
Indenture Trustee as provided in this Article V shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.
(b) The Indenture Trustee shall, at such time as there are no Notes
outstanding, the Interest Rate Swap Agreement has been terminated and all
amounts payable to the Swap Counterparty have been paid, and all sums due the
Indenture Trustee pursuant to Section 7.07 have been paid, release any remaining
portion of the Trust Estate that secured the Notes and the Interest Rate Swap
Agreement from the lien of this Indenture and release to the Owner Trustee or
any other Person entitled thereto any funds then on deposit in the Trust
Accounts. The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 5.16(b) only upon receipt of an Issuer
Request accompanied by an Officer's Certificate, an Opinion of Counsel and (if
required by the TIA) Independent Certificates in accordance with TIA (S)(S)
314(c) and (314(d)(1)) meeting the applicable requirements of Section 14.01.
Each Noteholder or Note Owner, by its acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Book-Entry Note, acknowledges that
from time to time the Indenture Trustee shall release the Lien of this Indenture
in connection with the reconveyance of Receivables pursuant to Section 2.15 (to
the extent of such reconveyance) or the liquidation of the Trust Estate
following an Event of Insolvency pursuant to Section 9.04.
Section 5.17 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days' notice when requested by the Owner Trustee to take any action
pursuant to Section 5.16(a), accompanied by copies of any instruments involved,
and the Indenture Trustee may also require as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee,
stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and
adversely impair the security for the Notes and the Interest Rate Swap Agreement
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) or the rights of the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full), the Note
Insurer or Noteholders in contravention of the provisions of this Indenture;
provided that such Opinion of Counsel shall not be required to express an
opinion as to the fair value of the Trust Estate. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.
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ARTICLE VI
REDEMPTION OF NOTES
Section 6.01 Privilege of Redemption and Redemption Price. The Class A
Notes and the Class B Notes are subject to redemption prior to the respective
Final Scheduled Payment Date at such times, at such redemption prices and upon
such terms as are specified in such Notes and in this Indenture.
Section 6.02 Optional Redemption. The Class A Notes and the Class B Notes
are subject to redemption, in whole, prior to the respective Final Scheduled
Payment Date, at the option of the Owner Trustee, acting at the direction of the
Administrator, as long as COAF or an affiliate of COAF is the Administrator, on
any Payment Date on which the Aggregate Outstanding Principal Balance of the
Class A Notes plus the Aggregate Outstanding Principal Balance of the Class B
Notes (after giving effect to payments on such Payment Date) shall be less than
or equal to 10% of the sum of the Original Principal Balance of the Class A
Notes and the Original Principal Balance of the Class B Notes, upon (i) delivery
to the Indenture Trustee, the Swap Counterparty (unless the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty have
been paid in full) and the Note Insurer, not less than twenty (20) days prior to
the date fixed for redemption, of an Officer's Certificate from the Owner
Trustee stating the Owner Trustee's election to redeem the Class A Notes and the
Class B Notes, (ii) the deposit by the Owner Trustee into the Revenue Fund, to
the extent of any shortfall therein, or the direction by the Owner Trustee to
the Indenture Trustee to transfer funds from the Reserve Fund for deposit into
the Revenue Fund, in the following order of priority, an amount equal to the sum
of (A) the Class A Note Interest due on such Payment Date, (B) the Class B Note
Interest due on such Payment Date, (C) the Aggregate Outstanding Principal
Balance of the Class A Notes, (D) all Premiums, fees, expenses, Reimbursement
Obligations and any other amount of or due to the Note Insurer, (E) the
Aggregate Outstanding Principal Balance of the Class B Notes, (F) to the Swap
Counterparty, any other fees, expenses and other amounts payable upon optional
redemption, including reimbursement of all Swap Termination Payments paid under
the Swap Policy and including all Swap Termination Payments under any previously
terminated Interest Rate Swap Agreement, as certified to the Owner Trustee and
the Note Insurer by the Servicer and (G) to the Indenture Trustee and the
Servicer any fees, expenses and other amounts payable upon optional redemption
and (iii) payment of the amounts and to the Persons specified in clause (ii) in
the order of priority set forth in clause (ii). If the Administrator fails to
give such direction to the Owner Trustee, the Note Insurer shall have the option
to direct the Owner Trustee to redeem the Class A Notes, in whole, by providing
notice to the Owner Trustee, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full) and the Indenture Trustee of such election and
depositing or causing to be deposited with the Indenture Trustee the amounts
specified in (ii)(A) and (C) in the preceding sentence, or causing to be
transferred to the Revenue Fund from the Reserve Fund the foregoing amounts;
provided that amounts on deposit in the Reserve Fund shall be available to
redeem the Class A Notes, to pay accrued interest on the Class B Notes and to
pay fees, Premiums and expenses then due and owing, including those of the Note
Insurer, and thereafter, any remaining amounts on deposit in the Reserve Fund
shall be available to redeem the Class B Notes. No optional redemption shall be
permitted without the prior written consent of the Note Insurer if it would
result in a draw on the Note Policy. Upon receipt of such amounts the Indenture
Trustee shall (x) make the final payment in full to the
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Class A Noteholders and the Class B Noteholders as described herein and in the
order of priority set forth above, (y) pay to the appropriate parties all
Premiums, Swap Termination Payments, fees and expenses, reimbursement of all
Swap Termination Payments paid under the Swap Policy and Reimbursement
Obligations then due and (z) only if the Aggregate Outstanding Principal Balance
of the Class A Notes and the Aggregate Outstanding Principal Balance of the
Class B Notes have been reduced to zero, all interest accrued thereon has been
paid in full and all such Premiums, fees and expenses, reimbursement of all Swap
Termination Payments paid under the Swap Policy and Reimbursement Obligations
then due have been paid in full and all Interest Rate Swap Agreement has been
terminated and all amounts payable to the Swap Counterparty, including, without
limitation, all Swap Termination Payments under any previously terminated
Interest Rate Swap Agreement, have been paid in full, release any remaining
assets in the Trust Property to the Seller.
Section 6.03 Notice of Redemption. Whenever by the terms of Section 6.02 of
this Indenture the Indenture Trustee is required to redeem Notes, and subject to
and in accordance with the terms of this Article VI, the Indenture Trustee shall
give notice of the redemption in the manner prescribed by this Section 6.03;
provided, however, that no such notice of redemption shall be given until the
Indenture Trustee holds, in any fund or account pursuant to this Indenture, all
amounts necessary to pay, on the redemption date, the principal of, premium, if
any, and interest accrued and unpaid on the Notes so called for redemption and
such other amounts required by Section 6.02.
Any required notice of the call for any redemption of the Notes, shall
specify the redemption date, the redemption amount, the place or places where
amounts due upon such redemption will be payable and other terms of such
redemption, shall be given by the Indenture Trustee by mailing a copy of the
redemption notice by first-class mail (postage prepaid) not less than ten (10)
days and not more than thirty (30) days prior to the date fixed for redemption
to the registered owner of each Note to be redeemed in whole at the address
shown on the Note Register maintained by the Note Registrar with copies to the
Note Insurer, the Owner Trustee, the Seller and the Rating Agencies. Failure to
give or receive such notice by mailing to any Noteholder, or any defect therein,
shall not affect the validity of any proceedings for the redemption of other
Notes.
Any notice mailed as provided in this Section shall be conclusively
presumed to have been duly given, whether or not the registered owner of such
Notes receives the notice.
Section 6.04 Redemption Payments. Prior to the date fixed for redemption,
any additional funds required to pay Class A Note Interest, Class B Note
Interest, Swap Termination Payments and to reduce the Aggregate Outstanding
Principal Balance of the Class A Notes and the Class B Notes to zero and to pay
all amounts payable to the Swap Counterparty upon such redemption shall be
deposited in the Revenue Fund with the Indenture Trustee to pay, and the
Indenture Trustee is hereby authorized and directed to apply such funds to the
redemption of, the Class A Notes and the Class B Notes called, together with
accrued payments of interest thereon to the Payment Date. Upon the deposit of
funds in full for redemption and payment thereof pursuant to Section 5.09,
payments of interest on the Notes or portions thereof thus called shall no
longer accrue from and after the date fixed for redemption.
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Section 6.05 Cancellation of Notes. All Notes which have been redeemed,
paid or retired or received by the Indenture Trustee for exchange shall not be
reissued but shall be canceled and destroyed in accordance with its customary
procedures.
ARTICLE VII
THE INDENTURE TRUSTEE
Section 7.01 Duties of the Indenture Trustee.
(a) If the Indenture Trustee has received notice pursuant to Section 7.02
or a Responsible Officer shall otherwise have actual knowledge that an Event of
Default has occurred and is continuing, the Indenture Trustee shall, at the
direction of the Note Insurer, exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in its exercise,
as a prudent person would exercise or use under the circumstances in the conduct
of his own affairs.
(b) Except during the occurrence and continuance of such an Event of
Default:
(i) The Indenture Trustee need perform only those duties that are
specifically set forth in this Indenture and no others and no implied
covenants or obligations of the Indenture Trustee shall be read into this
Indenture.
(ii) In the absence of bad faith on its part, the Indenture Trustee
may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Indenture Trustee and conforming to the
requirements of this Indenture. The Indenture Trustee shall, however,
examine such certificates and opinions to determine whether they conform on
their face to the requirements of this Indenture but the Indenture Trustee
shall not be required to determine, confirm or recalculate information
contained in such certificates or opinions.
(c) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own negligent
failure to act, or its own misconduct, except that:
(i) This paragraph does not limit the effect of subsection (b) of this
Section 7.01.
(ii) The Indenture Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved
that the Indenture Trustee was negligent in ascertaining the pertinent
facts.
(iii) The Indenture Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a
direction received by it from the Note Insurer or the Noteholders in
accordance with this Indenture or for any action taken, suffered or omitted
by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture.
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(iv) Except in connection with the performance of its obligations
under Section 3.05(b) hereof, the Indenture Trustee shall have no
responsibility for filing any financing or continuation statement in any
public office at any time or otherwise to perfect or to maintain the
perfection of any security interest in any Receivable.
(d) No provision of this Indenture shall require the Indenture Trustee to
expend or risk its own funds or otherwise incur any financial or other liability
in the performance of any of its duties hereunder (including those duties set
forth in this Section 7.01), or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not assured to it;
provided, however, that nothing in this Section 7.01(d) shall be construed to
limit the exercise by the Indenture Trustee, at the Indenture Trustee's sole
discretion, of any right or remedy permitted under this Indenture or otherwise
in the event of the Owner Trustee's failure to pay the Indenture Trustee's fees
and expenses pursuant to Section 7.07. In having reasonable grounds for
believing that such repayment or indemnity satisfactory to it is not assured to
it, the Indenture Trustee may consider not only the likelihood of repayment or
indemnity by or on behalf of the Owner Trustee but also the likelihood of
repayment or indemnity from amounts payable to it from the Trust Property
pursuant to Sections 7.07 and 5.05(c) hereof.
(e) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to the provisions of this Section 7.01.
(f) The provisions of subsections (a), (b), (c) and (d) of this Section
7.01 shall apply to any co-trustee or separate trustee appointed by the Owner
Trustee and the Indenture Trustee pursuant to Section 7.13 hereof.
(g) The permissive right of the Indenture Trustee to take actions
enumerated in this Indenture shall not be construed as a duty and the Indenture
Trustee shall not be answerable for other than its gross negligence or willful
misconduct.
(h) The Indenture Trustee shall not in any way be held liable by reason of
any insufficiency in any account held by the Indenture Trustee resulting from
any loss experienced on any Receivables.
(i) In no event shall the Indenture Trustee be required to take any action
that conflicts with any of the provisions of this Indenture or with the
Indenture Trustee's fiduciary duties or that adversely affect its rights and
immunities hereunder.
(j) Within 5 Business Days of discovery by the Indenture Trustee of the
occurrence of an Event of Servicing Default, Event of Insolvency or Event of
Default or receipt of notice thereof, the Indenture Trustee shall provide notice
thereof to the Note Insurer, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full), the Noteholders, the Rating Agencies and the Owner
Trustee. In the event the Servicer does not provide to the Note Insurer, the
Swap Counterparty (unless the Interest Rate Swap Agreement has been terminated
and all amounts owed to the Swap Counterparty have been paid in full) and the
Rating Agencies all reports of the Servicer and all reports to the Noteholders,
upon request of any of the Note Insurer, the Swap
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Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full) or one of the
Rating Agencies, the Indenture Trustee shall deliver promptly after such
request, copies of such Servicer reports as are in the Indenture Trustee's
possession to the Note Insurer, the Rating Agencies, the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) and the Noteholders.
(k) In no event shall the Indenture Trustee have any obligations or duties
under or have any liabilities whatsoever to Noteholders under the Employee
Retirement Income Security Act of 1974, as amended.
(l) With respect to all Receivables released from the lien of this
Indenture, the Indenture Trustee shall assign, without recourse, representation
or warranty, to the appropriate Person as directed by the Owner Trustee all the
Indenture Trustee's right, title and interest in and to such Receivable and
rights appurtenant thereto, such assignment being in the form as prepared by the
Servicer and acceptable to the Indenture Trustee. Such Person will thereupon own
such Receivable and related rights appurtenant thereto free of any further
obligation to the Indenture Trustee, the Note Insurer, the Swap Counterparty or
the Noteholders with respect thereto. The Indenture Trustee shall also execute
and deliver all such other instruments or documents as shall be reasonably
requested by any such Person to be required or appropriate to effect a valid
transfer of title to a Receivable and the rights appurtenant thereto.
(m) Every provision of this Indenture relating to the Indenture Trustee
shall be subject to the provisions of this Section 7.01 and the provisions of
the TIA.
Section 7.02 Notice of Event of Insolvency or Event of Default. The
Indenture Trustee shall not be required to take notice of or be deemed to have
notice or knowledge of any Event of Servicing Default, Event of Insolvency or
Event of Default, unless specifically notified in writing at the address set
forth in Section 14.04 or until a Responsible Officer shall have acquired actual
knowledge of any Event of Servicing Default, Event of Insolvency or Event of
Default.
Section 7.03 Rights of the Indenture Trustee.
(a) The Indenture Trustee may conclusively rely on any document believed by
it to be genuine and to have been signed or presented by the proper Person. The
Indenture Trustee need not investigate any fact or matter stated in any
document.
(b) Before the Indenture Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel. The Indenture Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officer's Certificate or Opinion of Counsel.
(c) The Indenture Trustee shall not be liable for any action it takes or
omits to take or any action or inaction it believes in good faith to be
authorized or within its rights or powers.
(d) Except as provided in Section 7.01(b) hereof, the Indenture Trustee
shall not be bound to make any investigation into the facts of matters stated in
any reports, certificates,
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payment instructions, opinion, notice, order or other paper or document unless
the Indenture Trustee has actual knowledge to the contrary.
(e) The Indenture Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee, but the Indenture Trustee shall be
responsible for any misconduct or negligence on the part of, and for the
supervision of, any such agent, attorney, custodian or nominee appointed by it
hereunder. The Indenture Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Notes shall be full and complete authorization and protection from liability
in respect of any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel.
Section 7.04 Not Responsible for Recitals, Issuance of Notes or Application
of Moneys as Directed. The recitals contained herein and in the Notes, except
the certificates of authentication on the Notes, shall be taken as the
statements of the Owner Trustee, and the Indenture Trustee assumes no
responsibility for their correctness. The Indenture Trustee makes no
representations with respect to the Trust Property or as to the validity or
sufficiency of the Trust Property or this Indenture or of the Notes. The
Indenture Trustee shall not be accountable for the use or application by the
Owner Trustee of the proceeds of the Notes. The Indenture Trustee shall not be
liable to any Person for any money paid to the Owner Trustee upon Owner Trustee
instruction or Issuer Order, Servicer instruction or order or direction provided
in a Monthly Servicer Report contemplated by this Indenture.
Section 7.05 May Hold Notes. The Indenture Trustee or any agent of the
Indenture Trustee, in its individual or any other capacity, may become the owner
or pledgee of Notes and may otherwise deal with the Owner Trustee or any
Affiliate of the Owner Trustee with the same rights it would have if it were not
the Indenture Trustee or other agent.
Section 7.06 Money Held in Trust. The Indenture Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed with the Owner Trustee and except to the extent of income or other gain
on investments which are obligations of the Indenture Trustee, and income or
other gain actually received by the Indenture Trustee on investments which are
obligations of others.
Section 7.07 Compensation and Indemnity.
(a) The Owner Trustee agrees:
(i) jointly and severally with the Seller, the Transferor, the
Administrator and the Servicer, to pay the Indenture Trustee from time to
time the Indenture Trustee Fee. The Indenture Trustee's compensation shall
not be limited by any law with respect to compensation of an Indenture
Trustee of an express trust and the payment to the Indenture Trustee
provided by Article V hereto shall constitute payment due with respect to
the applicable fee agreement or letter;
(ii) jointly and severally with the Seller, the Transferor, the
Administrator and the Servicer, except as otherwise expressly provided
herein, to reimburse the Indenture
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Trustee upon request for all reasonable expenses, disbursements and
advances incurred or made by the Indenture Trustee in accordance with any
provision of this Indenture (including, but not limited to, the reasonable
compensation, expenses and disbursements of its agents and counsel and
allocable costs of in-house counsel); provided, however, in no event shall
the Owner Trustee, the Seller, the Administrator, the Transferor or the
Servicer pay or reimburse the Indenture Trustee or the agents or counsel,
including in-house counsel of either, for any expenses, disbursements and
advances incurred or made by the Indenture Trustee in connection with any
action or inaction on the part of the Indenture Trustee for which a court
of competent jurisdiction has found the Indenture Trustee to be grossly
negligent;
(iii) jointly and severally with the Seller, the Transferor, the
Administrator and the Servicer, to indemnify the Indenture Trustee and its
officers, directors, employees and agents for, and to hold them harmless
against, any loss, liability or expense incurred without gross negligence
or bad faith on the part of the Indenture Trustee arising out of, or in
connection with, the acceptance or administration of this trust, including
the costs and expenses of defending itself against any claim in connection
with the exercise or performance of any of its powers or duties hereunder;
provided, however, that:
(A) with respect to any such claim the Indenture Trustee shall
have given the Owner Trustee, the Note Insurer, the Seller, the
Transferor, the Administrator and the Servicer written notice thereof
promptly after the Indenture Trustee shall have actual knowledge
thereof, provided that failure to notify shall not relieve the parties
of their obligations hereunder;
(B) while maintaining absolute control over its own defense, the
Indenture Trustee shall cooperate and consult fully with the Owner
Trustee, the Note Insurer, the Seller, the Transferor, the
Administrator and the Servicer in preparing such defense; provided
that the interests of the Indenture Trustee are not adverse to those
of such parties;
(C) notwithstanding anything to the contrary in this Section
7.07(a)(iii), none of the Owner Trustee, the Seller, the Transferor,
the Administrator or the Servicer shall be liable for settlement of
any such claim by the Indenture Trustee entered into without the prior
consent of the Owner Trustee, the Seller, the Transferor, the
Administrator or the Servicer, as the case may be, which consent shall
not be unreasonably withheld or delayed; and
(D) the Indenture Trustee, its officers, directors, employees and
agents, as a group, shall be entitled to counsel separate from the
Owner Trustee, the Seller, the Transferor, the Administrator and the
Servicer; to the extent the Owner Trustee's, the Seller's, the
Transferor's or the Servicer's interests are not adverse to the
interests of the Indenture Trustee, its officers, directors, employees
or agents, the Indenture Trustee may agree to be represented by the
same counsel as the Owner Trustee, the Seller, the Transferor or the
Servicer.
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Such payment obligations and indemnification shall survive discharge
hereof and the Trust Agreement. The Indenture Trustee's expenses are
intended as expenses of administration.
(b) The Indenture Trustee shall, on each Payment Date, in accordance with
the priority of payment set forth in Section 5.05(c), deduct payment of its fees
and expenses hereunder from moneys in the Revenue Fund.
(c) The Seller agrees to assume and to pay, and to indemnify, defend and
hold harmless the Indenture Trustee, the Note Insurer, the Swap Counterparty and
the Noteholders from any taxes which may at any time be asserted with respect
to, and as of the date of, the Grant of the Trust Property to the Indenture
Trustee, including, without limitation, any sales, gross receipts, general
corporation, personal property, privilege or license taxes (but with respect to
the Noteholders only, not including any federal, state or other taxes arising
out of the creation of the issuance of the Notes or payments with respect
thereto) and costs, expenses and reasonable counsel fees in defending against
the same.
Section 7.08 Eligibility; Disqualification.
(a) The Indenture Trustee shall at all times satisfy the requirements of
TIA (S) 310(a). The Indenture Trustee shall have a combined capital and surplus
of at least $100,000,000 as set forth in its most recent published annual report
of condition and shall have a long term debt rating of investment grade or
better by the Rating Agencies or shall otherwise be acceptable to the Rating
Agencies. The Indenture Trustee shall comply with TIA (S) 310(b), including the
exception permitted by the second sentence of TIA (S) 310(b)(9); provided that
there shall be excluded from the operation of TIA (S) 310(b)(1) any indenture or
indentures under which other securities of the Trust are outstanding if the
requirements for such exclusion set forth in (S) 310(b)(1) are met.
(b) Within ninety (90) days after ascertaining the occurrence of an Event
of Default which shall not have been cured or waived, if required by the TIA or
the Commission, the Indenture Trustee shall resign with respect to the Class A
Notes or the Class B Notes in accordance with Section 7.10 of this Indenture,
and the Owner Trustee shall appoint a successor Indenture Trustee for two or all
of such Classes, as applicable, so that there will be separate Indenture
Trustees for the Class A Notes and the Class B Notes; provided that if a
separate Indenture Trustee is appointed for the Class A and Class B Notes,
unless otherwise approved by the Note Insurer, the Indenture Trustee shall
continue to serve as Indenture Trustee for the Class A Notes and the newly
appointed Indenture Trustee shall serve as Indenture Trustee for the Class B
Notes. In the event the Indenture Trustee fails to comply with the terms of the
preceding sentence, the Indenture Trustee shall comply with clauses (ii) and
(iii) of TIA Section 310(b).
(c) In the case of the appointment hereunder of a successor Indenture
Trustee with respect to any Class of Notes pursuant to this Section 7.08, the
Owner Trustee, the retiring Indenture Trustee and the successor Indenture
Trustee with respect to such Class of Notes shall execute and deliver an
indenture supplemental hereto wherein each successor Indenture Trustee shall
accept such appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, the successor
Indenture Trustee all the rights, powers, trusts and duties of the retiring
Indenture Trustee with respect to the Notes of the
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Class to which the appointment of such successor Indenture Trustee relates, (ii)
if the retiring Indenture Trustee is not retiring with respect to all Classes of
Notes, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring
Indenture Trustee with respect to the Notes of each Class as to which the
retiring Indenture Trustee is not retiring shall continue to be vested in the
Indenture Trustee and (iii) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Indenture Trustee, it being understood
that nothing herein or in such supplemental indenture shall constitute such
Indenture Trustees co-trustees of the same trust and that each such Indenture
Trustee shall be a trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Indenture
Trustee; and upon the removal of the retiring Indenture Trustee shall become
effective to the extent provided herein.
Section 7.09 [Reserved].
Section 7.10 Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Indenture Trustee and no appointment
of a successor Indenture Trustee pursuant to this Section 7.10 shall become
effective until the acceptance of appointment by the successor Indenture Trustee
under Section 7.11.
(b) The Indenture Trustee may resign at any time by giving written notice
thereof to the Owner Trustee, the Administrator, the Servicer, the Swap
Counterparty and the Note Insurer. If an instrument of acceptance by a successor
Indenture Trustee shall not have been delivered to the Indenture Trustee within
thirty (30) days after the giving of such notice of resignation, the resigning
Indenture Trustee may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.
(c) The Indenture Trustee may be removed at any time by the Note Insurer
or, if a Note Insurer Default has occurred and is continuing, by the Holders
representing more than fifty percent (50%) of the Aggregate Outstanding
Principal Balance of the Class A Notes and Class B Notes, by written notice
delivered to the Indenture Trustee, with copies to the Servicer, the Owner
Trustee and, if applicable, the Note Insurer.
(d) If at any time the Indenture Trustee shall cease to be eligible under
Section 7.08 or under (S) 310(b) of the TIA, or shall become incapable of acting
or shall be adjudged bankrupt or insolvent, or a receiver of the Indenture
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Indenture Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then, in any such case,
the Owner Trustee with the prior written consent of the Note Insurer, by an
Issuer Order, or the Note Insurer may remove the Indenture Trustee.
If the Indenture Trustee shall be removed pursuant to Sections 7.10(c) or
(d) and no successor Indenture Trustee shall have been appointed by the Note
Insurer and accepted appointment within thirty (30) days of the date of removal,
the removed Indenture Trustee may petition any court of competent jurisdiction
for appointment of a successor Indenture Trustee acceptable to the Note Insurer.
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(e) If the Indenture Trustee shall resign, be removed or become incapable
of acting, or if a vacancy shall occur in the office of the Indenture Trustee
for any cause, (i) the Owner Trustee, with the prior written consent of the Note
Insurer, by an Issuer Order or (ii) the Note Insurer or, if a Note Insurer
Default has occurred and is continuing, the Holders representing more than fifty
percent (50%) of the Aggregate Outstanding Principal Balance of the Class A
Notes and the Class B Notes, collectively, shall promptly appoint a successor
Indenture Trustee.
(f) The Owner Trustee shall give to the Rating Agencies, the Note Insurer,
the Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in full)
and the Noteholders notice of each resignation and each removal of the Indenture
Trustee and each appointment of a successor Indenture Trustee. Each notice shall
include the name of the successor Indenture Trustee and the address of its
Corporate Trust Office.
(g) The provisions of this Section 7.10 shall apply to any co-trustee or
separate trustee appointed by the Owner Trustee and the Indenture Trustee with
the consent of the Note Insurer pursuant to Section 7.13 hereof.
Section 7.11 Acceptance of Appointment by Successor.
(a) Every successor Indenture Trustee appointed hereunder shall execute,
acknowledge and deliver to the Owner Trustee and the retiring Indenture Trustee
an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective and such
successor Indenture Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Indenture Trustee. Notwithstanding the foregoing, on request of the Owner
Trustee or the successor Indenture Trustee, such retiring Indenture Trustee
shall, upon payment of its fees, expenses and other charges, execute and deliver
an instrument transferring to such successor Indenture Trustee all the rights,
powers and trusts of the retiring Indenture Trustee and shall duly assign,
transfer and deliver to such successor Indenture Trustee all property and money
held by such retiring Indenture Trustee hereunder subject nevertheless to its
lien, if any, provided for in Section 7.07. Upon request of any such successor
Indenture Trustee, the Owner Trustee shall execute and deliver any and all
instruments for more fully and certainly vesting in and confirming to such
successor Indenture Trustee all such rights, powers and trusts.
(b) No successor Indenture Trustee shall accept its appointment unless at
the time of such acceptance such successor Indenture Trustee shall be qualified
and eligible under Sections 7.08 and 7.09.
(c) Notwithstanding the replacement of the Indenture Trustee, the
obligations of the Owner Trustee pursuant to Section 7.07 shall continue for the
benefit of the retiring Indenture Trustee.
Section 7.12 Merger, Conversion, Consolidation or Succession to Business of
the Indenture Trustee. Any corporation or national banking association into
which the Indenture Trustee may be merged or converted or with which it may be
consolidated, or any corporation, bank, trust company or national banking
association resulting from any merger, conversion or
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consolidation to which the Indenture Trustee shall be a party, or any
corporation, bank, trust company or national banking association succeeding to
all or substantially all of the corporate trust business of the Indenture
Trustee, shall be the successor of the Indenture Trustee hereunder if such
corporation, bank, trust company or national banking association shall be
otherwise qualified and eligible under Section 7.08 hereof, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. The Indenture Trustee shall provide notice of any such
transaction to the Note Insurer, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full), the Rating Agencies and the Administrator. In case any
Notes have been authenticated, but not delivered, by the Indenture Trustee then
in office, any successor by merger, conversion or consolidation to such
authenticating Indenture Trustee may adopt such authentication and deliver the
Notes so authenticated with the same effect as if such successor Indenture
Trustee had authenticated such Notes.
Section 7.13 Co-trustees and Separate Trustees.
(a) At any time or times, for the purpose of meeting the legal requirements
of any jurisdiction in which any of the Trust Property may at the time be
located, the Owner Trustee and the Indenture Trustee shall have power to
appoint, with the prior written consent of the Note Insurer, and, upon the
written request of the Indenture Trustee, the Note Insurer or the Noteholders
representing more than fifty percent (50%) of the Aggregate Outstanding
Principal Balance of the Class A Notes and the Class B Notes, and after
delivering written notice to the Administrator, the Owner Trustee shall for such
purpose join with the Indenture Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to appoint,
one or more Persons approved by the Indenture Trustee either to act as
co-trustee, jointly with the Indenture Trustee, of all or any part of the Trust
Property, or to act as separate trustee of any such property, in either case
with such powers as may be provided in the instrument of appointment, and to
vest in such Person or Persons in the capacity aforesaid, any property, title,
right or power deemed necessary or desirable, subject to the other provisions of
this Section 7.13. If the Owner Trustee does not join in such appointment within
fifteen (15) days after the receipt by it of a request so to do, or in case an
Event of Default has occurred and is continuing, the Indenture Trustee alone
with the prior written consent of the Note Insurer shall have power to make such
appointment.
(b) Should any written instrument from the Owner Trustee be required by any
co-trustee or separate trustee so appointed for more fully confirming to such
co-trustee or separate trustee such property, title, right or power, any and all
such instruments shall, on request, be executed, acknowledged and delivered by
the Owner Trustee.
(c) Every co-trustee or separate trustee shall, to the extent permitted by
law, but to such extent only, be appointed subject to the following terms:
(i) The Notes shall be authenticated and delivered and all rights,
powers, duties and obligations hereunder in respect of the custody of
securities, cash and other personal property held by, or required to be
deposited or pledged with, the Indenture Trustee hereunder, shall be
exercised solely by the Indenture Trustee.
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(ii) The rights, powers, duties and obligations hereby conferred or
imposed upon the Indenture Trustee in respect of any property covered by
such appointment shall be conferred or imposed upon and exercised or
performed by the Indenture Trustee or by the Indenture Trustee and such
co-trustee or separate trustee jointly, as shall be provided in the
instrument appointing such co-trustee or separate trustee, except to the
extent that under any law of any jurisdiction in which any particular act
is to be performed, the Indenture Trustee shall be incompetent or
unqualified to perform such act, in which event such rights, powers, duties
and obligations shall be exercised and performed solely by such co-trustee
or separate trustee.
(iii) The Indenture Trustee at any time, by an instrument in writing
executed by it, with the concurrence of the Owner Trustee evidenced by an
Issuer Order, may accept the resignation of, or remove, any co-trustee or
separate trustee appointed under this Section 7.13, and, in case an Event
of Default has occurred and is continuing, the Indenture Trustee shall have
power to accept the resignation of, or remove, any such co-trustee or
separate trustee without the concurrence of the Owner Trustee. Upon the
written request of the Indenture Trustee, the Owner Trustee shall join with
the Indenture Trustee in the execution, delivery and performance of all
instruments and agreements necessary or proper to effectuate such
resignation or removal. A successor to any co-trustee or separate trustee
so resigned or removed may be appointed in the manner provided in this
Section 7.13.
(iv) Otherwise liable by reason of any act or omission of the
Indenture Trustee, or any other such trustee hereunder, and the Indenture
Trustee shall not be financially or otherwise liable by reason of any act
or omission of any co-trustee or other such separate trustee hereunder.
(v) Any Act of Noteholders delivered to the Indenture Trustee shall be
deemed to have been delivered to each such co-trustee and separate trustee.
Section 7.14 Books and Records. The Indenture Trustee agrees to provide to
the Noteholders the right during normal business hours upon prior reasonable
notice in writing to inspect its books and records insofar as the books and
records relate to the functions and duties of the Indenture Trustee pursuant to
this Indenture.
Section 7.15 Control. Upon the Indenture Trustee being adequately
indemnified in writing to its satisfaction, the Note Insurer or, if a Note
Insurer Default has occurred and is continuing, the Holders constituting
Noteholder Approval shall have the right to direct the Indenture Trustee with
respect to any action or inaction by the Indenture Trustee hereunder, the
exercise of any trust or power conferred on the Indenture Trustee, or the
conduct of any proceeding for any remedy available to the Indenture Trustee with
respect to the Notes or the Trust Property provided that:
(a) such direction shall not be in conflict with any rule of law or with
this Indenture or expose the Indenture Trustee to financial or other liability
or be unduly prejudicial to the Noteholders not approving such direction
including, but not limited to and without intending to narrow the scope of this
limitation, direction to the Indenture Trustee to act or omit to act,
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directly or indirectly, to amend, hypothecate, subordinate, terminate or
discharge any Lien benefiting the Noteholders or the Swap Counterparty in the
Receivables and other items of Trust Property;
(b) the Indenture Trustee may take any other action deemed proper by the
Indenture Trustee which is not inconsistent with such direction; and
(c) except as expressly provided otherwise herein (but only with the
consent of or at the direction of the Note Insurer or with Noteholder Approval,
if applicable), the Indenture Trustee shall have the authority to take any
enforcement action which it reasonably deems to be necessary to enforce the
provisions of this Indenture.
Section 7.16 Suits for Enforcement. If an Event of Default shall occur and
be continuing, the Indenture Trustee may, in its discretion and with the consent
of (1) the Note Insurer or (2) if a Note Insurer Default has occurred and is
continuing, Noteholders constituting Class A Noteholder Approval or (3) if the
Aggregate Outstanding Principal Balance of the Class A Notes (and all interest
accrued thereon) has been reduced to zero and the Note Insurer shall have been
paid in full all amounts then owing to it, Noteholders constituting Class B
Noteholder Approval, and shall, at the direction of the Note Insurer,
Noteholders constituting Class A Noteholder Approval or Noteholders constituting
Class B Noteholder Approval, as the case may be, proceed to protect and enforce
its rights and the rights of any Noteholders and the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full) under this Indenture by a suit, action
or proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this Indenture or in aid
of the execution of any power granted in this Indenture or for the enforcement
of any other legal, equitable or other remedy as the Indenture Trustee, being
advised by counsel, shall deem most effectual to protect and enforce any of the
rights of the Indenture Trustee or any Noteholders and the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full), but in no event shall the
Indenture Trustee be liable for any failure to act in the absence of direction
from the Note Insurer or, if a Note Insurer Default has occurred and is
continuing, the Noteholders as contemplated by Section 7.15 hereof.
Section 7.17 Noteholder Characterization. The Noteholders (and each Note
Owner by its acceptance of an interest in the applicable Book-Entry Note) and
each Transferee acknowledge and agree to treat the Class A Notes and the Class B
Notes as debt of the Transferor and the Transferor as the owner of the
Receivables for tax purposes. The Seller, the Transferor, the Indenture Trustee,
and each Noteholder hereby agrees to file all tax returns and associated forms
and reports in a manner consistent with the characterization of the Class A
Notes and the Class B Notes as debt of the Seller.
Section 7.18 Documents Held by COAF as Custodian; Indication of Trust
Ownership; Inspection and Release of Custodian Files.
(a) COAF, upon the execution and delivery of this Indenture, is hereby
appointed as custodian, and hereby accepts such appointment, to hold and
maintain physical possession of the Custodian Files (in such capacity together
with its successors in such capacity, the "Custodian").
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The Custodian Files are to be delivered to the Custodian or its designated
bailee by or on behalf of the Transferor, the Seller and the Owner Trustee and
the Indenture Trustee within two (2) Business Days preceding the Closing Date or
Funding Date, as the case may be, with respect to each Receivable acquired on
the Closing Date or such Funding Date accompanied by Certificate of Delivery as
required by the Transfer and Assignment Agreement. The Owner Trustee shall cause
the Transferor (i) on or prior to the Closing Date or the Funding Date, to file
or cause to be filed, appropriate UCCs with respect to the Trust Property
Granted hereunder and (ii) to deliver Perfection UCCs to the Indenture Trustee
within thirty (30) days of the Closing Date or Funding Date, as the case may be.
(b) The Custodian shall (i) within 120 days after the Closing Date, and
again within 180 days after the Closing Date or Funding Date, as the case may
be, review 100% of the Custodian Files to verify the presence of the original
retail installment contract and security agreement and/or installment loans and
an original Certificate of Title or other evidence of lien with respect to each
Receivable, and (ii) within forty-five (45) days after the Closing Date, review
its files to determine that the Perfection UCCs have been delivered to the
Custodian. The Custodian shall, within five (5) Business Days of each of the
foregoing inspections, deliver a Custodian Receipt to the Class B Noteholders,
the Rating Agencies, the Transferor, the Owner Trustee, the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full) and the Note Insurer. With
respect to any Receivable for which any of the foregoing documents has not been
delivered to the Custodian within 180 days of the Closing Date or the Funding
Date, as the case may be, or corrected before delivery by the Custodian of the
corresponding Custodian Receipt with respect to such Custodian File, the Owner
Trustee shall remove or cause the removal of the related Receivable from the
Trust Property, and the Owner Trustee shall cause the Seller and the Transferor
to acquire and repurchase, respectively, such Receivable from the Trust Property
and deposit the Repurchase Price in the Collection Account pursuant to Section
2.15 hereof. The Custodian Receipt delivered in connection with the review
occurring within 120 days after the Closing Date shall indicate the related
Closing Date or Funding Date for each Receivable. Other than the reviews set
forth in this paragraph, the Custodian shall have no duty or obligation to
review any of the Custodian Files.
(c) The Custodian agrees to maintain the Custodian Files which are
delivered to it at the offices of the Custodian as shall from time to time be
identified to the Indenture Trustee by written notice. Subject to the foregoing,
COAF may temporarily move individual Custodian Files or any portion thereof
without notice as necessary to allow the Servicer to conduct collection and
other servicing activities in accordance with its customary practices and
procedures. The Owner Trustee shall cause the Servicer and each Successor
Servicer to take whatever actions are required subject to the other provisions
of the Servicing Agreement, including, but not limited to, the filing of
financing statements, as a result of relocating the Custodian Files, if any, to
maintain the perfection of the Indenture Trustee's and the Noteholders' right,
title and interest in and to the Receivables and the Custodian Files.
(d) The Custodian shall have and perform the following powers and duties:
(i) hold the Custodian Files for the benefit of all present and future
Noteholders, the Swap Counterparty (unless the Interest Rate Swap Agreement
has been
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terminated and all amounts owed to the Swap Counterparty have been paid in
full) and the Note Insurer, and maintain a current inventory thereof;
(ii) carry out such policies and procedures in accordance with its
customary actions with respect to the handling and custody of the Custodian
Files so that the integrity and physical possession of the Custodian Files
will be maintained; and
(iii) promptly release the original retail installment contract and
security agreement evidencing a Receivable or the original Certificate of
Title to a Financed Vehicle then held by it to the Servicer upon receipt of
a written request for release of documents certified by an officer of the
Servicer, substantially in the form of Exhibit C to the Servicing
Agreement, with respect to the matters therein; provided, however, that the
Custodian shall be deemed to have received proper instructions with respect
to the Custodian Files upon its receipt of written instructions from the
Servicer in the form of Exhibit C to the Servicing Agreement; and provided
further, however, that no such Exhibit C shall be required to be delivered
if the Servicer is the Custodian.
In performing its duties as custodian, the Custodian agrees to act with
reasonable care, using that degree of skill and care that it exercises with
respect to similar contracts owned or held by it.
(e) So long as COAF is the Custodian, COAF shall have no obligation (i) to
physically segregate the Custodian Files from the other custodial files it is
holding for its own account or on behalf of any other Person or (ii) to
physically mark the Custodian Files to demonstrate the transfer of Custodian
Files and the Indenture Trustee's security interest under the Indenture;
provided, however, that (x) if neither the Performance Guarantor nor COAF has a
long term unsecured debt rating of "Ba1" by Moody's, "BB" by Standard & Poor and
"BB" by Fitch or (y) an Event of Servicing Default has occurred and is
continuing, COAF shall be required to physically segregate the Custodian Files
from the other custodian files it is holding for its own account or on behalf of
any other Person; provided, further, however, that if neither the Performance
Guarantor nor COAF has a long term unsecured debt rating of "Ba3" by Moody's,
COAF shall be required to physically mark the Custodian Files to demonstrate the
transfer of Custodian Files and the Indenture Trustee's security interest under
the Indenture. If COAF is required to mark or segregate the Custodian Files
pursuant to the provisions in the proceeding sentence, COAF shall be required to
complete such segregation or marking of the Custodian Files, as the case may be,
no later than sixty (60) days after the occurrence of the event triggering the
obligation of COAF to segregate or mark the Custodian Files.
(f) If COAF ceases to be the Servicer under the Servicing Agreement, COAF
shall be terminated as Custodian hereunder and the Indenture Trustee shall
become the successor Custodian hereunder and assume all the rights and
obligations of the "Custodian" hereunder. On the effective date of the
termination of COAF as Servicer under the Servicing Agreement or upon the
occurrence of a Re-Liening Trigger (the "Custodian Transfer Date"), COAF shall
be released of all of its obligations as Custodian arising on or after such
date. The Custodian Files shall be delivered by COAF to the Indenture Trustee,
as successor Custodian, on or before the date which is two (2) Business Days
prior to the Custodian Transfer Date.
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Section 7.19 Preferential Collection of Claims Against Owner Trustee. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.
Section 7.20 The Indenture Trustee May Enforce Claims Without Possession of
Notes. All rights of action and claims under this Indenture or the Notes may be
prosecuted and enforced by the Indenture Trustee without the possession of any
of the Notes or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Indenture Trustee shall be brought in its
own name as the Indenture Trustee. Any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee, its agents and counsel, be
for the ratable benefit of the Noteholders and (only to the extent expressly
provided herein), the Swap Counterparty (unless the Interest Rate Swap Agreement
has been terminated and all amounts owed to the Swap Counterparty have been paid
in full) and the Certificateholder in respect of which such judgment has been
obtained.
ARTICLE VIII
Interest rate swap agreement
Section 8.01 Interest Rate Swap Agreement Provisions; Defaulted Interest
Rate Swap Agreement.
(a) The Trust shall enter into the Initial Interest Rate Swap Agreement
with the Initial Swap Counterparty. The Trust may, from time to time enter into,
subject to the remainder of this Section 8.01, one or more Replacement Interest
Rate Swap Agreements in the event that the Initial Interest Rate Swap Agreement
is terminated due to any "Termination Event" or "Event of Default" (each as
defined in the Initial Interest Rate Swap Agreement) prior to its scheduled
expiration and in accordance with the terms of such Interest Rate Swap
Agreement. Other than any Replacement Interest Rate Swap Agreement entered into
pursuant to this Section 8.01(a), the Trust may not enter into any additional
interest rate swap agreements.
(b) In the event of any early termination of the Initial Interest Rate Swap
Agreement (i) the Indenture Trustee shall establish the Swap Termination Payment
Account, (ii) any Swap Termination Payments received from the Initial Swap
Counterparty will be remitted to the Swap Termination Payment Account and (iii)
any Swap Replacement Proceeds received from a Replacement Swap Counterparty will
be remitted directly to the Initial Swap Counterparty; provided, that any such
remittance to the Initial Swap Counterparty shall not exceed the amounts, if
any, owed to the Swap Counterparty under the Initial Interest Rate Swap
Agreement; provided, further that the Initial Swap Counterparty shall only
receive Swap Replacement Proceeds if all Swap Termination Payments due from the
Swap Counterparty to the Trust have been paid in full and if such amounts have
not been paid in full then the amount of Swap Replacement Proceeds necessary to
make up any deficiency shall be remitted to the Swap Termination Payment
Account.
(c) The Trust shall promptly, following the early termination of any
Initial Interest Rate Swap Agreement due to an "Event of Default" or
"Termination Event" (each as defined in the
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Initial Interest Rate Swap Agreement) and in accordance with the terms of such
Interest Rate Swap Agreement, enter into a Replacement Interest Rate Swap
Agreement to the extent possible and practicable through application of funds
available in the Swap Termination Payment Account unless (i) the Note Insurer
(so long as a Note Insurer Default has not occurred and is not continuing) does
not consent or (ii) entering into such Replacement Interest Rate Swap Agreement
will cause the Rating Agency Condition not to be satisfied.
(d) To the extent that (i) the funds available in the Swap Termination
Payment Account exceed the costs of entering into a Replacement Interest Rate
Swap Agreement or (ii) the Trust determines with the consent of the Note Insurer
(so long as a Note Insurer Default has not occurred and is not continuing) not
to replace the Initial Interest Rate Swap Agreement and the Rating Agency
Condition is met with respect to such determination, the amounts in the Swap
Termination Payment Account shall be allocated in accordance with the order of
priority specified in Section 5.05 on the next following Payment Date.
(e) If the Swap Counterparty is required to post collateral under the terms
of the Interest Rate Swap Agreement, the Indenture Trustee shall establish the
Swap Collateral Account over which the Indenture Trustee shall have exclusive
control and the sole right of withdrawal, and in which no Person other than the
Indenture Trustee, the Noteholders and the Note Insurer shall have any legal or
beneficial interest. The Indenture Trustee shall deposit all collateral received
from the Swap Counterparty under the Interest Rate Swap Agreement into the Swap
Collateral Account. Any and all funds at any time on deposit in, or otherwise to
the credit of, the Swap Collateral Account shall be held in trust by the
Indenture Trustee for the benefit of the Noteholders and the Note Insurer. The
only permitted withdrawal from or application of funds on deposit in, or
otherwise to the credit of, the Swap Collateral Account shall be (i) for
application to obligations of the Initial Swap Counterparty to the Trust under
the Initial Interest Rate Swap Agreement in accordance with the terms of the
Initial Interest Rate Swap Agreement or (ii) to return collateral to the Swap
Counterparty when and as required by the Initial Interest Rate Swap Agreement.
(f) If at any time the Interest Rate Swap Agreement becomes subject to
early termination due to the occurrence of an "Event of Default" or "Termination
Event" (as defined in the Interest Rate Swap Agreement), the Owner Trustee and
the Indenture Trustee shall use reasonable efforts (following the expiration of
any applicable grace period) to enforce the rights of the Trust thereunder as
may be permitted by the terms of the Interest Rate Swap Agreement and consistent
with the terms hereof and subject to any rights of the Note Insurer herein or
under the Interest Rate Swap Agreement. To the extent not fully paid from Swap
Replacement Proceeds, any Swap Termination Payment owed by the Trust to the Swap
Counterparty under the Interest Rate Swap Agreement shall be payable to the Swap
Counterparty in installments made on each following Payment Date until paid in
full in accordance with the order of priority specified in Section 5.05. To the
extent that the Swap Replacement Proceeds exceed any such Swap Termination
Payments (or if there are no Swap Termination Payments due to the Swap
Counterparty), the Swap Replacement Proceeds shall be deposited into the Revenue
Fund and distributed in accordance with the order of priority specified in
Section 5.05 on the next following Payment Date.
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ARTICLE IX
EVENTS OF INSOLVENCY; EVENT OF DEFAULT
Section 9.01 Events of Insolvency; Events of Default. (a) The occurrence of
any event described in clauses (iv) and (v) of subparagraph (b) below shall
constitute an "Event of Insolvency" hereunder.
(b) The occurrence of any of the following events shall constitute an
"Event of Default" hereunder:
(i) default in the payment of any interest as the same becomes due and
payable, and such default shall continue for a period of five days;
(ii) default in the payment of the principal of or any installment of
the principal of any Note when the same becomes due and payable;
(iii) default in the observance or performance of any material
covenant or agreement of Owner Trustee made in this Indenture, or any
representation or warranty of Owner Trustee made in this Indenture or in
any certificate or other writing delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the
time when the same shall have been made, and such default shall continue or
not be cured, or the circumstance or condition in respect of which such
misrepresentation or warranty was incorrect shall not have been eliminated
or otherwise cured, for a period of 30 days (or for such longer period not
in excess of 90 days, as may be reasonably necessary to remedy such
default; provided that (i) such default is capable of remedy within 90 days
or less, (ii) the Note Insurer, unless a Note Insurer Default has occurred
and is continuing, consents to such longer cure period, and (iii) the
Servicer, on behalf of the Owner Trustee, delivers an Officer's Certificate
to the Indenture Trustee to the effect that the Owner Trustee has commenced
or will promptly commence and diligently pursue all reasonable efforts to
remedy such default); provided that such default is capable of remedy
within 90 days or less and Servicer on behalf of the Owner Trustee delivers
an Officer's Certificate to the Indenture Trustee to the effect that Owner
Trustee has commenced, or will promptly commence and diligently pursue, all
reasonable efforts to remedy such default) after the earlier of discovery
or the time that there shall have been given, by registered or certified
mail, to the Owner Trustee by the Indenture Trustee or to the Owner Trustee
and the Indenture Trustee by the Note Insurer (or, during the continuance
of a Note Insurer Default, by the Holders of at least 25% of the
Outstanding Principal Balance of the Class A Notes), or, if the Class A
Notes are no longer Outstanding and the Note Insurer has been paid in full
all amounts then owing to it, by the Holders of at least 25% of the
Outstanding Principal Balance of the Class B Notes, a written notice
specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder;
(iv) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Trust, the Seller or any
substantial part of the Trust Estate or the estate of the Seller in an
involuntary case under any applicable federal or state
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bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Trust, the Seller or for any
substantial part of the Trust Estate or the estate of the Seller, or
ordering the winding-up or liquidation of the Trust, the Seller's affairs,
and such decree or order shall remain unstayed and in effect for a period
of 60 consecutive days;
(v) the commencement by the Owner Trustee on behalf of the Trust, or
by the Seller of a voluntary case under any applicable Federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by the Owner Trustee, on behalf of the Trust, or by the Seller
to the entry of an order for relief in an involuntary case under any such
law, or the consent by the Owner Trustee on behalf of the Trust to the
appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Owner Trustee,
on behalf of the Trust, or the Seller or for any substantial part of the
Trust Estate or the estate of the Seller, or the making by the Owner
Trustee, on behalf of the Trust, or by the Seller of any general assignment
for the benefit of creditors, or the failure by the Owner Trustee, on
behalf of the Trust, or by the Seller generally to pay its debts as such
debts become due, or the taking of action by the Owner Trustee, on behalf
of the Trust, or by the Seller in furtherance of any of the foregoing;
(vi) a draw is made on the Note Policy; or
(vii) so long as a Note Insurer Default has not occurred and is not
continuing, an Insurance Agreement Event of Default shall have occurred;
provided, however, that the occurrence of an Insurance Agreement Event of
Default may not form the basis of an Event of Default unless the Note
Insurer shall, upon prior written notice to the Rating Agencies, have
delivered to the Owner Trustee and the Indenture Trustee and not rescinded
in a written notice, specifying that such Insurance Agreement Event of
Default constitutes an Event of Default under this Indenture.
Interest and principal with respect to a Class of Notes do not become
due and payable on any Payment Date prior to the Final Scheduled Payment
Date for such Class of Notes unless Monthly Available Funds for the related
Collection Period are sufficient to pay such amounts in accordance with
Section 5.05(c).
Section 9.02 Acceleration of Maturity; Rescission and Annulment.
(a) So long as a Note Insurer Default has not occurred and is not
continuing, if an Event of Insolvency shall have occurred and be continuing, the
Indenture Trustee shall, at the direction of the Note Insurer, declare all the
Notes to be immediately due and payable, by a notice in writing to the Owner
Trustee (and to the Indenture Trustee if given by Noteholders or the Note
Insurer), and upon any such declaration the unpaid principal amount of such
Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.
(b) If an Event of Default should occur and be continuing, then after the
applicable grace period set forth in such subparagraphs (or in the Insurance
Agreement, in the case of an
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Insurance Agreement Event of Default), the Indenture Trustee shall give written
notice of the occurrence of an Event of Default to the Note Insurer or, if a
Note Insurer Default has occurred and is continuing, to the Class A Noteholders.
Unless the Note Insurer or, if a Note Insurer Default has occurred and is
continuing, Noteholders constituting Class A Noteholder Approval, give written
notice to the Indenture Trustee within seven (7) days of receipt of such notice
from the Indenture Trustee that the Note Insurer or Noteholders constituting
Class A Noteholder Approval, as the case may be, have waived such Event of
Default, the Indenture Trustee shall then give notice in writing to the
Transferor, the Rating Agencies, the Swap Counterparty (unless the Interest Rate
Swap Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full), the Note Insurer, the Class B Noteholders, the
Indenture Trustee, the Owner Trustee and that an Event of Default has occurred
as of the date of such notice. If the Note Insurer or, if a Note Insurer Default
has occurred and is continuing, Noteholders constituting Class A Noteholder
Approval, or if the Class A Notes have been paid in full, Noteholders
constituting Class B Noteholder Approval, as the case may be, have delivered
their written waiver of such Event of Default: (i) the Class B Noteholders
constituting Class B Noteholder Approval shall, within seven (7) days of receipt
of such notice that the Event of Default has been waived, deliver written notice
to the Indenture Trustee if the Class B Noteholders elect not to receive certain
amounts otherwise payable to the Seller, as specified in clause Nineteenth of
Section 5.05(c) hereof and (ii) the Indenture Trustee shall give the Noteholders
and the Swap Counterparty (unless the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in full)
written notice of the occurrence and waiver of the Event of Default. Upon any
such waiver, such Event of Default and its consequences shall cease to exist and
be deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred,
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto. The Owner Trustee shall give the Indenture Trustee, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full) and the Note
Insurer written notice of the occurrence of any Event of Default immediately
after actual knowledge thereof. Upon the occurrence of an Event of Default, (i)
the Note Insurer may it its sole discretion, or if a Note Insurer Default has
occurred and is continuing, Noteholders constituting Class A Noteholder Approval
may in their sole discretion, and (ii) if the Aggregate Outstanding Principal
Balance of the Class A Notes has been reduced to zero and the Note Insurer has
been paid in full all amounts then owing to it, the Noteholders constituting
Class B Noteholder Approval may terminate COAF as Servicer.
(c) In the event any Notes are accelerated due to an Event of Insolvency,
the Note Insurer shall have the right (in addition to its obligation to pay
Insured Payments on the Class A Notes in accordance with the Note Policy), but
not the obligation, to make payments under the Note Policy or otherwise of
interest and principal due on such Class A Notes, in whole or in part, on any
date or dates following such acceleration as the Note Insurer, in its sole
discretion, shall elect.
(d) At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article IX provided,
(x) the Note Insurer may in its sole discretion, or, if a Note Insurer Default
has occurred and is continuing, Noteholders constituting Class A
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Noteholder Approval may in their sole discretion, and (y) if the Aggregate
Outstanding Principal Balance of the Class A Notes has been reduced to zero and
the Note Insurer has been paid in full all amounts then owing to it, the
Noteholders constituting Class B Noteholder Approval, by written notice to the
Owner Trustee and the Indenture Trustee, rescind and annul such declaration and
its consequences if the Owner Trustee has paid or deposited with the Indenture
Trustee a sum sufficient to pay:
(i) all payments of principal of and interest on all Notes and all
other amounts that would then be due hereunder or upon such Notes if the
Event of Insolvency giving rise to such acceleration had not occurred;
(ii) with respect to the Interest Rate Swap Agreement, any Net Swap
Payments then due; and
(iii) all sums paid or advanced by the Indenture Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel.
No such rescission shall affect any subsequent default or impair any right
consequent thereto. No such rescission shall affect any Interest Rate Swap
Agreement which has been terminated in accordance with its terms.
Section 9.03 Collection of Indebtedness and Suits for Enforcement by the
Indenture Trustee.
(a) Owner Trustee covenants that if (i) default is made in the payment of
any interest on any Note when the same becomes due and payable, and such default
continues for a period of five days, or (ii) default is made in the payment of
the principal of or any installment of the principal of any Note when the same
becomes due and payable, Owner Trustee will, upon demand of the Indenture
Trustee as directed (x) by the Note Insurer, or, if a Note Insurer Default has
occurred and is continuing, by Noteholders constituting Class A Noteholder
Approval, or (y) if the Aggregate Outstanding Principal Balance of the Class A
Notes has been reduced to zero and the Note Insurer has been paid in full the
amounts then owing to it, by Noteholders constituting Class B Noteholder
Approval, pay to the Indenture Trustee, for the benefit of the Holders of the
Notes, the whole amount then due and payable on such Notes for principal and
interest, with interest upon the overdue principal, and, to the extent payment
at such rate of interest shall be legally enforceable, upon overdue installments
of interest, at the rate specified in Section 2.01 and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel.
(b) In case the Owner Trustee shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, shall, if so directed (x) by the Note Insurer, or, if a Note Insurer
Default has occurred and is continuing, by Noteholders constituting Class A
Noteholder Approval, or (y) if the Aggregate Outstanding Principal Balance of
the Class A Notes has been reduced to zero and the Note Insurer has been paid in
full the amounts then owing to it, by Noteholders constituting Class B
Noteholder
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Approval, institute a proceeding for the collection of the sums so due and
unpaid, prosecute such proceeding to judgment or final decree, and may enforce
the same against the Owner Trustee or other obligor upon such Notes and collect
in the manner provided by law out of the property of the Owner Trustee or other
obligor upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable.
(c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 9.04, in its discretion, proceed
to protect and enforce its rights and the rights of the Noteholders, by such
appropriate proceedings as the Indenture Trustee as directed (x) by the Note
Insurer, or, if a Note Insurer Default has occurred and is continuing, by
Noteholders constituting Class A Noteholder Approval, or (y) if the Aggregate
Outstanding Principal Balance of the Class A Notes has been reduced to zero and
the Note Insurer has been paid in full the amounts then owing to it, by
Noteholders constituting Class B Noteholder Approval, shall deem most effective
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this the Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this the Indenture or by law.
(d) In case there shall be pending, relative to the Owner Trustee or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Estate, proceedings under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or other
similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Trust or its property or such other
obligor or Person, or in case of any other comparable judicial proceedings
relative to the Trust or other obligor upon the Notes, or to the creditors or
property of the Trust or such other obligor, the Indenture Trustee, irrespective
of whether the principal of any Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand pursuant to the provisions of this
Section, shall as directed (x) by the Note Insurer, or, if a Note Insurer
Default has occurred and is continuing, by Noteholders constituting Class A
Noteholder Approval, or (y) if the Aggregate Outstanding Principal Balance of
the Class A Notes has been reduced to zero and the Note Insurer has been paid in
full the amounts then owing to it, by Noteholders constituting Class B
Noteholder Approval, be entitled and empowered, by intervention in such
proceedings or otherwise:
(i) to file and prove a claim or claims for the whole amount of
principal and interest owing and unpaid in respect of the Notes and to file
such other papers or documents as may be necessary or advisable in order to
have the claims of the Indenture Trustee (including any claim for
reasonable compensation to the Indenture Trustee and each predecessor the
Indenture Trustee, and their respective agents, attorneys and counsel, and
for reimbursement of all expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor Indenture
Trustee, except as a result of negligence, bad faith or willful misconduct)
and of the Noteholders allowed in such proceedings;
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(ii) unless prohibited by applicable law and regulations, to vote on
behalf of the Holders of Notes in any election of a trustee, a standby
trustee or person performing similar functions in any such proceedings;
(iii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute all amounts received with
respect to the claims of the Noteholders and of the Indenture Trustee on
their behalf; and
(iv) to file such proofs of claim and other papers or documents as may
be necessary or advisable in order to have the claims of the Indenture
Trustee or the Holders of Notes allowed in any judicial proceedings
relative to the Trust, its creditors and its property;
and any trustee, receiver, liquidator, custodian or other similar official in
any such proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall if directed (x) by the Note Insurer, or, if a Note Insurer Default has
occurred and is continuing, by Noteholders constituting Class A Noteholder
Approval, or (y) if the Aggregate Outstanding Principal Balance of the Class A
Notes has been reduced to zero and the Note Insurer has been paid in full the
amounts then owing to it, by Noteholders constituting Class B Noteholder
Approval, consent to the making of payments directly to such Noteholders, to pay
to the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence, bad faith or
willful misconduct.
(e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar person.
(f) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Notes.
(g) In any proceedings brought by the Indenture Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such proceedings.
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Section 9.04 Remedies; Priorities.
(a) If an Event of Insolvency shall have occurred and be continuing which
has resulted in the acceleration of the Notes under Section 9.02(a) or if a
Maturity Event shall have occurred, the Indenture Trustee, (x) at the direction
of the Note Insurer, or, if a Note Insurer Default has occurred and is
continuing, at the direction of Noteholders constituting Class A Noteholder
Approval, or (y) if the Aggregate Outstanding Principal Balance of the Class A
Notes has been reduced to zero and the Note Insurer has been paid in full the
amounts then owing to it, at the direction of Noteholders constituting Class B
Noteholder Approval, may do one or more of the following:
(i) institute proceedings in its own name and as trustee of an express
trust for the collection of all amounts then payable on the Notes or under
this Indenture with respect thereto, whether by declaration or otherwise,
enforce any judgment obtained, and collect from the Owner Trustee and any
other obligor upon such Notes moneys adjudged due;
(ii) institute proceedings from time to time for the complete or
partial foreclosure of this Indenture with respect to the Trust Estate;
(iii) exercise any remedies of a secured party under the UCC and take
any other appropriate action to protect and enforce the rights and remedies
of the Indenture Trustee and the Holders of the Notes; and
(iv) sell the Trust Estate or any portion thereof or rights or
interest therein, at one or more public or private sales called and
conducted in any manner permitted by law;
provided that the Indenture Trustee may not sell or otherwise liquidate the
Trust Estate following an Event of Insolvency or a Maturity Event unless:
(A) the Note Insurer and the Class B Noteholders, or, if a Note
Insurer Default has occurred and is continuing, the holders of all of
the Outstanding Notes, has consented to such liquidation; or
(B) the proceeds of such sale or liquidation are sufficient to
pay in full the principal of and the accrued interest on the
Outstanding Notes and all amounts due to the Note Insurer and the Swap
Counterparty under the Transaction Documents; or
(C) the Indenture Trustee determines (but shall have no
obligation to make such determination) that the Trust Estate will not
continue to provide sufficient funds for the payment of principal of
and interest on the Notes as they would have become due if the Notes
had not been declared due and payable and the payment of Net Swap
Payments under the Interest Rate Swap Agreement; and the Indenture
Trustee obtains the consent of the Note Insurer, or, if a Note Insurer
Default has occurred and is continuing, Noteholders constituting
Noteholder Approval.
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In determining such sufficiency or insufficiency with respect to clause (B)
or (C), the Indenture Trustee may, but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national reputation
as to the feasibility of such proposed action and as to the sufficiency of the
Trust Estate for such purpose.
(b) Notwithstanding the provisions of Section 9.01, following the
occurrence and during the continuation of an Event of Insolvency which has
resulted in an acceleration of the Notes or following a Maturity Event, if the
Indenture Trustee collects any money or property, it shall pay out such money or
property (and other amounts including amounts held on deposit in the Reserve
Fund) held as Collateral for the benefit of the Noteholders, net of liquidation
costs associated with the sale of the Trust Estate, first, to the payment of the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee under Section 7.07 or the Owner Trustee pursuant to the Trust Agreement
(provided that any indemnification of the Indenture Trustee under Section 7.07
or the Owner Trustee pursuant to the Trust Agreement shall be paid only in the
priority set forth in Section 5.05(c)) hereof, second, to the Swap Counterparty,
any Net Swap Payments, third, for the ratable benefit of the Class A
Noteholders, fourth, for the benefit of the Note Insurer until all amounts then
owing to the Note Insurer are paid in full, fifth, to the Class B-1 Noteholders
until all accrued interest on and principal of the Class B-1 Notes is paid in
full, sixth, to the Class B-2 Noteholders until all accrued interest on and
principal of the Class B-2 Notes is paid in full, seventh to the Swap
Counterparty all Swap Termination Payments and any other amounts owing to the
Swap Counterparty not previously paid and eighth, to the Holder of the
Certificate.
The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section 9.04. At least 15 days before
such record date, Owner Trustee shall mail to each Noteholder and Indenture
Trustee a notice that states the record date, the payment date and, based on
information provided by the Servicer, the amount to be paid.
(c) If the Indenture Trustee elects to sell all or a portion of the Trust
Estate following an Event of Insolvency, the Indenture Trustee shall give the
Seller at least five (5) days' prior notice of such sale, and the Seller may,
but is not required to, make a bid for the purchase of all or a portion of the
Trust Estate being sold by the Indenture Trustee.
Section 9.05 [Reserved].
Section 9.06 Limitation of Suits. No Holder of any Note shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:
(a) such Holder has previously given written notice to the Indenture
Trustee of a continuing Event of Default;
(b) the Holders of not less than 25% of the Outstanding Amount of the
Controlling Note Class of Notes have made written request to the Indenture
Trustee to institute such proceeding in respect of such Event of Default in its
own name as the Indenture Trustee hereunder;
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(c) such Holder or Holders have offered to the Indenture Trustee indemnity
reasonably satisfactory to it against the costs, expenses and liabilities to be
incurred in complying with such request;
(d) the Indenture Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute such proceedings;
(e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such 60-day period by the Holders of a majority of
the Outstanding Amount of the Controlling Note Class of Notes;
(f) such Event of Default actually shall have occurred and shall be
continuing; and
(g) a Note Insurer Default shall have occurred and is continuing or no
Class A Notes shall be Outstanding and all amounts owing to the Note Insurer
have been paid in full;
it being understood and intended that no one or more Holders of Notes shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other
Holders of Notes or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.
In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Principal Amount of
the Controlling Note Class of Notes, the Indenture Trustee shall submit the
matter to a vote of the Controlling Note Class of Notes to determine what
action, if any, shall be taken, notwithstanding any other provisions of the
Indenture.
Section 9.07 Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or this Indenture and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Holder.
Section 9.08 Restoration of Rights and Remedies. If the Indenture Trustee
or any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Owner Trustee, the Indenture Trustee
and the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.
Section 9.09 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Note Insurer, the Swap
Counterparty or the Noteholders is intended to be exclusive of any other right
or remedy, and every right and remedy
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shall, to the extent permitted by law, be cumulative and in addition to every
other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
Section 9.10 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee, the Note Insurer, the Swap Counterparty or any Holder of any
Note to exercise any right or remedy accruing upon any Event of Insolvency,
Default or Event of Default shall impair any such right or remedy or constitute
a waiver of any such Event of Insolvency, Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article IX or by law
to the Indenture Trustee, the Note Insurer, the Swap Counterparty or to the
Noteholder may be exercised from time to time, and as often as may be deemed
expedient, by the Indenture Trustee, the Note Insurer, the Swap Counterparty, or
the Noteholders, as the case may be.
Section 9.11 Control by Controlling Note Class of Noteholders. Subject to
Section 11.10, the Holders of a majority of the Outstanding Amount of the
Controlling Note Class of Notes shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Indenture
Trustee with respect to the Notes or exercising any trust or power conferred on
the Indenture Trustee; provided that:
(a) such direction shall not be in conflict with any rule of law or with
this Indenture;
(b) subject to the express terms of Section 9.04, any direction to the
Indenture Trustee to sell or liquidate the Trust Estate shall be by the Holders
of Notes representing not less than 100% of the Outstanding Amount of the Notes;
(c) the Indenture Trustee may take any other action deemed proper by the
Indenture Trustee that is not inconsistent with such direction; and
(d) such direction shall be in writing.
Section 9.12 [Reserved].
Section 9.13 Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
the Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes (or in the case of a right or remedy under this
Indenture which is instituted by the Controlling Note Class, more than 10% of
the Outstanding Amount of the Controlling Note Class) or (c) any suit instituted
by any Noteholder for the enforcement of the payment of principal of or interest
on any
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Note on or after the respective due dates expressed in such Note and in this
Indenture (or, in the case of redemption, on or after the Redemption Date).
Section 9.14 Waiver of Stay or Extension Laws. The Owner Trustee covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead, or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Owner Trustee (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Indenture Trustee, but will suffer and permit the execution of
every such power as to such law had been enacted.
ARTICLE X
SUPPLEMENTAL INDENTURES
Section 10.01 Supplemental Indentures Without Noteholder Approval.
(a) Without the consent of the Noteholders, but with the prior written
consent of the Note Insurer and prior written notice to the Rating Agencies, the
Swap Counterparty (unless the Interest Rate Swap Agreement has been terminated
and all amounts owed to the Swap Counterparty have been paid in full and with
consent of the Swap Counterparty if such supplemental indenture adversely
affects the Swap Counterparty), the Owner Trustee and the Indenture Trustee,
when authorized by an Issuer Order, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Indenture Trustee, for any of the following purposes:
(i) to correct, amplify or add to the description of any property at
any time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required to
be subjected to the lien of this Indenture, or to subject to the lien of
this Indenture additional property;
(ii) to evidence the succession of another Person to either the Owner
Trustee or the Indenture Trustee in accordance with the terms hereof, and
the assumption by any such successor of the covenants of the Owner Trustee
or the Indenture Trustee contained herein and in the Notes;
(iii) to add to the covenants of the Owner Trustee or the Indenture
Trustee, for the benefit of the Noteholders, the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed
to the Swap Counterparty have been paid in full) and the Note Insurer or to
surrender any right or power herein conferred upon the Owner Trustee;
(iv) to modify, eliminate or add to the provisions of this Indenture
to such extent as shall be necessary to effect the qualification of this
Indenture under the TIA or under any similar federal statute hereafter
enacted and to add to this Indenture such other provisions as may be
expressly required by the TIA; or
(v) to effect any matter specified in Section 10.07 hereof.
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No supplemental indenture shall be effective as to the Servicer, to the
extent such supplemental indenture is disadvantageous to the Servicer, unless
the Servicer has given its written consent to such supplemental indenture.
(b) Promptly after the execution by the Owner Trustee and the Indenture
Trustee of any supplemental indenture pursuant to this Section 10.01, the
Indenture Trustee shall mail to the Note Insurer, the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full), the Noteholders and the Rating
Agencies a copy of such supplemental indenture. Any failure of the Indenture
Trustee to mail such copy shall not, however, in any way impair or affect the
validity of any such supplemental indenture.
Section 10.02 Supplemental Indentures With Consent of Noteholders.
(a) With the consent of the Note Insurer, the Swap Counterparty (unless the
Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full and to the extent adversely affected
thereby) and each Noteholder affected thereby and written confirmation from the
Rating Agencies that the ratings then assigned to the Notes will not be
downgraded, the Owner Trustee and the Indenture Trustee, when authorized by an
Issuer Order, may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Noteholders under this Indenture for the following
purposes:
(i) change the Final Scheduled Payment Date of the principal of any
Note, or the due date of any payment of interest on any Note, or reduce the
principal amount thereof, or the interest rate thereon, change the place of
payment where, or the coin or currency in which any Note or any interest
thereon is payable, or impair the right to institute suit for the
enforcement of the payment of interest due on any Note on or after the due
date thereof or for the enforcement of the payment of the entire remaining
unpaid principal amount of any Note on or after the maturity date thereof
or change any provision of Article VI hereof;
(ii) reduce the Outstanding Principal Balance of the Outstanding Notes
of any Class, the consent of the Noteholders of which is required to
approve any such supplemental indenture, or the consent of the Noteholders
of which is required for any waiver of compliance with provisions of this
Indenture or Events of Servicing Default hereunder or under the Servicing
Agreement and their consequences provided for in this Indenture or for any
other purpose hereunder;
(iii) modify any of the provisions of Sections 10.01 or 10.02;
(iv) modify or alter the provisions of the proviso to the definition
of the term "Outstanding"; or
(v) permit the creation of any other lien with respect to any part of
the Trust Property or terminate the lien of this Indenture on any property
at any time subject hereto or, except with respect to any action which
would not have a material adverse effect on
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any Noteholder (as evidenced by an Opinion of Counsel to such effect),
deprive the Noteholder of the security afforded by the lien of this
Indenture.
No supplemental indenture shall be effective as to the Servicer, to the
extent such supplemental indenture is disadvantageous to the Servicer, unless
the Servicer has given its written consent to such supplemental indenture.
(b) With the consent of the Note Insurer, the Class B Noteholders
constituting a majority of the Class B Notes by principal balance then
Outstanding and the Swap Counterparty (unless the Interest Rate Swap Agreement
has been terminated and all amounts owed to the Swap Counterparty have been paid
in full and to the extent adversely affected thereby), the Owner Trustee and the
Indenture Trustee, when authorized by an Issuer Order, at any time and from time
to time, may enter into one or more indentures supplemental hereto, in form and
substance satisfactory to the Indenture Trustee and meeting the Rating Agency
Condition for the purpose of modifying, eliminating or adding to the provisions
of this Indenture; provided that such consent shall not be required with respect
to any action which would not have a material adverse effect on the Class B
Noteholders (as evidenced by an Opinion of Counsel to such effect); and
provided, however, that such supplemental indentures shall not have any of the
effects described in paragraphs (i) through (v) of Section 10.02(a) of this
Indenture.
(c) Promptly after the execution by the Owner Trustee and the Indenture
Trustee of any supplemental indenture pursuant to this Section 10.02, the
Indenture Trustee shall mail to the Note Insurer, the Noteholders, the Swap
Counterparty (unless the Interest Rate Swap Agreement has been terminated and
all amounts owed to the Swap Counterparty have been paid in full) and the Rating
Agencies a copy of such supplemental indenture. Any failure of the Indenture
Trustee to mail such copy shall not, however, in any way impair or affect the
validity of any such supplemental indenture.
(d) Whenever the Owner Trustee or the Indenture Trustee solicits a consent
to any amendment or supplement to the Indenture, the Owner Trustee shall fix a
record date in advance of the solicitation of such consent for the purpose of
determining the Noteholders entitled to consent to such amendment or supplement.
Only those Noteholders at such record date shall be entitled to consent to such
amendment or supplement whether or not such Noteholders continue to be Holders
after such record date. The date fixed as the record date shall be at least
thirty (30) days prior to the date the consents are due.
Section 10.03 Supplemental Indentures Without Consent of Noteholders. With
the prior written consent of the Note Insurer and prior written notice to the
Rating Agencies and the Swap Counterparty (unless the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty have
been paid in full), but without first obtaining the prior written consent of any
Noteholder, the Owner Trustee and the Indenture Trustee or the Swap Counterparty
(unless the Interest Rate Swap Agreement has been terminated and all amounts
owed to the Swap Counterparty have been paid in full), when authorized by an
Issuer Order, may enter into an indenture or indenture supplemental hereto to
cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to amend any other
provisions with respect to matters or questions arising under this Indenture;
provided, however, that such action shall not adversely affect the interests
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of any Noteholder, the Swap Counterparty (unless the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty have
been paid in full) or the Note Insurer (without the prior written consent of
such Noteholder, the Swap Counterparty or the Note Insurer). No supplemental
indenture shall be effective as to the Servicer, to the extent such supplemental
indenture is disadvantageous to the Servicer, unless the Servicer has given its
written consent to such supplemental indenture.
Section 10.04 Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article X or the modifications thereby of the trusts created by this
Indenture, the Indenture Trustee shall be entitled to receive, and (subject to
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Indenture Trustee's own rights, duties or immunities under this Indenture or
otherwise.
Section 10.05 Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article X, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Notes which have theretofore
been or thereafter are authenticated and delivered hereunder shall be bound
thereby.
Section 10.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article X may, and if required by the Owner Trustee shall, bear
a notation in form approved by the Indenture Trustee as to any matter provided
for in such supplemental indenture. If the Owner Trustee shall so determine, new
Notes so modified as to conform, in the opinion of the Indenture Trustee and the
Owner Trustee, to any such supplemental indenture may be prepared and executed
by the Owner Trustee and authenticated and delivered by the Indenture Trustee in
exchange for Outstanding Notes.
Section 10.07 The Indenture Trustee To Act On Instructions. Notwithstanding
any provision herein to the contrary (other than Section 10.02), in the event
the Indenture Trustee is uncertain as to the intention or application of any
provision of this Indenture or such intention or application is ambiguous as to
its purpose or application, or is, or appears to be, in conflict with any other
applicable provision hereof, or if this Indenture permits or does not prohibit
any determination by the Indenture Trustee or is silent or incomplete as to the
course of action which the Indenture Trustee is required or is permitted or may
be permitted to take with respect to a particular set of facts or circumstances,
the Indenture Trustee shall, at the expense of the Owner Trustee, request and
rely upon the following: (i) written instructions of the Note Insurer or the
Owner Trustee (with the prior written consent of the Note Insurer) directing the
Indenture Trustee to take certain actions or refrain from taking certain
actions, which written instructions shall contain a certification that the
taking of such actions or refraining from taking certain actions is in the best
interest of the Noteholders and the Note Insurer, (ii) a written statement from
the Rating Agencies that the proposed action or inaction will not have an
adverse effect on the ratings then assigned to the Notes, and (iii) in the case
of any Event of Servicing Default or any Event of Default and any remedy or
proceeding relating thereto, and in the case of any other
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provision hereof or thereof under which the consent of the Note Insurer is
required, the consent of the Note Insurer. In such case, the Indenture Trustee
shall have no liability to the Owner Trustee, the Note Insurer or the
Noteholders for, and the Owner Trustee and the Note Insurer hereby hold harmless
the Indenture Trustee from, any liability, costs or expenses arising from or
relating to any action taken by the Indenture Trustee acting upon such
instructions, and the Indenture Trustee shall have no responsibility to the
Noteholders with respect to any such liability, costs or expenses.
ARTICLE XI
NOTE GUARANTY INSURANCE POLICY
Section 11.01 Note Guaranty Insurance Policy. All amounts paid by the Note
Insurer under the Note Policy shall be used solely for the payment of principal
of and interest on the Class A Notes in accordance with the terms of the Note
Policy.
Section 11.02 Transfer of Class A Notes to Note Insurer. Any other
provision contained herein to the contrary notwithstanding, the Note Insurer or
the Fiscal Agent shall be entitled, without charge therefor, at any time: to
register, discharge from registration or transfer registration of any Class A
Note which it holds upon presenting it to the Indenture Trustee and either
appropriate authority from the Class A Noteholder thereof for such transfer or a
claim of ownership and a written undertaking to indemnify the Owner Trustee and
the Indenture Trustee from claims resulting from such transfer; and to have the
registration books marked to indicate its interest in any Class A Note upon
presentation only of such a claim and such a written undertaking. The Note
Insurer and Fiscal Agent are entitled to have access to and to make copies of
the Note Register, at the expense of the Note Registrar, at any reasonable time
upon reasonable prior written notice.
Section 11.03 Note Insurer Access to Information, Books and Records. While
the Note Policy is in effect, the Indenture Trustee will furnish the Note
Insurer and the Fiscal Agent with such information as they may reasonably
request regarding the security for the Class A Notes, as appears from the books
and records under its custody and control, or as otherwise known to it,
including but not limited to Recordable Documents, as defined in Section 3.09
hereof. The Indenture Trustee will permit the Note Insurer and the Fiscal Agent
to have access to and to make copies of all such books and records at any
reasonable time upon reasonable written notice; provided that any expenses
incurred by the Indenture Trustee under this Section shall be reimbursable to
the Indenture Trustee in accordance with the priorities set forth in Section
5.05(c).
Section 11.04 The Indenture Trustee To Notify Note Insurer of Proposed
Changes. The Note Insurer shall, except as otherwise provided herein, have the
right of prior approval of certain changes hereof and of the exercise of any
option, vote, right, power or the like available to Class A Noteholders
hereunder. The Indenture Trustee shall immediately notify the Note Insurer of:
(a) any proposed supplement hereto;
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(b) upon receipt of notice of or discovery of the occurrence of any Event
of Default, Event of Insolvency or Event of Servicing Default;
(c) any resignation of the Indenture Trustee hereunder;
(d) any matter to be put to the Class A Noteholders for election or consent
hereunder;
(e) the exercise by the Class A Noteholders of any option, vote, right,
power or the like hereunder; and
(f) any other matter, notice of which is required hereunder to be given to
any of the Class A Noteholders.
Section 11.05 No Advance of Final Scheduled Payment Date. If any of the
Class A Notes become payable prior to the Final Scheduled Payment Date thereof,
other than pursuant to the prepayment provisions hereof, whether by reason of
call for prepayment, acceleration or otherwise, the Indenture Trustee shall
immediately notify the Note Insurer of such fact. The Indenture Trustee and the
Owner Trustee hereby acknowledge that the Note Policy guarantees an amount equal
to the Insured Payment (as defined therein); however no accelerated Insured
Payment shall be made on any prepayment date or as a result of any acceleration
on any early redemption unless at the sole option of the Note Insurer.
Section 11.06 Note Insurer Rights in the Event of Nonpayment. The Note
Insurer is entitled to the benefit of the following provisions in the event of
Nonpayment. Notwithstanding any other provision hereof:
(a) The Indenture Trustee shall immediately notify the Note Insurer of the
event of Nonpayment.
(b) The Indenture Trustee, the Owner Trustee and the Class A Noteholders
recognize that any payment by the Note Insurer or the Fiscal Agent does not cure
the Event of Default resulting from the Nonpayment nor relieve the Owner Trustee
of any obligation hereunder.
(c) The Indenture Trustee shall deliver to the Fiscal Agent or the Note
Insurer, uncancelled, all Class A Notes coming into its possession with respect
to which the Fiscal Agent or the Note Insurer has made payment of the principal
amount of such Class A Notes as provided in the Note Policy. Such Class A Notes
shall be delivered as fully registered Class A Notes, per written instructions
of the Fiscal Agent or the Note Insurer.
(d) The Indenture Trustee shall recognize the Note Insurer as the holder of
each of the Class A Notes with respect to which it has made payment of the full
principal amount of such Class A Notes as provided in the Note Policy for the
purposes of exercising all options, votes, rights, powers or the like available
to Class A Noteholders under any provision hereof.
(e) The Note Insurer shall have the right to institute any suit, action or
proceeding at law or in equity under the same terms as a Class A Noteholder may
institute any action in accordance with applicable provisions of this Indenture.
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(f) The Note Insurer shall, to the extent it makes payment of principal or
interest on the Class A Notes, or with respect to the Owner Trustee's
obligations under the Interest Rate Swap Agreement, as the case may be, become
subrogated to the rights of the recipients of such payments in accordance with
the terms of the Policies, as applicable, and this Indenture, and to evidence
such subrogation (i) in the case of subrogation as to claims for Class A Overdue
Interest, the Indenture Trustee shall note the Note Insurer's rights as subrogee
on the registration books of the Owner Trustee maintained by the Indenture
Trustee upon receipt from the Note Insurer of proof of the payment of interest
thereon to the registered owners of the Class A Notes, and (ii) in the case of
subrogation as to claims for past due principal, the Indenture Trustee shall
note the Note Insurer's rights as subrogee on the registration books of the
Owner Trustee maintained by the Indenture Trustee upon proof of the payment of
principal thereof to the registered owners of the Class A Notes.
Section 11.07 Note Insurer Approval of Changes in Terms of Notes or
Indenture.
(a) So long as the Policies are in effect, no supplemental Indenture shall
be made without the prior written approval of the Note Insurer.
(b) Except as expressly set forth herein, so long as no Note Insurer
Default has occurred and is continuing, no Class A Noteholder shall exercise any
option, vote, right, power or the like required or permitted by the Class A
Notes or this Indenture without first obtaining the prior written approval of
the Note Insurer.
Section 11.08 Note Insurer Removal of the Indenture Trustee.
Notwithstanding anything in this Indenture to the contrary, so long as no Note
Insurer Default has occurred and is continuing, the Note Insurer shall have the
right to remove the Indenture Trustee for "cause." For purposes of this Section,
"cause" shall mean (a) the negligence or willful misconduct of the Indenture
Trustee in the performance of its duties under this Indenture or (b) the failure
or unwillingness of the Indenture Trustee to perform its duties under this
Indenture. Upon receipt by the Indenture Trustee of notice of termination under
this Section 11.08, the Indenture Trustee shall continue to act as the Indenture
Trustee hereunder until a successor Indenture Trustee is appointed and have the
right to proceed to cure such negligence, willful misconduct or failure or
unwillingness to perform its duties, for a period of two (2) weeks. If such cure
is effected, the termination notice shall be void. If such cure is not effected
within such time, the Indenture Trustee functions hereunder will be terminated
immediately upon appointment of a successor trustee by the Owner Trustee with
the approval of Note Insurer. If no successor is appointed and accepts
appointment within thirty (30) days of removal, the Indenture Trustee may
petition a court of competent jurisdiction for appointment of a successor
Indenture Trustee.
Section 11.09 Parties Interested Herein. Nothing in this Indenture
expressed or implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the Owner Trustee, the Indenture
Trustee, the Swap Counterparty, the Note Insurer, the Paying Agent, if any, and
the registered holders of the Notes, any right, remedy or claim under or by
reason of this Indenture or any covenant, condition or stipulation hereof, and
all covenants, stipulations, promises and agreements in this Indenture contained
by and on behalf of the Owner Trustee shall be for the sole and exclusive
benefit of the Owner Trustee, the Indenture Trustee, the Swap Counterparty, the
Note Insurer, the Paying Agent, if any, and the registered owners of
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the Notes. Each of the Note Insurer and the Swap Counterparty is a third party
beneficiary of the provisions of this Indenture and entitled to enforce the
provisions hereof as if a party hereto.
Section 11.10 Rights of Note Insurer Controlling. Anything herein to the
contrary notwithstanding, if the Note Policy is in effect with respect to the
Class A Notes and no Note Insurer Default has occurred and is continuing, the
Note Insurer shall have the exclusive right to waive an Event of Default or
Insurance Agreement Event of Default and if not so exercised, to exercise or
direct the exercise of remedies on behalf of the holders of such Class A Notes
in accordance with the terms hereof following an Event of Default or Insurance
Agreement Event of Default.
Section 11.11 Payments Under the Note Guaranty Insurance Policy.
(a) If the Indenture Trustee has actual knowledge that any Class A
Noteholders have been required to disgorge any payment of interest or principal
on Class A Notes to the Owner Trustee or to the trustee in bankruptcy for
creditors or others pursuant to a final judgment by a court of competent
jurisdiction that such payment constitutes a voidable preference to such Class A
Noteholders within the meaning of any applicable bankruptcy laws, then the
Indenture Trustee shall notify the Note Insurer or its designee of such fact by
telephone, facsimile or telegraphic notice, confirmed in writing by registered
or certified mail.
(b) Payments with respect to claims for interest on and principal of Class
A Notes disbursed by the Indenture Trustee from proceeds of the Note Policy
shall not be considered to discharge the obligation of any party as set forth in
this Indenture, and the Note Insurer shall become the owner of such unpaid Class
A Note and claims for interest in accordance with the tenor of the assignment
made to it under the provisions of this subsection or otherwise.
(c) Irrespective of whether any such assignment is executed and delivered,
the Owner Trustee and the Indenture Trustee hereby agree for the benefit of the
Note Insurer that:
(i) they recognize that to the extent the Note Insurer makes payments,
directly or indirectly (as by paying through the Indenture Trustee), on
account of principal of or interest on the Class A Notes, the Note Insurer
will be subrogated to the rights of such Class A Noteholders to receive the
amount of such principal and interest, with interest thereon but only from
the sources and in the manner provided herein pursuant to this Indenture;
and
(ii) they will accordingly pay the Note Insurer the amount of such
principal and interest (which principal and interest shall be deemed past
due and not to have been paid), with interest thereon as provided in this
Indenture and the applicable Class A Note, but only from the sources and in
the manner provided herein pursuant to this Indenture, and will otherwise
treat the Note Insurer as the owner of such rights to the amount of such
principal and interest.
(d) Copies of any amendments made to the documents executed in connection
with the issuance of the Class A Notes which are consented to by the Note
Insurer shall be sent to S&P, Moody's and Fitch by the Indenture Trustee.
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(e) The Note Insurer shall receive notice from the Owner Trustee of the
resignation or removal of the Indenture Trustee and the appointment of a
successor thereto.
(f) The Note Insurer shall receive from the Person required to send such
notice copies of all notices required to be delivered to Class A Noteholders
and, on an annual basis from the Transferor and the Servicer, copies of Capital
One Financial Corporation's audited financial statements.
(g) Any notice that is required to be given to a Class A Noteholder or to
the Indenture Trustee pursuant to this Indenture shall also be provided from the
Person required to send such notice to the Note Insurer.
Section 11.12 Default of Note Insurer. Except as set forth in Section
11.07, notwithstanding anything in this Indenture to the contrary, if a Note
Insurer Default has occurred and is continuing, all rights and benefits
conferred on it by this Indenture shall be suspended until, in the case of
default in payment, such time as the Note Insurer has fully cured such payment
default, and none of the consents or approvals of the Note Insurer otherwise
required hereunder shall be required during such time period; provided, however,
that upon such cure, the Note Insurer's rights shall be immediately reinstated
in full. Upon the occurrence of a Note Insurer Default and until the Note
Insurer Default has been fully cured, all rights and benefits conferred on the
Note Insurer pursuant to this Indenture, the Servicing Agreement, the
Contribution Agreement, the Transfer and Assignment Agreement or otherwise
shall, unless otherwise specified herein or therein, be vested in the Indenture
Trustee.
Section 11.13 Rights and Obligations of Note Insurer. If the Aggregate
Outstanding Principal Balance of the Class A Notes shall be reduced to zero and
all Class A Note Interest due and owing to the Class A Noteholders has been paid
in full and all Reimbursement Obligations and reimbursement for all Swap
Termination Payments paid under the Swap Policy to the Note Insurer shall have
been paid in full, the Indenture Trustee shall give written notice of such
events to the Rating Agencies and the Note Insurer and any references herein to
notices to and rights and obligations of the Note Insurer shall be extinguished
and of no further effect except those rights otherwise expressly provided herein
as continuing.
Section 11.14 Note Insurer's Rights Regarding Actions, Proceedings or
Investigations. Following the occurrence and during a continuation of an Event
of Default hereunder and until the Class A Notes have been paid in full, all
amounts owed to the Note Insurer and reimbursement for all Swap Terminations
Payments paid under the Swap Policy have been paid in full, the Insurance
Agreement has terminated and the Policies have been returned to the Note Insurer
for cancellation, unless a Note Insurer Default has occurred and is continuing,
the following provisions shall apply:
(a) notwithstanding anything contained herein or in the other Transaction
Documents to the contrary, the Note Insurer shall have the right to participate
in, to direct the enforcement or defense of, and, at the Note Insurer's sole
option, to institute or assume the defense of, any action, proceeding or
investigation that could adversely affect the Trust, the Trust Property, the
Trust Estate or the rights or obligations of the Note Insurer hereunder or under
the Note Policy, the Swap Policy or the Transaction Documents, including
(without limitation) any insolvency or
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bankruptcy proceeding in respect of the Servicer, the Transferor, the Seller or
the Trust. Following notice to the Indenture Trustee, the Note Insurer shall
have exclusive rights to determine, in its sole discretion, the actions
necessary to preserve and protect the Trust, the Trust Property and the Trust
Estate. All costs and expenses of the Note Insurer in connection with such
action, proceeding or investigation, including (without limitation) any judgment
or settlement entered into affecting the Note Insurer or the Note Insurer's
interests, shall be included in Reimbursement Obligations;
(b) in connection with any action, proceeding or investigation that could
adversely affect the Trust, the Trust Property, the Trust Estate or the rights
or obligations of the Note Insurer hereunder or under either the Note Policy,
the Swap Policy or the Transaction Documents, including (without limitation) any
insolvency or bankruptcy proceeding in respect of the Servicer, the Transferor,
the Seller or the Trust, the Indenture Trustee hereby agrees to cooperate with,
and to take such action as directed by, the Note Insurer, including (without
limitation) entering into such agreements and settlements as the Note Insurer
shall direct, in its sole discretion. Notwithstanding any other provision herein
or in any of the other Transaction Documents, the Indenture Trustee shall not
require any bond or indemnification from any Person for taking of any action at
written direction of the Note Insurer, and the Indenture Trustee shall not be
liable to the Note Insurer, any Noteholder or the Holder of any Certificate for
any such action that conforms to such written direction of the Note Insurer. The
Indenture Trustee's reasonable out-of-pocket costs and expenses (including
attorneys' fees and expenses) with respect to any such action, proceeding or
investigation shall be reimbursed pursuant to Section 5.05(c) hereof;
(c) any judgment or settlement entered against or affecting the Trust, the
Trust Property or the Trust Estate, on behalf of the Noteholders, in connection
with any action, proceeding or investigation shall be paid by the Indenture
Trustee from the Trust Estate pursuant to Section 5.05(c) hereof;
(d) the Indenture Trustee hereby agrees to provide to the Note Insurer
prompt written notice of any action, proceeding or investigation that names the
Trust or the Indenture Trustee as a party or that could adversely affect the
Trust, the Trust Property, the Trust Estate or the rights or obligations of the
Note Insurer hereunder or under the Note Policy, the Swap Policy or the
Transaction Documents including (without limitation) any insolvency or
bankruptcy proceeding in respect of the Servicer, Transferor, the Seller or the
Trust;
(e) notwithstanding anything contained herein or in any of the other
Transaction Documents to the contrary, the Indenture Trustee shall not, without
the Note Insurer's prior written consent or unless directed by the Note Insurer,
undertake or join any litigation or agree to any settlement of any action,
proceeding or investigation affecting the Trust, the Trust Property, the Trust
Estate or the rights or obligations of the Note Insurer hereunder or under the
Note Policy, the Swap Policy or the Transaction Documents;
(f) each Noteholder, by acceptance of its Note, and the Indenture Trustee
agree that the Note Insurer shall have such rights as set forth in this Section
11.14, which are in addition to any rights of the Note Insurer pursuant to the
other provisions of the Transaction Documents, that the rights set forth in this
Section 11.14 may be exercised by the Note Insurer, in its sole discretion,
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without the need for the consent or approval of any Noteholder, the Holder of
the Certificate, the Indenture Trustee or the Owner Trustee, notwithstanding any
other provision contained herein or in any of the other Transaction Documents,
and that nothing contained in this Section 11.14 shall be deemed to be an
obligation of the Note Insurer to exercise any of the rights provided for
herein; and
(g) notwithstanding any provision in this herein or in any of the other
Transaction Documents to the contrary, in the event that a Note Insurer Default
shall have occurred and be continuing or the Class A Notes have been paid in
full, and amounts owed to the Note Insurer have been paid in full, the Insurance
Agreement has terminated and the Note Policy has been returned to the Note
Insurer for cancellation, the Note Insurer shall not have the right to take any
action under this Indenture or to control or direct the actions of the Trust,
the Seller, the Indenture Trustee or the Owner Trustee pursuant to the terms of
this Indenture, nor shall the consent of the Note Insurer be required with
respect to any action (or waiver of a right to take action) to be taken by the
Trust, the Seller, the Indenture Trustee, the Owner Trustee or the Noteholders
or the Certificateholders; provided that the consent of the Note Insurer shall
be required at all times with respect to any amendment of this Indenture.
ARTICLE XII
NOTEHOLDERS' LISTS AND REPORTS
Section 12.01 Owner Trustee to Furnish the Indenture Trustee Names and
Addresses of Noteholders. The Owner Trustee will furnish or cause to be
furnished to the Indenture Trustee:
(a) not more than five days after the earlier of (i) each Record Date and
(ii) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Holders as of such Record Date;
(b) at such other times as the Indenture Trustee may request in writing,
within 30 days after receipt by the Owner Trustee of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time
such list is furnished; provided that so long as (i) the Indenture Trustee or
its designee is Note Registrar, or (ii) the Notes are Book-Entry Notes, no such
list shall be required to be furnished and in such case, upon the written
request of the Owner Trustee, the Indenture Trustee or its designee will
promptly furnish the Owner Trustee a list of Noteholders as of the date
specified by the Owner Trustee.
Section 12.02 Preservation of Information; Communications to Noteholders.
(a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders contained in the
most recent list furnished to the Indenture Trustee as provided in Section 12.01
and the names and addresses of Holders received by the Indenture Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished
to it as provided in such Section 12.01 upon receipt of a new list so furnished.
(b) Noteholders may communicate pursuant to TIA (S) 312(b) with other
Noteholders with respect to their rights under this Indenture or under the
Notes. Upon receipt by the Indenture Trustee of any request by three or more
Noteholders to receive a copy of the current list of Noteholders, the Indenture
Trustee shall promptly notify the Administrator thereof by providing
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to the Administrator a copy of such request and a copy of the list of
Noteholders produced in response thereto.
(c) The Owner Trustee, the Indenture Trustee and the Note Registrar shall
have the protection of TIA (S) 312(c).
Section 12.03 Reports by the Owner Trustee. (a) The Owner Trustee shall:
(i) file with the Indenture Trustee, at the time that the Owner
Trustee is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Owner Trustee
may be required to file with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act;
(ii) file with the Indenture Trustee and the Commission in accordance
with rules and regulations prescribed from time to time by the Commission
such additional information, documents and reports with respect to
compliance by the Owner Trustee with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(iii) supply to the Indenture Trustee (and the Indenture Trustee shall
transmit by mail to all the Noteholders described in TIA (S) 313 (c)) such
summaries of any information, documents and reports required to be filed by
the Owner Trustee pursuant to clauses (i) and (ii) of this Section 12.03(a)
as may be required by rules and regulations prescribed from time to time by
the Commission.
(b) Unless the Owner Trustee otherwise determines, the fiscal year of the
Trust shall end on December 31 of each year.
Section 12.04 Reports by the Indenture Trustee. If required by TIA (S)
313(a), within 60 days after each March 31, beginning with March 31, 2003, the
Indenture Trustee shall mail to each Noteholder as required by TIA (S) 313(c) a
brief report dated as of such date that complies with TIA (S) 313(a). The
Indenture Trustee also shall comply with TIA (S) 313(b)(1) and (2). A copy of
each report at the time of its mailing to the Noteholders shall be filed by the
Indenture Trustee with the Commission and each stock exchange, if any, on which
the Notes are listed. The Owner Trustee shall notify the Indenture Trustee if
and when the Notes are listed on any stock exchange.
ARTICLE XIII
SATISFACTION AND DISCHARGE
Section 13.01 Satisfaction and Discharge of the Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (a)
rights of registration of transfer and exchange, (b) substitution of mutilated,
destroyed, lost or stolen Notes, (c) rights of Noteholders to receive payments
of principal thereof and interest thereon, (d) Sections 3.01(a), 3.02, 3.03,
3.05, 3.12, 3.14 and 3.15, (e) the rights, obligations and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee under
Section 7.07 and the obligations of
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the Indenture Trustee under Section 13.02) and (f) the rights of Noteholders as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Owner Trustee, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to the Notes and the other obligations secured hereby, when:
(i) either:
(A) all Notes theretofore authenticated and delivered (other than
(1) Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.08 and (2) Notes for which
payment money has theretofore been deposited in trust or segregated
and held in trust by the Owner Trustee and thereafter repaid to the
Owner Trustee or discharged from such trust, as provided in Section
3.03) have been delivered to the Indenture Trustee for cancellation;
or
(B) all Notes not theretofore delivered to the Indenture Trustee
for cancellation:
(1) have become due and payable;
(2) will become due and payable at the Final Scheduled
Payment Date within one year; or
(3) are to be called for redemption within one year under
arrangements satisfactory to the Indenture Trustee for the giving
of notice of redemption by the Indenture Trustee in the name, and
at the expense, of the Owner Trustee;
and the Owner Trustee, in the case of clauses (1), (2) or (3), has
irrevocably deposited or caused to be irrevocably deposited with the
Indenture Trustee cash or direct obligations of or obligations
guaranteed by the United States of America (which will mature prior to
the date such amounts are payable), in trust for such purpose, in an
amount sufficient to pay and discharge the entire indebtedness on such
Notes not theretofore delivered to the Indenture Trustee for
cancellation when due to the Final Scheduled Payment Date or
Redemption Date (if Notes shall have been called for redemption
pursuant to Section 6.01(a) or 6.02), as the case may be;
(ii) the Owner Trustee has paid or caused to be paid all other sums
payable hereunder by the Trust, including all amounts owing to the Note
Insurer;
(iii) the Interest Rate Swap Agreement has been terminated and all
amounts owed to each Swap Counterparty, including all Swap Termination
Payments, under any existing or previously terminated Interest Rate Swap
Agreement have been paid in full; and
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(iv) the Owner Trustee has delivered to the Indenture Trustee an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA or
the Indenture Trustee) an Independent Certificate from a firm of certified
public accountants, each meeting the applicable requirements of Section
14.01(a) and each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been
complied with.
Section 13.02 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 13.01 shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Servicer may
direct, (i) to the Holders of the particular Notes for the payment or redemption
of which such moneys have been deposited with the Indenture Trustee, of all sums
due and payable and to become due and payable thereon for principal and
interest, (ii) to the Note Insurer of all amounts then owing to it and (iii) to
each Swap Counterparty of all amounts then owing to it.
Section 13.03 Repayment of Moneys Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
moneys then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Owner Trustee, be paid to the Indenture Trustee to be held and applied
according to Section 3.03 and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.
ARTICLE XIV
MISCELLANEOUS
Section 14.01 Compliance Certificates and Opinions; Furnishing of
Information.
(a) Upon any application or request by the Owner Trustee to the Indenture
Trustee to take any action under any provision of this Indenture, the Owner
Trustee shall furnish to the Indenture Trustee, the Swap Counterparty (unless
the Interest Rate Swap Agreement has been terminated and all amounts owed to the
Swap Counterparty have been paid in full) and the Note Insurer (i) a certificate
(complying with (S) 314(e) of the TIA) stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent, if any, have been complied with and
(iii) (if required by the TIA) an Officer's Certificate from an Independent
Accounting Firm, except that in the case of any such application or request as
to which the furnishing of such documents are specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or Opinion of Counsel need be furnished. Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(i) a statement that each signatory of such certificate or opinion has
read or has caused to be read such covenant or condition and the
definitions herein relating thereto;
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(ii) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(iii) a statement that, in the judgment of each such signatory, such
signatory has made such examination or investigation as is necessary to
enable such signatory to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
(iv) a statement as to whether, in the opinion of each such signatory,
such condition or covenant has been complied with.
(b) (i) Prior to the deposit of any Receivables or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Owner Trustee shall, in addition to any obligation imposed in Section 14.01(a)
or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such deposit) to the Owner
Trustee of the Collateral or other property or securities to be so deposited.
(ii) Whenever the Owner Trustee is required to furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of any signer thereof as to the matters described in clause (i),
the Owner Trustee shall also deliver to the Indenture Trustee an
Independent Certificate as to the same matters, if the fair value to the
Owner Trustee of the securities to be so deposited and of all other such
securities made the basis of any such withdrawal or release since the
commencement of the then-current calendar year of the Trust, as set forth
in the certificates delivered pursuant to clause (i) and this clause (ii),
is 10% or more of the Outstanding Amount of the Notes, but such a
certificate need not be furnished with respect to any securities so
deposited, if the fair value thereof to the Trust as set forth in the
related Officer's Certificate is less than $25,000 or less than one percent
of the Outstanding Amount of the Notes.
(iii) Other than with respect to the release of any Receivables or
Defaulted Receivables (complying with (S) 314(d)(i) of the TIA), whenever
any property or securities are to be released from the lien of this
Indenture, the Owner Trustee shall also furnish to the Indenture Trustee,
the Note Insurer and the Swap Counterparty (unless the Interest Rate Swap
Agreement has been terminated and all amounts owed to the Swap Counterparty
have been paid in full) an Officer's Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value
(within 90 days of such release) of the property or securities proposed to
be released and stating that in the opinion of such person the proposed
release will not impair the security under this Indenture in contravention
of the provisions hereof.
(iv) Whenever the Owner Trustee is required to furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of any signer thereof as to the matters described in clause (iii),
the Owner Trustee shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the
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property or securities and of all other property other than Receivables and
Defaulted Receivables, or securities released from the lien of this
Indenture since the commencement of the then current calendar year, as set
forth in the certificates required by clause (iii) and this clause (iv),
equals 10% or more of the Outstanding Amount of the Notes, but such
certificate need not be furnished in the case of any release of property or
securities if the fair value thereof as set forth in the related Officer's
Certificate is less than $25,000 or less than one percent of the then
Outstanding Amount of the Notes.
(v) Notwithstanding Section 2.18 or any other provision of this
Section, the Owner Trustee may without compliance with the requirements of
the other provisions of this section 14.01, (A) collect, liquidate, sell or
otherwise dispose of Receivables as and to the extent permitted or required
by the Transaction Documents and (B) make cash payments out of the Accounts
as and to the extent permitted or required by the Transaction Documents.
Section 14.02 Form of Documents Delivered to the Indenture Trustee.
(a) If several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.
(b) Any certificate or opinion of an Authorized Officer of the Owner
Trustee may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by outside counsel, unless such Authorized
Officer knows that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous. Any
such certificate or opinion or any Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an Authorized Officer of the Servicer, the Administrator,
the Owner Trustee or the Seller on behalf of the Owner Trustee, stating that the
information with respect to such factual matters is in the possession of the
Owner Trustee or such Person, unless such officer or counsel knows that the
certificate or opinion or representations with respect to such matters are
erroneous. Any Opinion of Counsel may be based on the written opinion of other
counsel, in which event such Opinion of Counsel shall be accompanied by a copy
of such other counsel's opinion and shall include a statement to the effect that
such counsel believes that such counsel and the Indenture Trustee may reasonably
rely upon the opinion of such other counsel.
(c) Where any Person is required to make, give or execute two or more
applications, requests, consents, notices, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
(d) Wherever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that, the Owner
Trustee, the Seller, the Administrator or the Servicer shall deliver any
document as a condition of the granting of such application, or as evidence of
the Owner Trustee's or the Servicer's compliance with any term hereof, it is
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intended that the truth and accuracy, at the time of the granting of such
application or at the effective date of such notice or report (as the case may
be), of the facts and opinions stated in such document shall in such case be
conditions precedent to the right of the Owner Trustee to have such application
granted or to the sufficiency of such notice or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee's right to rely upon the
truth and accuracy of any statement or opinion contained in any such document as
provided in Section 7.01(b)(ii).
(e) Wherever in this Indenture it is provided that, the absence of the
occurrence and continuation of an Event of Servicing Default is a condition
precedent to the taking of any action by the Indenture Trustee at the request or
direction of the Owner Trustee, then notwithstanding that the satisfaction of
such condition is a condition precedent to the Owner Trustee's or the Indenture
Trustee's right to make such request or direction, the Indenture Trustee shall
be protected in acting in accordance with such request or direction if it does
not have actual knowledge of the occurrence and continuation of such Event of
Servicing Default.
Section 14.03 Acts of Noteholders.
(a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders in person or by an agent duly appointed
in writing; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Owner
Trustee. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 7.01) conclusive in
favor of the Indenture Trustee and the Owner Trustee, if made in the manner
provided in this Section 14.03.
(b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by
the certificate of any notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Whenever such execution is
by an officer of a corporation or a member of a partnership on behalf of such
corporation or partnership, such certificate or affidavit shall also constitute
sufficient proof of his authority.
(c) The ownership of Notes shall be proved by the Note Register.
(d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Notes shall bind the Holder of every Note
issued upon the registration or transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Owner Trustee in reliance thereon, whether or not
notation of such action is made upon such Notes.
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Section 14.04 Notices, Etc. Any request, demand, authorization, direction,
notice, consent, waiver or act of Noteholders or other documents provided or
permitted by this Indenture to be made upon, given or furnished to, or filed
with:
(a) the Indenture Trustee by any Noteholder or by the Owner Trustee, the
Administrator or the Owner Trustee, shall be in writing and shall be delivered
personally or mailed by first-class registered or certified mail, postage
prepaid, or by telephonic facsimile transmission and overnight delivery service,
postage prepaid, and received by, a Responsible Officer of the Indenture Trustee
at its Corporate Trust Office listed below; or
(b) the Owner Trustee by the Indenture Trustee, by the Note Insurer or by
any Noteholder shall be in writing and shall be delivered personally or mailed
by first-class registered or certified mail, postage prepaid, or by telephonic
facsimile transmission and overnight delivery service, postage prepaid, at the
address listed below or at any other address previously furnished in writing to
the Indenture Trustee and the Note Insurer by the Owner Trustee.
To the Indenture Trustee:
JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004-2413
Attention: Structured Finance Administration - Capital One
Auto Finance 2002-C
Phone: (212) 623-5379
FAX: (2120 623-5932
To the Owner Trustee:
Wilmington Trust Company, as Owner Trustee of Capital One Auto
Finance Trust 2002-C
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
Attention: Jeanne Oller
Phone: (302) 651-1464
FAX: (302) 427-4749
To the Administrator
and the Servicer:
Capital One Auto Finance, Inc.
1680 Capital One Drive
McLean, Virginia 22102
Attention: Director of Securitization
Phone: (703) 720-1000
FAX: (703) 720-2121
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with a copy to General Counsel
Legal Department
Phone: (703) 720-1000
FAX: (703) 720-2121
With copies to:
Capital One Auto Receivables, LLC
1680 Capital One Drive
McLean, Virginia 22102
Attention: Director of Securitization
Phone: (703) 720-1000
FAX: (703) 720-2121
Mayer, Brown, Rowe & Maw
190 S. LaSalle Street
Chicago, Illinois 60603
Attention: Stuart M. Litwin
Phone: (312) 782-0600
FAX: (312) 701-7711
To the Note Insurer:
MBIA Insurance Corporation
113 King Street
Armonk, NY 10504
Attention: Insured Portfolio Management-Structured
Finance (IPM-STF)
Phone: (914) 273-4545
FAX: (914) 765-3810
To Moody's:
Moody's Investors Service, Inc.
99 Church Street
New York, New York 10007
Attention: ABS Monitoring Dept.
Phone: (212) 553-4948
FAX: (212) 553-0881
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To S&P:
Standard & Poor's
55 Water Street
New York, New York 10041
Attention: Surveillance
Phone: (212) 438-2435
FAX: (212) 438-2464
To Fitch:
Fitch, Inc.
One State Street Plaza
New York, New York 10004
Attention: Carlen Moday
Phone: (212) 908-0682
FAX: (212) 480-4438
To the Swap Counterparty:
Bank of America, N.A.
233 South Wacker Drive
Chicago, IL 60606-3606
Attention: Michael Bilello
Phone: (312) 234-2787
FAX: (312) 453-2787
In addition, upon the written request of any beneficial owner of a Class A
Note, the Indenture Trustee shall provide to such beneficial owner copies of
such notices, reports or other information delivered by the Indenture Trustee
hereunder to other Persons as such beneficial owner may reasonably request.
Section 14.05 Notices and Reports to Noteholders; Waiver of Notices.
(a) Where this Indenture or the TIA provides for notice to Noteholders of
any event or the mailing of any report to the Noteholders, such notice or report
shall be written and shall be sufficiently given (unless otherwise herein
expressly provided) if mailed, first-class, postage-prepaid, to each Noteholder
affected by such event or to whom such report is required to be mailed, at the
address of such Noteholder as it appears on the Note Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice or the mailing of such report. In any case where a notice
or report to Noteholders is mailed in the manner provided above, neither the
failure to mail such notice or report, nor any defect in any notice or report so
mailed, to any particular Noteholder shall affect the sufficiency of such notice
or report with respect to other Noteholders, and any notice or report which is
mailed in the manner herein provided shall be conclusively presumed to have been
duly given or provided.
(b) Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such
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waiver shall be the equivalent of such notice. Waivers of notice by Noteholders
shall be filed with the Indenture Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.
(c) If, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to the Note Insurer or the Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.
Section 14.06 Rules by the Indenture Trustee. The Indenture Trustee may
make reasonable rules for any meeting of Noteholders.
Section 14.07 Owner Trustee Obligation. No recourse may be taken, directly
or indirectly, against (a) any incorporator, subscriber to the capital stock,
stockholder, officer, employee, agent or director of the Owner Trustee or of any
predecessor of the Owner Trustee, (b) any partner, beneficiary, agent, officer,
director, employee, or successor or assign of a holder of a beneficial interest
in the Owner Trustee, (c) any incorporator, subscriber to the capital stock,
stockholder, officer, director, employee or agent of the Indenture Trustee or
any predecessor or successor of the Indenture Trustee, or (d) any incorporator,
subscriber to capital stock, stockholder, officer, director, employee or agent
of the Indenture Trustee or any predecessor or successor thereof, with respect
to the Owner Trustee's obligations with respect to the Notes or any of the
statements, representations, covenants, warranties or obligations of the Owner
Trustee under this Indenture or any Note or other writing delivered in
connection herewith or therewith.
Section 14.08 Enforcement of Benefits. The Note Insurer and, with the
consent of the Note Insurer, the Indenture Trustee and the Noteholders shall be
entitled to enforce and, at the direction of the Note Insurer, the Indenture
Trustee shall enforce the covenants and agreements of the Servicer, the Seller
and the Transferor contained in the Servicing Agreement, the Contribution
Agreement and the Transfer and Assignment Agreement.
Section 14.09 Effect of Headings and Table of Content. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.
Section 14.10 Successors and Assigns. All covenants and agreements in this
Indenture by the Owner Trustee and the Indenture Trustee shall bind their
respective successors and assigns, whether so expressed or not.
Section 14.11 Separability. If any provision in this Indenture or in the
Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this Indenture, a
provision as similar in its terms and purpose to such illegal, invalid or
unenforceable provision as may be possible and be legal, valid and enforceable.
Section 14.12 Benefits of Indenture. Nothing in this Indenture or in the
Notes, expressed or implied, shall give to any Person, other than the parties
hereto and their successors hereunder,
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the Note Insurer, the Swap Counterparty (unless the Interest Rate Swap Agreement
has been terminated and all amounts owed to the Swap Counterparty have been paid
in full), any separate trustee or co-trustee appointed under Section 7.13 and
the Noteholders, any benefit or any legal or equitable right, remedy or claim
under this Indenture.
Section 14.13 Legal Holidays. If the date of any Payment Date or any other
date on which principal of or interest on any Note is proposed to be paid or any
date on which mailing of notices by the Indenture Trustee to any Person is
required pursuant to any provision of this Indenture, shall not be a Business
Day, then (notwithstanding any other provision of the Notes or this Indenture)
payment or mailing of such notice need not be made on such date, but may be made
or mailed on the next succeeding Business Day with the same force and effect as
if made or mailed on the nominal date of any such Payment Date or other date for
the payment of principal of or interest on any Note, or as if mailed on the
nominal date of such mailing, as the case may be, and in the case of payments,
no interest shall accrue for the period from and after any such nominal date,
provided such payment is made in full on such next succeeding Business Day.
Section 14.14 Governing Law. This Indenture and each Note shall be
construed in accordance with and governed by the substantive laws of the State
of New York (without regard to conflict of law provisions) applicable to
agreements made and to be performed therein.
Section 14.15 Counterparts. This instrument may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.
Section 14.16 Recording of Indenture. This Indenture is subject to
recording in any appropriate public recording offices, such recording to be
effected by the Owner Trustee and at its expense in compliance with any Opinion
of Counsel delivered hereunder.
Section 14.17 Further Assurances. The Owner Trustee agrees to do and
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the Indenture Trustee or the
Note Insurer more fully to effect the purposes of this Indenture, including,
without limitation, the execution of any financing statements or continuation
statements relating to the Trust Property for filing under the provisions of the
UCC of any applicable jurisdiction.
Section 14.18 No Bankruptcy Petition Against the Owner Trustee. The
Indenture Trustee agrees (and each Noteholder by its acceptance of the Notes
shall be deemed to agree) that, prior to the date that is one year and one day
after the payment in full of all amounts payable with respect to the Notes, it
will not institute against the Owner Trustee or the Seller, or join any other
Person in instituting against the Owner Trustee or the Seller, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
proceedings under the laws of the United States or any state of the United
States. This Section 14.18 shall survive the termination of this Indenture.
Section 14.19 Subordination. The Owner Trustee and each Noteholder, by
accepting a Note, acknowledge and agree that such Note represents indebtedness
of the Owner Trustee and
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does not represent an interest in any assets of the Seller (including by virtue
of any deficiency claim in respect of obligations not paid or otherwise
satisfied from the Trust Estate and proceeds thereof). In furtherance of and not
in derogation of the foregoing, to the extent the Seller enters into other
securitization transactions, each of the Owner Trustee and each Noteholder, by
accepting a Note, acknowledges and agrees that it shall have no right, title or
interest in or to any assets (or interests therein) (other than Trust Estate)
conveyed or purported to be conveyed by the Seller to another Person or Persons
in connection therewith (whether by way of a sale, capital contribution or by
virtue of the granting of a lien) ("Other Assets"). To the extent that,
notwithstanding the agreements and provisions contained in the preceding
sentences of this subsection, the Owner Trustee or any Noteholder either (a)
asserts an interest or claim to, or benefit from, Other Assets, whether asserted
against or through the Seller or any other Person owned by the Seller, or (b) is
deemed to have any such interest, claim or benefit in or from Other Assets,
whether by operation of law, legal process, pursuant to applicable provisions of
insolvency laws or otherwise (including by virtue of Section 1111(b) of the
Federal Bankruptcy Code or any successor provision having similar effect under
the Bankruptcy Code), and whether deemed asserted against or through the Seller
or any other Person owned by the Seller, then the Owner Trustee and each
Noteholder, by accepting a Note, further acknowledges and agrees that any such
interest, claim or benefit in or from Other Assets is and shall be expressly
subordinated to the indefeasible payment in full of all obligations and
liabilities of the Seller which, under the terms of the relevant documents
relating to the securitization of such Other Assets, are entitled to be paid
from, entitled to the benefits of, or otherwise secured by such Other Assets
(whether or not any such entitlement or security interest is legally perfected
or otherwise entitled to a priority of distribution or application under
applicable law, including insolvency laws, and whether asserted against the
Transferor or any other Person owned by the Seller), including the payment of
post-petition interest on such other obligations and liabilities. This
subordination agreement shall be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. Each Noteholder further
acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section 14.19 and the terms of this Section 14.19 may be enforced by an
action for specific performance. The provisions of this Section 14.19 shall be
for the third party benefit of those entitled to rely thereon and shall survive
the termination of this Indenture.
Section 14.20 Limitation on Liability. Notwithstanding anything to the
contrary contained in this Indenture the obligations of the Owner Trustee on
behalf of the Trust and the Seller under this Indenture are solely the corporate
obligations of the Owner Trustee on behalf of the Trust or the Seller, as
applicable, and shall be payable by the Owner Trustee on behalf of the Trust or
the Seller, as applicable, solely (a) from funds available pursuant to, and in
accordance with the payment priorities set forth in Section 5.03 of this
Indenture or (b) to the extent that it receives additional funds designated for
such purposes or to the extent that it has additional funds available (other
than funds described in the preceding clause (a)) that would be in excess of
amounts that would be necessary to pay the debt and other obligations of the
Owner Trustee on behalf of the Trust or the Seller, as applicable, incurred in
accordance with its limited liability company agreement or other organizational
documents and all financing documents to which it is a party as they come due.
In addition, no amount owing by the Owner Trustee on behalf of the Trust or the
Seller, as applicable, hereunder in excess of the liabilities that it is
required to pay in accordance with the preceding sentence shall constitute a
"claim" (as defined in Section 101(5) of the Bankruptcy Code) against it. No
recourse shall be had for the payment of any amount owing hereunder or any other
obligation of, or claim against, the Owner Trustee on behalf of the
138
Trust or the Seller, as applicable, arising out of or based upon this Indenture
against any member, partner, employee, officer, agent, director or authorized
person of the Owner Trustee on behalf of the Trust or the Seller; provided,
however, that the foregoing shall not relieve any such person, or entity of any
liability they might otherwise have as a result of fraudulent actions of
omissions taken by them nor shall the foregoing relieve any person of any
liability expressly undertaken by such person under the Transaction Documents.
Section 14.21 Limitation of Liability. It is expressly understood and
agreed by and between the parties hereto (i) that this Indenture is executed and
delivered by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee under the Trust Agreement in the exercise of the power and
authority conferred and vested in it as such Owner Trustee (ii) each of the
representations, undertakings and agreements made herein by the Owner Trustee
are not personal representations, undertakings and agreements of Wilmington
Trust Company, but are binding only on the trust estate created pursuant to the
Trust Agreement, (iii) nothing contained herein shall be construed as creating
any liability on Wilmington Trust Company, individually or personally, to
perform any covenant of the Owner Trustee either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto
and by any person claiming by, through or under any such party, and (iv) under
no circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expense of the Owner Trustee or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Owner Trustee under this Indenture.
Section 14.22 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.
The provisions of TIA Sections 310 through 317, to the extent permitted to
be modified by the TIA and not modified by this Indenture, that impose duties on
any person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.
Section 14.23 Perfection Representations. The Perfection Representations
shall be a part of this Indenture for all purposes.
139
IN WITNESS WHEREOF, the Owner Trustee and the Indenture Trustee have caused
this Indenture to be duly executed as of the day and year first above written.
WILMINGTON TRUST COMPANY, not in its individual
capacity but solely in its capacity as Owner
Trustee for Capital One Auto Finance Trust 2002-C
By: /s/ Donald G. Mackelcan
----------------------------------------------
Authorized Officer
S-1
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:/s/ Craig M. Kantor
-----------------------------------------------
Name: Craig M. Kantor
Title: Vice President
S-2
Confirmed and Agreed with respect to Sections
3.01(c), 3.10(b)(x), (xiii), (xiv), (xvi), 5.06,
5.14(a) and (c), 7.07 and 14.20
CAPITAL ONE AUTO RECEIVABLES, LLC,
as the Seller
By: /s/ Jeffery A. Elswick
------------------------------------
Jeffery A. Elswick
President
Confirmed and Agreed with respect to Sections
3.01(c), 3.10(b), (x), (xiii), (xiv) and (xvi),
5.06, 5.14(a) and (c), 7.07 and 14.20
CAPITAL ONE AUTO FINANCE, INC.,
as Transferor, as Servicer and as Custodian
By: /s/ Jeffery A. Elswick
------------------------------------
Jeffery A. Elswick
Manager of Securitization
S-3
SCHEDULE 1
SCHEDULE OF OPINIONS
- - Opinion of Mayer, Brown, Rowe & Maw re: Corporate, Enforceability, Securities
Law, the Limited Guaranty, the Swap Documents and Other Matters
- - Opinion of Mayer, Brown, Rowe & Maw re: Perfection
- - Opinion of Mayer, Brown, Rowe & Maw re: Texas Certificate of Title Act
- - Opinion of Mayer, Brown, Rowe & Maw re: California Certificate of Title Act
- - Opinion of Mayer, Brown, Rowe & Maw re: 10b-5
- - Opinion of Mayer, Brown, Rowe & Maw re: True Sale and Nonconsolidation
- - Opinion of Mayer, Brown, Rowe & Maw re: Federal Tax Issues (Class A Notes)
- - Opinion of Mayer, Brown, Rowe & Maw re: Texas Franchise Tax Issues (Class A
Notes)
1-1
SCHEDULE 2
PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
In addition to the representations, warranties and covenants contained in
the Indenture, the Owner Trustee hereby represents, warrants, and covenants to
the Indenture Trustee as to itself as follows on the Closing Date and on each
Payment Date thereafter:
General
1. The Indenture creates a valid and continuing security interest (as defined in
UCC Section 9-102) in the Receivables in favor of the Indenture Trustee, which
security interest is prior to all other Liens, and is enforceable as such as
against creditors of and purchasers from the Owner Trustee.
2. The Collateral (except for the Interest Rate Swap Agreement) constitutes
"tangible chattel paper" within the meaning of UCC Section 9-102.
3. The rights of the Owner Trustee under the Interest Rate Swap Agreement
constitute "general intangibles" within the meaning of the applicable UCC.
4. COAF has taken all steps necessary to perfect its security interest against
the Obligor in the property securing the Receivables that constitute chattel
paper.
Creation
5. The Owner Trustee owns and has good and marketable title to the Collateral
free and clear of any Lien, claim or encumbrance of any Person, excepting only
liens for taxes, assessments or similar governmental charges or levies incurred
in the ordinary course of business that are not yet due and payable or as to
which any applicable grace period shall not have expired, or that are being
contested in good faith by proper proceedings and for which adequate reserves
have been established, but only so long as foreclosure with respect to such a
lien is not imminent and the use and value of the property to which the Lien
attaches is not impaired during the pendency of such proceeding.
Perfection
6. The Owner Trustee has caused or will have caused, within ten days after the
effective date of the Indenture, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the contribution and sale of the Trust
Property from COAF to the Seller, the transfer and sale of the Trust Property
from the Seller to the Owner Trustee, and the security interest in the
Collateral granted to the Indenture Trustee hereunder.
7. With respect to Collateral that constitutes tangible chattel paper, such
tangible chattel paper is in the possession of the Custodian and the Indenture
Trustee has received a written acknowledgment from the Custodian that the
Custodian is holding such tangible chattel paper solely on behalf and for the
benefit of the Indenture Trustee.
2-1
Priority
8. Neither the Seller, the Servicer nor the Owner Trustee has authorized the
filing of, or is aware of any financing statements against either the Seller,
the Transferor or the Owner Trustee that include a description of the
Collateral, the Trust Property and proceeds related thereto other than any
financing statement (i) relating to the sale of Trust Property by the Transferor
to the Seller under the Transfer and Assignment Agreement, (ii) relating to the
contribution of Trust Property by the Seller to the Owner Trustee under the
Contribution Agreement, (iii) relating to the security interest granted to the
Indenture Trustee hereunder, or (iv) that has been terminated.
9. Neither the Seller, the Transferor nor the Owner Trustee is aware of any
judgment, ERISA or tax lien filings against either the Seller, the Transferor or
the Owner Trustee.
10. None of the tangible chattel paper that constitute or evidence the
Receivables has any marks or notations indicating that they have been pledged,
assigned or otherwise conveyed to any Person other than the Indenture Trustee.
Survival of Perfection Representations
11. Notwithstanding any other provision of the Transfer and Assignment
Agreement, the Contribution Agreement, the Indenture or any other Transaction
Document, the Perfection Representations contained in this Schedule shall be
continuing, and remain in full force and effect (notwithstanding any replacement
of the Servicer or termination of Servicer's rights to act as such) until such
time as all obligations under the Transfer and Assignment Agreement,
Contribution Agreement and the Indenture have been finally and fully paid and
performed.
No Waiver
12. The parties hereto: (i) shall not, without obtaining a confirmation of the
then-current rating of the Class A Notes, waive any of the Perfection
Representations; (ii) shall provide the Ratings Agencies with prompt written
notice of any breach of the Perfection Representations, and shall not, without
obtaining a confirmation of the then-current rating of the Class A Notes (as
determined after any adjustment or withdrawal of the ratings following notice of
such breach) waive a breach of any of the Perfection Representations.
Issuer to Maintain Perfection and Priority
13. The Owner Trustee covenants that, in order to evidence the interests of the
Indenture Trustee under this Indenture, the Owner Trustee shall cause the
Servicer to take such action, or execute and deliver such writings (other than
effecting a Filing (as defined below), unless such Filing is effected in
accordance with this paragraph) as may be necessary or advisable (including,
without limitation, such actions as are requested by the Indenture Trustee) to
maintain and perfect, as a first priority interest, the Indenture Trustee's
security interest in the Collateral. The Owner Trustee shall cause the Servicer,
from time to time and within the time limits established by law, to prepare and
present to the Indenture Trustee all financing statements, amendments (including
continuations, terminations, partial terminations, releases or partial
releases), initial financing statements in lieu of continuation statement or any
other filings necessary or advisable to continue, maintain and perfect the
Indenture Trustee's security interest in the Collateral as a
2-2
first-priority interest (each a "Filing"). The Owner Trustee shall cause the
Servicer to present each such Filing to the Indenture Trustee together with a
form of authorization for the Owner Trustee's signature authorizing the Servicer
to effect such Filing under the Uniform Commercial Code without the signature of
the Owner Trustee where allowed by applicable law.
2-3
EXHIBIT A
FORM OF CLASS A NOTES
CLASS A-1 NOTE
Note Number: R-1 CUSIP No.: 14041G AW 6
ISIN No.: US14041GAW69
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A-1 NOTE
ORIGINAL ISSUE CLASS A-1 MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 December 15, 2003 100.000000%
REGISTERED OWNER: CEDE & Co.
ORIGINAL PRINCIPAL BALANCE: $165,000,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for Capital One Auto Finance Trust 2002-C
(the "Owner Trustee"), as the Owner Trustee, which term includes any successor
entity under the Indenture dated as of December 17, 2002 (the "Indenture")
between the Owner Trustee and JPMorgan Chase Bank, as
A-1-1
indenture trustee (together with any successor thereto, hereinafter called the
"Indenture Trustee"), for value received, hereby promises to pay to the
Registered Owner named above or registered assigns, subject to the provisions
hereof and of the Indenture, (a) interest based on the actual number of days and
a 360-day year on the Outstanding Principal Balance from the Closing Date at the
Class A-1 Interest Rate defined in the Indenture, on each Payment Date beginning
in February, 2003 (or, if such day is not a Business Day, the next succeeding
Business Day) and on the Class A-1 Final Scheduled Payment Date to the extent
set forth in the Indenture, and (b) principal on each Payment Date and on the
Class A-1 Final Scheduled Payment Date to the extent set forth in the Indenture
in the manner and subject to the priority of payment as set forth in the
Indenture; provided, however, that the Class A Notes are subject to redemption
as set forth in the Indenture. This Note is one of a duly authorized series of
Notes of the Owner Trustee designated as its Capital One Auto Finance Trust
2002-C Notes, Series 2002-C. The Indenture authorizes the issuance of
$842,553,191 in principal amount of notes as Series 2002-C (the "Notes"). The
notes are issued in seven classes designated as Class A-1 Notes, Class A-2
Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes
and Class B-2 Notes. The Indenture provides that the Notes will be entitled to
receive payments in reduction of the Aggregate Outstanding Principal Balance of
each Class, in the amounts, from the sources, and at the times more specifically
as set forth in the Indenture. The Notes are secured by the Trust Property (as
defined in the Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class A Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS A-1 NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal and interest on the Class A-1 Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class A-1
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class A-1 Note may be less than the Original Principal
Balance indicated on the face hereof. The actual principal balance on this Class
A-1 Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class A-1
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class A-1 Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture. The unpaid principal balance of each Class A-1 Note
shall be due and payable on the Final Scheduled Payment Date thereof unless the
unpaid principal of such Class A-1 Note becomes due and payable at an earlier
date pursuant to the Indenture, in each case such payment shall be made in an
amount and in the manner provided in the Indenture.
(b) The Class A-1 Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class A-1 Notes and accrued but unpaid interest
thereon, at the Class A-1 Interest
A-1-2
Rate from and including the preceding Payment Date (or, in the case of the first
Payment Date, from the Closing Date), to and including the day immediately
preceding the subject Payment Date. Such interest shall be payable on each
Payment Date to the extent that the Revenue Fund and the Reserve Fund then
contains sufficient amounts to pay such interest and any Class A-1 Overdue
Interest from prior Payment Dates (plus interest thereon at the applicable Class
A-1 Interest Rate) pursuant to Section 5.05 of the Indenture. Interest accrued
on the Class A-1 Notes will be calculated (a) with respect to the initial
Payment Date, the product of (x) 1/360 of the Class A-1 Interest Rate times (y)
the actual number of days from and including the Closing Date to but excluding
the initial Payment Date times (z) the Aggregate Outstanding Principal Balance
of the Class A-1 Notes as of the Closing Date, and (b) with respect to any
subsequent Payment Date, the sum of (i) the product of (x) 1/360 of the Class
A-1 Interest Rate times (y) the actual number of days from and including the
previous Payment Date to but excluding such Payment Date times (z) the Aggregate
Outstanding Principal Balance of the Class A-1 Notes as of the immediately
preceding Payment Date after giving effect to all payments of principal on such
immediately preceding Payment Date and (ii) the Class A-1 Overdue Interest, if
any.
This Note is entitled to the benefits of the Note Policy issued by the Note
Insurer to the Indenture Trustee for the benefit of the Class A Noteholders, as
described in the Statement of Insurance attached hereto.
All payments of interest and principal on the Class A-1 Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class A-1
Note is registered at the close of business on the Record Date for such Payment
Date in the manner provided in the Indenture. All reductions in the principal
amount of a Class A-1 Note (or one or more Predecessor Notes) effected by full
or partial payments of installments of principal shall be binding upon all past,
then current, and future Holders of such Class A-1 Note and of any Class A-1
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Class A-1 Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class A-1
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture.
In addition, each Person who has or who acquires any Ownership Interest in
a Class A-1 Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class A-1 Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
A-1-3
Before the due presentment for registration of transfer of this Class A-1
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
A-1 Note is registered (a) on any Record Date for purposes of making payments,
and (b) on any other date for any other purpose, as the owner hereof, whether or
not this Class A-1 Note be overdue, and neither the Owner Trustee, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer so long as no Note Insurer Default shall
have occurred and be continuing (and, in some cases, only with the consent of
the Noteholder of each Class affected thereby) and compliance with certain other
conditions. Any such consent by the Holder, at the time of the giving thereof,
of this Class A-1 Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-1 Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property and the Note
Policy to satisfy the Owner Trustee's obligations under or with respect to a
Note or the Indenture, including but not limited to liabilities under Article V
of the Indenture and liabilities arising (whether at common law or equity) from
breaches by the Owner Trustee of any obligations, covenants and agreements
herein or, to the extent enforceable, for any violation by the Owner Trustee of
applicable state or federal law or regulation, provided that the Owner Trustee
shall not be relieved of liability hereunder with respect to any
misrepresentation in the Trust Agreement, the Indenture, the Contribution
Agreement, the Transfer and Assignment Agreement or the Servicing Agreement, or
fraud, of the Owner Trustee, and (b) to waive any rights it may have to obtain a
deficiency or other monetary judgment against either the Owner Trustee or any of
its principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (i) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
A-1-4
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment or seeking personal
liability shall be asked for or (if obtained) enforced. It is expressly
understood that all such liability is hereby expressly waived and released to
the extent provided herein as a condition of, and as a consideration for, the
execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that,
the Indenture Trustee will appoint a co-trustee to transact any business
required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
A-1-5
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital
One Auto Finance Trust 2002-C
By:
------------------------------------
Authorized Officer
A-1-6
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A-1 Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
------------------------------------
Name:
Title:
A-1-7
[FORM OF REVERSE OF NOTE]
The Class A-1 Notes are scheduled to mature on December 15, 2003 unless the
Class A-1 Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class A-1 Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Class A-1 Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class A-1 Noteholder shall have
provided to the Indenture Trustee appropriate written instructions three (3)
Business Days prior to the Record Date and such Holder's Class A-1 Notes in the
aggregate evidence a denomination of not less than $250,000 (which instructions
may remain in effect for subsequent Payment Dates), or, (ii) if not, by check
mailed to such Holder at the address of such Holder appearing in the Note
Register, the amounts to be distributed to such Holder pursuant to such Holder's
Class A-1 Notes.
THE CLASS A-1 NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR OR THE NOTE INSURER IN THE MANNER AND SUBJECT TO THE
PROVISIONS OF THE INDENTURE. Whenever by the terms of the Indenture, the
Indenture Trustee is required to redeem Class A-1 Notes, and subject to and in
accordance with the terms of Article VI of the Indenture, the Indenture Trustee
shall give notice of the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and
A-1-8
upon surrender and cancellation of the Notes. Upon exchange or registration of
such transfer, a new registered Note or Notes evidencing the same outstanding
principal amount of the same Class of Notes will be executed in exchange
therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
A-1-9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does
irrevocably constitute and appoint
Attorney to transfer the within Note on the books kept for
registration thereof, with full power of substitution in the premises.
Date:
------------------
NOTICE: The signature to this
assignment must correspond with the
name as it appears upon the face of
the within Note in every
particular, without alteration or
enlargement or any change whatever.
A-1-10
[STATEMENT OF INSURANCE]
A-1-11
CLASS A-2 NOTE
Note Number: R-1 CUSIP No.: 14041G AX 4
ISIN No.: US14041GAX43
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A-2 NOTE
ORIGINAL ISSUE CLASS A-2 MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 November 15, 2005 99.99044%
REGISTERED OWNER: CEDE & Co.
ORIGINAL PRINCIPAL BALANCE: $203,000,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for Capital One Auto Finance Trust 2002-C
(the "Owner Trustee"), as the Owner Trustee, which term includes any successor
entity under the Indenture dated as of December 17, 2002 (the "Indenture")
between the Owner Trustee and JPMorgan Chase Bank, as indenture trustee
(together with any successor thereto, hereinafter called the "Indenture
Trustee"), for value received, hereby promises to pay to the Registered Owner
named above or registered assigns, subject to the provisions hereof and of the
Indenture, (a) interest based on a 360-day year consisting of twelve 30-day
months on the Outstanding Principal Balance from the
A-2-1
Closing Date at the Class A-2 Interest Rate defined in the Indenture, on each
Payment Date beginning in February, 2003 (or, if such day is not a Business Day,
the next succeeding Business Day) and on the Class A-2 Final Scheduled Payment
Date to the extent set forth in the Indenture, and (b) principal on each Payment
Date and on the Class A-2 Final Scheduled Payment Date to the extent set forth
in the Indenture in the manner and subject to the priority of payment as set
forth in the Indenture; provided, however, that the Class A Notes are subject to
redemption as set forth in the Indenture. This Note is one of a duly authorized
series of Notes of the Owner Trustee designated as its Capital One Auto Finance
Trust 2002-C Notes, Series 2002-C. The Indenture authorizes the issuance of
$842,553,191 in principal amount of notes as Series 2002-C (the "Notes"). The
notes are issued in seven classes designated as Class A-1 Notes, Class A-2
Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes
and Class B-2 Notes. The Indenture provides that the Notes will be entitled to
receive payments in reduction of the Aggregate Outstanding Principal Balance of
each Class, in the amounts, from the sources, and at the times more specifically
as set forth in the Indenture. The Notes are secured by the Trust Property (as
defined in the Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class A Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS A-1 NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal and interest on the Class A-2 Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class A-2
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class A-2 Note may be less than the Original Principal
Balance indicated on the face hereof. The actual principal balance on this Class
A-2 Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class A-2
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class A-2 Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture. The unpaid principal balance of each Class A-2 Note
shall be due and payable on the Final Scheduled Payment Date thereof unless the
unpaid principal of such Class A-2 Note becomes due and payable at an earlier
date pursuant to the Indenture, in each case such payment shall be made in an
amount and in the manner provided in the Indenture.
(b) The Class A-2 Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class A-2 Notes and accrued but unpaid interest
thereon, at the Class A-2 Interest Rate from and including the preceding Payment
Date (or, in the case of the first Payment Date, from the Closing Date), to and
including the day immediately preceding the subject Payment Date. Such interest
shall be payable on each Payment Date to the extent that the Revenue Fund and
the Reserve Fund then contains sufficient amounts to pay such interest and any
Class A-2
A-2-2
Overdue Interest from prior Payment Dates (plus interest thereon at the
applicable Class A-2 Interest Rate) pursuant to Section 5.05 of the Indenture.
Interest accrued on the Class A-2 Notes will be calculated (a) with respect to
the initial Payment Date, the product of (x) 1/360 of the Class A-2 Interest
Rate times (y) the number of days from and including the Closing Date to but
excluding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months and assuming the Payment Date occurring on
the 15th day of each month) times (z) the Aggregate Outstanding Principal
Balance of the Class A-2 Notes as of the Closing Date, and (b) with respect to
any subsequent Payment Date, the sum of (i) the product of (x) one-twelfth of
the Class A-2 Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class A-2 Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal on such immediately preceding
Payment Date and (ii) the Class A-2 Overdue Interest, if any.
This Note is entitled to the benefits of the Note Policy issued by the Note
Insurer to the Indenture Trustee for the benefit of the Class A Noteholders, as
described in the Statement of Insurance attached hereto.
All payments of interest and principal on the Class A-2 Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class A-2
Note is registered at the close of business on the Record Date for such Payment
Date in the manner provided in the Indenture. All reductions in the principal
amount of a Class A-2 Note (or one or more Predecessor Notes) effected by full
or partial payments of installments of principal shall be binding upon all past,
then current, and future Holders of such Class A-2 Note and of any Class A-2
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Class A-2 Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class A-2
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture.
In addition, each Person who has or who acquires any Ownership Interest in
a Class A-2 Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class A-2 Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class A-2
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
A-2 Note is registered (a) on any Record Date for purposes of making payments,
and (b) on any other date for any other purpose, as the owner
A-2-3
hereof, whether or not this Class A-2 Note be overdue, and neither the Owner
Trustee, the Indenture Trustee nor any such agent shall be affected by notice to
the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer so long as no Note Insurer Default shall
have occurred and be continuing (and, in some cases, only with the consent of
the Noteholder of each Class affected thereby) and compliance with certain other
conditions. Any such consent by the Holder, at the time of the giving thereof,
of this Class A-2 Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-2 Note and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-2 Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property and the Note
Policy to satisfy the Owner Trustee's obligations under or with respect to a
Note or the Indenture, including but not limited to liabilities under Article V
of the Indenture and liabilities arising (whether at common law or equity) from
breaches by the Owner Trustee of any obligations, covenants and agreements
herein or, to the extent enforceable, for any violation by the Owner Trustee of
applicable state or federal law or regulation, provided that the Owner Trustee
shall not be relieved of liability hereunder with respect to any
misrepresentation in the Trust Agreement, the Indenture, the Contribution
Agreement, the Transfer and Assignment Agreement or the Servicing Agreement, or
fraud, of the Owner Trustee, and (b) to waive any rights it may have to obtain a
deficiency or other monetary judgment against either the Owner Trustee or any of
its principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (i) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment or seeking personal
liability shall be asked for or (if obtained) enforced. It is expressly
A-2-4
understood that all such liability is hereby expressly waived and released to
the extent provided herein as a condition of, and as a consideration for, the
execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that,
the Indenture Trustee will appoint a co-trustee to transact any business
required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
A-2-5
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital
One Auto Finance Trust 2002-C
By:
-----------------------------------
Authorized Officer
A-2-6
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A-2 Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
-----------------------------------
Name:
Title:
A-2-7
[FORM OF REVERSE OF NOTE]
The Class A-2 Notes are scheduled to mature on November 15, 2005 unless the
Class A-2 Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class A-2 Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Class A-2 Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class A-2 Noteholder shall have
provided to the Indenture Trustee appropriate written instructions three (3)
Business Days prior to the Record Date and such Holder's Class A-2 Notes in the
aggregate evidence a denomination of not less than $250,000 (which instructions
may remain in effect for subsequent Payment Dates), or, (ii) if not, by check
mailed to such Holder at the address of such Holder appearing in the Note
Register, the amounts to be distributed to such Holder pursuant to such Holder's
Class A-2 Notes.
THE CLASS A-2 NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR OR THE NOTE INSURER IN THE MANNER AND SUBJECT TO THE
PROVISIONS OF THE INDENTURE. Whenever by the terms of the Indenture, the
Indenture Trustee is required to redeem Class A-2 Notes, and subject to and in
accordance with the terms of Article VI of the Indenture, the Indenture Trustee
shall give notice of the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and
A-2-8
upon surrender and cancellation of the Notes. Upon exchange or registration of
such transfer, a new registered Note or Notes evidencing the same outstanding
principal amount of the same Class of Notes will be executed in exchange
therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
A-2-9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does
irrevocably constitute and appoint
Attorney to transfer the within Note on the books kept for
registration thereof, with full power of substitution in the premises.
Date:
------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within Note
in every particular, without alteration
or enlargement or any change whatever.
A-2-10
[STATEMENT OF INSURANCE]
A-2-11
CLASS A-3-A NOTE
Note Number: R-1 CUSIP No.: 14041G AY 2
ISIN No.: US14041GAY26
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A-3-A NOTE
ORIGINAL ISSUE CLASS A-3-A MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 April 16, 2007 99.98546%
REGISTERED OWNER: CEDE & Co.
ORIGINAL PRINCIPAL BALANCE: $115,000,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for Capital One Auto Finance Trust 2002-C
(the "Owner Trustee"), as the Owner Trustee, which term includes any successor
entity under the Indenture dated as of December 17, 2002 (the "Indenture")
between the Owner Trustee and JPMorgan Chase Bank, as indenture trustee
(together with any successor thereto, hereinafter called the "Indenture
Trustee"), for value received, hereby promises to pay to the Registered Owner
named above or registered assigns, subject to the provisions hereof and of the
Indenture, (a) interest based on a 360-day year consisting of twelve 30-day
months on the Outstanding Principal Balance from the
A-3-A-1
Closing Date at the Class A-3-A Interest Rate defined in the Indenture, on each
Payment Date beginning in February, 2003 (or, if such day is not a Business Day,
the next succeeding Business Day) and on the Class A-3-A Final Scheduled Payment
Date to the extent set forth in the Indenture, and (b) principal on each Payment
Date and on the Class A-3-A Final Scheduled Payment Date to the extent set forth
in the Indenture in the manner and subject to the priority of payment as set
forth in the Indenture; provided, however, that the Class A Notes are subject to
redemption as set forth in the Indenture. This Note is one of a duly authorized
series of Notes of the Owner Trustee designated as its Capital One Auto Finance
Trust 2002-C Notes, Series 2002-C. The Indenture authorizes the issuance of
$842,553,191 in principal amount of notes as Series 2002-C (the "Notes"). The
notes are issued in seven classes designated as Class A-1 Notes, Class A-2
Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes
and Class B-2 Notes. The Indenture provides that the Notes will be entitled to
receive payments in reduction of the Aggregate Outstanding Principal Balance of
each Class, in the amounts, from the sources, and at the times more specifically
as set forth in the Indenture. The Notes are secured by the Trust Property (as
defined in the Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class A Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS A-3-A NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal and interest on the Class A-3-A Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class A-3-A
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class A-3-A Note may be less than the Original
Principal Balance indicated on the face hereof. The actual principal balance on
this Class A-3-A Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class A-3-A
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class A-3-A Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture. The unpaid principal balance of each Class A-3-A Note
shall be due and payable on the Final Scheduled Payment Date thereof unless the
unpaid principal of such Class A-3-A Note becomes due and payable at an earlier
date pursuant to the Indenture, in each case such payment shall be made in an
amount and in the manner provided in the Indenture.
(b) The Class A-3-A Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class A-3-A Notes and accrued but unpaid interest
thereon, at the Class A-3-A Interest Rate from and including the preceding
Payment Date (or, in the case of the first Payment Date, from the Closing Date),
to and including the day immediately preceding the subject Payment Date. Such
interest shall be payable on each Payment Date to the extent that the
A-3-A-2
Revenue Fund and the Reserve Fund then contains sufficient amounts to pay such
interest and any Class A-3-A Overdue Interest from prior Payment Dates (plus
interest thereon at the applicable Class A-3-A Interest Rate) pursuant to
Section 5.05 of the Indenture. Interest accrued on the Class A-3-A Notes will be
calculated (a) with respect to the initial Payment Date, the product of (x)
1/360 of the Class A-3-A Interest Rate times (y) the number of days from and
including the Closing Date to but excluding the initial Payment Date (calculated
on the basis of a 360-day year consisting of twelve 30-day months and assuming
the Payment Date occurring on the 15th day of each month) times (z) the
Aggregate Outstanding Principal Balance of the Class A-3-A Notes as of the
Closing Date, and (b) with respect to any subsequent Payment Date, the sum of
(i) the product of (x) one-twelfth of the Class A-3-A Interest Rate times (y)
the Aggregate Outstanding Principal Balance of the Class A-3-A Notes as of the
immediately preceding Payment Date after giving effect to all payments of
principal on such immediately preceding Payment Date and (ii) the Class A-3-A
Overdue Interest, if any.
This Note is entitled to the benefits of the Note Policy issued by the Note
Insurer to the Indenture Trustee for the benefit of the Class A Noteholders, as
described in the Statement of Insurance attached hereto.
All payments of interest and principal on the Class A-3-A Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class
A-3-A Note is registered at the close of business on the Record Date for such
Payment Date in the manner provided in the Indenture. All reductions in the
principal amount of a Class A-3-A Note (or one or more Predecessor Notes)
effected by full or partial payments of installments of principal shall be
binding upon all past, then current, and future Holders of such Class A-3-A Note
and of any Class A-3-A Note issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof, whether or not such payment is noted on
such Class A-3-A Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class A-3-A
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture.
In addition, each Person who has or who acquires any Ownership Interest in
a Class A-3-A Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class A-3-A Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class A-3-A
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
A-3-A Note is registered (a) on any
A-3-A-3
Record Date for purposes of making payments, and (b) on any other date for any
other purpose, as the owner hereof, whether or not this Class A-3-A Note be
overdue, and neither the Owner Trustee, the Indenture Trustee nor any such agent
shall be affected by notice to the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer so long as no Note Insurer Default shall
have occurred and be continuing (and, in some cases, only with the consent of
the Noteholder of each Class affected thereby) and compliance with certain other
conditions. Any such consent by the Holder, at the time of the giving thereof,
of this Class A-3-A Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-3-A Note and of any Class A-3-A Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-3-A Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property and the Note
Policy to satisfy the Owner Trustee's obligations under or with respect to a
Note or the Indenture, including but not limited to liabilities under Article V
of the Indenture and liabilities arising (whether at common law or equity) from
breaches by the Owner Trustee of any obligations, covenants and agreements
herein or, to the extent enforceable, for any violation by the Owner Trustee of
applicable state or federal law or regulation, provided that the Owner Trustee
shall not be relieved of liability hereunder with respect to any
misrepresentation in the Trust Agreement, the Indenture, the Contribution
Agreement, the Transfer and Assignment Agreement or the Servicing Agreement, or
fraud, of the Owner Trustee, and (b) to waive any rights it may have to obtain a
deficiency or other monetary judgment against either the Owner Trustee or any of
its principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (i) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment
A-3-A-4
or seeking personal liability shall be asked for or (if obtained) enforced. It
is expressly understood that all such liability is hereby expressly waived and
released to the extent provided herein as a condition of, and as a consideration
for, the execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that,
the Indenture Trustee will appoint a co-trustee to transact any business
required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
A-3-A-5
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital
One Auto Finance Trust 2002-C
By:
------------------------------------
Authorized Officer
A-3-A-6
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A-3-A Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
----------------------------------
Name:
Title:
A-3-A-7
[FORM OF REVERSE OF NOTE]
The Class A-3-A Notes are scheduled to mature on April 16, 2007 unless the
Class A-3-A Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class A-3-A Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Class A-3-A Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class A-3-A Noteholder shall
have provided to the Indenture Trustee appropriate written instructions three
(3) Business Days prior to the Record Date and such Holder's Class A-3-A Notes
in the aggregate evidence a denomination of not less than $250,000 (which
instructions may remain in effect for subsequent Payment Dates), or, (ii) if
not, by check mailed to such Holder at the address of such Holder appearing in
the Note Register, the amounts to be distributed to such Holder pursuant to such
Holder's Class A-3-A Notes.
THE CLASS A-3-A NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR OR THE NOTE INSURER IN THE MANNER AND SUBJECT TO THE
PROVISIONS OF THE INDENTURE. Whenever by the terms of the Indenture, the
Indenture Trustee is required to redeem Class A-3-A Notes, and subject to and in
accordance with the terms of Article VI of the Indenture, the Indenture Trustee
shall give notice of the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
A-3-A-8
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and upon surrender and cancellation
of the Notes. Upon exchange or registration of such transfer, a new registered
Note or Notes evidencing the same outstanding principal amount of the same Class
of Notes will be executed in exchange therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
A-3-A-9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does
irrevocably constitute and appoint
Attorney to transfer the within Note on the books kept for
registration thereof, with full power of substitution in the premises.
Date:
------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within Note
in every particular, without alteration
or enlargement or any change whatever.
A-3-A-10
[STATEMENT OF INSURANCE]
A-3-A-11
CLASS A-3-B NOTE
Note Number: R-1 CUSIP No.: 14041G AZ 9
ISIN No.: US14041GAZ90
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A-3-B NOTE
ORIGINAL ISSUE CLASS A-3-B MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 April 16, 2007 100.00000%
REGISTERED OWNER: CEDE & Co.
ORIGINAL PRINCIPAL BALANCE: $126,000,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for Capital One Auto Finance Trust 2002-C
(the "Owner Trustee"), as the Owner Trustee, which term includes any successor
entity under the Indenture dated as of December 17, 2002 (the "Indenture")
between the Owner Trustee and JPMorgan Chase Bank, as indenture trustee
(together with any successor thereto, hereinafter called the "Indenture
Trustee"), for value received, hereby promises to pay to the Registered Owner
named above or registered assigns, subject to the provisions hereof and of the
Indenture, (a) interest based on the actual number of days and a 360-day year on
the Outstanding Principal Balance from the Closing
A-3-B-1
Date at the Class A-3-B Interest Rate defined in the Indenture, on each Payment
Date beginning in February, 2003 (or, if such day is not a Business Day, the
next succeeding Business Day) and on the Class A-3-B Final Scheduled Payment
Date to the extent set forth in the Indenture, and (b) principal on each Payment
Date and on the Class A-3-B Final Scheduled Payment Date to the extent 1set
forth in the Indenture in the manner and subject to the priority of payment as
set forth in the Indenture; provided, however, that the Class A Notes are
subject to redemption as set forth in the Indenture. This Note is one of a duly
authorized series of Notes of the Owner Trustee designated as its Capital One
Auto Finance Trust 2002-C Notes, Series 2002-C. The Indenture authorizes the
issuance of $842,553,191 in principal amount of notes as Series 2002-C (the
"Notes"). The notes are issued in seven classes designated as Class A-1 Notes,
Class A-2 Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class
B-1 Notes and Class B-2 Notes. The Indenture provides that the Notes will be
entitled to receive payments in reduction of the Aggregate Outstanding Principal
Balance of each Class, in the amounts, from the sources, and at the times more
specifically as set forth in the Indenture. The Notes are secured by the Trust
Property (as defined in the Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class A Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS A-3-B NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal and interest on the Class A-3-B Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class A-3-B
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class A-3-B Note may be less than the Original
Principal Balance indicated on the face hereof. The actual principal balance on
this Class A-3-B Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class A-3-B
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class A-3-B Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture. The unpaid principal balance of each Class A-3-B Note
shall be due and payable on the Final Scheduled Payment Date thereof unless the
unpaid principal of such Class A-3-B Note becomes due and payable at an earlier
date pursuant to the Indenture, in each case such payment shall be made in an
amount and in the manner provided in the Indenture.
(b) The Class A-3-B Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class A-3-B Notes and accrued but unpaid interest
thereon, at the Class A-3-B Interest Rate from and including the preceding
Payment Date (or, in the case of the first Payment Date, from the Closing Date),
to and including the day immediately preceding the subject Payment Date. Such
interest shall be payable on each Payment Date to the extent that the
A-3-B-2
Revenue Fund and the Reserve Fund then contains sufficient amounts to pay such
interest and any Class A-3-B Overdue Interest from prior Payment Dates (plus
interest thereon at the applicable Class A-3-B Interest Rate) pursuant to
Section 5.05 of the Indenture. Interest accrued on the Class A-3-B Notes will be
calculated (a) with respect to the initial Payment Date, the product of (x)
1/360 of the Class A-3-B Interest Rate times (y) the actual number of days from
and including the Closing Date to but excluding the initial Payment Date times
(z) the Aggregate Outstanding Principal Balance of the Class A-3-B Notes as of
the Closing Date, and (b) with respect to any subsequent Payment Date, the sum
of (i) the product of (x) 1/360 of the Class A-3-B Interest Rate times (y) the
actual number of days from and including the previous Payment Date to but
excluding such Payment Date times (z) the Aggregate Outstanding Principal
Balance of the Class A-3-B Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal on such immediately preceding
Payment Date and (ii) the Class A-3-B Overdue Interest, if any.
This Note is entitled to the benefits of the Note Policy issued by the Note
Insurer to the Indenture Trustee for the benefit of the Class A Noteholders, as
described in the Statement of Insurance attached hereto.
All payments of interest and principal on the Class A-3-B Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class
A-3-B Note is registered at the close of business on the Record Date for such
Payment Date in the manner provided in the Indenture. All reductions in the
principal amount of a Class A-3-B Note (or one or more Predecessor Notes)
effected by full or partial payments of installments of principal shall be
binding upon all past, then current, and future Holders of such Class A-3-B Note
and of any Class A-3-B Note issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof, whether or not such payment is noted on
such Class A-3-B Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class A-3-B
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture.
In addition, each Person who has or who acquires any Ownership Interest in
a Class A-3-B Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class A-3-B Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class A-3-B
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
A-3-B Note is registered (a) on any
A-3-B-3
Record Date for purposes of making payments, and (b) on any other date for any
other purpose, as the owner hereof, whether or not this Class A-3-B Note be
overdue, and neither the Owner Trustee, the Indenture Trustee nor any such agent
shall be affected by notice to the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer so long as no Note Insurer Default shall
have occurred and be continuing (and, in some cases, only with the consent of
the Noteholder of each Class affected thereby) and compliance with certain other
conditions. Any such consent by the Holder, at the time of the giving thereof,
of this Class A-3-B Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-3-B Note and of any Class A-3-B Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-3-B Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property and the Note
Policy to satisfy the Owner Trustee's obligations under or with respect to a
Note or the Indenture, including but not limited to liabilities under Article V
of the Indenture and liabilities arising (whether at common law or equity) from
breaches by the Owner Trustee of any obligations, covenants and agreements
herein or, to the extent enforceable, for any violation by the Owner Trustee of
applicable state or federal law or regulation, provided that the Owner Trustee
shall not be relieved of liability hereunder with respect to any
misrepresentation in the Trust Agreement, the Indenture, the Contribution
Agreement, the Transfer and Assignment Agreement or the Servicing Agreement, or
fraud, of the Owner Trustee, and (b) to waive any rights it may have to obtain a
deficiency or other monetary judgment against either the Owner Trustee or any of
its principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (i) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment
A-3-B-4
or seeking personal liability shall be asked for or (if obtained) enforced. It
is expressly understood that all such liability is hereby expressly waived and
released to the extent provided herein as a condition of, and as a consideration
for, the execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that,
the Indenture Trustee will appoint a co-trustee to transact any business
required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
A-3-B-5
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its individual
capacity but solely in its capacity as Owner
Trustee for Capital One Auto Finance Trust 2002-C
By:
----------------------------------------------
Authorized Officer
A-3-B-6
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A-3-B Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
----------------------------------------------
Name:
Title:
A-3-B-7
[FORM OF REVERSE OF NOTE]
The Class A-3-B Notes are scheduled to mature on April 16, 2007 unless the
Class A-3-B Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class A-3-B Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Class A-3-B Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class A-3-B Noteholder shall
have provided to the Indenture Trustee appropriate written instructions three
(3) Business Days prior to the Record Date and such Holder's Class A-3-B Notes
in the aggregate evidence a denomination of not less than $250,000 (which
instructions may remain in effect for subsequent Payment Dates), or, (ii) if
not, by check mailed to such Holder at the address of such Holder appearing in
the Note Register, the amounts to be distributed to such Holder pursuant to such
Holder's Class A-3-B Notes.
THE CLASS A-3-B NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR OR THE NOTE INSURER IN THE MANNER AND SUBJECT TO THE
PROVISIONS OF THE INDENTURE. Whenever by the terms of the Indenture, the
Indenture Trustee is required to redeem Class A-3-B Notes, and subject to and in
accordance with the terms of Article VI of the Indenture, the Indenture Trustee
shall give notice of the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
A-3-B-8
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and upon surrender and cancellation
of the Notes. Upon exchange or registration of such transfer, a new registered
Note or Notes evidencing the same outstanding principal amount of the same Class
of Notes will be executed in exchange therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
A-3-B-9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does
irrevocably constitute and appoint
Attorney to transfer the within Note on the books kept for
registration thereof, with full power of substitution in the premises.
Date:
------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within Note
in every particular, without alteration
or enlargement or any change whatever.
A-3-B-10
[STATEMENT OF INSURANCE]
A-3-B-11
CLASS A-4 NOTE
Note Number: R-1 CUSIP No.: 14041G BA 3
ISIN No.: US14041GBA31
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS A-4 NOTE
ORIGINAL ISSUE CLASS A-4 MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 June 15, 2009 99.99256%
REGISTERED OWNER: CEDE & Co.
ORIGINAL PRINCIPAL BALANCE: $191,000,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for Capital One Auto Finance Trust 2002-C
(the "Owner Trustee"), as the Owner Trustee, which term includes any successor
entity under the Indenture dated as of December 17, 2002 (the "Indenture")
between the Owner Trustee and JPMorgan Chase Bank, as indenture trustee
(together with any successor thereto, hereinafter called the "Indenture
Trustee"), for value received, hereby promises to pay to the Registered Owner
named above or registered assigns, subject to the provisions hereof and of the
Indenture, (a) interest based on a 360-day year consisting of twelve 30-day
months on the Outstanding Principal Balance from the
A-4-1
Closing Date at the Class A-4 Interest Rate defined in the Indenture, on each
Payment Date beginning in February, 2003 (or, if such day is not a Business Day,
the next succeeding Business Day) and on the Class A-4 Final Scheduled Payment
Date to the extent set forth in the Indenture, and (b) principal on each Payment
Date and on the Class A-4 Final Scheduled Payment Date to the extent set forth
in the Indenture in the manner and subject to the priority of payment as set
forth in the Indenture; provided, however, that the Class A Notes are subject to
redemption as set forth in the Indenture. This Note is one of a duly authorized
series of Notes of the Owner Trustee designated as its Capital One Auto Finance
Trust 2002-C Notes, Series 2002-C. The Indenture authorizes the issuance of
$842,553,191 in principal amount of notes as Series 2002-C (the "Notes"). The
notes are issued in seven classes designated as Class A-1 Notes, Class A-2
Notes, Class A-3-A Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes
and Class B-2 Notes. The Indenture provides that the Notes will be entitled to
receive payments in reduction of the Aggregate Outstanding Principal Balance of
each Class, in the amounts, from the sources, and at the times more specifically
as set forth in the Indenture. The Notes are secured by the Trust Property (as
defined in the Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class A Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS A-4 NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal and interest on the Class A-4 Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class A-4
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class A-4 Note may be less than the Original Principal
Balance indicated on the face hereof. The actual principal balance on this Class
A-4 Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class A-4
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class A-4 Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture. The unpaid principal balance of each Class A-4 Note
shall be due and payable on the Final Scheduled Payment Date thereof unless the
unpaid principal of such Class A-4 Note becomes due and payable at an earlier
date pursuant to the Indenture, in each case such payment shall be made in an
amount and in the manner provided in the Indenture.
(b) The Class A-4 Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class A-4 Notes and accrued but unpaid interest
thereon, at the Class A-4 Interest Rate from and including the preceding Payment
Date (or, in the case of the first Payment Date, from the Closing Date), to and
including the day immediately preceding the subject Payment Date. Such interest
shall be payable on each Payment Date to the extent that the Revenue Fund and
the Reserve Fund then contains sufficient amounts to pay such interest and any
Class A-4
A-4-2
Overdue Interest from prior Payment Dates (plus interest thereon at the
applicable Class A-4 Interest Rate) pursuant to Section 5.05 of the Indenture.
Interest accrued on the Class A-4 Notes will be calculated (a) with respect to
the initial Payment Date, the product of (x) 1/360 of the Class A-4 Interest
Rate times (y) the number of days from and including the Closing Date to but
excluding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months and assuming the Payment Date occurring on
the 15th day of each month) times (z) the Aggregate Outstanding Principal
Balance of the Class A-4 Notes as of the Closing Date, and (b) with respect to
any subsequent Payment Date, the sum of (i) the product of (x) one-twelfth of
the Class A-4 Interest Rate times (y) the Aggregate Outstanding Principal
Balance of the Class A-4 Notes as of the immediately preceding Payment Date
after giving effect to all payments of principal on such immediately preceding
Payment Date and (ii) the Class A-4 Overdue Interest, if any.
This Note is entitled to the benefits of the Note Policy issued by the Note
Insurer to the Indenture Trustee for the benefit of the Class A Noteholders, as
described in the Statement of Insurance attached hereto.
All payments of interest and principal on the Class A-4 Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class A-4
Note is registered at the close of business on the Record Date for such Payment
Date in the manner provided in the Indenture. All reductions in the principal
amount of a Class A-4 Note (or one or more Predecessor Notes) effected by full
or partial payments of installments of principal shall be binding upon all past,
then current, and future Holders of such Class A-4 Note and of any Class A-4
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Class A-4 Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class A-4
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture.
In addition, each Person who has or who acquires any Ownership Interest in
a Class A-4 Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class A-4 Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class A-4
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
A-4 Note is registered (a) on any Record Date for purposes of making payments,
and (b) on any other date for any other purpose, as the owner
A-4-3
hereof, whether or not this Class A-4 Note be overdue, and neither the Owner
Trustee, the Indenture Trustee nor any such agent shall be affected by notice to
the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer so long as no Note Insurer Default shall
have occurred and be continuing (and, in some cases, only with the consent of
the Noteholder of each Class affected thereby) and compliance with certain other
conditions. Any such consent by the Holder, at the time of the giving thereof,
of this Class A-4 Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class A-4 Note and of any Class A-4 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class A-4 Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property and the Note
Policy to satisfy the Owner Trustee's obligations under or with respect to a
Note or the Indenture, including but not limited to liabilities under Article V
of the Indenture and liabilities arising (whether at common law or equity) from
breaches by the Owner Trustee of any obligations, covenants and agreements
herein or, to the extent enforceable, for any violation by the Owner Trustee of
applicable state or federal law or regulation, provided that the Owner Trustee
shall not be relieved of liability hereunder with respect to any
misrepresentation in the Trust Agreement, the Indenture, the Contribution
Agreement, the Transfer and Assignment Agreement or the Servicing Agreement, or
fraud, of the Owner Trustee, and (b) to waive any rights it may have to obtain a
deficiency or other monetary judgment against either the Owner Trustee or any of
its principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (i) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment or seeking personal
liability shall be asked for or (if obtained) enforced. It is expressly
A-4-4
understood that all such liability is hereby expressly waived and released to
the extent provided herein as a condition of, and as a consideration for, the
execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that,
the Indenture Trustee will appoint a co-trustee to transact any business
required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
A-4-5
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its individual
capacity but solely in its capacity as Owner
Trustee for Capital One Auto Finance Trust 2002-C
By:
----------------------------------------------
Authorized Officer
A-4-6
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A-4 Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
----------------------------------------------
Name:
Title:
A-4-7
[FORM OF REVERSE OF NOTE]
The Class A-4 Notes are scheduled to mature on June 15, 2009 unless the
Class A-4 Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class A-4 Noteholder of record on the
preceding Record Date either (i) by wire transfer, in immediately available
funds to the account of such Class A-4 Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class A-4 Noteholder shall have
provided to the Indenture Trustee appropriate written instructions three (3)
Business Days prior to the Record Date and such Holder's Class A-4 Notes in the
aggregate evidence a denomination of not less than $250,000 (which instructions
may remain in effect for subsequent Payment Dates), or, (ii) if not, by check
mailed to such Holder at the address of such Holder appearing in the Note
Register, the amounts to be distributed to such Holder pursuant to such Holder's
Class A-4 Notes.
THE CLASS A-4 NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR OR THE NOTE INSURER IN THE MANNER AND SUBJECT TO THE
PROVISIONS OF THE INDENTURE. Whenever by the terms of the Indenture, the
Indenture Trustee is required to redeem Class A-4 Notes, and subject to and in
accordance with the terms of Article VI of the Indenture, the Indenture Trustee
shall give notice of the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
A-4-8
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and upon surrender and cancellation
of the Notes. Upon exchange or registration of such transfer, a new registered
Note or Notes evidencing the same outstanding principal amount of the same Class
of Notes will be executed in exchange therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
A-4-9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does
irrevocably constitute and appoint
Attorney to transfer the within Note on the books kept for
registration thereof, with full power of substitution in the premises.
Date:
------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon the face of the within Note
in every particular, without alteration
or enlargement or any change whatever.
A-4-10
[STATEMENT OF INSURANCE]
A-4-11
EXHIBIT B
FORM OF CLASS B-1 NOTE
Note Number: R-1 CUSIP No.: 14041G BC 9
ISIN No.: US14041GBC96
[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC" OR THE "SECURITIES
DEPOSITORY"), TO THE OWNER TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS GLOBAL NOTE MAY BE TRANSFERRED,
IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY
OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OR SUCCESSOR SECURITIES
DEPOSITORY.]
THIS CLASS B-1 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES (1) THAT
THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT TO A PERSON WHOM THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE
144A, PURCHASING FOR ITS OWN ACCOUNT, OR A QIB PURCHASING FOR THE ACCOUNT OF A
QIB, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR TO THE OWNER
TRUSTEE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE AND (2) THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TO BE
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THE INDENTURE
RELATING TO THIS NOTE CONTAINS A PROVISION REQUIRING THE INDENTURE TRUSTEE TO
REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN IN VIOLATION
OF THE FOREGOING. EACH TRANSFEREE ACCEPTING A
B-1-1
BENEFICIAL INTEREST IN THIS NOTE IS DEEMED TO REPRESENT THAT IT IS EITHER A QIB
PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER
QIB.
NEITHER THIS CLASS B-1 NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED BY OR
FOR THE ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, ("ERISA")),
WHETHER OR NOT SUBJECT TO ERISA, (II) A PLAN DESCRIBED IN SECTION 4975(e)(1) OF
THE CODE OR (III) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY
REASON OF INVESTMENT BY ANY OF THE FOREGOING IN THE ENTITY (EACH A "BENEFIT PLAN
INVESTOR") UNLESS THE PURCHASER IS AN INSURANCE COMPANY USING THE ASSETS OF ITS
GENERAL ACCOUNT TO PURCHASE THE CLASS B-1 NOTES, AND AT THE TIME OF PURCHASE AND
THROUGHOUT THE PERIOD IT HOLDS THE CLASS B-1 NOTES, (I) IT IS ELIGIBLE FOR AND
MEETS THE REQUIREMENTS OF THE DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION 95-60 (II) LESS THAN 25% OF THE ASSETS OF THE GENERAL ACCOUNT ARE (OR
REPRESENT) ASSETS OF A BENEFIT PLAN INVESTOR, AND (III) IT IS NOT THE SERVICER
OR ANY OTHER SERVICE PROVIDER TO THE TRUST OR AN AFFILIATE OF THE ABOVE, AND
WOULD NOT OTHERWISE BE EXCLUDED UNDER 29 C.F.R. SECTION 2510.3-101(f)(1). EACH
PURCHASER AND TRANSFEREE OF A CLASS B-1 NOTE SHALL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT IT MEETS THE FOREGOING REQUIREMENTS.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE FOREGOING RESTRICTIONS WILL
BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS
THE OWNER OF THE CLASS B-1 NOTES FOR ALL PURPOSES.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS B-1 NOTE
ORIGINAL ISSUE CLASS B MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 June 15, 2009 99.99527%
REGISTERED OWNER: Capital One Auto Receivables, LLC
ORIGINAL PRINCIPAL BALANCE: $34,043,000
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for the Capital One Auto Finance Trust
2002-C (the "Owner Trustee"), which term includes any successor entity under the
Indenture dated as of December 17, 2002 (the
B-1-2
"Indenture") between the Owner Trustee and JPMorgan Chase Bank, as indenture
trustee (together with any successor thereto, hereinafter called the "Indenture
Trustee"), for value received, hereby promises to pay to the Registered Owner
named above or registered assigns, subject to the provisions hereof and of the
Indenture, (A) interest based on a 360-day year consisting of twelve 30-day
months on the Aggregate Outstanding Principal Balance from the Closing Date at
the Class B-1 Interest Rate defined in the Indenture, on each Payment Date
beginning in February, 2003 (or, if such day is not a Business Day, the next
succeeding Business Day), and (B) principal on each Payment Date in the manner
and subject to the priority of payment as set forth in the Indenture; provided,
however, that the Class B-1 Notes are subject to redemption as set forth in the
Indenture. This Note is one of a duly authorized series of Notes of the Owner
Trustee designated as its Capital One Auto Finance Trust 2002-C, Notes, Series
2002-C. The Indenture authorizes the issuance of $842,553,191 in principal
amount of notes designated as Series 2002-C (the "Notes"). The Notes are issued
in seven classes designated as Class A-1 Notes, Class A-2 Notes, Class A-3-A
Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes and Class B-2 Notes.
The Indenture provides that the Notes will be entitled to receive payments in
reduction of the Aggregate Outstanding Principal Balance of each Class, in the
amounts, from the sources, and at the times more specifically as set forth in
the Indenture. The Notes are secured by the Trust Property (as defined in the
Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class B-1 Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS B-1 NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal of and interest on the Class B-1 Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class B-1
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class B-1 Note may be less than the Original Principal
Balance indicated on the face hereof. The actual principal balance on this Class
B-1 Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class B-1
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class B-1 Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture; provided that, on any Payment Date, the principal on
the Class B-1 Notes shall not be payable until the Class A Note Interest and the
Class A Principal Payment Amount have been paid on such Payment Date The unpaid
principal balance of each Class B-1 Note shall be due and payable on the Final
Scheduled Payment Date thereof unless the unpaid principal of such Class B-1
Note becomes due and payable at an earlier date pursuant to the Indenture, in
each case such payment shall be made in an amount and in the manner provided in
the Indenture.
B-1-3
(b) The Class B-1 Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class B-1 Notes and accrued but unpaid interest thereon
from and including the preceding Payment Date (or, in the case of the first
Payment Date, from the Closing Date), to and including the day immediately
preceding the subject Payment Date. Such interest shall be payable on each
Payment Date to the extent that the Revenue Fund and the Reserve Fund then
contains sufficient amounts to pay such interest and any Class B-1 Basic Overdue
Interest and any Class B-1 Supplemental Overdue Interest from prior Payment
Dates (plus interest thereon at the applicable Class B-1 Interest Rate) pursuant
to Section 5.05 of the Indenture. Class B-1 Basic Note Interest shall not be
payable until the Class A Note Interest has been paid on such Payment Date.
Class B-1 Basic Note Interest accrued on the Class B-1 Notes will be calculated
(a) with respect to the initial Payment Date, the product of (x) 1/360 of the
Class B-1 Basic Interest Rate times (y) the number of days from and including
the Closing Date through the day immediately preceding the initial Payment Date
(calculated on the basis of a 360-day year consisting of twelve 30-day months)
times (z) the Aggregate Outstanding Principal Balance of the Class B-1 Notes as
of the Closing Date and (b) with respect to any subsequent Payment Date, the sum
of (i) the product of (x) one-twelfth of the Class B-1 Basic Interest Rate times
(y) the Aggregate Outstanding Principal Balance of the Class B-1 Notes
outstanding as of the immediately preceding Payment Date after giving effect to
all payments of principal of the Class B-1 Notes on such immediately preceding
Payment Date and (ii) the Class B-1 Basic Overdue Interest, if any. Class B-1
Supplemental Interest shall not be payable until the Class A Note Interest, the
Class B-1 Basic Note Interest and the Class A Principal Payment Amount have been
paid on such Payment Date. Class B-1 Supplemental Interest accrued on the Class
B-1 Notes will be calculated (a) with respect to the initial Payment Date, the
excess of (x) the Class B-1 Formula Note Interest for such Payment Date, over
(y) the Class B-1 Basic Note Interest for such Payment Date, and (b) with
respect to any subsequent Payment Date, the sum of (x) the excess of (A) the
Class B-1 Formula Note Interest for such Payment Date, over (B) the Class B-1
Basic Note Interest for such Payment Date and (y) the Class B-1 Supplemental
Overdue Interest. Class B-1 Formula Note Interest accrued on the Class B-1 Notes
will be calculated (a) with respect to the initial Payment Date, the product of
(x) 1/360 of the Class B-1 Interest Rate times (y) the number of days from and
including the Closing Date through the day immediately preceding the initial
Payment Date (calculated on the basis of a 360-day year consisting of twelve
30-day months) times (z) the Aggregate Outstanding Principal Balance of the
Class B-1 Notes as of the Closing Date, and (b) with respect to any subsequent
Payment Date, the product of (x) one-twelfth of the Class B-1 Interest Rate
times (y) the Aggregate Outstanding Principal Balance of the Class B-1 Notes as
of the immediately preceding Payment Date after giving effect to all payments of
principal on the Class B-1 Notes on such immediately preceding Payment Date.
All payments of interest and principal on the Class B-1 Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class B-1
Note is registered at the close of business on the Record Date for such Payment
Date in the manner provided in the Indenture. All reductions in the principal
amount of a Class B-1 Note (or one or more Predecessor Notes) effected by full
or partial payments of installments of principal shall be binding upon all past,
then current, and future Holders of such Class B-1 Note and of any Class B-1
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Class B-1 Note.
B-1-4
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class B-1
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture. A
Class B-1 Noteholder may not sell, offer for sale, assign, pledge, hypothecate
or otherwise transfer or encumber all or any part of its interest in the Class
B-1 Notes except pursuant to an effective registration statement covering such
transaction under the Securities Act of 1933, as amended, and effective
qualification or registration under all applicable state securities laws and
regulations or under an exemption from registration under said Securities Act
and said state securities laws and regulations.
In addition, each Person who has or who acquires any Ownership Interest in
a Class B-1 Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class B-1 Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class B-1
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
B-1 Note is registered (a) on any Record Date for purposes of making payments,
and (b) on any other date for any other purpose, as the owner hereof, whether or
not this Class B-1 Note be overdue, and neither the Owner Trustee, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer (and, in some cases, only with the consent
of the Noteholder of each Class affected thereby) and compliance with certain
other conditions. Any such consent by the Holder, at the time of the giving
thereof, of this Class B-1 Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class B-1 Note and of any Class B-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class B-1 Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture.
B-1-5
Without limiting the foregoing, each Holder of any Note by its acceptance
thereof, and the Indenture Trustee, shall be deemed to have agreed (a) that it
shall look only to the Trust Property to satisfy the Owner Trustee's obligations
under or with respect to a Note or the Indenture, including but not limited to
liabilities under Article V of the Indenture and liabilities arising (whether at
common law or equity) from breaches by the Owner Trustee of any obligations,
covenants and agreements herein or, to the extent enforceable, for any violation
by the Owner Trustee of applicable state or federal law or regulation, provided
that the Owner Trustee shall not be relieved of liability hereunder with respect
to any misrepresentation in the Indenture, the Contribution Agreement, the
Transfer and Assignment Agreement or the Servicing Agreement, or fraud, of the
Owner Trustee, and (b) to waive any rights it may have to obtain a deficiency or
other monetary judgment against either the Owner Trustee or any of its
principals, directors, officers, stockholders, employees or agents (whether
disclosed or undisclosed) or their respective assets (other than the Trust
Property). The foregoing provisions of this paragraph shall not (a) prevent
recourse to the Trust Property or any Person other than the Owner Trustee for
the sums due or to become due under any security, instrument or agreement which
is part of the Trust Property, (b) constitute a waiver, release or discharge of
any indebtedness or obligation evidenced by the Notes or secured by the
Indenture, but the same shall continue until paid or discharged, or (c) prevent
the Indenture Trustee from exercising its rights with respect to the Grant,
pursuant to the Indenture, of the Owner Trustee's rights under the Contribution
Agreement and the Transfer and Assignment Agreement. It is further understood
that the foregoing provisions of this paragraph shall not limit the right of any
Person to name the Indenture Trustee in its capacity as the Indenture Trustee
under the Indenture or the Owner Trustee as a party defendant in any action or
suit or in the exercise of any remedy under the Notes or the Indenture, so long
as no judgment in the nature of a deficiency judgment or seeking personal
liability shall be asked for or (if obtained) enforced. It is expressly
understood that all such liability is hereby expressly waived and released to
the extent provided herein as a condition of, and as a consideration for, the
execution of the Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in
B-1-6
connection herewith or therewith to transact business or perform fiduciary
duties (in each case as defined under relevant laws) outside of the State of New
York, provided that the Indenture Trustee will appoint a co-trustee to transact
any business required to be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
B-1-7
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its individual
capacity but solely in its capacity as Owner
Trustee for Capital One Auto Finance Trust 2002-C
By:
---------------------------------------------
Authorized Officer
B-1-8
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class B-1 Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
---------------------------------------------
Name:
Title:
B-1-9
[FORM OF REVERSE OF NOTE]
The Class B-1 Notes are scheduled to mature on June 15, 2009 unless the
Class B-1 Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class B-1 Noteholder of record on the
preceding Record Date either (a) by wire transfer, in immediately available
funds to the account of such Class B-1 Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class B-1 Noteholder shall have
provided to the Indenture Trustee appropriate written instructions three (3)
Business Days prior to the Record Date and such Holder's Class B-1 Notes in the
aggregate evidence a denomination of not less than $250,000 (which instructions
may remain in effect for subsequent Payment Dates), or (b) if not, by check
mailed to such Holder at the address of such Holder appearing in the Note
Register, the amounts to be distributed to such Holder pursuant to such Holder's
Class B-1 Notes.
THE CLASS B-1 NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR IN THE MANNER AND SUBJECT TO THE PROVISIONS OF THE
INDENTURE. Whenever by the terms of the Indenture, the Indenture Trustee is
required to redeem Class B-1 Notes, and subject to and in accordance with the
terms of Article VI of the Indenture, the Indenture Trustee shall give notice of
the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and
B-1-10
upon surrender and cancellation of the Notes. Upon exchange or registration of
such transfer, a new registered Note or Notes evidencing the same outstanding
principal amount of the same Class of Notes will be executed in exchange
therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
B-1-11
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
- -------------------
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does irrevocably
constitute and appoint
Attorney to transfer the within Note on the books kept for registration thereof,
with full power of substitution in the premises.
Date:
NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Note in every particular,
without alteration or enlargement or any change
whatever.
B-1-12
FORM OF CLASS B-2 NOTE
Note Number: R-1
THIS CLASS B-2 NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES (1) THAT
THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT TO A PERSON WHOM THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE
144A, PURCHASING FOR ITS OWN ACCOUNT, OR A QIB PURCHASING FOR THE ACCOUNT OF A
QIB, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR TO THE OWNER
TRUSTEE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE AND (2) THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TO BE
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THE INDENTURE
RELATING TO THIS NOTE CONTAINS A PROVISION REQUIRING THE INDENTURE TRUSTEE TO
REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN IN VIOLATION
OF THE FOREGOING. EACH TRANSFEREE ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE
IS DEEMED TO REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR
A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.
NEITHER THIS CLASS B-2 NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED BY OR
FOR THE ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, ("ERISA")),
WHETHER OR NOT SUBJECT TO ERISA, (II) A PLAN DESCRIBED IN SECTION 4975(e)(1) OF
THE CODE OR (III) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY
REASON OF INVESTMENT BY ANY OF THE FOREGOING IN THE ENTITY (EACH A "BENEFIT PLAN
INVESTOR") UNLESS THE PURCHASER IS AN INSURANCE COMPANY USING THE ASSETS OF ITS
GENERAL ACCOUNT TO PURCHASE THE CLASS B-2 NOTES, AND AT THE TIME OF PURCHASE AND
THROUGHOUT THE PERIOD IT HOLDS THE CLASS B-2 NOTES, (I) IT IS ELIGIBLE FOR AND
MEETS THE REQUIREMENTS OF THE DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION 95-60 (II) LESS THAN 25% OF THE ASSETS OF THE GENERAL ACCOUNT ARE (OR
REPRESENT) ASSETS OF A BENEFIT PLAN INVESTOR, AND (III) IT IS NOT THE SERVICER
OR ANY OTHER SERVICE PROVIDER TO THE TRUST OR AN AFFILIATE OF THE ABOVE, AND
WOULD NOT OTHERWISE BE EXCLUDED UNDER 29 C.F.R. SECTION 2510.3-101(f)(1). EACH
PURCHASER AND TRANSFEREE OF A CLASS B-2 NOTE SHALL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT IT MEETS THE FOREGOING REQUIREMENTS.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE FOREGOING RESTRICTIONS WILL
BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL
B-2-1
CONTINUE TO BE TREATED AS THE OWNER OF THE CLASS B-2 NOTES FOR ALL PURPOSES.
CAPITAL ONE AUTO FINANCE TRUST 2002-C
ASSET BACKED NOTES, SERIES 2002-C
CLASS B-2 NOTE
ORIGINAL ISSUE CLASS B MATURITY
DATE DATE ISSUE PRICE
December 17, 2002 June 15, 2009 99.99934%
REGISTERED OWNER: Capital One Auto Receivables, LLC
ORIGINAL PRINCIPAL BALANCE: $8,510,191
THIS CERTIFIES THAT Wilmington Trust Company, not in its individual
capacity but solely as Owner Trustee for the Capital One Auto Finance Trust
2002-C (the "Owner Trustee"), which term includes any successor entity under the
Indenture dated as of December 17, 2002 (the "Indenture") between the Owner
Trustee and JPMorgan Chase Bank, as indenture trustee (together with any
successor thereto, hereinafter called the "Indenture Trustee"), for value
received, hereby promises to pay to the Registered Owner named above or
registered assigns, subject to the provisions hereof and of the Indenture, (A)
interest based on a 360-day year consisting of twelve 30-day months on the
Aggregate Outstanding Principal Balance from the Closing Date at the Class B-2
Interest Rate defined in the Indenture, on each Payment Date beginning in
February, 2003 (or, if such day is not a Business Day, the next succeeding
Business Day), and (B) principal on each Payment Date in the manner and subject
to the priority of payment as set forth in the Indenture; provided, however,
that the Class B-2 Notes are subject to redemption as set forth in the
Indenture. This Note is one of a duly authorized series of Notes of the Owner
Trustee designated as its Capital One Auto Finance Trust 2002-C, Notes, Series
2002-C. The Indenture authorizes the issuance of $842,553,191 in principal
amount of notes designated as Series 2002-C (the "Notes"). The Notes are issued
in seven classes designated as Class A-1 Notes, Class A-2 Notes, Class A-3-A
Notes, Class A-3-B Notes, Class A-4 Notes, Class B-1 Notes and Class B-2 Notes.
The Indenture provides that the Notes will be entitled to receive payments in
reduction of the Aggregate Outstanding Principal Balance of each Class, in the
amounts, from the sources, and at the times more specifically as set forth in
the Indenture. The Notes are secured by the Trust Property (as defined in the
Indenture).
Reference is hereby made to the Indenture and all indentures supplemental
thereto for a statement of the respective rights thereunder of the Owner
Trustee, the Indenture Trustee and the Holders of the Notes and the terms upon
which the Notes are to be authenticated and delivered. All terms used in this
Class B-2 Note which are not defined herein shall have the meanings assigned to
them in the Indenture.
B-2-2
THE OBLIGATION OF THE OWNER TRUSTEE TO REPAY THE CLASS B-2 NOTES IS A
LIMITED, NONRECOURSE OBLIGATION SECURED ONLY BY THE TRUST PROPERTY. All payments
of principal of and interest on the Class B-2 Notes shall be made only from the
Trust Property, and each Holder hereof, by its acceptance of this Class B-2
Note, agrees that it shall be entitled to payments solely from such Trust
Property pursuant to the terms of the Indenture. The actual Outstanding
Principal Balance on this Class B-2 Note may be less than the Original Principal
Balance indicated on the face hereof. The actual principal balance on this Class
B-2 Note at any time may be obtained from the Indenture Trustee.
With respect to payment of principal of and interest on the Class B-2
Notes, the Indenture provides the following:
(a) Until fully paid, principal payments on the Class B-2 Notes will be
payable on each Payment Date in an amount, at the time, and in the manner
provided in the Indenture; provided that, on any Payment Date, the principal on
the Class B-2 Notes shall not be payable until the Class A Note Interest and the
Class A Principal Payment Amount and interest and principal payments on the
Class B-1 Notes have been paid on such Payment Date The unpaid principal balance
of each Class B-2 Note shall be due and payable on the Final Scheduled Payment
Date thereof unless the unpaid principal of such Class B-2 Note becomes due and
payable at an earlier date pursuant to the Indenture, in each case such payment
shall be made in an amount and in the manner provided in the Indenture.
(b) The Class B-2 Notes shall bear interest on the Aggregate Outstanding
Principal Balance of the Class B-2 Notes and accrued but unpaid interest thereon
from and including the preceding Payment Date (or, in the case of the first
Payment Date, from the Closing Date), to and including the day immediately
preceding the subject Payment Date. Such interest shall be payable on each
Payment Date to the extent that the Revenue Fund and the Reserve Fund then
contains sufficient amounts to pay such interest and any Class B-2 Basic Overdue
Interest and any Class B-2 Supplemental Overdue Interest from prior Payment
Dates (plus interest thereon at the applicable Class B-2 Interest Rate) pursuant
to Section 5.05 of the Indenture. Class B-2 Basic Note Interest shall not be
payable until the Class A Note Interest has been paid on such Payment Date.
Class B-2 Basic Note Interest accrued on the Class B-2 Notes will be calculated
(a) with respect to the initial Payment Date, the product of (x) 1/360 of the
Class B-2 Basic Interest Rate times (y) the number of days from and including
the Closing Date through the day immediately preceding the initial Payment Date
(calculated on the basis of a 360-day year consisting of twelve 30-day months)
times (z) the Aggregate Outstanding Principal Balance of the Class B-2 Notes as
of the Closing Date and (b) with respect to any subsequent Payment Date, the sum
of (i) the product of (x) one-twelfth of the Class B-2 Basic Interest Rate times
(y) the Aggregate Outstanding Principal Balance of the Class B-2 Notes
outstanding as of the immediately preceding Payment Date after giving effect to
all payments of principal of the Class B-2 Notes on such immediately preceding
Payment Date and (ii) the Class B-2 Basic Overdue Interest, if any. Class B-2
Supplemental Interest shall not be payable until the Class A Note Interest, the
Class B-2 Basic Note Interest and the Class A Principal Payment Amount have been
paid on such Payment Date. Class B-2 Supplemental Interest accrued on the Class
B-2 Notes will be calculated (a) with respect to the initial Payment Date, the
excess of (x) the Class B-2 Formula Note Interest for such Payment Date, over
(y) the Class B-2 Basic Note Interest for such Payment Date, and (b) with
respect to any subsequent Payment Date, the sum of (x) the
B-2-3
excess of (A) the Class B-2 Formula Note Interest for such Payment Date, over
(B) the Class B-2 Basic Note Interest for such Payment Date and (y) the Class
B-2 Supplemental Overdue Interest. Class B-2 Formula Note Interest accrued on
the Class B-2 Notes will be calculated (a) with respect to the initial Payment
Date, the product of (x) 1/360 of the Class B-2 Interest Rate times (y) the
number of days from and including the Closing Date through the day immediately
preceding the initial Payment Date (calculated on the basis of a 360-day year
consisting of twelve 30-day months) times (z) the Aggregate Outstanding
Principal Balance of the Class B-2 Notes as of the Closing Date, and (b) with
respect to any subsequent Payment Date, the product of (x) one-twelfth of the
Class B-2 Interest Rate times (y) the Aggregate Outstanding Principal Balance of
the Class B-2 Notes as of the immediately preceding Payment Date after giving
effect to all payments of principal on the Class B-2 Notes on such immediately
preceding Payment Date.
All payments of interest and principal on the Class B-2 Notes on the
applicable Payment Date shall be paid to the Person in whose name such Class B-2
Note is registered at the close of business on the Record Date for such Payment
Date in the manner provided in the Indenture. All reductions in the principal
amount of a Class B-2 Note (or one or more Predecessor Notes) effected by full
or partial payments of installments of principal shall be binding upon all past,
then current, and future Holders of such Class B-2 Note and of any Class B-2
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Class B-2 Note.
All amounts collected as payments on the Trust Property or otherwise shall
be applied in the order of priority specified in the Indenture.
Each Person who has or who acquires any Ownership Interest in a Class B-2
Note shall be deemed by the acceptance or acquisition of such Ownership Interest
to have agreed to be bound by the provisions of Section 2.07 of the Indenture. A
Class B-2 Noteholder may not sell, offer for sale, assign, pledge, hypothecate
or otherwise transfer or encumber all or any part of its interest in the Class
B-2 Notes except pursuant to an effective registration statement covering such
transaction under the Securities Act of 1933, as amended, and effective
qualification or registration under all applicable state securities laws and
regulations or under an exemption from registration under said Securities Act
and said state securities laws and regulations.
In addition, each Person who has or who acquires any Ownership Interest in
a Class B-2 Note shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the provisions of Section 14.18
of the Indenture. Prior to the date that is one year and one day after the
payment in full of all amounts payable with respect to the Notes, each Person
who has or acquires an Ownership Interest in a Class B-2 Note agrees that such
Person will not institute against the Owner Trustee or the Seller, or join any
other Person in instituting against the Owner Trustee or the Seller, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or other proceedings under the laws of the United States or any state of the
United States. This covenant shall survive the termination of the Indenture.
Before the due presentment for registration of transfer of this Class B-2
Note, the Owner Trustee, the Indenture Trustee and any agent of the Owner
Trustee or the Indenture Trustee may treat the person in whose name this Class
B-2 Note is registered (a) on any Record Date for
B-2-4
purposes of making payments, and (b) on any other date for any other purpose, as
the owner hereof, whether or not this Class B-2 Note be overdue, and neither the
Owner Trustee, the Indenture Trustee nor any such agent shall be affected by
notice to the contrary.
The Indenture permits the amendment thereof for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, the Indenture or of modifying in any manner the rights of the Noteholders
under the Indenture at any time by the Owner Trustee and the Indenture Trustee
with the consent of the Note Insurer (and, in some cases, only with the consent
of the Noteholder of each Class affected thereby) and compliance with certain
other conditions. Any such consent by the Holder, at the time of the giving
thereof, of this Class B-2 Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class B-2 Note and of any Class B-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Class B-2 Note.
The Notes and all obligations with respect thereto, including obligations
under the Indenture, will be limited recourse obligations of the Owner Trustee
payable solely from the Trust Property. Neither the Owner Trustee, the Servicer,
the Custodian, the Paying Agent, the Note Registrar, nor the Indenture Trustee
in its individual capacity or in its capacity as the Indenture Trustee, nor any
of their respective Affiliates, agents, partners, beneficiaries, officers,
directors, stockholders, stockholders of partners, employees or successors or
assigns, shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture. Without limiting the foregoing, each Holder of
any Note by its acceptance thereof, and the Indenture Trustee, shall be deemed
to have agreed (a) that it shall look only to the Trust Property to satisfy the
Owner Trustee's obligations under or with respect to a Note or the Indenture,
including but not limited to liabilities under Article V of the Indenture and
liabilities arising (whether at common law or equity) from breaches by the Owner
Trustee of any obligations, covenants and agreements herein or, to the extent
enforceable, for any violation by the Owner Trustee of applicable state or
federal law or regulation, provided that the Owner Trustee shall not be relieved
of liability hereunder with respect to any misrepresentation in the Indenture,
the Contribution Agreement, the Transfer and Assignment Agreement or the
Servicing Agreement, or fraud, of the Owner Trustee, and (b) to waive any rights
it may have to obtain a deficiency or other monetary judgment against either the
Owner Trustee or any of its principals, directors, officers, stockholders,
employees or agents (whether disclosed or undisclosed) or their respective
assets (other than the Trust Property). The foregoing provisions of this
paragraph shall not (a) prevent recourse to the Trust Property or any Person
other than the Owner Trustee for the sums due or to become due under any
security, instrument or agreement which is part of the Trust Property, (b)
constitute a waiver, release or discharge of any indebtedness or obligation
evidenced by the Notes or secured by the Indenture, but the same shall continue
until paid or discharged, or (c) prevent the Indenture Trustee from exercising
its rights with respect to the Grant, pursuant to the Indenture, of the Owner
Trustee's rights under the Contribution Agreement and the Transfer and
Assignment Agreement. It is further understood that the foregoing provisions of
this paragraph shall not limit the right of any Person to name the Indenture
Trustee in its capacity as the Indenture Trustee under the Indenture or the
Owner Trustee as a party defendant in any action or suit or in the exercise of
any remedy under the Notes or the Indenture, so long as no judgment in the
nature of a deficiency judgment or seeking personal liability shall be asked for
or (if obtained) enforced. It is expressly understood that all
B-2-5
such liability is hereby expressly waived and released to the extent provided
herein as a condition of, and as a consideration for, the execution of the
Indenture and the issuance of the Notes.
The remedies of the Holder hereof as provided herein, or in the Indenture,
shall be cumulative and concurrent and may be pursued solely against the assets
of the Trust Property. No failure on the part of the Noteholder in exercising
any right or remedy hereunder shall operate as a waiver or release thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other further exercise thereof or the exercise of any other right or remedy
hereunder.
The Notes are issuable only in registered form in denominations as provided
in the Indenture and subject to certain limitations therein set forth. At the
option of the Noteholder, Notes of any Class may be exchanged for Notes of the
same Class of like terms, in any authorized denominations and of like aggregate
principal amount, upon surrender of the Notes to be exchanged at the Corporate
Trust Office of the Indenture Trustee, subject to the terms and conditions of
the Indenture.
As provided in the Indenture, this Note and the Indenture under which it is
issued shall be construed in accordance with, and governed by, the laws of the
State of New York applicable to agreements made and to be performed therein. The
Indenture Trustee shall have no obligation under the Indenture, the Servicing
Agreement or any other document or instrument executed in connection herewith or
therewith to transact business or perform fiduciary duties (in each case as
defined under relevant laws) outside of the State of New York, provided that the
Indenture Trustee will appoint a co-trustee to transact any business required to
be transacted outside of the State of New York.
THIS NOTE IS ISSUED PURSUANT TO THE INDENTURE AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS) APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH
ON THE BACK HEREOF AND SUCH FURTHER PROVISIONS ARE HEREBY INCORPORATED BY
REFERENCE AS IF FULLY SET FORTH HERE.
Unless the certificate of authentication hereon has been executed by the
Indenture Trustee by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
B-2-6
IN WITNESS WHEREOF, the Owner Trustee has caused this instrument to be duly
executed on the Original Issue Date set forth above.
WILMINGTON TRUST COMPANY, not in its individual
capacity but solely in its capacity as Owner
Trustee for Capital One Auto Finance Trust
2002-C
By:
--------------------------------------------
Authorized Officer
B-2-7
THE INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class B-2 Notes referred to in the within-mentioned
Indenture.
JPMORGAN CHASE BANK,
as the Indenture Trustee
By:
--------------------------------------------
Name:
Title:
B-2-8
[FORM OF REVERSE OF NOTE]
The Class B-2 Notes are scheduled to mature on June 15, 2009 unless the
Class B-2 Notes are earlier redeemed or accelerated pursuant to the Indenture.
The Indenture Trustee shall pay to each Class B-2 Noteholder of record on the
preceding Record Date either (a) by wire transfer, in immediately available
funds to the account of such Class B-2 Noteholder, at a bank or other entity
having appropriate facilities therefor, if such Class B-2 Noteholder shall have
provided to the Indenture Trustee appropriate written instructions three (3)
Business Days prior to the Record Date and such Holder's Class B-2 Notes in the
aggregate evidence a denomination of not less than $250,000 (which instructions
may remain in effect for subsequent Payment Dates), or (b) if not, by check
mailed to such Holder at the address of such Holder appearing in the Note
Register, the amounts to be distributed to such Holder pursuant to such Holder's
Class B-2 Notes.
THE CLASS B-2 NOTES SHALL BE SUBJECT TO OPTIONAL REDEMPTION AT THE OPTION
OF THE ADMINISTRATOR IN THE MANNER AND SUBJECT TO THE PROVISIONS OF THE
INDENTURE. Whenever by the terms of the Indenture, the Indenture Trustee is
required to redeem Class B-2 Notes, and subject to and in accordance with the
terms of Article VI of the Indenture, the Indenture Trustee shall give notice of
the redemption in the manner prescribed by the Indenture.
Subject to certain restrictions contained in the Indenture, (a) the Notes
are issuable in the initial denomination of $250,000 and integral multiples of
$1,000 in excess thereof (provided that one Note of each Class may be issued in
an additional amount equal to any remaining portion of the applicable Original
Principal Balance of such Class) and (b) Notes may be exchanged for a like
aggregate principal amount of Notes of authorized denominations of the same
maturity.
The final payment on a Note shall be made only upon presentation and
surrender of the Note at the Corporate Trust Office of the Indenture Trustee;
provided, however, that if there is delivered to the Owner Trustee, the
Indenture Trustee and the Note Insurer such security or indemnity as may be
required by them to save each of them harmless (an unsecured indemnity agreement
of an institutional investor organized under the laws of the United States or
any state thereof with a net worth at least equal to $50,000,000 being deemed
sufficient to satisfy such security or indemnity requirement) and an undertaking
thereafter to surrender such Note, then, in the absence of notice to the Owner
Trustee, the Indenture Trustee or the Note Insurer that the applicable Note has
been acquired by a bona fide purchaser, such final payment shall be made to the
extent collected funds are then available for such payment without presentation
or surrender.
The Noteholders shall have no right to enforce the provisions of the
Indenture or to institute action to enforce the covenants therein, or to take
any action with respect to any Event of Default, or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in
the Indenture.
The Notes may be exchanged, and their transfer may be registered, by the
Noteholders in person or by their attorneys duly authorized in writing at the
Corporate Trust Office of the Indenture Trustee only in the manner, subject to
the limitations provided in the Indenture, and
B-2-9
upon surrender and cancellation of the Notes. Upon exchange or registration of
such transfer, a new registered Note or Notes evidencing the same outstanding
principal amount of the same Class of Notes will be executed in exchange
therefor.
Reference is hereby made to the Indenture, a copy of which is on file with
the Indenture Trustee, for the provisions, among others, with respect to (a) the
nature and extent of the rights, duties and obligations of the Indenture
Trustee, the Owner Trustee and the Noteholders; (b) the terms upon which the
Notes are executed and delivered; (c) the collection and disposition of the
Scheduled Payments; (d) a description of the Trust Property; (e) the
modification or amendment of the Indenture; (f) other matters; and (g) the
definition of capitalized terms used in this Note that are not defined herein;
to all of which the Noteholders assent by the acceptance of the Notes.
B-2-10
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION NUMBER
OF ASSIGNEE)
- -------------------
(Please Print or Typewrite Name and Address of Assignee)
the within Note, and all rights thereunder, and hereby does irrevocably
constitute and appoint
Attorney to transfer the within Note on the books kept for registration thereof,
with full power of substitution in the premises.
Date:
NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Note in every particular,
without alteration or enlargement or any change
whatever.
B-2-11
EXHIBIT C
[RESERVED]
C-1
EXHIBIT D
ASSIGNMENT
, 200
---------------- ---
In accordance with the Indenture dated as of December 17, 2002, by and
between Wilmington Trust Company, not in its individual capacity but solely as
Owner Trustee (the "Owner Trustee") for Capital One Auto Finance Trust 2002-C, a
Delaware common law trust, and JPMorgan Chase Bank, as indenture trustee (the
"Indenture Trustee") (the "Indenture"), the Owner Trustee hereby Grants unto the
Indenture Trustee in trust for the benefit of the Noteholders, the Swap
Counterparty (until such time as the Interest Rate Swap Agreement has been
terminated and all amounts owed to the Swap Counterparty have been paid in full)
and the Note Insurer, without recourse (capitalized terms used herein and not
otherwise defined shall have the meaning assigned to them in the Indenture): (i)
all right, title and interest of the Owner Trustee in and to the Receivables
[Subsequent Receivables] identified on the Schedule of Receivables attached
hereto (the "Receivables"), and all moneys received thereon (including amounts
received on any Extended Service Agreements relating thereto), on or after the
applicable Cutoff Date (except for interest accrued prior to such Cutoff Date if
paid by the respective Obligor after the Cutoff Date, which shall be withdrawn
from the Revenue Fund, to the extent contained therein, and paid to the
Transferor); (ii) the security interest of the Owner Trustee in the Financed
Vehicles granted by the Obligors pursuant to the Receivables [Subsequent
Receivables] and all Certificates of Title to such Financed Vehicles; (iii) the
interest of the Owner Trustee in any proceeds from claims on any physical
damage, credit life, risk default, disability or other insurance policies
covering the Financed Vehicles or Obligors or refunds in connection with
Extended Service Agreements relating to Defaulted Receivables from the
applicable Cutoff Date; (iv) any property (including the right to receive future
Liquidation Proceeds) that shall secure a Receivable [Subsequent Receivables];
(v) the Contribution Agreement, the Transfer and Assignment Agreement and the
Dealer Agreement (to the extent related to the financed Receivables); (vi) the
rights and benefits of the Owner Trustee under the Servicing Agreement and the
Limited Guaranty; (vii) any recourse at law, in equity or by contract to Capital
One Auto Receivables, LLC, the Transferor or Dealers whether pursuant to the
Contribution Agreement, the Transfer and Assignment Agreement, Dealer Agreements
(to the extent related to the Financed Vehicles) or otherwise; (viii) all funds
deposited in the Accounts and Eligible Investments thereof, to the extent
provided in the Indenture, and proceeds thereof; (ix) the original retail
installment contracts and security agreements and/or installment loans
evidencing the Receivables [Subsequent Receivables]; (x) the Interest Rate Swap
Agreement; and (xi) all proceeds of the conversion, voluntary or involuntary, of
any of the foregoing into cash or other property whether now existing or
hereafter arising. The foregoing conveyance does not constitute and is not
intended to result in any assumption by the Indenture Trustee of any obligation
of the undersigned to the Obligors, insurers or any other person in connection
with the Receivables [Subsequent Receivables], Custodian Files, Servicer Files,
any insurance policies or any agreement or instrument relating to any of them.
D-1
This Assignment is made pursuant to and upon the representations,
warranties and agreements contained in the Transfer and Assignment Agreement and
the Contribution Agreement.
Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Indenture and the Transfer and Assignment
Agreement.
D-2
IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed as of the date first written above.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital One
Auto Finance Trust 2002-C
By:
--------------------------------------
Authorized Officer
D-3
EXHIBIT E
NOTICE OF FUNDING
In accordance with the Indenture dated as of December 17, 2002 by and
between Wilmington Trust Company as owner trustee (the "Owner Trustee"), and
JPMorgan Chase Bank, as indenture trustee (the "Indenture"), the undersigned
hereby gives notice of the Funding Date to occur on or before
, 200 for each of the Subsequent Receivables listed on the
- ------------------ -
Schedule of Receivables attached to the Assignment executed by the undersigned
an accompanying this Notice of Funding. Unless otherwise defined herein,
capitalized terms have the meanings set forth in the Indenture.
Such Subsequent Receivables represent the following amounts:
Aggregate Receivable Balance of Receivables
as of the Cutoff Date: $
-------------
Amount to be wired to the Transferor in
payment for such Subsequent Receivables: $
-------------
The undersigned hereby certifies that, in connection with the Funding Date
specified above, the undersigned has complied with all terms and provisions
specified in Section 2.16 of the Indenture, including, but not limited to,
delivery of the Officer's Certificate, as specified therein.
Date: , 200
------------------ -
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital One
Auto Finance Trust 2002-C
By:
-------------------------------------
Authorized Officer
E-1
EXHIBIT F
OFFICER'S CERTIFICATE
re: Funding Date
CAPITAL ONE AUTO FINANCE TRUST 2002-C
CAPITAL ONE AUTO RECEIVABLES, LLC
To: JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004
With copies to: Note Insurer
This Officer's Certificate is being issued in accordance with Section 2.16
of that certain Indenture dated as of December 17, 2002 (the "Indenture") by and
between Wilmington Trust Company, not in its individual capacity but solely as
Owner Trustee (the "Owner Trustee") for Capital One Auto Finance Trust 2002-C,
and JPMorgan Chase Bank, as indenture trustee. Terms not otherwise defined
herein shall have the meanings ascribed thereto in the Indenture.
By his or her signature below, the undersigned officer[s] of the Seller, on
behalf of the Owner Trustee or of the Seller, as the case may be, certif[ies][y]
that:
(a) The matters set forth in Section 3.02(a) and (b) of the Contribution
Agreement by and between the Seller, as the transferor named therein, and the
Owner Trustee, as transferee, are true and correct. All Receivables to be
acquired on the Funding Date to occur on or before , 2002
---------------------
constitute Eligible Receivables as said term is defined in the Transfer and
Assignment Agreement; and
(b) the representations and warranties of the Owner Trustee set forth in
Section 3.12 of the Indenture are true and correct as of the date hereof; and
(c) the documents listed in Section 2.16(b)(ii) of the Indenture will be
delivered to the Custodian or its designated bailee within two (2) Business Days
preceding the Funding Date specified herein; and
(d) the requirements stated in Section 2.16 of the Indenture regarding the
Subsequent Receivables to be acquired on the Funding Date have been met.
All conditions in the Transfer and Assignment Agreement Article IV and the
Contribution Agreement Article IV have been met.
F-1
Date: , 200
-------------------- -
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee for Capital One
Auto Finance Trust 2002-C
By:
-------------------------------------
Authorized Officer
F-2
EXHIBIT G-1
CAPITAL ONE AUTO FINANCE TRUST 2002-C
AUTOMOBILE RECEIVABLE-BACKED CERTIFICATES, SERIES 2002-C
RECEIVABLE CHARACTERISTICS
As of December 17, 2002 (Closing Date)
G-1-1
EXHIBIT G-2
CAPITAL ONE AUTO FINANCE TRUST 2002-C
AUTOMOBILE RECEIVABLE-BACKED CERTIFICATES, SERIES 2002-C
RECEIVABLE CHARACTERISTICS
As of , 2003 (Funding Date)
--------
Cumulative Totals From
Receivables Acquired Closing Date Through
Interest Rate On Funding Date Above Funding Date
------------- --------------- ------------------
13.95% - 16.99% $ $
17.00% - 17.99%
18.00% - 18.99%
19.00% - 19.99%
20.00% - 20.99%
21.00% - 21.99%
22.00% - 22.99%
23.00% - 23.99%
24.00% - 24.99%
25.00% - 25.99%
26.00% - 26.99%
27.00% - 27.99%
28.00% - 28.99%
29.00% - 29.99%
30.00% - 30.99%
Total $ $
------------- -------------
Weighted Average Contract Rate
-------------% --------------%
G-2-1
State Concentration Level
Maximum
Permitted
State Percentage Percentage
- ----- ---------- ----------
AL % %
--- ----
AZ % %
--- ----
GA % %
--- ----
NC % %
--- ----
OK % %
--- ----
SC % %
--- ----
TN % %
--- ----
TX % %
--- ----
VA % %
--- ----
Others % ** %
--- ----
Loan to Value Ratio*
Maximum
Permitted
Ratio Ratio
----- -----
Average LTV % %
--- ----
- ----------
*Final Funding Date only
G-2-2
EXHIBIT H
TRUSTEE FEE AGREEMENT
- On File with Servicer
H-1
EXHIBIT I
FORM OF TRANSFEREE AGREEMENT (CLASS B NOTES)
(Date)
JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Institutional Trust Services
Capital Auto Finance, 2002-C
Dear Sirs:
The undersigned (the "Purchaser") proposes to purchase Class B Notes (the
"Purchaser's Notes") representing $ aggregate principal amount of
------------
the Capital One Auto Investment, LLC, Asset Backed Notes, Series 2002-C, Class B
Notes in the Original Principal Balance of $ (the "Class B Notes").
-----------
The Class B Notes were issued pursuant to an Indenture dated as of December 17,
2002 between Wilmington Trust Company, not in its individual capacity but solely
as owner trustee (the "Owner Trustee") for Capital One Auto Finance Trust
2002-C, and JPMorgan Chase Bank, as indenture trustee (the "Trustee") (the
"Indenture"). Capitalized terms used herein but not otherwise defined shall have
the same meaning as in the Indenture.
In connection with the purchase, the Purchaser agrees to the following
terms and conditions and makes the representations and warranties stated herein
with the express understanding that they will be relied upon by the seller of
the Purchaser's Class B Notes, the Owner Trustee and the Trustee.
1. The Purchaser is purchasing the Purchaser's Class B Notes solely for the
Purchaser's own account and the account of its affiliated entities and with no
present intention of distributing the Class B Notes or any portion thereof,
subject, nevertheless, to the understanding that the disposition of the
Purchaser's property shall at all times be and remain within its control.
2. The Purchaser is a Qualified Institutional Buyer as follows (please
check one):
__ (i) Any of the following entities, acting for its own account or the
accounts of other qualified institutional buyers, that in the aggregate owns and
invests on a discretionary basis at least $100 million in securities of issuers
that are not affiliated with the entity (please check one):
__ (A) Any insurance company as defined in section 2(13) of the
Securities Act of 1933, as amended (the "Act");
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__ (B) Any investment company registered under the Investment
Company Act of 1940 (the "Investment Company Act") or any business development
company as defined in section 2(a)(48) of that Act;
__ (C) Any Small Business Investment Company licensed by the U.S.
Small Business Administration under section 301(c) or (d) of the Small Business
Investment Act of 1958;
__ (D) Any plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees;
__ (E) Any employee benefit plan within the meaning of Title I of
the Employee Retirement Income Security Act of 1974;
__ (F) Any trust fund whose trustee is a bank or trust company and
whose participants are exclusively plans of the types identified in paragraph
(2)(i)(D) or (E) of this paragraph 2, except trust funds that include as
participants individual retirement accounts or H.R. 10 plans;
__ (G) Any business development company as defined in section
202(a)(22) of the Investment Advisers Act of 1940;
__ (H) Any organization described in section 501(c)(3) of the
Internal Revenue Code, corporation (other than a bank as defined in section
3(a)(2) of the Act or a savings and loan association or other institution
referenced in section 3(a)(5)(A) of the Act or a foreign bank or savings and
loan association or equivalent institution), partnership, or Massachusetts or
similar business trust; or
__ (I) Any investment adviser registered under the Investment
Advisers Act;
__ (J) Any dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") acting in a
riskless principal transaction on behalf of a Qualified Institutional Buyer;
__ (K) Any dealer registered pursuant to Section 15 of the Exchange
Act, acting for its own account or the accounts of other qualified institutional
buyers, that in the aggregate owns and invests on a discretionary basis at least
$10 million of securities of issuers that are not affiliated with the dealer;
provided, that securities constituting the whole or a part of an unsold
allotment to or subscription by a dealer as a participant in a public offering
shall not be deemed to be owned by such dealer;
__ (L) Any investment company registered under the Investment
Company Act, acting for its own account or for the accounts of other Qualified
Institutional Buyers, that is part of a family of investment companies which own
in the aggregate at least $100 million in securities of issuers, other than
issuers that are affiliated with the investment
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company or are part of such family of investment companies. "Family of
investment companies" means any two or more investment companies registered
under the Investment Company Act, except for a unit investment trust whose
assets consist solely of shares of one or more registered investment companies,
that have the same investment adviser (or, in the case of unit investment
trusts, the same depositor), provided that for the purposes of this section:
(i) Each series of a series company (as defined in Rule
18f-2 under the Investment Company Act) shall be deemed to be a separate
investment company; and
(ii) Investment companies shall be deemed to have the same
adviser (or depositor) if their advisers (or depositors) are majority-owned
subsidiaries of the same parent, or if one investment company's adviser (or
depositor) is a majority-owned subsidiary of the other investment company's
adviser (or depositor);
__ (M) Any entity, all of the equity owners of which are Qualified
Institutional Buyers, acting for its own account or the accounts of other
Qualified Institutional Buyers; or
__ (ii) Any bank as defined in section 3(a)(2) of the Securities Act, any
savings and loan association or other institution as referenced in section
3(a)(5)(A) of the Act, or any foreign bank or savings and loan association or
equivalent institution, acting for its own account or the accounts of other
Qualified Institutional Buyers, that in the aggregate owns and invests on a
discretionary basis at least $100 million in securities of issuers that are not
affiliated with it and that has an audited net worth of at least $25 million as
demonstrated in its latest annual financial statements, as of a date not more
than 16 months preceding the date of sale in the case of a U.S. bank or savings
and loan association, and not more than 18 months preceding the date of sale for
a foreign bank or savings and loan association or equivalent institution.
3. The Purchaser understands that the Class B Notes will bear a legend to
the following effect unless the Owner Trustee determines otherwise consistent
with applicable law:
THIS Class B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE,
AGREES (1) THAT THIS NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND
OTHER APPLICABLE LAWS AND ONLY PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT TO A PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE 144A,
PURCHASING FOR ITS OWN ACCOUNT, OR A QIB PURCHASING FOR THE ACCOUNT OF
A QIB, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A OR TO
THE OWNER TRUSTEE PURSUANT TO THE TERMS OF THE INDENTURE AND (2) THAT
IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN
IS TO BE
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TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THE
INDENTURE RELATING TO THIS NOTE CONTAINS A PROVISION REQUIRING THE
INDENTURE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE OR
ANY INTEREST HEREIN IN VIOLATION OF THE FOREGOING. EACH TRANSFEREE
ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE IS DEEMED TO REPRESENT
THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.
NEITHER THIS CLASS B NOTE NOR ANY INTEREST HEREIN MAY BE ACQUIRED
BY OR FOR THE ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN
SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED, ("ERISA")), WHETHER OR NOT SUBJECT TO ERISA, (II) A PLAN
DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR (III) ANY ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF INVESTMENT BY ANY
OF THE FOREGOING IN THE ENTITY (EACH A "BENEFIT PLAN INVESTOR") UNLESS
THE PURCHASER IS AN INSURANCE COMPANY USING THE ASSETS OF ITS GENERAL
ACCOUNT TO PURCHASE THE CLASS B NOTES, AND AT THE TIME OF PURCHASE AND
THROUGHOUT THE PERIOD IT HOLDS THE CLASS B NOTES, (I) IT IS ELIGIBLE
FOR AND MEETS THE REQUIREMENTS OF THE DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60 (II) LESS THAN 25% OF THE ASSETS OF
THE GENERAL ACCOUNT ARE (OR REPRESENT) ASSETS OF A BENEFIT PLAN
INVESTOR, AND (III) IT IS NOT THE SERVICER OR ANY OTHER SERVICE
PROVIDER TO THE TRUST OR AN AFFILIATE OF THE ABOVE, AND WOULD NOT
OTHERWISE BE EXCLUDED UNDER 29 C.F.R. SECTION 2510.3-101(f)(1). EACH
PURCHASER AND TRANSFEREE OF A CLASS B NOTE SHALL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT IT MEETS THE FOREGOING REQUIREMENTS.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE FOREGOING
RESTRICTIONS WILL BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL
CONTINUE TO BE TREATED AS THE OWNER OF THE CLASS B NOTES FOR ALL
PURPOSES.
4. The Purchaser understands that the Class B Notes may not be acquired by
or with the assets of a "benefit plan investor" as defined in 29 C.F.R. Section
2510.3(f), which includes (i) an "employee benefit plan" (as defined in section
3(3) of the Employee Retirement Security Act of 1974, as amended ("ERISA")),
whether or not subject to ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code or (iii) any entity whose underlying assets include plan assets of its
general account to purchase its interest in the Class B Notes, and at the time
of purchase and throughout the period it holds an interest in the Class B Notes,
(i) it is eligible for and meets the
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requirements of the Department of Labor Prohibited Transaction Class Exemption
95-60, (ii) less than 25% of the assets of the general account are (or
represent) assets of a Benefit Plan Investor, and (iii) it is not the Servicer
or any other service provider to the Trust or an affiliate of the above, and
would not otherwise be excluded as a benefit plan investor under 29 C.F.R.
Section 2510.3-101(f). The holder thereof and any related holder of any interest
in a Class B Note shall be deemed to have represented and warranted that it
meets the foregoing requirements.
5. If the Purchaser is acquiring any Class B Note as a fiduciary or agent
for one or more investor accounts, it represents that it has sole investment
discretion with respect to such account and that it has full power to make the
acknowledgements, representations and agreements contained herein on behalf of
each such account.
6. Due to the restrictions on transfer, the Purchaser is aware that it (or
any account for which it is purchasing) may be required to bear the economic
risk of an investment in the Class B Notes for an indefinite period, and it (or
such account) is able to bear such risk for an indefinite period. The Purchaser
acknowledges that it has received the information specified in paragraph (d)(4)
of Rule 144A under the Securities Act.
7. The Purchaser acknowledges that (i) it has been afforded an opportunity
to request from the Owner Trustee and to review, and it has received, all
additional information considered by it to be necessary to verify the accuracy
of the information herein; (ii) it has not relied on any Underwriter or any
person affiliated with an Underwriter in connection with its investigation of
the accuracy of the information contained in this Indenture or its investment
decision; and (iii) no person has been authorized to give any information or to
make any representation concerning the Owner Trustee or the Class B Notes other
than those contained in this Indenture and, if given or made, such other
information or representation should not be relied upon as having been
authorized by the Owner Trustee, or any of its affiliates.
8. The Purchaser acknowledges that it has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of purchasing the Class B Notes.
9. The Purchaser agrees that, prior to the date that is one year and one
day after the payment in full of all amounts payable with respect to the Class B
Notes, it will not institute against the Owner Trustee or the Transferor, or
join any other Person in instituting against the Owner Trustee or the
Transferor, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceeding under the laws of the United States
or any state of the United States and it will not enter into any voluntary
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or
other proceeding under the laws of the United States or any state of the United
States.
10. The Purchaser acknowledges that the Owner Trustee and others will rely
on the truth and accuracy of the foregoing acknowledgments, representations and
agreements, and agrees that if any of the foregoing acknowledgments,
representations and agreements deemed to have been made by it are no longer
accurate, it shall promptly notify the Owner Trustee.
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11. The Purchaser understands that the Owner Trustee, any person acting on
its behalf and the seller of the Purchaser's Class B Notes shall be entitled to
rely upon certain non-exclusive methods of establishing the Purchaser's
ownership and discretionary investments of securities as stated in Rule 144A
promulgated under the Act ("Rule 144A").
12. The Purchaser represents that, if it has so requested, it has received
the following reasonably current information: a brief statement of the nature of
the business of the Trust and the products and services it offers; the Trust's
most recent balance sheet and profit and loss and retained earnings statements,
and similar financial statements for such part of the two preceding fiscal years
as the Trust has been in operation; and Servicer statements of payments on the
Class B Notes on each Payment Date or for a shorter period as may be requested
by the Purchaser.
13. The Purchaser understands that the Purchaser's Class B Notes have not
been registered under the Securities Act or any state securities or "Blue Sky"
laws and were sold in reliance on exemptions from the registration requirements
of the Act and any such laws for nonpublic offerings. The Purchaser understands
that the exemptions from the registration requirements upon which the Owner
Trustee relied require that the Purchaser be one of the types of investors
specified in paragraph 2 above and the Purchaser is such an investor. The
Purchaser further understands that the Purchaser's Class B Notes must be held
indefinitely unless subsequently registered under the Act, any applicable state
securities or "Blue Sky" laws or unless exemptions from the registration
requirements of the Act and such laws are available. If at some future time the
Purchaser wishes to dispose of or exchange any of the Purchaser's Class B Notes,
the Purchaser will not do so unless before any such sale, transfer or other
disposition the Purchaser has furnished to the Owner Trustee and the Indenture
Trustee an express agreement substantially in the form of this Transferee's
Agreement by the proposed transferee to be bound by and to abide by the
provisions thereof, the restrictions noted on the face of the Purchaser's Class
B Notes and the Transferee's Agreement.
14. The Purchaser understands that the transfer of the Class B Notes will
be restricted.
15. The Purchaser understands that there may be restrictions on the ability
of certain investors, including, without limitation, depository institutions,
either to purchase the Purchaser's Class B Notes or to purchase investments
having characteristics similar to those of the Purchaser's Class B Notes
representing more than a specified percentage of the investor's assets. The
Purchaser has consulted, and relied on the advice of, the Purchaser's own legal
advisor in determining whether and to what extent the Purchaser's Class B Notes
constitute a legal investment for the Purchaser.
16. The Purchaser recognizes that an investment in the Purchaser's Class B
Notes involves significant risks.
17. The Purchaser understands that there is no established market for the
Purchaser's Class B Notes and that none will develop and, accordingly, that the
Purchaser may be required to bear the economic risk of an investment in the
Purchaser's Class B Notes for an indefinite period of time.
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18. The Purchaser agrees that the Purchaser is bound by and will abide by
the provisions hereof, the restrictions on the Purchaser's Class B Notes
described herein and this Transferee's Agreement.
Very truly yours,
By
---------------------------------
Name:
Title:
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