EXHIBIT 1.1
EXECUTION
DEUTSCHE RECREATIONAL ASSET FUNDING CORPORATION
DISTRIBUTION FINANCIAL SERVICES RV TRUSTS
Asset Backed Notes and Asset Backed Certificates
UNDERWRITING AGREEMENT
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March 12, 1999
DEUTSCHE BANK SECURITIES INC.
Acting on behalf of itself and, if applicable, as the Representative of the
several Underwriters named in Schedule 1 to the Terms Agreement (in either such
capacity sometimes herein the "Representative")
31 West 52nd Street
New York, New York 10019
Ladies and Gentlemen:
Section 1. Introductory. Deutsche Recreational Asset Funding Corporation, a
Nevada corporation (the "Depositor"), proposes to sell Asset Backed Notes (the
"Notes") and Asset Backed Certificates (the "Certificates" and together with the
Notes, the "Securities") from time to time in one or more series (each, a
"Series"). Each Series, which may include one or more classes of Notes and/or
one or more classes of Certificates, will be issued by a trust formed with
respect to such Series (each, a "Trust"). Each Trust will be formed pursuant to
a Trust Agreement (including any related Amended and Restated Trust Agreement,
each a "Trust Agreement") to be entered into between the Depositor and the
trustee specified therein (the "Owner Trustee"). Each Series of Notes will be
issued and secured pursuant to an Indenture (an "Indenture") between the Trust
and the indenture trustee specified therein (the "Indenture Trustee" and
together with the Owner Trustee, the "Trustees") and will represent indebtedness
of the related Trust. Each Certificate will represent a fractional undivided
interest in the related Trust. The assets of the Trust (the "Trust Property")
will include, among other things, a pool of retail installment sale contracts,
installment loans, or notes (the "Receivables") secured by new or used
recreational vehicles and/or recreational sport and power boats (including any
boat motors and accompanying trailers) and yachts (both power and sail), certain
monies due or received thereunder, security interests in the items financed
thereby and certain other property that shall have secured a Receivable and that
shall be obtained by the applicable Trust incidental to a foreclosure or
repossession in the event of a payment default.
The Securities are more fully described in the Registration Statement (as
defined herein). Each Series of Securities and any classes of Securities (each,
a "Class") within such Series may
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vary as to, among other things, number and types of Classes, principal or
notional amount, interest rate, the percentage interest, if any, evidenced by
each Class in the payments of principal of and interest on, or with respect to,
the Trust Property, priority of payment among Classes, credit enhancement with
respect to the related Trust Property or Securities, the Classes of such Series
subject to this Underwriting Agreement, and any other terms contemplated by the
Terms Agreement (as defined herein) with respect to the Securities of such
Series.
Each offering of the Securities to which this Underwriting Agreement
applies will be made pursuant to the Registration Statement through the
Representative or through an underwriting syndicate managed by the
Representative. Whenever the Depositor determines to form a Trust and to make
such an offering of Securities of a Series, it will enter into an appropriate
agreement (the "Terms Agreement"), a form of which is attached hereto as Exhibit
A, providing for the sale of certain classes of such Securities to, and the
purchase and offering thereof by, the Representative and such other
underwriters, if any, as have authorized the Representative to enter into such
Terms Agreement on their behalf (the "Underwriters," which term shall include
the Representative, whether acting alone in the sale of such Securities, in
which case any reference herein to the Representative shall be deemed to refer
to the Representative in its individual capacity as Underwriter of the
Securities, or as a member of an underwriting syndicate). Such Terms Agreement
shall specify the undivided interest, principal or notional amount of each Class
of the Securities to be issued, the Classes of Securities subject to this
Underwriting Agreement, the price at which such Classes of Securities are to be
purchased by the Underwriters from the Depositor and the initial public offering
price or prices or the method by which the price or prices at which such
Securities are to be sold will be determined.
Each such offering of Securities as to which Deutsche Bank Securities Inc.
is the sole underwriter or acts as the Representative of the several
Underwriters will be governed by this Underwriting Agreement, as supplemented by
the applicable Terms Agreement, and this Underwriting Agreement and such Terms
Agreement shall inure to the benefit of and be binding upon each Underwriter
participating in the offering of such Securities. This Underwriting Agreement
is non-exclusive, and the Depositor may enter into any other underwriting
agreement with any other underwriter with respect to the offering and sale of
Securities of a Series.
Section 2. Representations, Warranties and Covenants of DFS and the Depositor.
Each of Deutsche Financial Services Corporation ("DFS") and the Depositor, as
applicable, represents and warrants to, and agrees with, each Underwriter, as of
the date of the related Terms Agreement, that:
(a) The registration statement specified in the related Terms Agreement,
on Form S-3, including a prospectus, has been filed with the Securities and
Exchange Commission (the "Commission") for the registration under the Securities
Act of 1933, as amended (the "Act"), of the Securities, which registration
statement has been declared effective by the Commission. Such registration
statement, as amended to the date of the related Terms Agreement, including any
documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the Act which were filed under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), on or before the effective date of the
Registration Statement (as such date is defined in Rule 158(c) under the Act,
the "Effective Date"), is hereinafter called the "Registration
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Statement," and such prospectus, as such prospectus is supplemented by a
prospectus supplement relating to the Securities of the related Series, each in
the form first filed after the date of the related Terms Agreement pursuant to
Rule 424(b) under the Act, including any documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Act which were filed under the
Exchange Act on or before the date of such prospectus supplement (such
prospectus supplement, including such incorporated documents, in the form first
filed after the date of the related Terms Agreement pursuant to Rule 424(b) is
hereinafter called the "Prospectus Supplement"), is hereinafter called the
"Prospectus" (except where the context requires otherwise). Any reference herein
to the terms "amend," "amendment" or "supplement" with respect to the
Registration Statement, the Prospectus or the Prospectus Supplement shall be
deemed to refer to and include the filing of any document under the Exchange Act
after the Effective Date or the issue date of the Prospectus or Prospectus
Supplement, as the case may be, deemed to be incorporated therein by reference
pursuant to Item 12 of Form S-3 under the Act.
(b) The related Registration Statement, at the time it became effective,
and the prospectus contained therein, and any amendments thereof and supplements
thereto filed prior to the date of the related Terms Agreement, conformed in all
material respects to the requirements of the Act and the rules and regulations
of the Commission thereunder (the "Rules and Regulations"); on the date of the
related Terms Agreement and on the related Closing Date, the Registration
Statement, the Prospectus and the related Prospectus Supplement, and any
amendments thereof and supplements thereto, will conform in all material
respects to the requirements of the Act and the Rules and Regulations; such
Registration Statement, at the time it became effective, did not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading;
such Prospectus and Prospectus Supplement, on the date of any filing pursuant to
Rule 424(b) and on the related Closing Date, will not include any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they are
made, not misleading; provided, however, that neither DFS nor the Depositor
makes any representations or warranties as to the information contained in or
omitted from (A) such Registration Statement or such Prospectus (or any
supplement thereto) in reliance upon and in conformity with written information
furnished to the Depositor by or on behalf of the Underwriters specifically for
use in the preparation thereof as specified in the related Terms Agreement or
(B) any ABS Filing (as defined herein), or in any amendment thereof or
supplement thereto, incorporated by reference in such Registration Statement or
such Prospectus (or any amendment thereof or supplement thereto).
(c) Each of DFS and the Depositor is a corporation duly incorporated,
validly existing and in good standing under the laws of the state of its
incorporation, and is duly qualified to transact business and is in good
standing in each jurisdiction in the United States of America in which the
conduct of its business or the ownership of its property requires such
qualification, with corporate power to own, lease and operate its property and
conduct its business as it is currently conducted.
(d) Each of DFS and the Depositor has, and will have, the requisite power
to execute and deliver each this Underwriting Agreement and each Trust
Agreement, Indenture, transfer and
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servicing agreement, transfer agreement or other document executed by either of
them in connection with the issuance and sale of the related Securities (each,
an "Agreement") (as applicable) and Terms Agreement and to perform their
respective obligations hereunder and thereunder.
(e) Each of the Agreements (as applicable), Terms Agreements and this
Underwriting Agreement has been, or will be, duly and validly authorized,
executed and delivered by each of DFS and the Depositor, and each of the
Agreements (as applicable), Terms Agreements and this Underwriting Agreement
constitutes, or will constitute, the valid, legal and binding obligation of each
of DFS and the Depositor, enforceable against each of DFS and the Depositor in
accordance with its terms.
(f) The Securities of each Series conform, or will conform as of the
related Closing Date, to the description thereof contained in the Registration
Statement, the Prospectus, and the related Prospectus Supplement; and the
Securities of such Series, on the related Closing Date, will have been duly and
validly authorized and, when such Securities are duly and validly executed,
issued and delivered in accordance with the related Agreement, and sold to the
Underwriters as provided herein and in the related Terms Agreement, will each be
validly issued and outstanding and entitled to the benefits of such Agreement.
(g) Neither the execution and delivery by DFS or the Depositor of any
Agreement (as applicable), Terms Agreement or this Underwriting Agreement nor
the consummation by DFS or the Depositor of the transactions contemplated herein
or therein, nor the issuance of the Securities of a Series by a Trust or the
public offering thereof as contemplated in the Prospectus and the applicable
Prospectus Supplement, will conflict in any material respect with or result in a
material breach of, or constitute a material default (with notice or passage of
time or both) under, or result in the imposition of any lien, pledge, charge,
encumbrance, adverse claim or other security interest of any other person
(collectively, "Liens") upon any of the property or assets of DFS or the
Depositor (except as required or permitted pursuant thereto or hereto), pursuant
to any material mortgage, indenture, loan agreement, contract or other
instrument to which DFS or the Depositor is party or by which either of them is
bound, nor will such action result in any violation of any provisions of any
applicable law, administrative regulation or administrative or court decree, the
certificate of incorporation or by-laws of DFS or the Depositor. Neither DFS nor
the Depositor is in violation of its certificate of incorporation, in default in
any material respect in the performance or observance of any material
obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease, trust agreement, transfer and
servicing agreement or other instrument to which it is a party or by which it
may be bound, or to which any material portion of its property or assets is
subject.
(h) No legal or governmental proceedings are pending to which DFS or the
Depositor is a party or of which any property of DFS or the Depositor is the
subject, which if determined adversely to DFS or the Depositor would,
individually or in the aggregate, have a material adverse effect on the
financial position, shareholders' equity or results of operations of DFS or the
Depositor; and to the best of DFS's or the Depositor's knowledge, no such
proceedings are threatened or contemplated by governmental authorities or
threatened by others.
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(i) No consent, approval, authorization or order of, or registration,
filing or declaration with, any court or governmental agency or body is
required, or will be required, in connection with (i) the execution and delivery
by DFS or the Depositor of any Agreement (as applicable), Terms Agreement or
this Underwriting Agreement or the performance by DFS or the Depositor of any
Agreement (as applicable), Terms Agreement or this Underwriting Agreement or
(ii) the offer, sale or delivery of the Securities of any Series, except such as
shall have been obtained or made, as the case may be, or will be obtained or
made, as the case may be, prior to the applicable Closing Date, or will not
materially adversely affect the ability of DFS or the Depositor to perform its
obligations under any Agreement (as applicable), Terms Agreement or this
Underwriting Agreement.
(j) Each of DFS and the Depositor possesses, and will possess, all
material licenses, certificates, authorities or permits issued by the
appropriate state, federal or foreign regulatory agencies or bodies necessary to
conduct the business now conducted by it and as described in the Prospectus and
Prospectus Supplement, except to the extent that the failure to have such
licenses, certificates, authorities or permits does not have a material adverse
effect on the Securities of any Series or the financial condition of DFS or the
Depositor, and neither DFS nor the Depositor has received, nor will have
received as of each Closing Date, any notice of proceedings relating to the
revocation or modification of any such license, certificate, authority or permit
which, singly or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would materially and adversely affect the conduct of its
business, operations or financial condition.
(k) On the related Closing Date, (i) the Depositor will have good and
marketable title to the related Receivables being transferred by it to the Trust
pursuant thereto, free and clear of any Lien, except to the extent permitted in
the applicable Agreement, (ii) the Depositor will not have assigned to any
person any of its right, title or interest in such Receivables or in the
applicable Agreement, (iii) the Depositor will have the power and authority to
sell such Receivables to the Trust, and upon execution and delivery of the
applicable Agreement by the Owner Trustee, the Trust will have good and
marketable title thereto, in each case free of Liens other than any Lien created
by an Underwriter, and (iv) if applicable, the related Trust shall have the
power and authority to assign such Receivables to the related Indenture Trustee,
and, upon execution and delivery of the related Indenture, such Indenture
Trustee will have all the interest in such Receivables conveyed thereby, free of
Liens other than any Lien created by an Underwriter.
(l) The properties and businesses of each of DFS and the Depositor
conform, and will conform, in all material respects, to the descriptions thereof
contained in the Prospectus and the Prospectus Supplements.
(m) Since the date as of which information is given in the Registration
Statement, there has not been any material adverse change in the business or net
worth of the Depositor, the Transferor or DFS.
Section 3. Purchase, Sale and Delivery of Securities. (a) On the basis
of the representations, warranties and agreements contained in this Underwriting
Agreement and in the Terms Agreement for a particular offering of Securities,
but subject to the terms and conditions set forth
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in this Underwriting Agreement and subject to the execution of such Terms
Agreement, the Depositor agrees to sell to each Underwriter, severally and not
jointly, and each Underwriter, severally and not jointly, agrees to purchase
from the Depositor, the respective original principal amounts of the related
Securities set forth in the related Terms Agreement opposite the name of such
Underwriter, plus any additional original principal amount of Securities which
such Underwriter may be obligated to purchase pursuant to Section 12 hereof, at
the purchase price therefor set forth in such Terms Agreement.
The parties hereto agree that settlement for all securities sold pursuant
to this Underwriting Agreement shall take place on the terms set forth herein
and not as set forth in Rule 15c6-1(a) under the Exchange Act.
(b) Against payment of the purchase price specified in the applicable
Terms Agreement in same day funds drawn to the order of the Depositor (or paid
by such other manner as may be agreed upon by the Depositor and the
Representative), the Depositor will deliver the related Securities of a Series
to the Underwriters at the offices of Mayer, Brown & Platt, 190 South LaSalle
Street, Chicago, Illinois 60603 at such time as shall be specified in such Terms
Agreement, or at such other place and time as the Representative and the
Depositor shall agree upon, each such time being herein referred to as a
"Closing Date." The Securities of each Series will initially be in definitive,
fully registered form or will be maintained through the facilities of The
Depository Trust Company, as indicated in the applicable Prospectus Supplement.
Section 4. Public Offering of Securities. It is understood by the parties
hereto that, after the Registration Statement becomes effective, the
Underwriters propose to offer the Securities for sale to the public (which may
include selected dealers), as set forth in the Prospectus.
Section 5. Covenants of DFS and the Depositor. Each of DFS and the
Depositor jointly and severally covenants and agrees with each Underwriter:
(a) That immediately following the execution of each Terms Agreement, the
Depositor shall prepare a Prospectus Supplement setting forth the amount of
Securities covered thereby and the terms thereof not otherwise specified in the
Prospectus, the price at which such Securities are to be purchased by the
Underwriters from the Depositor, either the initial public offering price or the
method by which the price at which such Securities are to be sold will be
determined, the selling concessions and reallowances, if any, and such other
information as the Representative and the Depositor deem appropriate in
connection with the offering of such Securities; provided, however, that each of
DFS and the Depositor shall make no amendment or supplement to the Registration
Statement affecting or relating to any material extent to the Securities of a
Series to which this Underwriting Agreement relates, and shall make no amendment
or supplement to the Prospectus or the Prospectus Supplement without furnishing
the Representative with a copy of the proposed form thereof and providing the
Representative with a reasonable opportunity to review the same, and shall not
file any such amendment or supplement to which the Representative shall
reasonably object; and, provided further, that each of DFS and the Depositor
shall advise the Representative, promptly after it receives notice thereof, of
the time when any amendment to the Registration Statement has been filed or
becomes effective or any supplement
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to the Prospectus or the Prospectus Supplement or any amended Prospectus or
Prospectus Supplement has been filed or mailed for filing, of the issuance of
any stop order by the Commission, of the suspension of the qualification of the
Securities of a Series for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose, or of any
request by the Commission for the amending or supplementing of the Registration
Statement, the Prospectus or the Prospectus Supplement or for additional
information; and, in the event of the issuance of any such stop order or of any
order preventing or suspending the use of any Prospectus or Prospectus
Supplement relating to the Securities of a Series or suspending any such
qualification, promptly shall use its best efforts to obtain its withdrawal.
(b) That the Depositor shall cause any Computational Materials and any
Structural Term Sheets (each as defined herein) with respect to the Securities
of a Series that are delivered by an Underwriter to the Depositor pursuant to
Section 9 to be filed with the Commission on a Current Report on Form 8-K (an
"ABS Filing") pursuant to Rule 13a-11 under the Exchange Act on the business day
immediately following the later of (i) the day on which such Computational
Materials and Structural Term Sheets are delivered to counsel for the Depositor
by an Underwriter prior to 1:00 p.m. New York time and (ii) the date on which
the related Prospectus Supplement is first made available to the public. The
Depositor shall cause any Collateral Term Sheet with respect to the Securities
of a Series that is delivered by the Representative to the Depositor in
accordance with the provisions of Section 10 to be filed with the Commission on
an ABS Filing pursuant to Rule 13a-11 under the Exchange Act on the business day
immediately following the day on which such Collateral Term Sheet is delivered
to counsel for the Depositor by the Representative. Each such ABS Filing shall
be incorporated by reference in the related Prospectus and the related
Registration Statement.
(c) Promptly from time to time to take such action as the Representative
may reasonably request in order to qualify the Securities of a Series for
offering and sale under the securities laws of such states as the Representative
may request and to continue such qualifications in effect so long as necessary
under such laws for the distribution of such Securities; provided, that in
connection therewith neither DFS nor the Depositor shall be required to qualify
as a foreign corporation to do business or to file a general consent to service
of process in any jurisdiction.
(d) To furnish to each Underwriter copies of the Registration Statement
(one of which will be signed and will include all exhibits), each related
preliminary prospectus, the Prospectus, and all amendments and supplements to
such documents, in each case as soon as available and in such quantities as such
Underwriter may from time to time reasonably request; and, if the delivery of a
Prospectus or Prospectus Supplement shall be at the time required by law in
connection with sales of the Securities of a Series and either (i) any event
shall have occurred as a result of which the Prospectus or Prospectus Supplement
would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, or (ii) for any
other reason it shall be necessary during such same period to amend or
supplement the Prospectus or Prospectus Supplement, to notify the Representative
and to prepare and furnish to the Representative as the Representative may from
time to time reasonably request an amendment or a supplement to the Prospectus
or Prospectus Supplement which will correct such statement or omission or effect
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such compliance, or if it is necessary at any time to amend or supplement the
Prospectus or Prospectus Supplement to comply with the Act or the Rules and
Regulations, the Depositor will promptly prepare and file with the Commission an
amendment or supplement that will correct such statement or omission or an
amendment that will effect such compliance; provided, however, that the
Depositor will not be required to file any such amendment or supplement with
respect to any Computational Materials, Structural Term Sheets or Collateral
Term Sheets incorporated by reference in the Prospectus other than any
amendments or supplements of such Computational Materials or Structural Term
Sheets that are furnished to the Depositor by the Underwriters pursuant to
Section 9(c) hereof or any amendments or supplements of such Collateral Term
Sheets that are furnished to the Depositor by the Underwriters pursuant to
Section 10(c) hereof which are required to be filed in accordance therewith.
(e) To file or cause to be filed with the Commission all reports required
to be filed with respect to each Series pursuant to Sections 13(a), 13(c), 14 or
15(d) of the Exchange Act.
(f) So long as any of the Securities of a Series are outstanding, to
furnish each Underwriter copies of all reports or other communications
(financial or other) furnished to holders of such Securities, and to deliver to
the Underwriters during such same period (i) as soon as they are available,
copies of any reports and financial statements furnished to or filed with the
Commission and (ii) such additional information concerning the business and
financial condition of the Depositor as such Underwriter may from time to time
reasonably request.
(g) To pay all expenses (other than fees of counsel for the Underwriters,
except as provided below) incident to the performance of the obligations under
this Underwriting Agreement and the related Terms Agreement, including:
(i) the word processing, printing and filing of the Registration
Statement as originally filed and of each amendment thereto;
(ii) the reproduction of this Underwriting Agreement and the related
Terms Agreement;
(iii) the preparation, printing, issuance and delivery of the
Securities of each Series to the Underwriters;
(iv) the fees and disbursements of counsel and accountants for DFS
and/or the Depositor;
(v) the qualification of the Securities of a Series under
securities laws in accordance with the provisions of Section 5(c) hereof,
including filing fees and the reasonable fees and disbursements of counsel
for the Underwriters in connection therewith and in connection with the
preparation of the Blue Sky Survey;
(vi) if requested by the Representative, the determination of the
eligibility of the Securities for investment and the reasonable fees and
disbursements of counsel for the Underwriters in connection therewith and
in connection with the preparation of the Legal
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Investment Memorandum;
(vii) the printing and delivery to the Underwriters of copies of the
Registration Statement as originally filed and of each amendment thereto,
of the preliminary prospectuses, and of the Prospectus and Prospectus
Supplement and any amendments or supplements thereto;
(viii) the printing and delivery to the Underwriters of copies of the
Blue Sky Survey and, if requested by the Representative, the Legal
Investment Memorandum, if any;
(ix) the fees of any rating agency rating the Securities of a Series;
and
(x) the fees and expenses of each Trustee and its counsel.
If the sale of the Securities of a Series is not consummated by reason of
any failure, refusal or inability on the part of DFS or the Depositor to perform
any agreement on its part to be performed, or because any condition of the
Underwriters' obligations hereunder required to be fulfilled shall not have been
fulfilled (other than as a result of any breach or default by the Underwriters),
each of DFS and the Depositor shall jointly and severally be obligated to
reimburse the Underwriters for all out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for the Underwriters. For purposes
of the preceding sentence, the conditions in clauses (ii) and (iii) of Section
6(d) shall not be conditions required to be fulfilled by DFS or the Depositor.
(h) So long as the Securities of a Series are outstanding, or until such
time as each Underwriter shall cease to maintain a secondary market in such
Securities, whichever occurs first, to deliver to each Underwriter all
statements and reports furnished to the related Trustee pursuant the applicable
Agreement, as soon as such statements and reports are furnished to such Trustee.
(i) From and after the related Closing Date, not to take any action
inconsistent with the related Trust's ownership of the related Receivables other
than as permitted by the applicable Agreement.
(j) To the extent, if any, that the rating provided with respect to any
Class of Securities of a Series by a rating agency or agencies that initially
rate such Securities is conditional upon the furnishing of documents or the
taking of any other actions by DFS and/or the Depositor, to furnish such
documents and take any such other actions.
(k) That during the period when a prospectus is required by law to be
delivered in connection with the sale of the Securities of a Series pursuant to
this Underwriting Agreement and the related Terms Agreement, the Depositor will
file, or cause the related Trustee to file on behalf of the related Trust, on a
timely and complete basis, all documents that are required to be filed by such
Trust with the Commission pursuant to Sections 13, 14 or 15(d) of the Exchange
Act.
Section 6. Conditions Precedent to the Obligations of the Underwriters.
The obligation of the
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Underwriters to purchase and pay for the Securities of a Series is subject to
the accuracy of the representations and warranties on the part of DFS and the
Depositor herein and in the related Terms Agreement as of the respective dates
thereof and the related Closing Date, to the accuracy of the statements of
officers of DFS and the Depositor made pursuant to the provisions hereof and
thereof, to the performance by each of DFS and the Depositor of its obligations
hereunder and thereunder and to the following additional conditions precedent:
(a) The Registration Statement shall have become effective not later than
4:00 p.m., New York time, on the day following the date of this Underwriting
Agreement or such later date as shall have been consented to by the
Representative; and prior to the related Closing Date no stop order suspending
the effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
DFS or the Depositor, shall be contemplated by the Commission. If the Depositor
has elected to rely upon Rule 430A of the Rules and Regulations, the price of
the Securities of a Series and any price-related information previously omitted
from the effective Registration Statement pursuant to such Rule 430A shall have
been transmitted to the Commission for filing pursuant to Rule 424(b) of the
Rules and Regulations within the prescribed time period, and prior to the
related Closing Date the Depositor shall have provided evidence satisfactory to
the Representative of such timely filing, or a post-effective amendment
providing such information shall have been promptly filed and declared effective
in accordance with the requirements of Rule 430A of the Rules and Regulations.
(b) Each of DFS and the Depositor shall have delivered on or before the
related Closing Date to the Representative a certificate, dated as of such
Closing Date, signed by its president, a senior vice president or a vice
president to the effect that the signer of such certificate has carefully
examined the Registration Statement, the Prospectus, each related Agreement and
this Underwriting Agreement and related Terms Agreement and that:
(i) to the best of such officer's knowledge, the representations
and warranties of DFS and/or the Depositor, as the case may be, in this
Underwriting Agreement and the related Terms Agreement are true and correct
in all material respects at and as of such Closing Date with the same
effect as if made on such Closing Date;
(ii) each of DFS and the Depositor, as the case may be, has complied
with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to such Closing Date;
(iii) no stop order suspending the effectiveness of the Registration
Statement has been issued and no proceedings for that purpose have been
initiated or, to DFS's or the Depositor's knowledge, threatened as of such
Closing Date; and
(iv) nothing has come to such person's attention that would lead
such person to believe that the Prospectus as amended and supplemented as
of such Closing Date contains any untrue statement of a material fact or
omits to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
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(c) Since the respective dates as of which information is given in the
Prospectus and Prospectus Supplement, there shall not have occurred any material
adverse change or any development involving a prospective material adverse
change in or affecting particularly the business or assets of the related Trust,
the Depositor or DFS or any material adverse change in the financial position or
results or operations of such Trust, the Depositor or DFS otherwise than as set
forth or contemplated in the Prospectus and Prospectus Supplement, which in any
such case makes it impracticable or inadvisable in the Representative's judgment
to proceed with the public offering or the delivery of the related Securities on
the terms and in the manner contemplated in the related Terms Agreement and
Prospectus and Prospectus Supplement.
(d) Subsequent to the execution and delivery of a Terms Agreement, there
shall not have occurred (i) any change, or any development involving a
prospective change, in or affecting particularly the business, financial
condition or properties of DFS or the Depositor which, in the Representative's
judgment, materially impairs the investment quality of the related Securities,
(ii) any material adverse change in the financial markets in the United States
or any outbreak of hostilities or other calamity or crisis, the effect of which
is such as to make it, in the judgment of the Representative, impracticable or
inadvisable to market such Securities or to enforce contracts for the sale of
such Securities, (iii) the suspension of trading generally by either the
American Stock Exchange or the New York Stock Exchange, or the establishment of
minimum or maximum prices or ranges of prices, by either of such exchanges or by
order of the Commission or any other governmental authority, or any banking
moratorium declared by Federal, Missouri or New York authorities or (iv) any
event that would constitute a default under such Terms Agreement or this
Underwriting Agreement or default in the performance of DFS's or the Depositor's
obligations under any related Agreement or which, with the passage of time or
the giving of notice or both, would constitute such default.
(e) The Representative shall have received from counsel (who shall be
satisfactory to the Representative) for DFS and the Depositor, an opinion, dated
the related Closing Date, addressed to the Underwriters and satisfactory in form
and substance to the Representative and to counsel to the Underwriters, with
respect to the matters set forth in Exhibit B hereto.
(f) The Representative shall have received from counsel (who shall be
satisfactory to the Representative) for the Depositor, an opinion, dated the
related Closing Date and satisfactory in form and substance to the
Representative and to counsel to the Underwriters, to the effect that the
information in the Prospectus and Prospectus Supplement under the heading "State
and Local Tax Consequences," to the extent it constitutes matters of Missouri,
Illinois, California or New York law or legal conclusions with respect thereto,
has been reviewed by such counsel and is correct in all material respects.
(g) The Representative shall have received from counsel (who shall be
satisfactory to the Representative) for DFS and the Depositor, an opinion, dated
the related Closing Date, addressed to the Underwriters and satisfactory in form
and substance to the Representative and to counsel to the Underwriters, relating
to certain insolvency and bankruptcy matters and federal income tax matters.
11
(h) The Representative shall have received from counsel (who shall be
satisfactory to the Representative) for each Trustee, an opinion, dated the
related Closing Date, addressed to the Underwriters, DFS and the Depositor and
satisfactory in form and substance to the Representative and to counsel to the
Underwriters, in substantially the form of Exhibit C hereto.
(i) The Representative shall have received an officer's certificate dated
the related Closing Date of the chairman of the board, the president, an
executive vice president or the treasurer of each Trustee in which such officer
shall state that, to the best of his/her knowledge after reasonable
investigation, the representations and warranties of such Trustee contained in
the related Agreement are true and correct in all material respects, and that
such Trustee has complied in all material respects with all agreements and
satisfied all conditions on its part to be performed or satisfied under the
related Agreement at or prior to such Closing Date.
(j) Each Trustee shall have furnished to the Representative a certificate
of the Trustee, signed by one or more duly authorized officers of such Trustee,
dated the related Closing Date, as to the due acceptance of the related
Agreement by such Trustee and the due execution and delivery of the Securities
of such Series by such Trustee thereunder and such other matters as the
Representative shall reasonably request.
(k) Counsel to DFS and the Depositor shall have furnished to the
Representative any opinions supplied to the rating agencies relating to certain
matters with respect to the Securities of a Series, which opinions shall also be
addressed to the Underwriters. Drafts of such opinions shall have been furnished
to the Representative no later than five business days prior to the related
Closing Date.
(l) The Representative shall have received a letter, dated the related
Closing Date and addressed to the Underwriters, from certified public
accountants (who shall be satisfactory to the Representative), substantially in
the form approved by the Representative and counsel to the Underwriters.
(m) The Representative shall have received a copy of (i) a file-stamped
acknowledgment copy of each UCC-1 financing statement on Form UCC-1
appropriately filed with respect to the transfer of the related Receivables by
DFS to the Depositor, identifying such Receivables as collateral and naming DFS
as debtor and the Depositor as the secured party, (ii) a file-stamped
acknowledgment copy of each UCC-1 financing statement on Form UCC-1
appropriately filed with respect to the transfer of the related Receivables by
the Depositor to the Owner Trustee pursuant to the related Agreement,
identifying such Receivables as collateral and naming the Depositor as debtor
and the Trust as the secured party, and (iii) if applicable, a file-stamped
acknowledgment copy of each UCC-1 financing statement on Form UCC-1
appropriately filed with respect to the grant of the related Receivables by the
Trust to the Indenture Trustee pursuant to the related Indenture, identifying
such Receivables as collateral and naming the Trust as debtor and the Indenture
Trustee as the secured party.
(n) All documents incident to the Agreements, Terms Agreements and this
Underwriting Agreement shall be reasonably satisfactory in form and substance to
the Representative and counsel to the Underwriters; and all actions taken by the
Depositor to authorize the offering and
12
sale of the Securities of a Series shall be reasonably satisfactory in form and
substance to the Representative and counsel to the Underwriters; and DFS and/or
the Depositor shall furnish the Representative and counsel to the Underwriters
with such other opinions, certificates, letters and documents as the
Representative or counsel to the Underwriters shall reasonably request.
(o) The Securities of the related Series shall have received the ratings
specified in the related Terms Agreement.
(p) On or prior to the related Closing Date, there has been no
downgrading, nor has any notice been given of (i) any intended or possible
downgrading or (ii) any review or possible changes in rating the direction of
which has not been indicated, in the rating accorded and originally requested by
and paid for by or on behalf of the Depositor relating to any previously issued
asset-backed securities of any Trust by any "nationally recognized statistical
rating organization" (as such terms is defined for purposes of the Exchange
Act).
If any condition specified in this Section shall not have been fulfilled
when and as required to be fulfilled, this Underwriting Agreement (with respect
to the related Securities) and the related Terms Agreement may be terminated by
the Representative by notice to the Depositor at any time at or prior to the
related Closing Date, and such termination shall be without liability of any
party to any other party except as provided in Section 5 hereof.
Section 7. Indemnification and Contribution. Each of DFS and the Depositor
shall, jointly and severally, indemnify and hold harmless each Underwriter and
each person who controls any Underwriter within the meaning of Section 15 of the
Act as follows:
(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(or any amendment thereto), or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the
statements therein not misleading, or arising out of any untrue statement
or alleged untrue statement of a material fact contained in the Prospectus
(or any amendment or supplement thereto), or the omission or alleged
omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, if such settlement is effected with
the written consent of the Depositor and DFS (which consent shall not be
unreasonably withheld); and
(iii) against any and all expense whatsoever (including, subject to
Section 7(c) hereof, the reasonable fees and disbursements of counsel
chosen by the Representative) incurred in investigating, preparing or
defending against any litigation, or any investigation or
13
proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever based upon any such untrue statement or omission, to
the extent that any such expense is not paid under (i) or (ii) above;
provided, however, that this Section 7 shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made (A) in reliance upon and
in conformity with written information furnished to the Depositor by the
Representative expressly for use in the Registration Statement (or any amendment
thereto) or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) and set forth in the Prospectus and in the Prospectus
Supplement, in each case as specified in the related Terms Agreement, or (B) in
any ABS Filing or any amendment or supplement thereof, except to the extent that
any untrue statement or alleged untrue statement therein or omission therefrom
results (or is alleged to have resulted) from an error (a "Pool Error") in the
information concerning the characteristics of the Receivables furnished by the
Depositor to the Underwriter in writing or by electronic transmission that was
used in the preparation of any Computational Materials or ABS Term Sheets (or
amendments or supplements thereof) included in such ABS Filing (or amendment or
supplement thereof).
(b) Each Underwriter severally agrees to indemnify and hold harmless the
Depositor and DFS, each of their respective directors, each of their respective
officers who signed the Registration Statement, and each person, if any, who
controls the Depositor and DFS, respectively, within the meaning of Section 15
of the Act, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section 7, as
incurred, but only with respect to (i) untrue statements or omissions, or
alleged untrue statements or omissions, made in the Registration Statement (or
any amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Depositor through the Representative expressly for
use in the Registration Statement (or any amendment thereto) or such preliminary
prospectus or the Prospectus (or any amendment or supplement thereto), in each
case as specified in the related Terms Agreement, or (ii) any Computational
Materials or ABS Term Sheets (or amendments or supplements thereof) furnished to
the Depositor by such Underwriter through the Representative pursuant to Section
9 or Section 10, or directly by such Underwriter, to the extent that such
materials were delivered to investors by such Underwriter, and incorporated by
reference in such Registration Statement or the related Prospectus or any
amendment or supplement thereof (except that no such indemnity shall be
available for any losses, claims, damages or liabilities, or actions in respect
thereof, resulting from any Pool Error).
(c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it with
respect to which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve it from any liability which it may have
otherwise than on account of this Section 7. An indemnifying party may
participate at its own expense in the defense of any such action. In no event
shall the indemnifying parties be liable for the fees and expenses of more than
one counsel (in addition to any local counsel) separate from their own counsel
for all indemnified parties in connection with
14
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances.
Section 8. Contribution. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Section 7 is for any reason held to be unenforceable by the indemnified parties
although applicable in accordance with its terms, the Depositor and DFS, jointly
and severally, on the one hand, and the Underwriters (as applicable), on the
other, shall contribute to the aggregate losses, liabilities, claims, damages
and expenses of the nature contemplated by said Section 7 incurred by the
Depositor, DFS and one or more Underwriters, as incurred, in such proportions
that each applicable Underwriter is responsible for that portion represented by
the percentage that the underwriting discount received by it bears to the
initial public offering price of the related Series of Securities, and the
Depositor and DFS shall be jointly and severally responsible for the balance;
provided, however, that no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.
Notwithstanding the other provisions of this Section 8, an Underwriter shall not
be required to contribute any amount in excess of the amount by which the total
price at which such Securities were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay in respect
of such losses, liabilities, claims, damages and expenses. For purposes of this
Section 8, each person, if any, who controls an Underwriter within the meaning
of Section 15 of the Act shall have the same rights to contribution as such
Underwriter and each officer of the Depositor or DFS who signed the Registration
Statement, and each person, if any, who controls the Depositor or DFS within the
meaning of Section 15 of the Act shall have the same rights to contribution as
the Depositor and DFS.
Section 9. Computational Materials and Structural Term Sheets. (a) Not
later than 5 p.m., New York time, on the business day before the date on which
the applicable ABS Filing relating to the Securities of a Series is required to
be filed by the Depositor with the Commission pursuant to Section 5(b) hereof,
the Representative shall deliver to the Depositor a complete copy of all
materials provided by the Underwriters to prospective investors in such
Securities that constitute (i) "Computational Materials" within the meaning of
the no-action letter dated May 20, 1994, issued by the Division of Corporation
Finance of the Commission to Kidder, Peabody Acceptance Corporation I, Kidder,
Peabody & Co. Incorporated and Kidder Structured Asset Corporation and the no-
action letter dated May 27, 1994, issued by the Division of Corporation Finance
of the Commission to the Public Securities Association (together, the "Kidder
Letters"), the filing of which material is a condition of the relief granted in
such letters (such materials being the "Computational Materials") and (ii)
"Structural Term Sheets" within the meaning of the no-action letter dated
February 17, 1995, issued by the Division of Corporation Finance of the
Commission to the Public Securities Association (the "PSA Letter"), the filing
of which material is a condition of the relief granted in such letter (such
materials being the "Structural Term Sheets"); prior to such delivery by the
Representative to the Depositor of such materials, the Representative shall
notify, or cause to be notified, the Depositor or its counsel by telephone of
its intention to deliver such materials and the approximate date on which such
delivery of such materials is expected to occur.
15
(b) Each Underwriter represents and warrants to and agrees with the
Depositor, as of the date of the related Terms Agreement and as of the related
Closing Date, that:
(i) the Computational Materials furnished to the Depositor pursuant
to Section 9(a) constitute (either in original, aggregated or consolidated
form) all of the materials furnished to prospective investors by such
Underwriter prior to the time of delivery thereof to the Depositor that are
required to be filed with the Commission with respect to the related
Securities in accordance with the Kidder Letters, and such Computational
Materials comply with the requirements of the Kidder Letters; and
(ii) the Structural Term Sheets furnished to the Depositor pursuant
to Section 9(a) constitute all of the materials furnished to prospective
investors by the Underwriter prior to the time of delivery thereof to the
Depositor that are required to be filed with the Commission as "Structural
Term Sheets" with respect to the related Securities in accordance with the
PSA Letter, and such Structural Term Sheets comply with the requirements of
the PSA Letter.
(c) If, at any time when a prospectus relating to the Securities of a
Series is required to be delivered under the Act, it shall be necessary to amend
or supplement the related Prospectus and Prospectus Supplement as a result of an
untrue statement of a material fact contained in any Computational Materials or
Structural Term Sheets provided by the Underwriters pursuant to this Section 9
or the omission to state therein a material fact required, when considered in
conjunction with the related Prospectus and Prospectus Supplement, to be stated
therein or necessary to make the statements therein, when read in conjunction
with the related Prospectus and Prospectus Supplement, not misleading, or if it
shall be necessary to amend or supplement any ABS Filing relating to any
Computational Materials or Structural Term Sheets to comply with the Act or the
Rules and Regulations, the Representative promptly will prepare and furnish to
the Depositor for filing with the Commission an amendment or supplement that
will correct such statement or omission or an amendment which will effect such
compliance.
Section 10. Collateral Term Sheets. (a) Prior to the delivery of any
"Collateral Term Sheet" within the meaning of the PSA Letter, the filing of
which material is a condition of the relief granted in such letter (such
material being the "Collateral Term Sheets" and together with Structural Term
Sheets, referred to herein as "ABS Term Sheets"), to a prospective investor in
Securities of a Series, the Representative shall, in order to facilitate the
timely filing of such material with the Commission, notify the Depositor and its
counsel by telephone of its intention to deliver such materials and the
approximate date on which the first such delivery of such materials is expected
to occur. Not later than 2 p.m., New York time, on the business day immediately
following the date on which any Collateral Term Sheet was first delivered to a
prospective investor in such Securities, the Representative shall deliver to the
Depositor a complete copy of all materials provided by the Underwriters to
prospective investors in the Securities that constitute "Collateral Term
Sheets." At the time of each such delivery, the Representative shall indicate in
writing that the materials being delivered constitute Collateral Term Sheets.
(b) Each Underwriter represents and warrants to and agrees with the
Depositor as of the date
16
of the related Terms Agreement and as of the related Closing Date, that the
Collateral Term Sheets furnished to the Depositor pursuant to Section 10(a)
constitute all of the materials furnished to prospective investors by such
Underwriter prior to time of delivery thereof to the Depositor that are required
to be filed with the Commission as "Collateral Term Sheets" with respect to the
related Securities in accordance with the PSA Letter, and such Collateral Term
Sheets comply with the requirements of the PSA Letter.
(c) If, at any time when a prospectus relating to the Securities of a
Series is required to be delivered under the Act, it shall be necessary to amend
or supplement the related Prospectus and Prospectus Supplement as a result of an
untrue statement of a material fact contained in any Collateral Term Sheets
provided by the Underwriters pursuant to this Section 10 or the omission to
state therein a material fact required, when considered in conjunction with the
related Prospectus and Prospectus Supplement, to be stated therein or necessary
to make the statements therein, when read in conjunction with the related
Prospectus and Prospectus Supplement, not misleading, or if it shall be
necessary to amend or supplement any ABS Filing relating to any Collateral Term
Sheets to comply with the Act or the Rules and Regulations, the Representative
promptly will prepare and furnish to the Depositor for filing with the
Commission an amendment or supplement that will correct such statement or
omission or an amendment which will effect such compliance.
Section 11. Survival of Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of
each of DFS, the Depositor or its officers and of the Underwriters set forth in
or made pursuant to this Underwriting Agreement and the related Terms Agreement
will remain in full force and effect, regardless of any investigation or
statement as to the results thereof, made by or on behalf of any Underwriter,
DFS, the Depositor or any of their respective representatives, officers or
directors of any controlling person, and will survive delivery of and payment
for the related Securities.
Section 12. Default by One or More of the Underwriters. If one or more of
the Underwriters shall fail on a Closing Date to purchase the related Securities
which it or they are obligated to purchase under this Underwriting Agreement and
the applicable Terms Agreement (the "Defaulted Securities"), the Representative
shall have the right, within 24 hours thereafter, to make arrangements for one
or more of the non-defaulting Underwriters, or any other underwriters, to
purchase all, but not less than all, of the Defaulted Securities in such amounts
as may be agreed upon and upon the terms herein set forth and under the
applicable Terms Agreement; if, however, the Representative shall not have
completed such arrangements within such 24-hour period, then:
(a) if the principal amount of Defaulted Securities does not exceed 10% of
the principal amount of such Series of Securities to be purchased pursuant to
such Terms Agreement, each of the non-defaulting Underwriters named in such
Terms Agreement shall be obligated, severally and not jointly, to purchase the
full amount thereof in the proportions that their respective underwriting
obligations thereunder bear to the underwriting obligations of all non-
defaulting Underwriters, or
(b) if the principal amount of Defaulted Securities exceeds 10% of the
principal amount of
17
such Series of Securities to be purchased pursuant to such Terms Agreement, the
applicable Terms Agreement shall terminate without liability on the part of any
non-defaulting Underwriter.
No action taken pursuant to this Section 12 shall relieve any defaulting
Underwriter from liability in respect of its default.
In the event of any such default which does not result in a termination of
the related Terms Agreement, either the Representative or the Depositor shall
have the right to postpone the related Closing Date for a period not exceeding
seven days in order to effect any required changes in the Registration
Statement, Prospectus or Prospectus Supplement or in any other documents or
arrangements.
Section 13. Notices. All communications hereunder will be in writing and:
(i) if sent to the Underwriters, will be mailed, delivered or sent by
facsimile transmission and confirmed to the Representative at:
Deutsche Bank Securities Inc.
31 West 52nd Street
New York, New York 10019
Attention: James Rothman
Telephone: (212) 469-8000
Facsimile: (212) 469-5923;
with a copy to:
Brown & Wood LLP
815 Connecticut Avenue, Suite 701, N.W.
Washington, D.C. 20006-4004
Attention: Edward E. Gainor
Telephone: (202) 973-0600
Facsimile: (202) 223-0485;
(ii) if sent to the Depositor, will be mailed, delivered or sent by
facsimile transmission, and confirmed to it at:
Deutsche Recreational Asset Funding Corporation
c/o Deutsche Financial Services Corporation
655 Maryville Centre Drive
St. Louis, Missouri 63141
Attention: Richard Schumacher
Telephone: (314) 523-3950
Facsimile: (314) 523-3993;
(iii) if sent to DFS, will be mailed, delivered or sent by facsimile
transmission, and confirmed to it at:
18
Deutsche Financial Services Corporation
655 Maryville Centre Drive
St. Louis, Missouri 63141
Attention: Richard Schumacher
Telephone: (314) 523-3950
Facsimile: (314) 523-3993;
or to such other address as DFS, the Depositor or the Representative may
designate in writing to the other parties hereto.
Section 14. Successors. This Underwriting Agreement will inure to the
benefit of and be binding upon the Underwriters, DFS and the Depositor and their
respective successors and the officers and directors and controlling persons
referred to in Section 7 hereof, and no other person will have any right or
obligations hereunder.
Section 15. Governing Law. THIS UNDERWRITING AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH
PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY
OF NEW YORK, NEW YORK OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS UNDERWRITING AGREEMENT AND ANY TERMS AGREEMENT, AND IRREVOCABLY AGREES
THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH STATE OR FEDERAL COURT, AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO
THE MAINTENANCE OF SUCH ACTION OF PROCEEDING.
Section 16. Nonpetition Covenant. Notwithstanding any prior termination of
this Underwriting Agreement or any Terms Agreement, the Underwriters shall not
acquiesce, petition or otherwise invoke or cause the Depositor or any Trust to
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Depositor or any Trust under any
federal or state bankruptcy, insolvency or similar law, or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Depositor or any Trust or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the
Depositor or any Trust.
Section 17. Counterparts. This Underwriting Agreement may be executed by
each of the parties hereto in any number of counterparts, and by each of the
parties hereto on separate counterparts, each of which counterparts, when so
executed and delivered, shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.
19
If the foregoing is in accordance with your understanding, please sign and
return to us a counterpart hereof, whereupon this letter and your acceptance
hereof shall constitute a binding agreement between the Underwriters, the
Depositor and DFS.
Very truly yours,
DEUTSCHE RECREATIONAL ASSET FUNDING CORPORATION
By: /s/ Richard C. Goldman
Name: Richard C. Goldman
Title: Vice President
By: /s/ Richard H. Schumacher
Name: Richard H. Schumacher
Title: Vice President
DEUTSCHE FINANCIAL SERVICES CORPORATION
By: /s/ Richard C. Goldman
Name: Richard C. Goldman
Title: Senior Vice President
By: /s/ Richard H. Schumacher
Name: Richard H. Schumacher
Title: Senior Vice President
Accepted in New York, New York,
as of the date hereof:
DEUTSCHE BANK SECURITIES INC.
By: /s/ James Rothman
Name: James Rothman
Title: Vice President
By: /s/ David Bondy
Name: David Bondy
Title: Director
Acting on behalf of itself and, if applicable,
as the Representative of the Underwriters
named in the related Terms Agreement.
20
EXHIBIT A
DEUTSCHE RECREATIONAL ASSET FUNDING CORPORATION
DISTRIBUTION FINANCIAL SERVICES RV TRUST _____-__
Asset Backed Securities
TERMS AGREEMENT
---------------
[Date]
To: Deutsche Recreational Asset Funding Corporation, as Depositor under the
Trust Agreement dated as of [Date] (the "Trust Agreement").
Re: Underwriting Agreement dated as of March 12, 1999 (the "Standard Terms,"
and together with this Terms Agreement, the "Agreement").
Series Designation: Series ____.
Terms of the Series Securities: Distribution Financial Services RV
Trust ____-__ Asset Backed [Notes] [Certificates], Class __, Class __, Class __,
Class __, Class __, Class __ and Class __ [Notes] [Certificates] (the
"Securities") will evidence beneficial ownership interest in a pool of
Receivables having the characteristics described in the Prospectus Supplement
dated the date hereof. Only the Class __, Class __, Class __, Class __ and
Class __ [Notes] [Certificates] (collectively, the "Offered Securities") are
being sold pursuant to the terms hereof.
Registration Statement: File Number 33-______.
Ratings: It is a condition of Closing that at the Closing Date the Class
__ and Class __ Securities be rated "____" by _______________ ("____") and "___"
by _____________ ("_____"); that the Class __ Securities be rated "___" by ____
and "___" by ____; that the Class __ Securities be rated "__" by ____ and "__"
by _______.
Terms of Sale of Offered Securities: The Depositor agrees to sell to
Deutsche Bank Securities Inc. [and ______________________________ (the
"Underwriter[s]")] and Deutsche Bank Securities Inc. [and ___________________
each] agree[s] [, severally and not jointly,] to purchase from the Depositor the
Offered Securities in the principal amounts and prices set forth beneath their
[respective] name[s] on Schedule 1. The purchase price for each class of the
Offered Securities shall be the applicable Purchase Price Percentage set forth
in Schedule 1
A-22
multiplied by the applicable principal amount.
Cut-off Date: [Date]
Closing Date: 10:00 A.M., New York time, on or about [Date]. On the
Closing Date, the Depositor will deliver the Offered Securities to the
Underwriters against payment therefor.
Underwriter-Provided Information: The Depositor and DFS each acknowledge
and agree that the information set forth in (i) the table immediately following
the _______ paragraph under the caption "Underwriting" in the Prospectus
Supplement dated [Date], (ii) the _______ and _______ paragraphs under such
caption in such Prospectus Supplement and (iii) the table immediately following
the _______ paragraph under such caption in such Prospectus Supplement, as such
information relates to the Securities, constitute the only information furnished
in writing by or on behalf of the Underwriters for inclusion in the Registration
Statement, the Prospectus or the Prospectus Supplement, and the Underwriters
confirm that such statements are correct.
Incorporation of the Standard Terms: Each of the provisions of the
Standard Terms is incorporated herein by reference in its entirety and shall be
deemed to be a part of this Terms Agreement to the same extent as if such
provisions had been set forth in full herein and each of the representations and
warranties set forth therein shall be deemed to have been made on and as of the
date of this Terms Agreement, and the Standard Terms and this Terms Agreement
shall be construed as, together, one and the same agreement. Without limiting
the foregoing, Sections 14 through 17 of the Standard Terms are incorporated
herein by reference in their entirety.
A-23
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to the undersigned a counterpart hereof, whereupon this
instrument along with all counterparts will become a binding agreement among the
Underwriters, Deutsche Recreational Asset Funding Corporation and Deutsche
Financial Services Corporation.
Very truly yours,
DEUTSCHE BANK SECURITIES INC.
By:
Name:
Title:
By:
Name:
Title:
[Acting on behalf of itself and as the
Representative of the Underwriters named herein.]
Accepted in New York, New York,
as of the date hereof:
DEUTSCHE RECREATIONAL ASSET FUNDING
CORPORATION
By:
Name:
Title:
By:
Name:
Title:
DEUTSCHE FINANCIAL SERVICES CORPORATION
By:
Name:
Title:
By:
Name:
Title:
A-24
Schedule 1
----------
Approximate
Amount Approximate
Initial Purchase Purchased by Amount
Interest Principal Price Deutsche Bank Purchased by
Class Rate Amount (1) Percentage Securities Inc. [ ]
- ----- --------------- ---------------------- --------------- ---------------------- ------------------
Class $ % $ $
Class $ % $ $
Class $ % $ $
Class $ % $ $
Class $ % $ $
Total/ $ % $ $
Wtd Avg
(1) Approximate.
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EXHIBIT B
1. DFS is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Nevada, and is duly qualified to
transact business and is in good standing in each jurisdiction in the United
States of America in which failure to so qualify would have a material adverse
effect on its business and financial condition.
2. The Depositor is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Nevada and is duly qualified to
transact business and is in good standing in each jurisdiction in the United
States in which the conduct of its business or the ownership of its property
requires such qualification.
3. The Depositor has the corporate power and corporate authority to carry
on its business as described in the Prospectus and to own its own assets in
connection therewith.
4. DFS and the Depositor each has the requisite power to execute and
deliver each Agreement (as applicable), Terms Agreement and the Underwriting
Agreement and to perform its obligations thereunder.
5. Each of the Agreements (as applicable), Terms Agreement and the
Underwriting Agreement has been duly and validly authorized, executed and
delivered by each of DFS and the Depositor, and each constitutes the valid,
legal and binding obligation of each of DFS and the Depositor, enforceable
against each of DFS and the Depositor in accordance with its terms, except as
enforceability thereof may be limited by bankruptcy, insolvency, reorganization
or other similar laws relating to or affecting the enforcement of creditors'
rights generally and by general equitable principles, regardless of whether such
enforceability is considered in a proceeding in equity or at law.
6. The Securities of the applicable Series have been duly and validly
authorized, and, when duly and validly executed and delivered in accordance with
the related Agreement, and following delivery to and payment therefor by the
Underwriters as provided in the related Terms Agreement, will be validly issued
and outstanding and entitled to the benefits of the related Agreement.
7. Neither the execution and delivery by DFS or the Depositor of any
Agreement (as applicable), a Terms Agreement or the Underwriting Agreement nor
the consummation of DFS or the Depositor of the transactions therein
contemplated, nor the issuance of the Securities of a Series by a Trust or the
public offering thereof as contemplated in the Prospectus and Prospectus
Supplement, will conflict with or result in a breach of, or constitute a default
(with notice or passage of time or both) under, or result in the imposition of
any lien, charge or encumbrance upon any of the property or assets of DFS or the
Depositor (except as required or permitted pursuant thereto) pursuant to any
indenture, mortgage, contract or other instrument to which DFS or the Depositor
is party or by which any of them is bound, nor will such action violate any
provision of the certificate of incorporation or by-laws of DFS or the
Depositor. To the best of such counsel's knowledge and information, the
execution and delivery of the Agreements, a
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Terms Agreement and the Underwriting Agreement and the consummation of the
transactions contemplated thereby will not result in the violation of the
provisions of any applicable federal or Missouri law, administrative regulation
or court decree.
8. There are no legal or governmental proceedings pending or, to the
knowledge of such counsel, threatened which are required to be disclosed in the
Registration Statement, other than those disclosed therein, and all pending
legal or governmental proceedings to which DFS or the Depositor is a party or to
which any of its property is subject which are not described in the Registration
Statement, including ordinary routine litigation incidental to the business,
are, considered in the aggregate, not material. There are no legal or
governmental proceedings pending or, to the best of such counsel's knowledge and
information, threatened (A) asserting the invalidity of an Agreement or the
Securities of a Series, (B) seeking to prevent the issuance of such Securities
or the consummation by DFS or the Depositor of any of the transactions
contemplated by the Agreements, a Terms Agreement or the Underwriting Agreement
or (C) which might materially and adversely affect the performance by DFS or the
Depositor of its obligations under the Agreements (as applicable), a Terms
Agreement or the Underwriting Agreement.
9. No consent, approval, authorization or order of, or registration,
filing or declaration with, any court or governmental agency or body is required
in connection with (i) the execution and delivery by DFS or the Depositor of the
Agreements (as applicable), a Terms Agreement or of the Underwriting Agreement
or the performance by DFS or the Depositor of any of its obligations therein or
(ii) the offer, sale or delivery of the Securities of a Series, except such as
shall have been obtained or made, as the case may be, or will be obtained or
made, as the case may be, prior to the applicable Closing Date.
10. Each of DFS and the Depositor possesses all material licenses,
certificates, authorities or permits issued by the appropriate state or federal
regulatory agencies or bodies necessary to conduct the business now conducted by
it and as described in the Prospectus as amended and supplemented, except to the
extent that the failure to have such licenses, certificates, authorities or
permits does not have a material adverse effect on the Securities of a Series or
the financial condition of DFS or the Depositor, and neither DFS nor the
Depositor has received any notice of proceedings relating to the revocation or
modification of any such license, certificate, authority or permit which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or
finding, would materially and adversely affect the conduct of its business,
operations or financial condition.
11. The Registration Statement has become effective under the Act and, to
the best of such counsel's knowledge, no stop order suspending the effectiveness
of the Registration Statement has been issued and no proceeding for that purpose
has been instituted or threatened by the Commission. The Registration Statement
and the Prospectus as amended and supplemented (other than the financial
statements and other accounting information contained in the Registration
Statement or the Prospectus, or omitted therefrom, as to which such counsel does
not express any opinion) comply as to form in all material respects with the
requirements of the Act and the rules and regulations thereunder.
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12. There are no contracts or other documents required to be filed as an
exhibit to the Registration Statement or required to be described in the
Registration Statement or the Prospectus which are not so filed or described as
required.
13. The Securities, each Agreement and the Underwriting Agreement each
conform in all material respects with the descriptions thereof contained in the
Registration Statement and the Prospectus.
14. Each of DFS and the Depositor has full power and authority to sell and
assign the related Receivables and has duly authorized its sale and assignment
of such property by all necessary corporate action.
15. All filings necessary under applicable law to perfect the transfer of
the related Receivables by DFS to the Depositor pursuant to the related
Agreement have been made and, provided that DFS does not relocate its principal
place of business in a state other than Missouri, no other filings (other than
the filing of continuation statements) need be made to maintain the perfection
of the sale of such Receivables to the Depositor pursuant to the related
Agreement.
16. Immediately prior to the transfer of the related Receivables to the
Trust, the Depositor is the sole owner of all right, title and interest in, and
has good and marketable title to, such Receivables to be transferred by it to
the Trust. The assignment of the related Receivables, all documents and
instruments relating thereto and all proceeds thereof to the Trust, pursuant to
the related Agreement, vest in the Trust all interests which are purported to be
conveyed thereby, free and clear of all liens, security interests, encumbrances
or other rights of others, except as specifically permitted pursuant to the
related Agreement.
17. Immediately prior to the transfer of the related Receivables to the
Trust, the Depositor's interest in such Receivables and the proceeds of each of
the foregoing were perfected, to the extent any filing was necessary to effect
such perfection, upon the appropriate filing of the UCC-1 financing statement,
the form of which is attached to such opinion, and constituted a perfected
ownership interest therein, free and clear of all liens, security interests,
encumbrances and other rights of others, except as specifically permitted
pursuant to the related Agreement. If a court concludes that the transfer of
the related Receivables from the Depositor to the Trust is a sale, the interest
of the Trust in such Receivables and the proceeds of each of the foregoing was
perfected, to the extent any filing was necessary to effect such perfection,
upon the appropriate filing of the UCC-1 financing statement, the form of which
is attached to such opinion, and constitutes a perfected ownership interest
therein, free and clear of all liens, security interests, encumbrances and other
rights of others, except as specifically permitted pursuant to the related
Agreement. If a court concludes that such transfer is not a sale, the related
Agreement constitutes a grant by the Depositor to the Trust of a valid security
interest in the related Receivables and the proceeds of each of the foregoing,
which security interest was perfected upon the appropriate filing of the UCC-1
financing statement, the form of which is attached to such opinion, and
constitutes a first priority perfected security interest therein. No filing or
other action, other than the appropriate filing of the UCC-1 financing
statements, is necessary to perfect and maintain the ownership interest or the
security interest of the Trust in the related
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Receivables and the proceeds of each of the foregoing against third parties.
18. If applicable, immediately prior to the grant of the related
Receivables to the Indenture Trustee, the related Trust is the sole owner of all
right, title and interest in, and has good and marketable title to, such
Receivables to be granted by it to the Indenture Trustee. The assignment of the
related Receivables, all documents and instruments relating thereto and all
proceeds thereof to the Indenture Trustee, pursuant to the related Indenture,
vest in the Indenture Trustee all interests which are purported to be conveyed
thereby, free and clear of all liens, security interests, encumbrances or other
rights of others, except as specifically permitted pursuant to the related
Indenture.
19. If applicable, immediately prior to the grant of the related
Receivables to the Indenture Trustee, the related Trust's interest in such
Receivables and the proceeds of each of the foregoing were perfected, to the
extent any filing was necessary to effect such perfection, upon the appropriate
filing of the UCC-1 financing statement, the form of which is attached to such
opinion, and constituted a perfected ownership interest therein, free and clear
of all liens, security interests, encumbrances and other rights of others,
except as specifically permitted pursuant to the related Indenture. The related
Indenture constitutes a grant by the related Trust to the Indenture Trustee of a
valid security interest in the related Receivables and the proceeds of each of
the foregoing, which security interest was perfected upon the appropriate filing
of the UCC-1 financing statement, the form of which is attached to such opinion,
and constitutes a first priority perfected security interest therein. No filing
or other action, other than the appropriate filing of the UCC-1 financing
statements, is necessary to perfect and maintain the security interest of the
Indenture Trustee in the related Receivables and the proceeds of each of the
foregoing against third parties.
20. The related Trust Agreement is not required to be qualified under the
Trust Indenture Act of 1939, as amended. If applicable, the related Indenture
has been duly qualified under the Trust Indenture Act of 1939, as amended.
21. None of DFS, the Transferor, the Depositor or the related Trust is
(and none of them will, as a result of the offer and sale of the Securities of a
Series, be) an "investment company" or "controlled" by an "investment company"
as such terms are defined in the Investment Company Act of 1940, as amended.
22. If applicable, the Class or Classes of Securities of a Series so
designated in the related Prospectus Supplement will be "eligible securities"
within the meaning of paragraph (a) of Rule 2a-7 under the Investment Company
Act of 1940, as amended.
23. The statements in the Prospectus Supplement under the headings
"Summary of Terms Tax Status," "Summary of Terms ERISA Considerations," "Summary
of Terms Legal Investment," "Description of the Notes, " "Description of the
Transfer and Servicing Agreements," "Federal Income Tax Consequences," "State
and Local Tax Consequences" and "ERISA Considerations" and in the Prospectus
under the heading "Description of the Notes," "Description of the Certificates,"
"Certain Information Regarding the Securities," "Description of the Transfer and
Servicing Agreements," "Certain Legal Aspects of the Receivables," "Federal
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Income Tax Consequences," "State and Local Tax Consequences" and "ERISA
Considerations," to the extent that they constitute matters of law or legal
conclusions with respect thereto, were prepared or reviewed by such counsel and
are correct in all material respects.
24. Nothing has come to such counsel's attention that would lead such
counsel to believe that the Registration Statement, at the time it became
effective, contained an untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading or that the Prospectus and Prospectus
Supplement, at the date thereof or on the applicable Closing Date, included or
includes an untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.
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EXHIBIT C
1. The Trustee has been duly incorporated, formed or organized and is
validly existing in good standing under the laws of the jurisdiction governing
its incorporation, formation or organization with full trust power and authority
to enter into and perform its obligations under the related Agreement.
2. The related Agreement has been duly executed and delivered by the
Trustee, and, insofar as the laws governing the trust powers of the Trustee are
concerned and assuming due authorization, execution and delivery thereof by each
of the Depositor and DFS (as applicable), such Agreement constitutes a legal,
valid and binding obligation of the Trustee, enforceable against the Trustee in
accordance with its terms, except as the enforceability thereof may be limited
by bankruptcy, insolvency, reorganizations or other similar laws relating to or
affecting the enforcement of creditor' rights generally and by general equitable
principles, regardless of whether such enforceability is considered in a
proceeding in equity or at law.
3. The related Securities have been duly executed, authenticated and
delivered by the Trustee.
4. Neither the execution nor delivery by the Trustee of the related
Agreement, nor the consummation of any of the transactions by the Trustee
contemplated thereby required the consent or approval of, the giving of notice
to, the registration with, or the taking of any other action with respect to,
any governmental authority or agency under any existing federal or related state
law governing the trust powers of the Trustee, except such as have been
obtained, made or taken.
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