Exhibit 99.1
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors of Nissan Motor Acceptance Corporation
Torrance, California
We have examined management's assertion that Nissan Motor Acceptance Corporation
(the "Company") has complied as of March 31, 2004 and for the period from
October 29, 2003 (commencement of operations) to March 31, 2004 with its
established minimum servicing standards (herein, the "Servicing Policy")
identified and included in the accompanying Management's Assertion, dated June
18, 2004, for the Nissan Auto Lease Trust 2003-A. Management is responsible for
the Company's compliance with the Servicing Policy. Our responsibility is to
express an opinion on management's assertion about the Company's compliance
based on our examination.
Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Company's
compliance with the Servicing Policy and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Company's compliance with the Servicing Policy.
In our opinion, management's assertion that the Company complied with the
aforementioned Servicing Policy as of March 31, 2004 and for the period from
October 29, 2003 (commencement of operations) to March 31, 2004 for the Nissan
Auto Lease Trust 2003-A is fairly stated, in all material respects based on the
criteria set forth in Appendix I.
/s/ Deloitte & Touche LLP
Costa Mesa, California
June 18, 2004
8
MANAGEMENT'S ASSERTION
June 18, 2004
As of March 31, 2004 and for the period from October 29, 2003 (commencement of
operations) to March 31, 2004, Nissan Motor Acceptance Corporation (the
"Company") has complied, in all material respects, with the Company's
established minimum servicing standards for automobile leases serviced by the
Company for the Nissan Auto Lease Trust 2003-A as set forth in Appendix I (the
"Standards"). The Standards are based on the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Banker's, modified to
address the unique characteristics of servicing automobile leases.
/s/ Steve Lambert
-------------------------------------------------
Steve Lambert - President
/s/ Joji Tagawa
-------------------------------------------------
Joji Tagawa - Treasurer
/s/ Anthony Wall
-------------------------------------------------
Anthony Wall - Assistant Treasurer and Controller
9
APPENDIX I
NISSAN MOTOR ACCEPTANCE CORPORATION'S MINIMUM SERVICING STANDARDS FOR AUTOMOBILE
LEASES
I. CUSTODIAL BANK ACCOUNTS
1. Reconciliations shall be prepared on a monthly basis for all
custodial bank accounts and related bank clearing accounts. These
reconciliations shall:
- be mathematically accurate;
- be prepared within forty-five (45) calendar days after the
cutoff date;
- be reviewed and approved by someone other than the person who
prepared the reconciliation; and
- document explanations for reconciling items. These reconciling
items shall be resolved within ninety (90) calendar days of
their original identification.
2. Funds of the servicing entity shall be advanced as specified in the
servicing agreement in cases where there is an overdraft in an
investor's or lessee's account and an advance is specified in the
investor's servicing agreement.
3. Each custodial account shall be maintained at a federally insured
depository institution in trust for the applicable investor.
II. PAYMENTS
1. Payments shall be deposited into the custodial bank accounts and
related bank clearing accounts within two business days of receipt.
2. Payments made in accordance with the lessee's automobile lease
documents shall be posted to the applicable lessee's records within
two business days of receipt.
3. Payments shall be allocated to rental income or other items in
accordance with the lessee's automobile lease documents.
4. Payments identified as payoffs shall be allocated in accordance with
the lessee's automobile lease documents.
III. DISBURSEMENTS
1. Disbursements made via wire transfer on behalf of a lessee or
investor shall be made only by authorized personnel.
2. Disbursements made on behalf of a lessee or investor shall be posted
within two business days to the lessee's or investor's records
maintained by the servicing entity.
10
3. Amounts remitted to investors per the servicer's investor reports
shall agree with canceled checks, or other form of payment, or
custodial bank statements.
IV. INVESTOR ACCOUNTING AND REPORTING
1. Monthly investor reports are sent to the indenture trustee on a
monthly basis listing the total book value of automobile leases and
number of automobile leases serviced.
V. AUTOMOBILE LEASE ACCOUNTING
1. The servicing entity's automobile lease records shall agree with, or
reconcile to, the records of lessee with respect to the monthly
payment and remaining automobile lease term on a monthly basis.
VI. DELINQUENCIES
1. Records documenting collection efforts shall be maintained during
the period an automobile lease is in default and shall be updated at
least monthly. Such records shall describe the entity's activities
in monitoring delinquent automobile leases, including, for example,
phone calls, letters and payment rescheduling plans in cases where
the delinquency is deemed temporary (e.g., illness or unemployment).
11