DESIGNATION OF REMOVED ACCOUNTS AND FOURTEENTH AMENDMENT TO RECEIVABLES SALE AGREEMENT
Exhibit 4.2
DESIGNATION OF REMOVED ACCOUNTS AND FOURTEENTH AMENDMENT TO RECEIVABLES SALE AGREEMENT
This DESIGNATION OF REMOVED ACCOUNTS AND FOURTEENTH AMENDMENT TO RECEIVABLES SALE AGREEMENT, dated as of October 11, 2019 (this “Designation”), is entered into between SYNCHRONY BANK, a federal savings association organized under the laws of the United States (“Bank”), and RFS HOLDING, L.L.C., a limited liability company organized under the laws of the State of Delaware (“Buyer”), pursuant to the Receivables Sale Agreement referred to below.
WITNESSETH:
WHEREAS, Bank and Buyer are parties to the Receivables Sale Agreement, dated as of June 27, 2003, as amended by the Omnibus Amendment No. 1 to Securitization Documents, dated as of February 9, 2004, the RSA Assumption Agreement and Second Amendment to Receivables Sale Agreement, dated as of February 7, 2005, the Third Amendment to Receivables Sale Agreement, dated as of December 21, 2006, the Fourth Amendment to Receivables Sale Agreement, dated as of May 21, 2008, the Designation of Removed Accounts and Fifth Amendment to Receivables Sale Agreement, dated as of December 29, 2008, the Designation of Removed Accounts and Sixth Amendment to Receivables Sale Agreement, dated as of February 26, 2009, the Seventh Amendment to Receivables Sale Agreement, dated as of November 23, 2010, the Eighth Amendment to Receivables Sale Agreement, dated as of March 20, 2012, the Ninth Amendment to Receivables Sale Agreement, dated as of March 11, 2014, the Designation of Removed Accounts and Tenth Amendment to Receivables Sale Agreement, dated as of November 7, 2014, the Eleventh Amendment to Receivables Sale Agreement, dated as of March 3, 2016, the Twelfth Amendment to Receivables Sale Agreement, dated as of April 21, 2017, and the Thirteenth Amendment to Receivables Sale Agreement, dated as of May 31, 2017 (as amended, the “Agreement”);
WHEREAS, the Accounts relating to Wal-Mart Stores, Inc., Wal-Mart Stores East, Inc., Wal-Mart Stores East, L.P., Xxx-Xxxx.xxx USA, LLC and their permitted successors and assigns (collectively, “Walmart”) under that certain Third Amended and Restated Consumer Credit Card Program Agreement, dated as of December 23, 2013 (as modified, amended or supplemented from time to time, the “Credit Card Program Agreement”), by and among Wal-Mart Stores, Inc., Wal-Mart Stores East, Inc., Wal-Mart Stores East, L.P., Xxx-Xxxx.xxx USA, LLC and Synchrony Bank (formerly known as GE Capital Retail Bank and GE Money Bank) that meet certain eligibility criteria (collectively, the “Walmart Accounts”) have been designated for purchase by a designee of Walmart pursuant to the terms of the Credit Card Program Agreement;
WHEREAS, pursuant to the Agreement, Bank wishes to remove from Buyer all Transferred Receivables owned by Buyer in the Walmart Accounts and to cause Buyer to convey the Transferred Receivables of such Removed Accounts, whether now existing or hereafter created, from Buyer to RFS Holding, Inc. (“RFSHI”) as the designee of Seller;
WHEREAS, Buyer is willing to accept such designation and to convey the Transferred Receivables in the Removed Accounts to RFSHI as a designee of Bank subject to the terms and conditions hereof; and
WHEREAS, Buyer and Bank desire to amend the Agreement as set forth herein;
NOW, THEREFORE, Buyer and Bank hereby agree as follows:
1. Defined Terms. All terms defined in the Agreement and used herein shall have such defined meanings when used herein, unless otherwise defined herein.
“Removal Date” means, with respect to the Removed Accounts designated hereby, October 11, 2019.
“Removal Cut-Off Date” means, with respect to the Removed Accounts designated hereby, October 10, 2019.
2. Designation of Removed Accounts. All Walmart Accounts are designated as Removed Accounts pursuant to this Designation. Schedule 1 to this Designation, as of the Removal Date, shall supplement Schedule 1 to the Agreement as required by Section 2.1(b) of the Agreement.
3. Agreement to Convey of Transferred Receivables to Seller’s Designee. Buyer hereby agrees to transfer, assign, set over and otherwise convey to RFSHI, pursuant to the execution of an assignment agreement substantially in the form of Exhibit A attached hereto, on and after the Removal Date, all right, title and interest of Buyer in, to and under the Transferred Receivables existing at the close of business on the Removal Cut-Off Date and thereafter created from time to time in the Removed Accounts designated hereby, the Related Security and Collections with respect thereto, together with all monies due or to become due and all amounts received or receivable with respect thereto and all Insurance Proceeds related thereto and all proceeds of the foregoing (collectively, the “Conveyed Property”).
4. Amendments to Agreement. (a) Section 1.1 of the Agreement is hereby amended by deleting the definition of “Account Schedule” and replacing it with the following:
“Account Schedule” means a computer file or microfiche list containing a true and complete list of Accounts, identified by account number (or by an alpha-numeric identifier that uniquely and objectively identifies the applicable account number pursuant to a protocol that has been provided to the Buyer) and setting forth the receivables balance for each as of (i) the applicable Addition Cut-Off Date, in the case of an Account Schedule relating to Additional Accounts, (ii) either the Removal Notice Date or Removal Cut-Off Date as specified in the related Removal Notice, in the case of an Account Schedule relating to Removed Accounts or (iii) the date specified therein, in the case of any Account Schedule relating to Transferred Accounts or any other Account Schedule. Notwithstanding the foregoing. the initial Account Schedule does not set forth receivables balances, and any failure to set forth receivables balances in such a file or list shall not impair the file’s or list’s effectiveness as an Account Schedule.”
Walmart
Designation and
Fourteenth Amendment to
Receivables Sale Agreement
(b) Notwithstanding anything to the contrary in the Agreement, Buyer and RFSHI, as designee of Seller, may agree, pursuant to the execution of an assignment agreement substantially in the form of Exhibit a attached hereto, that the Transferred Receivables existing at the close of business on the Removal Cut-Off Date and thereafter created from time to time in the Removed Accounts designated hereby, the Related Security and Collections with respect thereto, together with all monies due or to become due and all amounts received or receivable with respect thereto and all Insurance Proceeds related thereto and all proceeds of the foregoing, will be assigned by Buyer to RFSHI.
5. Representations and Warranties of Sellers. Bank hereby represents and warrants to Buyer as of the Removal Date:
(a) Legal, Valid and Binding Obligation. This Designation constitutes its legal, valid and binding obligation, enforceable against Bank in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity); and
(b) List of Removed Accounts. The list of Removed Accounts attached hereto is an accurate and complete listing in all material respects of all the Removed Accounts as of the Removal Cut-Off Date.
6. Effectiveness. This Designation shall become effective as of the date first written above; provided that Buyer and Bank shall have executed a counterpart of this Designation.
7. Binding Effect; Ratification. (a) On and after the execution and delivery hereof, (i) this Designation shall be a part of the Agreement and (ii) each reference in the Agreement to “this Agreement”, “hereof”, “hereunder” or words of like import, and each reference in any other Related Document to the Agreement, shall mean and be a reference to such Agreement as amended hereby.
(b) Except as expressly amended hereby, the Agreement shall remain in full force and effect and is hereby ratified and confirmed by the parties hereto.
8. No Proceedings. Until the date one year plus one day following the date on which all amounts due with respect to securities rated by a Rating Agency that were issued by any entity holding Transferred Assets or an interest therein have been paid in full in cash, Bank shall not, directly or indirectly, institute or cause to be instituted against Buyer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceeding under any federal or state bankruptcy or similar law; provided that the foregoing shall not in any way limit Bank’s right to pursue any other creditor rights or remedies that Bank may have under any applicable law. The Agreement and obligations of the Bank under this Section 8 shall survive the termination of the Agreement.
Walmart Designation and
Fourteenth Amendment to
Receivables Sale Agreement
9. Miscellaneous. (a) THIS DESIGNATION SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(b) Headings used herein are for convenience of reference only and shall not affect the meaning of this Designation.
(c) This Designation may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement. Executed counterparts may be delivered electronically.
Walmart
Designation and
Fourteenth Amendment to
Receivables Sale Agreement
IN WITNESS WHEREOF, the undersigned have caused this Designation to be duly executed and delivered by their respective duly authorized officers on the day and year first above written.
| RFS HOLDING, L.L.C., as Buyer | ||
| By: | /s/ Xxxxxx Xxx | |
| Name: | Xxxxxx Xxx | |
| Title: | Vice President | |
Walmart Designation and
Fourteenth Amendment to
Receivables Sale Agreement
| SYNCHRONY BANK, as a Seller | ||
| By: | /s/ Xxxx Xxxxxxxx | |
| Name: | Xxxx Xxxxxxxx | |
| Title: | Senior Vice President & Treasurer | |
Walmart Designation
and
Fourteenth Amendment to
Receivables Sale Agreement
Schedule 1
REMOVED ACCOUNTS
[On file with Synchrony Financial.]
Walmart Designation and
Fourteenth Amendment to
Receivables Sale Agreement
Exhibit A
Form of Assignment of Receivables in Removed Accounts
Walmart Designation and
Fourteenth Amendment to
Receivables Sale Agreement
ASSIGNMENT OF RECEIVABLES IN REMOVED ACCOUNTS
This ASSIGNMENT OF RECEIVABLES IN REMOVED ACCOUNTS, dated as of October 11, 2019 (this “Assignment”), is entered into between RFS HOLDING, INC., a corporation organized under the laws of the State of Delaware (“RFSHI”), and RFS HOLDING, L.L.C., a limited liability company organized under the laws of the State of Delaware (“RFSHL”), pursuant to the Receivables Sale Agreement referred to below.
WITNESSETH:
WHEREAS, RFSHL and Synchrony Bank, a federal savings bank organized under the laws of the United States (“Bank”), are parties to the Receivables Sale Agreement, dated as of June 27, 2003, as amended by the Omnibus Amendment No. 1 to Securitization Documents, dated as of February 9, 2004, the RSA Assumption Agreement and Second Amendment to Receivables Sale Agreement, dated as of February 7, 2005, the Third Amendment to Receivables Sale Agreement, dated as of December 21, 2006, the Fourth Amendment to Receivables Sale Agreement, dated as of May 21, 2008, and the Designation of Removed Accounts and Fifth Amendment to Receivables Sale Agreement, dated as of December 29, 2008, the Designation of Removed Accounts and Sixth Amendment to Receivables Sale Agreement, dated as of February 26, 2009, the Seventh Amendment to Receivables Sale Agreement, dated as of November 23, 2010, the Eighth Amendment to Receivables Sale Agreement, dated as of March 20, 2012, and the Ninth Amendment to Receivables Sale Agreement, dated as of March 11, 2014, the Designation of Removed Accounts and Tenth Amendment to Receivables Sale Agreement, dated as of November 7, 2014, the Eleventh Amendment to Receivables Sale Agreement, dated as of March 3, 2016, the Twelfth Amendment to Receivables Sale Agreement, dated as of April 21, 2017, the Thirteenth Amendment to Receivables Sale Agreement, dated as of May 31, 2017, and the Designation of Removed Accounts and Fourteenth Amendment to Receivables Sale Agreement, dated as of October 11, 2019 (as amended, the “Agreement”);
WHEREAS, Bank has designated all Walmart Accounts (as defined in the Designation of Removed Accounts and Fourteenth Amendment to Receivables Sale Agreement, dated as of October 11, 2019 (the “Designation”), between RFSHL and Bank) (collectively, the “Removed Accounts”) as “Removed Accounts” under the Agreement pursuant to the Designation;
WHEREAS, pursuant to the Designation, Bank has directed RFSHL to sell the Transferred Receivables arising in such Removed Accounts, whether now existing or hereafter created, to RFSHI, as the designee of Bank; and
WHEREAS, RFSHL is willing to sell the Transferred Receivables in the Removed Accounts to RFSHI, and RFSHI is willing to purchase the Transferred Receivables in the Removed Accounts, in each case subject to the terms and conditions hereof;
NOW, THEREFORE, RFSHI and RFSHL hereby agree as follows:
1. Defined Terms. All terms defined in the Agreement and used herein shall have such defined meanings when used herein, unless otherwise defined herein. The terms “Removal Date” and “Removal Cut-Off Date” shall have the respective meanings assigned to such terms in the Designation.
2. Conveyance of Transferred Receivables. (a) In consideration of the payment of the Purchase Price on the Removal Date pursuant to Section 2(c), RFSHL does hereby sell, transfer, assign, set over and otherwise convey to RFSHI, without representation, warranty or recourse, and RFSHI does hereby purchase and accept, on and after the Removal Date, all right, title and interest of RFSHL in, to and under the Transferred Receivables existing at the close of business on the Removal Cut-Off Date and thereafter created from time to time in the Removed Accounts, the Related Security and Collections with respect thereto, together with all monies due or to become due and all amounts received or receivable with respect thereto and all Insurance Proceeds related thereto and all proceeds of the foregoing (the “Conveyed Property”).
(b) In connection with such transfer, RFSHL agrees to execute and deliver to RFSHI on or prior to the date this Assignment is delivered, applicable UCC-1 financing statements prepared by RFSHL with respect to the Conveyed Property meeting the requirements of applicable state law, in such manner and such jurisdictions as are necessary to perfect the interest of RFSHI in the Conveyed Property.
(c) On the Removal Date, RFSHI shall reduce the amount payable by RFSHL pursuant to that certain Amended and Restated USD Revolving Credit Agreement, dated as of April 1, 2017, between RFSHL and RFSHI, by the price determined in accordance with Section 2.7(b) of the Agreement (the “Purchase Price”).
3. Representations and Warranties. Each of RFSHI and RFSHL hereby represents and warrants as of the Removal Date that this Assignment constitutes a legal, valid and binding obligation of such party enforceable against such party in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).
4. Effectiveness. This Assignment shall become effective as of the date first written above; provided that RFSHL and RFSHI shall have executed a counterpart of this Assignment.
5. No Proceedings. Until the date one year plus one day following the date on which all amounts due with respect to securities rated by a Rating Agency that were issued by any entity holding Transferred Assets or an interest therein have been paid in full in cash, RFSHI shall not, directly or indirectly, institute or cause to be instituted against RFSHL any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceeding under any federal or state bankruptcy or similar law; provided that the foregoing shall not in any way limit RFSHI’s right to pursue any other creditor rights or remedies that RFSHI may have under any applicable law. The agreements and obligations of RFSHI under this Section 5 shall survive the assignment of the Conveyed Property and the termination of this Agreement.
Walmart Assignment to RFSHI
2
6. Miscellaneous. (a) THIS ASSIGNMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(b) Headings used herein are for convenience of reference only and shall not affect the meaning of this Assignment.
(c) This Assignment may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement. Executed counterparts may be delivered electronically.
Walmart Assignment to RFSHI
3
IN WITNESS WHEREOF, the undersigned have caused this Assignment to be duly executed and delivered by their respective duly authorized officers on the day and year first above written.
| RFS HOLDING, L.L.C. |
| By: | ||
| Name: | ||
| Title: |
Walmart Assignment to RFSHI
S-1
| RFS HOLDING, INC. |
| By: | ||
| Name: | ||
| Title: |
Walmart Assignment to RFSHI
S-2
