EXHIBIT 4.2
INDENTURE
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TOYOTA AUTO RECEIVABLES 1999-A OWNER TRUST
as Issuer
and
U.S. BANK NATIONAL ASSOCIATION,
as Indenture Trustee and
Securities Intermediary
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Dated as of July 1, 1999
TABLE OF CONTENTS
(CONTINUED)
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
PAGE
SECTION 1.01.Definitions.........................................................................................2
SECTION 1.02.Usage of Terms......................................................................................8
SECTION 1.03.Incorporation by Reference of Trust Indenture Act...................................................8
ARTICLE II
THE NOTES
SECTION 2.01.Form................................................................................................9
SECTION 2.02.Execution, Authentication and Delivery..............................................................9
SECTION 2.03.Temporary Notes....................................................................................10
SECTION 2.04.Registration; Registration of Transfer and Exchange................................................10
SECTION 2.05.Mutilated, Destroyed, Lost or Stolen Notes.........................................................11
SECTION 2.06.Persons Deemed Owners..............................................................................12
SECTION 2.07.Payments of Principal and Interest.................................................................12
SECTION 2.08.Cancellation.......................................................................................12
SECTION 2.09.Release of Collateral..............................................................................13
SECTION 2.10.Book-Entry Notes...................................................................................13
SECTION 2.11.Notices to Clearing Agency.........................................................................14
SECTION 2.12.Definitive Notes...................................................................................14
SECTION 0.00.Xxx Treatment......................................................................................14
ARTICLE III
COVENANTS
SECTION 3.01.Payments to Noteholders, Certificateholders, Servicer and Seller...................................15
SECTION 3.02.Maintenance of Office or Agency....................................................................15
SECTION 0.00.Xxxxx for Payments To Be Held in Trust.............................................................15
SECTION 3.04.Existence..........................................................................................17
SECTION 0.00.Xxxxxxxxxx of Trust Estate.........................................................................17
SECTION 3.06.Opinions as to Trust Estate........................................................................18
SECTION 3.07.Performance of Obligations; Servicing of Receivables...............................................18
SECTION 3.08.Negative Covenants.................................................................................20
SECTION 3.09.Annual Statement as to Compliance..................................................................21
SECTION 3.10.Issuer May Consolidate, etc., Only on Certain Terms................................................21
SECTION 3.11.Successor or Transferee............................................................................23
SECTION 0.00.Xx Other Business..................................................................................23
SECTION 0.00.Xx Borrowing.......................................................................................23
SECTION 3.14.Servicer's Notice Obligations......................................................................23
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TABLE OF CONTENTS
(CONTINUED)
PAGE
SECTION 3.15.Guarantees, Loans, Advances and Other Liabilities..................................................23
SECTION 0.00.Xxxxxxx Expenditures...............................................................................24
SECTION 3.17.Removal of Administrator...........................................................................24
SECTION 3.18.Restricted Payments................................................................................24
SECTION 3.19.Notice of Events of Default........................................................................24
SECTION 3.20.Further Instruments and Actions....................................................................24
ARTICLE IV
SATISFACTION AND DISCHARGE
SECTION 4.01.Satisfaction and Discharge of Indenture............................................................24
SECTION 4.02.Application of Trust Money.........................................................................25
SECTION 4.03.Repayment of Moneys Held by Paying Agent...........................................................25
ARTICLE V
REMEDIES
SECTION 0.00.Xxxxxx of Default..................................................................................26
SECTION 5.02.Acceleration of Maturity; Rescission and Annulment.................................................28
SECTION 5.03.Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..........................29
SECTION 5.04.Remedies; Priorities; Insolvency of Seller.........................................................31
SECTION 5.05.Optional Preservation of the Receivables...........................................................33
SECTION 5.06.Limitation of Suits................................................................................34
SECTION 5.07.Unconditional Rights of Noteholders To Receive Principal and Interest..............................34
SECTION 5.08.Restoration of Rights and Remedies.................................................................35
SECTION 5.09.Rights and Remedies Cumulative.....................................................................35
SECTION 5.10.Delay or Omission Not a Waiver.....................................................................35
SECTION 5.11.Control by Noteholders.............................................................................35
SECTION 5.12.Waiver of Past Defaults............................................................................36
SECTION 5.13.Undertaking for Costs..............................................................................36
SECTION 5.14.Waiver of Stay or Extension Laws...................................................................36
SECTION 5.15.Action on Notes....................................................................................37
SECTION 5.16.Performance and Enforcement of Certain Obligations.................................................37
ARTICLE VI
THE INDENTURE TRUSTEE
SECTION 6.01.Duties of Indenture Trustee........................................................................38
SECTION 6.02.Rights of Indenture Trustee........................................................................39
SECTION 6.03.Individual Rights of Indenture Trustee.............................................................40
SECTION 6.04.Indenture Trustee's Disclaimer.....................................................................40
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TABLE OF CONTENTS
(CONTINUED)
PAGE
SECTION 6.05.Notice of Defaults.................................................................................41
SECTION 6.06.Reports by Indenture Trustee to Holders............................................................41
SECTION 6.07.Compensation and Indemnity.........................................................................42
SECTION 6.08.Replacement of Indenture Trustee...................................................................42
SECTION 6.09.Successor Indenture Trustee by Merger..............................................................43
SECTION 6.10.Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................................44
SECTION 6.11.Eligibility; Disqualification......................................................................45
SECTION 6.12.Preferential Collection of Claims Against Issuer...................................................45
SECTION 6.13.Pennsylvania Motor Vehicle Sales Finance Act Licenses..............................................45
ARTICLE VII
NOTEHOLDERS' LISTS AND REPORTS
SECTION 7.01.Note Registrar To Furnish Names and Addresses of Noteholders.......................................45
SECTION 7.02.Preservation of Information; Communications to Noteholders.........................................46
SECTION 7.03.Reports by Issuer..................................................................................46
SECTION 7.04.Reports by Indenture Trustee.......................................................................47
ARTICLE VIII
ACCOUNTS, DISBURSEMENTS AND RELEASES
SECTION 8.01.Collection of Money................................................................................47
SECTION 0.00.Xxxxx Accounts.....................................................................................47
SECTION 8.03.[Reserved].........................................................................................48
SECTION 8.04.General Provisions Regarding Accounts..............................................................48
SECTION 8.05.Release of Trust Estate............................................................................49
SECTION 8.06.Opinion of Counsel.................................................................................49
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.01.Supplemental Indentures Without Consent of Noteholders.............................................50
SECTION 9.02.Supplemental Indentures with Consent of Noteholders................................................51
SECTION 9.03.Limitations on Supplemental Indentures.............................................................51
SECTION 9.04.Execution of Supplemental Indentures...............................................................52
SECTION 9.05.Effect of Supplemental Indenture...................................................................53
SECTION 9.06.Conformity with Trust Indenture Act................................................................53
SECTION 9.07.Reference in Notes to Supplemental Indentures......................................................53
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TABLE OF CONTENTS
(CONTINUED)
ARTICLE X
TERMINATION OF THE TRUST
PAGE
SECTION 10.01 Termination of the Trusts Created by Indenture....................................................53
SECTION 10.02.Optional Purchase of All Receivables..............................................................54
ARTICLE XI
MISCELLANEOUS
SECTION 11.01.Compliance Certificates and Opinions, etc.........................................................55
SECTION 11.02.Form of Documents Delivered to Indenture Trustee..................................................56
SECTION 11.03.Acts of Noteholders...............................................................................57
SECTION 11.04.Notices, etc., to Indenture Trustee, Issuer and Rating Agencies...................................57
SECTION 11.05.Notices to Noteholders; Waiver....................................................................58
SECTION 11.06.Alternate Payment and Notice Provisions...........................................................58
SECTION 11.07.Conflict with Trust Indenture Act.................................................................58
SECTION 11.08.Effect of Headings and Table of Contents..........................................................59
SECTION 11.09.Successors and Assigns............................................................................59
SECTION 11.10.Severability......................................................................................59
SECTION 11.11.Benefits of Indenture.............................................................................59
SECTION 11.12.Governing Law.....................................................................................59
SECTION 11.13.Counterparts......................................................................................59
SECTION 11.14.Recording of Indenture............................................................................59
SECTION 00.00.Xxxxx Obligation..................................................................................60
SECTION 00.00.Xx Petition.......................................................................................60
SECTION 11.17.Inspection........................................................................................60
EXHIBIT A - Forms of Class A-1 Note, Class A-2 Note, Class A-3 Note, Class B Note and
Class C Note
EXHIBIT B - Form of Note Depository Agreement
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CROSS-REFERENCE TABLE
(not a part of this Indenture)
TIA Indenture
SECTION SECTION
Section 310(a) (1).......................................................................................... 6.11
(a) (2)............................................................................................... 6.11
(a) (3)............................................................................................... N.A.
(a) (4)............................................................................................... N.A.
(a) (5)............................................................................................... 6.11
(b) .................................................................................................. 5.04
6.08
6.11
11.04
(c) .................................................................................................. N.A.
Section 311(a).............................................................................................. 6.12
(b) .................................................................................................. 6.12
(c) .................................................................................................. N.A.
Section 312(a).............................................................................................. 7.02
(b) .................................................................................................. 7.02
(c) .................................................................................................. 7.02
Section 313(a).............................................................................................. 7.04
(b) (1)............................................................................................... N.A.
(b) (2)............................................................................................... 7.04
(c) .................................................................................................. 7.04
11.04
(d) .................................................................................................. 7.04
Section 314(a).............................................................................................. 3.09
7.03
11.04
(b) ..................................................................................................11.14
(c) (1)............................................................................................... 3.10
6.02
8.05(b)
6.02
11.01
(c) (2)............................................................................................... 3.06
3.10
6.02
8.05(b)
8.06
(c) (3)............................................................................................... N.A.
(d) .................................................................................................. N.A.
(d) .................................................................................................. N.A.
(e) ..................................................................................................11.05
(f) ..................................................................................................4.01.
Section 315(a).............................................................................................. 6.01
(b) .................................................................................................. 6.05
(c) .................................................................................................. 5.02
5.08
(d) ................................................................................................6.01(c)
(e) .................................................................................................. 5.13
TIA Indenture
SECTION SECTION
Section 316(a) (last sentence)............................................................................6.01(c)
(a) (1) (A).........................................................................................6.01(c)
(a) (1) (B)........................................................................................... 5.12
(a) (2)............................................................................................... N.A.
(b) .................................................................................................. 5.01
5.04(b)
(c) .................................................................................................. 2.06
Section 317(a) (1).......................................................................................... 5.04
(a) (2).............................................................................................5.03(c)
5.03(d)
(b) .................................................................................................. 4.03
Section 318(a)..............................................................................................11.07
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N.A. means not applicable
INDENTURE dated as of July 1, 1999, between TOYOTA AUTO RECEIVABLES
1999-A OWNER TRUST, a Delaware business trust (the "Issuer"), and U.S. BANK
NATIONAL ASSOCIATION, a national banking association, as trustee and not in its
individual capacity (the "Indenture Trustee").
Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Issuer's 5.365% Asset Backed
Notes, Class A-1 (the "Class A-1 Notes"), 5.800% Asset Backed Notes, Class A-2
(the "Class A-2 Notes"), 6.150% Asset Backed Notes, Class A-3 (the "Class A-3
Notes" and, together with the Class A-1 Notes and the Class A-2 Notes, the
"Class A Notes"), 6.300% Asset Backed Notes, Class B (the "Class B Notes") and
6.700% Asset Backed Notes, Class C (the "Class C Notes" and, together with the
Class B Notes and the Class A Notes, the "Notes"):
GRANTING CLAUSE
The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and
Certificates, all of the Issuer's right, title and interest in and to: (i) all
right, title and interest of the Issuer in and to the Receivables and all monies
due thereon or paid thereunder or in respect thereof (including proceeds of the
repurchase of Receivables by the Seller pursuant to Section 3.02 or the purchase
of Receivables by the Servicer pursuant to Section 4.08 or 9.01 of the Sale and
Servicing Agreement) on or after the Cutoff Date; (ii) the interest of the
Issuer in the security interests in the Financed Vehicles granted by the
Obligors pursuant to the Receivables and any accessions thereto; (iii) the
interest of the Issuer in any proceeds of any physical damage insurance policies
covering Financed Vehicles and in any proceeds of any credit life or credit
disability insurance policies relating to the Receivables or the Obligors; (iv)
the interest of the Issuer in any Dealer Recourse; (v) the right of the Issuer
to realize upon any property (including the right to receive future Liquidation
Proceeds) that shall have secured a Receivable and have been repossessed by or
on behalf of the Issuer; (vi) the rights and interests of the Issuer under the
Sale and Servicing Agreement and as assignee (pursuant to the Sale and Servicing
Agreement) of the rights and interests of TMCRC under the Receivables Purchase
Agreement and; (vii) all other assets comprising the Owner Trust Estate; (viii)
all proceeds of the foregoing and (ix) all present and future claims, demands,
causes of action and choses in action in respect of any or all of the foregoing
and all payments on or under of every kind and nature whatsoever in respect of
any or all of the foregoing, including all proceeds of the conversion thereof,
voluntary or involuntary, into cash or other liquid property, all cash proceeds,
accounts, accounts receivable, notes, drafts, acceptances, chattel paper,
checks, deposit accounts, insurance proceeds, condemnation awards, rights to
payment of any and every kind and other forms of obligations and receivables,
instruments and other property which at any time constitute all or part of or
are included in the proceeds of any of the foregoing (collectively, the
"Collateral").
The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, and subject to the subordinate
claims thereon of the Holders of the Certificates, all as provided in this
Indenture.
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The Indenture Trustee, as Indenture Trustee on behalf of the Holders of
the Notes and for the benefit of the Certificateholders, acknowledges such
Grant, accepts the trusts under this Indenture in accordance with the provisions
of this Indenture and agrees to perform its duties required in this Indenture to
the best of its ability to the end that the interests of the Holders of the
Notes may be adequately and effectively protected and the rights of the
Certificateholders secured.
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. DEFINITIONS. Except as otherwise specified herein or
in the context may otherwise require, capitalized terms used but not
otherwise defined herein have the meanings ascribed thereto in the Trust
Agreement, the Sale and Servicing Agreement and Securities Account Control
Agreement, as the case may be, for all purposes of this Indenture. Except as
otherwise provided in this Agreement, whenever used herein the following
words and phrases, unless the context otherwise requires, shall have the
following meanings:
"ACTION" has the meaning specified in Section 11.03(a).
"ADMINISTRATION AGREEMENT" means the Administration Agreement dated as
of July 1, 1999, among the Administrator, the Issuer and the Indenture Trustee.
"ADMINISTRATOR" means TMCC, or any successor Administrator under the
Administration Agreement.
"AUTHORIZED OFFICER" means (i) with respect to the Issuer, any officer
of the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer identified as such on any list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee and (ii) with respect to
the Administrator, any Vice President or more senior officer of the
Administrator who is authorized to act for the Administrator in matters relating
to the Issuer and identified as such on any list of Authorized Officers
delivered by the Administrator to the Indenture Trustee.
"BOOK-ENTRY NOTES" means a beneficial interest in the Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class B Notes and Class C Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10.
"BUSINESS DAY" means any day other than a Saturday, a Sunday or a day
on which banking institutions or trust companies in The City of New York, The
City of San Francisco or the City of Chicago are authorized or obligated by law,
regulation or executive order to remain closed.
"CLASS A-1 RATE" means 5.365% per annum (computed on the basis of the
actual number of days elapsed during the relevant Interest Period and a 360-day
year).
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"CLASS A-1 NOTES" means the 5.365% Asset Backed Notes, Class A-1,
substantially in the form attached hereto as Exhibit A.
"CLASS A-2 RATE" means 5.800% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).
"CLASS A-2 NOTES" means the 5.800% Asset Backed Notes, Class A-2,
substantially in the form attached hereto as Exhibit A.
"CLASS A-3 RATE" means 6.150% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).
"CLASS A-3 NOTES" means the 6.150% Asset Backed Notes, Class A-3,
substantially in the form attached hereto as Exhibit A.
"CLASS B RATE" means 6.300% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).
"CLASS B NOTES" means the 6.300% Asset Backed Notes, Class B,
substantially in the form attached hereto as Exhibit A.
"CLASS C RATE" means 6.700% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).
"CLASS C NOTES" means the 6.700% Asset Backed Notes, Class C,
substantially in the form attached hereto as Exhibit A.
"CLEARING AGENCY" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.
"CLEARING AGENCY PARTICIPANT" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.
"CLOSING DATE" means July 22, 1999.
"CODE" means the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder.
"COLLATERAL" has the meaning specified in the Granting Clause of this
Indenture.
"CORPORATE TRUST OFFICE" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at date of execution of this Agreement is located at
000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000, or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders, the Issuer and the Administrator, or the principal corporate
trust office of any successor Indenture Trustee at the address designated by
such successor Indenture Trustee by notice to the Noteholders, the Issuer and
the Administrator.
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"DEFAULT" means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.
"DEFINITIVE NOTES" has the meaning specified in Section 2.12.
"EVENT OF DEFAULT" has the meaning specified in Section 5.01.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"EXECUTIVE OFFICER" means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
Executive Vice President, any Vice President, the Secretary or the Treasurer of
such corporation; and with respect to any partnership, any general partner
thereof.
"GRANT" means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and xxxxx x xxxx upon and a
security interest in and right of set-off against, deposit, set over and confirm
pursuant to this Indenture. A Grant of the Collateral or of any other agreement
or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.
"HOLDER" or "NOTEHOLDER" means the Person in whose name a Note is
registered on the Note Register.
"INDENTURE TRUSTEE" means U.S. Bank National Association, a national
banking association, as Indenture Trustee under this Indenture, or any successor
Indenture Trustee under this Indenture.
"INDEPENDENT" means, when used with respect to any specified Person,
that the Person is in fact independent of the Seller, the Servicer, the
Administrator, the Issuer or any other obligor on the Notes or any Affiliate of
any of the foregoing Persons because, among other things, such Person (a) is not
an employee, officer or director or otherwise controlled thereby or under common
control therewith, (b) does not have any direct financial interest or any
material indirect financial interest therein (whether as holder of securities
thereof or party to contract therewith or otherwise) and (c) is not and has not
within the preceding twelve months been a promoter, underwriter, trustee,
partner, director or person performing similar functions therefor or otherwise
had legal, contractual or fiduciary or other duties to act on behalf of or for
the benefit thereof.
"INDEPENDENT CERTIFICATE" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in Section
11.01, made by an Independent appraiser or other expert appointed by an Issuer
Order and approved by the Indenture Trustee in the exercise of reasonable care,
and such opinion or certificate shall state that the signer has read the
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definition of "Independent" in this Indenture and that the signer is Independent
within the meaning thereof.
"INSOLVENCY EVENT" with respect to the Seller means the filing of a
decree or order for relief by a court having jurisdiction in the premises in
respect of the Seller in an involuntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Seller, or ordering the winding-up or liquidation of the
Seller's affairs, and such decree or order shall remain unstayed and in effect
for a period of 90 consecutive days; or the commencement by the Seller of a
voluntary case under any applicable federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by the Seller to
the entry of an order for relief in an involuntary case under any such law, or
the consent by the Seller to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Seller, or the making by the Seller of any general assignment for the
benefit of creditors, or the failure by the Seller generally to pay its debts as
such debts become due, or the taking of any action by the Seller in furtherance
of any of the foregoing.
"INTEREST PERIOD" means, with respect to the Class A-1 Notes, the
period from (and including) any Payment Date to (but excluding) the next Payment
Date, except that the first interest period will be from (and including) the
Closing Date to (but excluding) August 16, 1999, and, with respect to the Class
A-2 Notes, Class A-3 Notes, Class B Notes and Class C Notes, the period from
(and including) the 15th day of each calendar month to (but excluding) the 15th
day of the succeeding calendar month except that the first interest period will
be from (and including) the Closing Date to (but excluding) August 15, 1999.
"INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate, the Class B Rate or the Class C Rate, as indicated by the context.
"ISSUER" means Toyota Auto Receivables 1999-A Owner Trust unless and
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the Notes.
"ISSUER ORDER" and "ISSUER REQUEST" mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee.
"NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a
Class B Note or a Class C Note.
"NOTE DEPOSITORY AGREEMENT" means the agreement entitled "Letter of
Representations" dated on or before the Closing Date among the Clearing Agency,
the Issuer and the Indenture Trustee with respect to certain matters relating to
the duties thereof with respect to the Book-Entry Notes, substantially in the
form attached hereto as Exhibit B.
"NOTE OWNER" means, with respect to a Book-Entry Note, any Person who
is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a
5
Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).
"NOTE REGISTER" means the Register of Noteholders' information
maintained by the Note Registrar pursuant to Section 2.04.
"NOTE REGISTRAR" means the Indenture Trustee unless and until a
successor Note Registrar shall have been appointed pursuant to Section 2.04.
"OFFICER'S CERTIFICATE" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Indenture Trustee.
"OPINION OF COUNSEL" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be an employee of
or counsel to the Issuer, the Seller or the Servicer and which counsel shall be
satisfactory to the Owner Trustee, the Indenture Trustee or the Rating Agencies,
as the case may be.
"OUTSTANDING" means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:
(a) Notes theretofore canceled by the Note Registrar or delivered
to the Note Registrar for cancellation;
(b) Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Holders of such Notes; and
(c) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture unless proof
satisfactory to the Indenture Trustee is presented that any such Notes are
held by a bona fide purchaser; provided, that in determining whether the
Holders of the requisite percentage of the Outstanding Amount of the Notes,
or any Class of Notes, have given any request, demand, authorization,
direction, notice, consent, or waiver hereunder or under any Basic Document,
Notes owned by the Issuer, any other obligor upon the Notes, the Seller or
any Affiliate of any of the foregoing Persons shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Indenture
Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent, or waiver, only Notes that the
Indenture Trustee knows to be so owned shall be so disregarded. Notes so
owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is
not the Issuer, any other obligor upon the Notes, the Seller or any Affiliate
of any of the foregoing Persons.
"OUTSTANDING AMOUNT" means the aggregate principal amount of all Notes,
or, if indicated by the context, all Notes of any Class, outstanding at the date
of determination.
6
"OWNER TRUSTEE" means U.S. Bank National Association, not in its
individual capacity but solely as Owner Trustee under the Trust Agreement, or
any successor Owner Trustee under the Trust Agreement.
"OWNER TRUST ESTATE" "OWNER TRUST ESTATE" means all right, title and
interest of the Issuer in and to the property and rights assigned to the Issuer
pursuant to Article II of the Sale and Servicing Agreement, all funds on deposit
from time to time in the accounts created pursuant to Section 5.01 of the Sale
and Servicing Agreement (excluding any net investment income with respect to
amounts held in such accounts) and all other property of the Issuer from time to
time, including any rights of the Owner Trustee and the Issuer pursuant to the
Sale and Servicing Agreement and the Administration Agreement, and as assignee
of the rights and Interests of the Depositor under the Receivables Purchase
Agreement.
"PAYING AGENT" means the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 that has been authorized by the Issuer to make payments to and
distributions from the Collection Account and the Payahead Account, including
payment of principal of or interest on the Notes on behalf of the Issuer.
"PREDECESSOR NOTE" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.
"PROCEEDING" means any suit in equity, action at law or other judicial
or administrative proceeding.
"REGISTERED HOLDER" means the Person in whose name a Note is registered
on the Note Register on the applicable Record Date.
"SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement
dated as of July 1, 1999, among the Issuer, Toyota Motor Credit Receivables
Corporation, as Seller, and Toyota Motor Credit Corporation, as Servicer, and as
to which the Indenture Trustee is a third party beneficiary of certain
provisions.
"SECURITIES ACT" means the Securities Act of 1933, as amended.
"SECURITIES ACCOUNT CONTROL AGREEMENT" shall have the meaning ascribed
thereto in the Sale and Servicing Agreement.
"SELLER" shall mean Toyota Motor Credit Receivables Corporation, in its
capacity as seller under the Sale and Servicing Agreement, and its successor in
interest.
"SERVICER" shall mean Toyota Motor Credit Corporation in its capacity
as servicer under the Sale and Servicing Agreement, and any Successor Servicer
thereunder.
"SUCCESSOR SERVICER" has the meaning specified in Section 3.07(e).
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"TRUST ESTATE" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
this Indenture for the benefit of the Noteholders (including, without
limitation, all property and interests Granted to the Indenture Trustee pursuant
to the Granting Clause), including all proceeds thereof.
"TRUST OFFICER" means, in the case of the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Secretary, Assistant Secretary or
any other officer of the Indenture Trustee customarily performing functions
similar to those performed by any of the above designated officers and also,
with respect to a particular matter, any other officer to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject and, with respect to the Owner Trustee, any officer in the
Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement and the Basic
Documents on behalf of the Owner Trustee.
"TRUST INDENTURE ACT" or "TIA" means the Trust Indenture Act of 1939 as
in force on the date hereof, unless otherwise specifically provided.
"UCC" means, unless the context otherwise requires, the Uniform
Commercial Code as in effect in the relevant jurisdiction at the relevant time.
SECTION 1.02. USAGE OF TERMS. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other genders; references to "writing"
include printing, typing, lithography and other means of reproducing words in
a visible form; references to agreements and other contractual instruments
include all subsequent amendments thereto or changes therein entered into in
accordance with their respective terms and not prohibited by this Agreement;
references to Persons include their permitted successors and assigns; and the
term "including" means "including without limitation."
SECTION 1.03. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
"COMMISSION" means the Securities and Exchange Commission.
"INDENTURE SECURITIES" means the Notes.
"INDENTURE SECURITY HOLDER" means a Noteholder.
"INDENTURE TO BE QUALIFIED" means this Indenture.
"INDENTURE TRUSTEE" or "institutional trustee" means the Indenture
Trustee.
"OBLIGOR" on the indenture securities means the Issuer and any other
obligor on the indenture securities.
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All other TIA terms used in this Indenture that are defined in the TIA,
defined in the TIA by reference to another statute or defined by Commission rule
have the meanings so assigned to them.
ARTICLE II
THE NOTES
SECTION 2.01 FORM. The Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes, the Class B Notes and the Class C Notes, in each case
together with the Indenture Trustee's certificate of authentication, shall be
in substantially the form set forth in Exhibit A, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other
marks of identification and such legends or endorsements placed thereon as
may, consistently herewith, be determined by the officers executing such
Notes, as evidenced by their execution thereof. Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.
The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.
Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibit A are part of the terms of this Indenture.
SECTION 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall
be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile. Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes. The Indenture Trustee shall upon
Issuer Order authenticate and deliver Class A-1 Notes for original issue in
an aggregate principal amount of $303,000,000, Class A-2 Notes for original
issue in an aggregate principal amount of $284,000,000, Class A-3 Notes for
original issue in an aggregate principal amount of $334,093,000, Class B
Notes for original issue in an aggregate principal amount of $26,454,000 and
Class C Notes for original issue in an aggregate principal amount of
$14,429,000. The aggregate principal amount of Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, the Class B Notes and the Class C Notes outstanding
at any time may not exceed such respective amounts except as provided in
Section 2.05. The Notes shall be issuable as registered Notes in the minimum
denomination $1,000. Each Note shall be dated the date of its authentication.
No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form included in Exhibit A,
executed by the Indenture Trustee by the manual or facsimile signature of one of
its authorized signatories, and such certificate upon any Note shall be
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conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.
SECTION 2.03 TEMPORARY NOTES. Pending the preparation of definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the
Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced, of
the tenor of the definitive Notes in lieu of which they are issued and with
such variations not inconsistent with the terms of this Indenture as the
officers executing such Notes may determine, as evidenced by their execution
of such Notes. If temporary Notes are issued, the Issuer will cause
definitive Notes to be prepared without unreasonable delay. After the
preparation of definitive Notes, the temporary Notes shall be exchangeable
for definitive Notes upon surrender of the temporary Notes at the office or
agency of the Issuer to be maintained as provided in Section 3.02, without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes, the Issuer shall execute, and the Indenture Trustee shall
authenticate and deliver in exchange therefor, a like principal amount of
definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as definitive Notes.
SECTION 2.04 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.
(a) The Note Registrar shall maintain a Note Register in which,
subject to such reasonable regulations as it may prescribe, the Note
Registrar shall provide for the registration of Notes and transfers and
exchanges of Notes as provided in this Indenture. The Indenture Trustee is
hereby initially appointed Note Registrar for the purpose of registering
Notes and transfers and exchanges of Notes as provided in this Indenture. In
the event that, subsequent to the Closing Date, the Indenture Trustee
notifies the Issuer that it is unable to act as Note Registrar, the Issuer
shall appoint another bank or trust company, having an office or agency
located in the Borough of Manhattan, The City of New York, agreeing to act in
accordance with the provisions of this Indenture applicable to it, and
otherwise acceptable to the Indenture Trustee, to act as successor Note
Registrar under this Indenture.
If a Person other than the Indenture Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any
change in the location, of the Note Register, and the Indenture Trustee shall
have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely
upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the names and addresses of the Holders of the Notes and
the principal amounts and number of such Notes.
(b) Upon the proper surrender for registration of transfer of any
Note at the office or agency of the Issuer to be maintained as provided in
Section 3.02, the Issuer shall execute, and the Indenture Trustee shall
authenticate in the name of the designated transferee or transferees, one or
more new Notes of the same Class in authorized denominations of a like
aggregate principal amount.
(c) At the option of the Holder, Notes may be exchanged for other
Notes of the same Class in any authorized denominations, of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at such office
or agency. Whenever any Notes are so surrendered for
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exchange, the Issuer shall execute, and the Indenture Trustee shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, the
Notes which the Noteholder making the exchange is entitled to receive. Every
Note presented or surrendered for registration of transfer or exchange shall
be accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder
thereof or his attorney duly authorized in writing.
(d) No service charge shall be made for any registration of transfer
or exchange of Notes, but the Indenture Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Notes.
(e) All Notes surrendered for registration of transfer or exchange
shall be canceled and subsequently destroyed by the Indenture Trustee.
SECTION 2.05 MUTILATED, DESTROYED, LOST OR STOLEN NOTES. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture
Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, and (ii) there is delivered to the Indenture Trustee such
security or indemnity as may be required by it to hold the Issuer and the
Indenture Trustee harmless, then, in the absence of notice to the Issuer, the
Note Registrar or the Indenture Trustee that such Note has been acquired by a
bona fide purchaser, the Issuer shall execute, and upon its request the
Indenture Trustee shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Note, a replacement Note of
the same Class. In connection with the issuance of any new Note under this
Section, the Issuer may require payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto.
If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona
fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.
Every replacement Note issued pursuant to this Section in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes of the same Class duly issued
hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.
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SECTION 2.06 PERSONS DEEMED OWNERS. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and
any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name any Note is registered (as of the day of determination) as the
owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, and
none of the Issuer, the Indenture Trustee or any agent of the Issuer or the
Indenture Trustee shall be affected by notice to the contrary.
SECTION 2.07 PAYMENTS OF PRINCIPAL AND INTEREST.
(a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes,
the Class B Notes and the Class C Notes shall accrue interest during each
Interest Period at the Class A-1 Rate, the Class A-2 Rate, the Class A-3
Rate, the Class B Rate and the Class C Rate, respectively, and such interest
shall be payable on each related Payment Date as specified in such Notes,
pursuant to Section 5.06 of the Sale and Servicing Agreement and Section 3.01
hereof. Any installment of interest or principal payable on any Note that is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date. With respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payment will be made by
wire transfer in immediately available funds to the account designated by
such nominee, except for the final installment of principal payable with
respect to such Note on a Payment Date or on the applicable Final Scheduled
Payment Date, which shall be payable as provided below. Such payment will be
made by check mailed first-class postage prepaid to such Person's address as
it appears on the Note Register on such Record Date or by wire transfer to
the account specified by the registered holder of any Note with a face amount
of at least $10,000,000. The funds represented by any such checks returned
undelivered shall be held in accordance with Section 3.03.
(b) The principal of each Note shall be payable in installments on
each Payment Date pursuant to Section 5.06 of the Sale and Servicing
Agreement and subject to the availability of funds therefor. All principal
payments on each Class of Notes shall be made pro rata to the Noteholders of
such Class entitled thereto. In accordance with Section 10.01, the Indenture
Trustee shall notify the Person in whose name a Note is registered at the
close of business on the Record Date preceding the Payment Date on which the
final installment of principal of and interest on such Note will be paid.
Such notice shall be mailed or transmitted by facsimile not less than 15 nor
more than 30 days prior to such final Payment Date, shall specify that such
final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.
SECTION 2.08 CANCELLATION. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person
other than the Indenture Trustee, be delivered to the Indenture Trustee and
shall be promptly canceled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in
any manner whatsoever, and all Notes so delivered shall be promptly canceled
by the Indenture Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Notes may be held or
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disposed of by the Indenture Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuer shall
direct by an Issuer Order that they be destroyed or returned to it; provided,
that such Issuer Order is timely and the Notes have not been previously
disposed of by the Indenture Trustee.
SECTION 2.09 RELEASE OF COLLATERAL. Subject to Sections 10.01 and
11.01 and the terms of the Basic Documents, the Indenture Trustee shall
release property from the lien of this Indenture only upon receipt of an
Issuer Request accompanied by an Officer's Certificate, an Opinion of Counsel
and Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(l) or an Opinion of Counsel in lieu of such Independent Certificates
to the effect that the TIA does not require any such Independent Certificates.
SECTION 2.10 BOOK-ENTRY NOTES. The Notes, upon original issuance,
will be issued in the form of typewritten Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Clearing
Agency, or a custodian therefor, by, or on behalf of, the Issuer. The
Book-Entry Notes shall be registered initially on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no owner
thereof will receive a definitive Note representing such Note Owner's
interest in such Note, except as provided in Section 2.12. Unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued
to such Note Owners pursuant to Section 2.12:
(a) the provisions of this Section shall be in full force and effect;
(b) the Note Registrar and the Indenture Trustee shall be entitled
to deal with the Clearing Agency for all purposes of this Indenture
(including the payment of principal of and interest on the Notes and the
giving of instructions or directions hereunder) as the authorized
representative of the Note Owners;
(c) to the extent that the provisions of this Section conflict with
any other provisions of this Indenture, the provisions of this Section shall
control;
(d) the rights of Note Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and
agreements between such Note Owners and the Clearing Agency and/or the
Clearing Agency Participants pursuant to the Note Depository Agreement.
Unless and until Definitive Notes are issued pursuant to Section 2.12, the
initial Clearing Agency will make book-entry transfers among the Clearing
Agency Participants and receive and transmit payments of principal of and
interest on the Notes to such Clearing Agency Participants; and
(e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of Holders of Notes evidencing a
specified percentage of the Outstanding Amount of the Notes or of the Notes
of any Class, the Clearing Agency shall be deemed to represent such
percentage only to the extent that it has received instructions to such
effect from Note Owners and/or Clearing Agency Participants owning or
representing, respectively, such required percentage of the beneficial
interest in the Notes and has delivered such instructions to the Indenture
Trustee.
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SECTION 2.11 NOTICES TO CLEARING AGENCY. Whenever a notice or
other communication to the Noteholders is required under this Indenture,
unless and until Definitive Notes shall have been issued to such Note Owners
pursuant to Section 2.12, the Indenture Trustee shall give all such notices
and communications specified herein to be given to Holders of the Notes to
the Clearing Agency and shall be deemed to have been given as of the date of
delivery to the Clearing Agency.
SECTION 2.12 DEFINITIVE NOTES. If (i) the Owner Trustee or the
Administrator advises the Indenture Trustee in writing that the Clearing
Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Book-Entry Notes and the Owner Trustee
and the Administrator are unable to locate a qualified successor (and if the
Administrator has made such determination, the Administrator has given
written notice thereof to the Indenture Trustee), (ii) the Seller or the
Administrator or the Indenture Trustee at its option advises each other such
party in writing that it elects to terminate the book-entry system through
the Clearing Agency or (iii) after the occurrence of an Event of Default or a
Servicer Default, owners of the Book-Entry Notes representing beneficial
interests aggregating at least 51% of the Outstanding Amount of the Notes of
all Classes, advise the Indenture Trustee and the Clearing Agency in writing
that the continuation of a book-entry system through the Clearing Agency or a
successor thereto is no longer in the best interests of the Note Owners
acting together as a single Class, then the Clearing Agency shall notify all
Note Owners and the Indenture Trustee of the occurrence of such event and of
the availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Notes representing the
Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders. The
Indenture Trustee, Issuer and Administrator shall not be liable for any
inability to locate a qualified successor Clearing Agency. From and after the
date of issuance of Definitive Notes, all notices to be given to Noteholders
will be mailed thereto at their addresses of record in the Note Register as
of the relevant Record Date. Such notices will be deemed to have been given
as of the date of mailing.
SECTION 2.13 TAX TREATMENT. The Issuer has entered into this
Indenture, and the Notes will be issued, with the intention that, for
federal, state and local income, single business and franchise tax purposes,
the Notes will qualify as indebtedness of the Issuer secured by the Trust
Estate. The Issuer, by entering into this Indenture, and each Noteholder, by
its acceptance of a Note (and each Note Owner by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat the Notes for
federal, state and local income, single business and franchise tax purposes
as indebtedness of the Issuer.
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ARTICLE III
COVENANTS
SECTION 3.01. PAYMENTS TO NOTEHOLDERS, CERTIFICATEHOLDERS,
SERVICER AND SELLER. In accordance with the terms of this Indenture, the
Issuer will duly and punctually (i) pay the principal of and interest, if
any, on the Notes in accordance with the terms of the Notes and (ii) release
from the Collection Account, Principal Distribution Account and Payahead
Account all other amounts distributable or payable from the Owner Trust
Estate (including distributions to be made to Certificateholders on any
Payment Date) under the Trust Agreement, Sale and Servicing Agreement and
Administration Agreement. Without limiting the foregoing, and in order to
fulfill such obligations, pursuant to Sections 8.02 and 8.04 hereof, the
Issuer will cause the Servicer to direct the Indenture Trustee to apply all
amounts on deposit in the Collection Account, Payahead Account and Reserve
Account on a Payment Date deposited therein pursuant to the Sale and
Servicing Agreement (i) (a) for the benefit of the Class A-1 Notes, to the
Class A-1 Noteholders, (b) for the benefit of the Class A-2 Notes, to the
Class A-2 Noteholders, (c) for the benefit of the Class A-3 Notes, to the
Class A-3 Noteholders; (d) for the benefit of the Class B Notes, to the Class
B Noteholders and (e) for the benefit of the Class C Notes, to the Class C
Noteholders, (ii) for the benefit of the Certificateholders, to or as
directed by the Owner Trustee or the Administrator, as set forth in Sections
5.06 and 5.07 of the Sale and Servicing Agreement, (iii) for the benefit of
the Servicer, to or as directed by the Servicer pursuant to Section 5.06 of
the Sale and Servicing Agreement; and (iv) for the benefit of the Seller, to
or as directed by the Seller pursuant to Section 5.07 of the Sale and
Servicing Agreement. Amounts properly withheld under the Code by any Person
from a payment to any Noteholder or Certificateholder of interest and/or
principal shall be considered as having been paid by the Issuer to such
Noteholder or Certificateholder for all purposes of this Indenture.
SECTION 3.02. MAINTENANCE OF OFFICE OR AGENCY. The Issuer will
maintain in the Borough of Manhattan, The City of New York, an office or
agency where Notes may be surrendered for registration of transfer or
exchange, and where notices and demands to or upon the Issuer in respect of
the Notes and this Indenture may be served. The Issuer hereby initially
appoints U.S. Bank National Association to serve as its agent for the
foregoing purposes. The Issuer will give prompt written notice to the
Indenture Trustee of the location, and of any change in the location, of any
such office or agency. If at any time the Issuer shall fail to maintain any
such office or agency or shall fail to furnish the Indenture Trustee with the
address thereof, such surrenders, notices and demands may be made or served
at the Corporate Trust Office, and the Issuer hereby appoints the Indenture
Trustee as its agent to receive all such surrenders, notices and demands.
SECTION 3.03. MONEY FOR PAYMENTS TO BE HELD IN TRUST. All
payments of amounts due and payable with respect to any Notes or Certificates
that are to be made from amounts withdrawn from the Collection Account,
Principal Distribution Account or Reserve Fund pursuant to Sections 2.07,
3.01, 4.02 and 4.03 shall be made on behalf of the Issuer by the Indenture
Trustee or by a Paying Agent, and no amounts so withdrawn from such accounts
for payments of Notes or Certificates shall be paid over to the Issuer, the
Owner Trustee or the Administrator except as provided in this Section.
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On or before each Payment Date, the Issuer shall deposit in the
Collection Account or, in accordance with the Sale and Servicing Agreement,
cause to be deposited (including the provision of instructions to the
Indenture Trustee to make any required withdrawals from the Payahead Account
or Reserve Account and to deposit such amounts in the Collection Account) to
the extent of funds available therefor, an aggregate sum sufficient to pay
the amounts then becoming due under the Notes and Certificates, such sum to
be held in trust for the benefit of the Persons entitled thereto, and (unless
the Paying Agent is the Indenture Trustee) shall promptly notify the
Indenture Trustee of its action or failure so to act.
The Indenture Trustee, as Paying Agent, hereby agrees with the Issuer
that it will, and the Issuer will cause each Paying Agent other than the
Indenture Trustee, as a condition to its acceptance of its appointment as Paying
Agent, to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee, subject to the
provisions of this Section, that such Paying Agent will:
(a) hold all sums held by it for the payment of amounts due with
respect to the Notes or Certificates or for release to the Issuer for payment
to the Certificates in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and pay or release such sums to such Persons as herein
provided;
(b) give the Indenture Trustee notice of any default by the Issuer
(or any other obligor upon the Notes) of which it has actual knowledge in the
making of any payment required to be made with respect to the Notes or the
release of any amounts to the Issuer to be paid to the Certificateholders;
(c) at any time during the continuance of any such default, upon the
written request of the Indenture Trustee, forthwith pay to the Indenture
Trustee all sums so held in trust by such Paying Agent;
(d) immediately resign as a Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes (or
for release to the Issuer) if at any time it ceases to meet the standards
required to be met by a Paying Agent at the time of its appointment; and
(e) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes or Certificates (or
assisting the Issuer to withhold from payment to the Certificateholders) of
any applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith.
The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.
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Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in the next paragraph shall be discharged from such trust and be
paid to the California Special Olympics upon presentation thereto of an Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease.
In the event that any Noteholder shall not surrender its Notes for
retirement within six months after the date specified in the written notice of
final payment described in Section 2.07, the Indenture will give a second
written notice to the registered Noteholders that have not surrendered their
Notes for final payment and retirement. If within one year after such second
notice any Notes have not been surrendered, the Indenture Trustee shall, at the
expense and direction of the Issuer, cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be paid to California Special Olympics. The
Indenture Trustee shall also adopt and employ, at the expense and direction of
the Issuer, any other reasonable means of notification of such repayment
specified by the Issuer or the Administrator.
SECTION 3.04. EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States
of America, in which case the Issuer will keep in full effect its existence,
rights and franchises under the laws of such other jurisdiction) and will
obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Estate or the Owner Trust
Estate.
SECTION 3.05. PROTECTION OF TRUST ESTATE. The Issuer will from
time to time execute and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of
further assurance and other instruments, and will take such other action
necessary or advisable to:
(a) maintain or preserve the lien and security interest (and the
priority thereof) of this Indenture or carry out more effectively the
purposes hereof;
(b) perfect, publish notice of or protect the validity of any Grant
made or to be made by this Indenture;
(c) enforce any of the Collateral; or
(d) preserve and defend title to the Trust Estate and the rights of
the Indenture Trustee and the Noteholders in such Trust Estate against the
claims of all persons and parties.
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The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement
or other instrument required to be executed pursuant to this Section 3.05.
SECTION 3.06. OPINIONS AS TO TRUST ESTATE.
(a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the execution, recording
and filing of this Indenture, any indentures supplemental hereto, any
requisite financing statements and continuation statements and any other
requisite documents necessary to perfect and make effective the lien and
security interest of this Indenture or stating that, in the opinion of such
counsel, no such action is necessary to make such lien and security interest
effective.
(b) As and when specified in Section 10.02(h) of the Sale and
Servicing Agreement, the Issuer shall furnish to the Indenture Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the execution, recording, filing or
re-recording and refiling of this Indenture, any indentures supplemental
hereto, any financing statements and continuation statements and any other
requisite documents necessary to maintain the lien and security interest
created by this Indenture or stating that in the opinion of such counsel no
such action is necessary to maintain such lien and security interest. Such
Opinion of Counsel shall also describe the execution, recording, filing or
re-recording and refiling of this Indenture, any indentures supplemental
hereto, any financing statements and continuation statements and any other
documents that will, in the opinion of such counsel, be required to maintain
the lien and security interest of this Indenture until the date in the
following calendar year on which such Opinion of Counsel must again be
delivered.
SECTION 3.07. PERFORMANCE OF OBLIGATIONS; SERVICING OF RECEIVABLES.
(a) The Issuer will not take any action and will use its best
efforts not to permit any action to be taken by others that would release any
Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the Trust Estate or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or
impair the validity or effectiveness of, any such instrument or agreement,
except in each case as expressly provided in the Basic Documents.
(b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such
duties by a Person identified to the Indenture Trustee in an Officer's
Certificate of the Issuer shall be deemed to be action taken by the Issuer.
Initially, the Issuer has contracted with the Servicer and the Administrator
to assist the Issuer in performing its duties under this Indenture.
(c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in the Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of the Trust
Agreement, this Indenture and the Sale and Servicing Agreement in accordance
with and within the time periods provided for herein and therein.
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(d) If an Authorized Officer of the Issuer shall have knowledge of
the occurrence of a Servicer Default under the Sale and Servicing Agreement,
the Issuer shall promptly notify the Indenture Trustee and the Rating
Agencies thereof, and shall specify in such notice the action, if any, the
Issuer is taking with respect of such default. If a Servicer Default shall
arise from the failure of the Servicer to perform any of its duties or
obligations under the Sale and Servicing Agreement with respect to the
Receivables, the Issuer shall take all reasonable steps available to it to
remedy such failure.
(e) As promptly as possible after the giving of notice of
termination to the Servicer of the Servicer's rights and powers pursuant to
Section 8.01 of the Sale and Servicing Agreement, or if the Servicer resigns
in accordance with the terms of the Sale and Servicing Agreement, the
Indenture Trustee shall appoint a successor servicer (the "Successor
Servicer"), and such Successor Servicer shall accept its appointment by a
written assumption in a form acceptable to the Indenture Trustee. In the
event that a Successor Servicer has not been appointed and accepted its
appointment as set forth in Section 8.02 of the Sale and Servicing Agreement,
the Indenture Trustee without further action shall automatically be appointed
the Successor Servicer and shall thereafter be entitled to the Servicing Fee.
Notwithstanding the above, the Indenture Trustee shall, if it shall be
unwilling or legally unable so to act, appoint or petition a court of
competent jurisdiction to appoint any established institution having a net
worth of not less than $50,000,000 and whose regular business shall include
the servicing of automobile and/or light-duty truck receivables, as the
successor to the Servicer under the Sale and Servicing Agreement, in
accordance with the provisions of Section 8.02 of the Sale and Servicing
Agreement. Upon such appointment, the Indenture Trustee will be released from
the duties and obligations of acting as Successor Servicer, such release
effective upon the effective date of the servicing agreement entered into
between the Successor Servicer and the Issuer.
In connection with any such appointment, the Indenture Trustee may make
such arrangements for the compensation of such successor as it and such
Successor Servicer shall agree, subject to the limitations set forth below and
in the Sale and Servicing Agreement, and in accordance with Section 8.02 of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with such
successor for the servicing of the Receivables (such agreement to be in form and
substance satisfactory to the Indenture Trustee). If the Indenture Trustee shall
succeed to the Servicer's duties as servicer of the Receivables as provided
herein, it shall do so in its individual capacity and not in its capacity as
Indenture Trustee and, accordingly, the provisions of Article VI hereof shall be
inapplicable to the Indenture Trustee in its duties as Successor Servicer and
the servicing of the Receivables. In case the Indenture Trustee shall become the
Successor Servicer, the Indenture Trustee shall be entitled to appoint as a
subservicer any one of its affiliates, provided that the Indenture Trustee, in
its capacity as Successor Servicer, shall remain fully liable for the actions
and omissions of such Affiliate.
(f) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees that it will not enter into
any amendment, modification, supplement or waiver with respect to any Basic
Document except (i) to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions in this
Agreement or of modifying in any manner the rights of the Noteholders or the
Certificateholders, and in each case with the consent of the Indenture
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Trustee (but without the consent of any of the Noteholders or the
Certificateholders) and delivery of an Opinion of Counsel delivered to the
Owner Trustee and the Indenture Trustee, to the effect that such action will
not adversely affect in any material respect the interests of any Noteholder
or Certificateholder; (ii) for the purpose of changing the formula for
determining the Specified Reserve Account Balance, the manner in which the
Reserve Account is funded, changing the remittance schedule for the deposit
of collections with respect to the Receivables in the Collection Account or
Payahead Account pursuant to Section 5.02 of the Sale and Servicing Agreement
or changing the definition of Eligible Investment, in each case with the
consent of the Indenture Trustee (but without the consent of any of the
Noteholders or the Certificateholders) if the Indenture Trustee and/or the
Owner Trustee, as the case may be, has received a letter from each Rating
Agency to the effect that such Rating Agency will not qualify, reduce or
withdraw the rating it has currently assigned to any Class of Notes as a
result of such amendment (provided that no such amendment may increase or
reduce in any manner or accelerate or delay the timing of collections on the
Receivables or payments required to be made to any Class of Notes or
Certificates without the consent of all Holders of each effected Class); or
(iii) with the consent of the Indenture Trustee and satisfaction of all other
conditions precedent to such action set forth in the related Basic Document.
If any such amendment, modification, supplement or waiver shall be so
consented to by the Indenture Trustee or such Holders, as applicable, the
Issuer agrees, promptly following a request by the Indenture Trustee to agree
to such amendment and to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Indenture Trustee may deem necessary or appropriate in the circumstances to
implement such amendment and to cause the relevant Basic Documents, as
amended, to be enforceable against the Issuer.
SECTION 3.08. NEGATIVE COVENANTS. So long as any Notes are
Outstanding, the Issuer shall not:
(a) except as expressly permitted by Basic Documents, sell,
transfer, exchange or otherwise dispose of any of the properties or assets of
the Issuer, including those included in the Trust Estate, unless directed to
do so by the Indenture Trustee;
(b) claim any credit on, or make any deduction from the principal or
interest payable in respect of, the Notes (other than amounts properly
withheld from such payments under the Code) or assert any claim against any
present or former Noteholder by reason of the payment of the taxes levied or
assessed upon any part of the Trust Estate;
(c) except as may be expressly permitted hereby and by the Basic
Documents, (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released
from any covenants or obligations with respect to the Notes under this
Indenture, (B) permit any lien, charge, excise, claim, security interest,
mortgage or other encumbrance (other than the lien of this Indenture) to be
created on or extend to or otherwise arise upon or burden the Trust Estate or
any part thereof or any interest therein or the proceeds thereof (other than
tax liens, mechanics' liens and other liens that arise by operation of law,
in each case on any of the Financed Vehicles and arising solely as a result
of an action or omission of the related Obligor), (C) permit the lien of this
Indenture not to constitute a valid first priority
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(other than with respect to any such tax, mechanics' or other lien) security
interest in the Trust Estate or (D) dissolve or liquidate in whole or in
part; or
(d) assume or incur any indebtedness other than the Notes or as
expressly contemplated by this Indenture (in connection with the obligation
to reimburse Advances from the Trust Estate, or to pay expenses from the
Trust Estate) or by the Basic Documents as in effect on the date hereof.
SECTION 3.09. ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will
cause the Servicer to deliver to the Indenture Trustee concurrently with its
delivery thereof to the Issuer the annual statement of compliance described
in Section 4.11 of the Sale and Servicing Agreement. In addition, on the same
date annually upon which such annual statement of compliance is to be
delivered by the Servicer, the Issuer shall deliver to the Indenture Trustee
an Officer's Certificate stating, as to the Authorized Officer signing such
Officer's Certificate, that:
(a) a review of the activities of the Issuer during such year and of
its performance under this Indenture has been made under such Authorized
Officer's supervision; and
(b) to the best of such Authorized Officer's knowledge, based on
such review, the Issuer has complied with all conditions and covenants under
this Indenture throughout such year, or, if there has been a default in its
compliance with any such condition or covenant, specifying each such default
known to such Authorized Officer and the nature and status thereof.
SECTION 3.10. ISSUER MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.
(a) The Issuer shall not consolidate or merge with or into any other
Person, unless:
(i) the Person (if other than the Issuer) formed by or
surviving such consolidation or merger shall be a Person organized
and existing under the laws of the United States of America or any
State or the District of Columbia and shall expressly assumed, by an
Indenture supplemental hereto, executed and delivered to the
Indenture Trustee, in form satisfactory to the Indenture Trustee,
the duty to make due and punctual payments of the principal of and
interest on all Notes in accordance with the terms thereof and the
performance or observance of every agreement and covenant of this
Indenture on the part of the Issuer to be performed or observed, all
as provided herein;
(ii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing;
(iii) each Rating Agency shall have notified the Indenture
Trustee and the Owner Trustee that such transaction will not result in
the removal or reduction of the rating then assigned thereby to any
Class of Notes;
(iv) the Issuer shall have received an Opinion of Counsel (and
shall have delivered copies thereof to the Indenture Trustee) to the
effect that such transaction will not have any material adverse tax
consequence to the Issuer, any Noteholder or any Certificateholder;
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(v) any action that is necessary to maintain each lien and
security interest created by the Trust Agreement, the Sale and
Servicing Agreement or by this Indenture shall have been taken; and
(vi) The Issuer shall have delivered to the Indenture Trustee
an Officer's Certificate and an Opinion of Counsel each stating that
such consolidation or merger and any related supplemental indenture
complies with this Article III and that all conditions precedent
provided for in this Indenture relating to such transaction have
been complied with (including any filing required by the Exchange
Act).
(b) Except as expressly provided in this Indenture or in the Basic
Documents, the Issuer shall not convey or transfer its properties or assets,
including those included in the Trust Estate, to any Person, unless:
(i) the Person that acquires by conveyance or transfer such
properties and assets of the Issuer shall (A) be a United States
citizen or a Person organized and existing under the laws of the
United States of America or any State or the District of Columbia,
(B) expressly assume, by an indenture supplemental hereto, executed
and delivered to the Indenture Trustee, in form satisfactory to the
Indenture Trustee, the duty to make due and punctual payments of the
principal of and interest on all Notes and the performance or
observance of every agreement and covenant of this Indenture on the
part of the Issuer to be performed or observed, all as provided
herein, (C) expressly agrees by means of such supplemental indenture
that all right, title and interest so conveyed or transferred shall
be subject and subordinate to the rights of Holders of the Notes,
(D) unless otherwise provided in such supplemental indenture,
expressly agrees to indemnify, defend and hold harmless the Issuer,
the Owner Trustee and the Indenture Trustee against and from any
loss, liability or expense arising under or related to this
Indenture and the Notes, and (E) expressly agrees by means of such
supplemental indenture that such Person (or if a group of Persons,
then one specified Person) shall make all filings that counsel
satisfactory to such purchaser or transferee and the Indenture
Trustee determines must be made with (1) the Commission (and any
other appropriate Person) required by the Exchange Act or the
appropriate authorities in any State in which the Notes have been
sold pursuant to any qualification or exemption under the securities
or "blue sky" laws of such State, in connection with the Notes or
(2) the Internal Revenue Service or the relevant state or local
taxing authorities of any jurisdiction;
(ii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing;
(iii) each Rating Agency shall notified the Indenture Trustee
and the Owner Trustee that such transaction might or would result in
the removal or reduction of the rating then assigned thereby to any
Class of Notes;
(iv) the Issuer shall have received an Opinion of Counsel (and
shall have delivered copies thereof to the Indenture Trustee) to the
effect that such transaction will not have any material adverse tax
consequence to the Issuer, any Noteholder or any Certificateholder;
22
(v) any action that is necessary to maintain each lien and
security interest created by the Trust Agreement, the Sale and
Servicing Agreement or by this Indenture shall have been taken; and
(vi) the Issuer shall have delivered to the Indenture Trustee
an Officer's Certificate and an Opinion of Counsel each stating that
such conveyance or transfer and such supplemental indenture comply
with this Article III and that all conditions precedent herein
provided for relating to such transaction have been complied with
(including any filing required by the Exchange Act).
SECTION 3.11. SUCCESSOR OR TRANSFEREE.
(a) Upon any consolidation or merger of the Issuer in accordance
with Section 3.10(a), the Person formed by or surviving such consolidation or
merger (if other than the Issuer) shall succeed to, and be substituted for,
and may exercise every right and power of, the Issuer under this Indenture
with the same effect as if such Person had been named as the Issuer herein.
(b) Upon a conveyance or transfer of all the assets and properties
of the Issuer pursuant to Section 3.10(b), Toyota Auto Receivables 1999-A
Owner Trust will be released from every covenant and agreement of this
Indenture to be observed or performed on the part of the Issuer with respect
to the Notes immediately upon the delivery of written notice to the Indenture
Trustee stating that Toyota Auto Receivables 1999-A Owner Trust is to be so
released.
SECTION 3.12. NO OTHER BUSINESS. Unless and until the Issuer shall
have been released from its duties and obligations hereunder, the Issuer
shall not engage in any business other than financing, purchasing, owning,
selling and managing the Receivables in the manner contemplated by the Basic
Documents and activities incidental thereto.
SECTION 3.13. NO BORROWING. Unless and until the Issuer shall have
been released from its duties and obligations hereunder, the Issuer shall not
issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any indebtedness except for the Notes or other obligations
permitted hereunder (including the obligation to reimburse Advances or
certain expenses of the Servicer) or under another Basic Document (including
indemnification expenses of the Issuer and certain fees and expenses of the
Administrator).
SECTION 3.14. SERVICER'S NOTICE OBLIGATIONS. The Issuer shall cause
the Servicer to comply with all of its duties and obligations with respect to
the preparation of reports, the delivery of Officer's Certificates and
Opinions of Counsel and the giving of instructions and notices under the Sale
and Servicing Agreement (including, but not limited to, under Sections 3.02,
4.08, 4.10, 4.11, 4.12, 4.15, 5.08 and Article X thereof).
SECTION 3.15. GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES.
Unless and until the Issuer shall have been released from its duties and
obligations hereunder, except as contemplated by the Sale and Servicing
Agreement, this Indenture or the other Basic Documents, the Issuer shall not
make any loan or advance or credit to, or guarantee (directly or indirectly
or by an instrument having the effect of assuring another's payment or
performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently
23
liable, directly or indirectly, in connection with the obligations, stocks or
dividends of, or own, purchase, repurchase or acquire (or agree contingently
to do so) any stock, obligations, assets or securities of, or any other
interest in, or make any capital contribution to, any other Person.
SECTION 3.16. CAPITAL EXPENDITURES. Unless and until the Issuer
shall have been released from its duties and obligations hereunder, the
Issuer shall not make any expenditure (by long-term or operating lease or
otherwise) for capital assets (either realty or personalty).
SECTION 3.17. REMOVAL OF ADMINISTRATOR. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause
unless so instructed by the Owner Trustee or the Indenture Trustee and unless
each Rating Agency shall have received 10 days' written notice thereof and
shall not have notified the Indenture Trustee, the Administrator or the Owner
Trustee that such removal might or would result in the removal or reduction
of the rating then assigned thereby to any Class of Notes or the Certificates.
SECTION 3.18. RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Servicer, the Owner Trustee or any Certificateholder or
otherwise with respect to any ownership or equity interest or security in or
of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; PROVIDED, HOWEVER, that
the Issuer may make, or cause to be made, distributions or payments to the
Servicer, the Owner Trustee and the Certificateholders as contemplated by,
and to the extent funds are available for such purpose under, the Basic
Documents. The Issuer will not, directly or indirectly, make payments to or
distributions from the Collection Account except in accordance with the Basic
Documents.
SECTION 3.19. NOTICE OF EVENTS OF DEFAULT. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder, each default on the part of the Servicer or the Seller
of its obligations under the Sale and Servicing Agreement and each default on
the part of TMCC of its obligations under the Receivables Purchase Agreement.
The Indenture Trustee shall notify each Noteholder of record in writing of
any Event of Default promptly upon a Trust Officer obtaining actual knowledge
thereof. Such notices will be provided in accordance with Section 2.11 or
2.12, as applicable.
SECTION 3.20. FURTHER INSTRUMENTS AND ACTIONS. Upon request of the
Indenture Trustee, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Indenture.
ARTICLE IV
SATISFACTION AND DISCHARGE
SECTION 4.01. SATISFACTION AND DISCHARGE OF INDENTURE. This
Indenture shall cease to be of further effect with respect to the Notes
except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
24
Noteholders to receive payments of principal thereof and interest thereon,
(iv) Section 3.03, (v) the rights, obligations and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.07 and the obligations of the Indenture Trustee under
Sections 3.03 and 4.02), and (vi) the rights of Noteholders and
Certificateholders as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when:
(a) either (1) all Notes theretofore authenticated and delivered
(other than Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.05 and Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Issuer and thereafter repaid to the Issuer or discharged from such
trust, as provided in Section 3.03) have been delivered to the Indenture
Trustee for cancellation or (2) all Notes not theretofore delivered to the
Indenture Trustee for cancellation have become due and payable or will become
due and payable within one year (either because the Class C Final Scheduled
Payment Date is within one year or because the Indenture Trustee has received
notice of the exercise of the option granted pursuant to Section 9.01 of the
Sale and Servicing Agreement) and the Issuer has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America
(which will mature prior to the date such amounts are payable), in trust for
such purpose, in an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Indenture Trustee
for cancellation when due;
(b) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; and
(c) the Issuer has delivered to the Indenture Trustee an Officer's
Certificate, an Opinion of Counsel and (if required by the TIA or the
Indenture Trustee) an Independent Certificate from a firm of certified public
accountants, each meeting the applicable requirements of Section 11.01 and,
subject to Section 11.02, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture
have been complied with.
SECTION 4.02. APPLICATION OF TRUST MONEY. All moneys deposited with
the Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust
and (a) applied by it in accordance with the provisions of the Notes and this
Indenture to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Holders of the particular Notes for
the payment of which such moneys have been deposited with the Indenture
Trustee, of all sums due and to become due thereon for principal and interest
or (b) released to the Owner Trustee for distribution to the
Certificateholders or application pursuant to the Trust Agreement or Sale and
Servicing Agreement; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement
or required by law.
SECTION 4.03. REPAYMENT OF MONEYS HELD BY PAYING AGENT. In
connection with the satisfaction and discharge of this Indenture with respect
to the Notes, all moneys then held by any Paying Agent other than the
Indenture Trustee under the provisions of this Indenture with
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respect to such Notes shall, upon demand of the Issuer, be paid to the
Indenture Trustee to be held and applied according to Section 3.03 or 4.02
and thereupon such Paying Agent shall be released from all further liability
with respect to such moneys.
ARTICLE V
REMEDIES
SECTION 5.01. EVENTS OF DEFAULT. "Event of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):
(a) default in the payment of any interest on any Class A Note when
the same becomes due and payable, and such default shall continue for a
period of five days (so long as any Class A Notes are Outstanding, each
Holder of any Class B and Class C Note or the Note Owner of any such Note by
such Holder's acceptance of such Note or beneficial interest therein, as the
case may be, shall be deemed to have consented to the delay in payment of
interest on such Class of Notes and to have waived its right to institute
suit for enforcement of any such payment); or
(b) after the Class A Notes have been paid in full, default in the
payment of any interest on any Class B Note when the same becomes due and
payable, and such default shall continue for a period of five days (so long
as the Class B Notes are outstanding, each Holder of any Class C Note or the
Note Owner of any such note by such Holder's acceptance of such Note or
beneficial interest therein, as the case may be, shall be deemed to have
consented to the delay in payment of interest on such Class of Notes and to
have waived its right to institute suit for enforcement of any such payment);
or
(c) after the Class B Notes have been paid in full, default in the
payment of any interest on any Class C Note when the same becomes due and
payable, and such default shall continue for a period of five days (so long
as the Class C Notes are outstanding); or
(d) default in the payment of the principal of or any installment of
the principal of any Note when the same becomes due and payable; or
(e) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere
in this Section specifically dealt with) which shall continue or not be cured
for a period of 90 days after there shall have been given, by registered or
certified mail, to the Issuer by the Indenture Trustee or to the Issuer and
the Indenture Trustee by the Holders of at least 25% of the Outstanding
Amount of the Notes acting together as a single class, a written notice
specifying such default and requiring it to be remedied and stating that such
notice is a notice of Default hereunder;
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(f) any representation or warranty of the Issuer made in this
Indenture or in any certificate or other writing delivered pursuant hereto or
in connection herewith shall prove to have been incorrect in any material
respect as of the time when the same shall have been made, and such default
shall continue or not be cured, or the circumstance or condition in respect
of which such misrepresentation or warranty was incorrect shall not have been
eliminated or otherwise cured, for a period of 30 days after there shall have
been given, by registered or certified mail, to the Issuer by the Indenture
Trustee or to the Issuer and the Indenture Trustee by the Holders of at least
25% of the Outstanding Amount of the Notes acting together as a single class,
a written notice specifying such incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of
Default hereunder; or
(g) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer or any substantial part
of the Trust Estate in an involuntary case under any applicable federal or
state bankruptcy, insolvency or other similar law now or hereafter in effect,
or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer or for any substantial part of
the Trust Estate, or ordering the winding-up or liquidation of the Issuer's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 90 consecutive days; or
(h) the commencement by the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now
or hereafter in effect, or the consent by the Issuer to the entry of an order
for relief in an involuntary case under any such law, or the consent by the
Issuer to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the Issuer
or for any substantial part of the Trust Estate, or the making by the Issuer
of any general assignment for the benefit of creditors, or the failure by the
Issuer generally to pay its debts as such debts become due, or the taking of
any action by the Issuer in furtherance of any of the foregoing.
For purposes of determining whether an Event of Default pursuant to
Section 5.01(d) has occurred, the amount of principal required to be paid to the
Holders of any Class of Notes on any Payment Date is the amount available to be
paid thereto pursuant to Sections 5.05(c), (d) and (e) of the Sale and Servicing
Agreement; provided however that (i) the Class A-1 Notes are required to be paid
in full on or before the Class A-1 Final Scheduled Payment Date, meaning that
Holders of Class A-1 Notes are entitled to have received on or before such date
payments in respect of principal in an aggregate amount equal to the Class A-1
Initial Principal Balance together with all interest accrued thereon through
such date; (ii) the Class A-2 Notes are required to be paid in full on or before
the Class A-2 Final Scheduled Payment Date, meaning that Holders of Class A-2
Notes are entitled to have received on or before such date payments in respect
of principal in an aggregate amount equal to the Class A-2 Initial Principal
Balance together with all interest accrued thereon through such date, (iii) the
Class A-3 Notes are required to be paid in full on or before the Class A-3 Final
Scheduled Payment Date, meaning that Holders of Class A-3 Notes are entitled to
have received on or before such date payments in respect of principal in an
aggregate amount equal to the Class A-3 Initial Principal Balance together with
all interest accrued thereon through such date; (iv) the Class B Notes are
required to be paid in full on or before the Class B Final Scheduled Payment
Date, meaning that Holders of Class B Notes are entitled to have received on or
before such date payments in respect of principal in an aggregate amount equal
to the Class B Initial Principal Balance together with all
27
interest accrued thereon through such date and (v) the Class C Notes are
required to be paid in full on or before the Class C Final Scheduled Payment
Date, meaning that Holders of Class C Notes are entitled to have received on
or before such date payments in respect of principal in an aggregate amount
equal to the Class C Initial Principal Balance together with all interest
accrued thereon through such date.
The Issuer shall deliver to the Indenture Trustee, within five days
after the occurrence thereof, written notice in the form of an Officer's
Certificate of any Default which with the giving of notice or the lapse of time
would become an Event of Default under clause (e), the status of such Default
and any action the Issuer is taking or proposes to take with respect thereto.
SECTION 5.02. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If
an Event of Default should occur and be continuing, then and in every such
case the Indenture Trustee or (i) the Holders of at least 51% of the
Outstanding Amount of the Class A Notes acting together as a single Class
(without the consent of the Class B Notes or the Class C Notes) or (ii) after
the Class A Notes have been paid in full, the Holders of at least 51% of the
outstanding principal amount of Class B Notes (without the consent of any
holder of the Class C Notes) or (iii) after the Class B Notes have been paid
in full, the Holders of at least 51% of the outstanding principal amount of
Class C Notes (in each case excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by TMCC,
TMCRC or any of their Affiliates), may declare all the Notes to be
immediately due and payable, by a notice in writing to the Issuer (and to the
Indenture Trustee if given by Noteholders), and upon any such declaration the
unpaid principal amount of such Notes, together with accrued and unpaid
interest thereon through the date of acceleration, shall become immediately
due and payable.
At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided: (i)
the Holders of Class A Notes representing at least 51% of the Outstanding Amount
of the Class A Notes, acting together as a single Class, without the consent of
any Holder of the Class B Notes or Class C Notes or (ii) after the Class A Notes
have been paid in full, the Holders of the Class B Notes representing a majority
of the Outstanding Amount of the Notes, without the consent of any Holder of the
Class C Notes or (iii) after the Class B Notes have been paid in full, the
Holders of the Class C Notes representing a majority of the Outstanding Amount
of the Notes, without the consent of any Holder of the Certificates; in each
case, by written notice to the Issuer and the Indenture Trustee, may rescind and
annul such declaration and its consequences if:
(a) the Issuer has paid or deposited with the Indenture Trustee a
sum sufficient to pay:
(i) all payments of principal of and interest on the
respective Class of Notes and all other amounts that would then be due
hereunder or in accordance with the terms of the Notes if the Event of
Default giving rise to such acceleration had not occurred; and
(ii) all sums paid or advanced by the Indenture Trustee
hereunder and the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel; and
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(b) all Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.12.
No such rescission shall affect any subsequent default or impair any
right consequent thereto.
SECTION 5.03. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
BY INDENTURE TRUSTEE.
(a) The Issuer covenants that if (i) Default is made (A) in the
payment of any interest on any Class A Note, so long as any amounts remain
unpaid with respect to the Class A Notes or (B) in the payment of any
interest on any Class B Note, after the Class A Notes have been paid in full
or (C) in the payment of any interest on any Class C Note, after the Class B
Notes have been paid in full, when the same becomes due and payable, and such
default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note
when the same becomes due and payable (as described in the penultimate
paragraph of Section 5.01 hereof), the Issuer will, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Holders of the Notes, the whole amount then due and payable on such Class of
Notes for principal and interest, with interest upon the overdue principal
and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest at the rate borne by the
Notes and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents and counsel.
(b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an
express trust, may institute a Proceeding for the collection of the sums so
due and unpaid, and may prosecute such Proceeding to judgment or final
decree, and may enforce the same against the Issuer or other obligor upon
such Notes and collect in the manner provided by law out of the property of
the Issuer or other obligor upon such Notes, wherever situated, the moneys
adjudged or decreed to be payable.
(c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.04, in its
discretion, proceed to protect and enforce its rights and the rights of the
Noteholders and, incidentally thereto, the Certificateholders, by such
appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.
(d) In case there shall be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Estate, Proceedings under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or other
similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken
29
possession of the Issuer or its property or such other obligor or Person, or
in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the
Issuer or such other obligor, then, irrespective of whether the principal of
any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee
shall have made any demand pursuant to the provisions of this Section, the
Indenture Trustee shall be entitled and empowered, by intervention in such
Proceedings or otherwise:
(i) to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the
Notes and Certificates, and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the
Indenture Trustee (including any claim for reasonable compensation
to the Indenture Trustee and each predecessor Indenture Trustee, and
their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor
Indenture Trustee, except as a result of negligence or bad faith)
and of the Noteholders or Certificateholders allowed in such
Proceedings;
(ii) unless prohibited by applicable law and regulations, to
vote on behalf of the Holders of Notes in any election of a trustee,
a standby trustee or Person performing similar functions in any such
Proceedings;
(iii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute all
amounts received with respect to the claims of the Noteholders or
Certificateholders and of the Indenture Trustee on their behalf; and
(iv) to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the
claims of the Indenture Trustee or the Holders of Notes allowed in
any judicial proceedings relative to the Issuer, its creditors and
its property; and any trustee, receiver, liquidator, custodian or
other similar official in any such Proceeding is hereby authorized
by each of such Noteholders to make payments to the Indenture
Trustee and, in the event that the Indenture Trustee shall consent
to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents, attorneys and
counsel, and all other expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor
Indenture Trustee except as a result of negligence or bad faith.
(e) Nothing herein contained shall be deemed to authorize the
Indenture Trustee to authorize or consent to or vote for or accept or adopt
on behalf of any Noteholder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder
thereof or to authorize the Indenture Trustee to vote in respect of the claim
of any Noteholder in any such proceeding except, as aforesaid, to vote for
the election of a trustee in bankruptcy or similar Person.
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(f) All rights of action and of asserting claims under this
Indenture, or under any of the Notes, may be enforced by the Indenture
Trustee without the possession of any of the Notes or the production thereof
in any trial or other Proceedings relative thereto, and any such action or
Proceedings instituted by the Indenture Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment, subject to
the payment of the expenses, disbursements and compensation of the Indenture
Trustee, each predecessor Indenture Trustee and their respective agents and
attorneys, shall be for the ratable benefit of the Holders of the Notes and,
incidentally thereto, for the benefit of the Certificateholders.
(g) In any Proceedings brought by the Indenture Trustee (and also
any Proceedings involving the interpretation of any provision of this
Indenture to which the Indenture Trustee shall be a party), the Indenture
Trustee shall be held to represent all the Noteholders, and it shall not be
necessary to make any Noteholder a party to any such Proceedings.
SECTION 5.04. REMEDIES; PRIORITIES; INSOLVENCY OF SELLER.
(a) If (i) an Event of Default under Section 5.01(a) shall have
occurred and be continuing, (ii) an Event of Default under Section 5.01(b),
(c) or (d) shall have occurred and be continuing which results in the
acceleration of the Notes, or (iii) an Insolvency Event with respect to the
Seller shall have occurred and be continuing (whether or not the Trust Estate
is sold in one or more public or private sales as provided in Section
5.04(e)), the Indenture Trustee will make payments on the Notes and
Certificates as set forth in Section 5.06(d) of the Sale and Servicing
Agreement, rather than pursuant to Section 5.06(c).
(b) If an Event of Default under Section 5.01(e), (f), (g) or (h)
shall have occurred and be continuing which results in the acceleration of
the Notes (whether or not the Trust Estate is sold in one or more public or
private sales as provided in Section 5.04(d)(iv)), the Indenture Trustee will
make payments on the Notes and Certificates as set forth in Section 5.06(e)
of the Sale and Servicing Agreement, rather than pursuant to Section 5.06(c).
(c) If the Indenture Trustee, in compliance with Section 5.04(a) or
(b) is deemed to have a conflict of interest under the TIA and is required to
resign as Indenture Trustee hereunder, the Indenture Trustee, pursuant to
Section 6.10, may appoint one or more indenture trustees to act separately
hereunder for each Class of Notes (in the case of the Class A Notes, such
indenture trustee shall act for all Class A Notes as if they comprised a
single Class). In the event separate indenture trustees are appointed for one
or more Classes of Notes:
(i) so long as any amounts remain unpaid with respect to
the Class A Notes, only the Indenture Trustee for the Class A
Noteholders shall be entitled to waive any Event of Default or
Servicer Default or exercise any remedies under this Indenture;
(ii) after the Class A Notes have been paid in full, only
the Indenture Trustee for the Class B Noteholders shall be entitled
to waive any Event of Default or Servicer Default or exercise any
remedies under this Indenture; and
31
(iii) after the Class B Notes have been paid in full, the
Indenture Trustee for the Class C Noteholders shall be entitled to
waive any Event of Default or Servicer Default or exercise any
remedies under this Indenture.
(d) In accordance with Section 5.03, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):
(i) institute Proceedings in its own name and as trustee of
an express trust for the collection of all amounts then payable on
the Notes or under this Indenture with respect thereto, whether by
declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon such Notes moneys
adjudged due;
(ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to
the Trust Estate;
(iii) exercise any remedies of a secured party under the UCC
and take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee and the Noteholders; and
(iv) sell the Trust Estate or any portion thereof or rights
or interest therein, at one or more public or private sales called
and conducted in any manner permitted by law; PROVIDED, HOWEVER,
that, notwithstanding anything in this Indenture to the contrary,
the Indenture Trustee may not sell or otherwise liquidate the Trust
Estate following an Event of Default, other than an Event of Default
described in Section 5.01(a), (b), (c) or (d), unless (A) the
Holders of 100% of the Outstanding Amount of the (a) Class A Notes
so long as any amounts remain unpaid with respect to such Notes or
(b) after the Class A Notes have been paid in full, the Class B
Notes or (c) after the Class B Notes have been paid in full, the
Class C Notes, consent thereto or (B) the proceeds of such sale or
liquidation distributable to the Noteholders are sufficient to
discharge in full all amounts then due and unpaid upon such Notes
for principal and interest or (C) the Indenture Trustee determines
that the Trust Estate will not continue to provide sufficient funds
on an ongoing basis to make all payments of principal of and
interest on the Notes as they would have become due if the Notes had
not been declared due and payable, and the Indenture Trustee obtains
the consent of Holders of 66-2/3% of the Outstanding Amount of the
Class A Notes (acting together as a single class) if any amounts
remain unpaid with respect to such Notes or after the Class A Notes
have been paid in full, the Class B Notes or after the Class B Notes
have been paid in full, the Class C Notes. In determining such
sufficiency or insufficiency with respect to clause (B) and (C), the
Indenture Trustee may, but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to
the sufficiency of the Trust Estate for such purpose.
The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section. At least 15 days before such
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the related record date, payment date and amount to be
paid.
32
(e) If an Insolvency Event occurs with respect to the Seller, the
Indenture Trustee (or the Indenture Trustee for the relevant Class of Notes,
pursuant to Section 5.04(c)) will sell the Trust Estate or any portion
thereof or rights or interest therein, at one or more public or private sales
called and conducted in any manner permitted by law and in a commercially
reasonable manner and on commercially reasonable terms in accordance with the
provisions of Section 9.02 of the Trust Agreement; PROVIDED, HOWEVER, that
the Indenture Trustee (or the Indenture Trustee for the relevant Class of
Notes, pursuant to Section 5.04(c)) may not sell or otherwise liquidate the
Trust Estate in connection with such event if, prior to the termination of
the Trust Agreement pursuant to Section 9.02 of the Trust Agreement, the
Holders of at least 51% of the Outstanding Amount of the (a) Class A Notes so
long as any amounts remain unpaid with respect to such Notes or (b) after the
Class A Notes have been paid in full, the Class B Notes or (c) after the
Class B Notes have been paid in full, the Class C Notes, (in each case
excluding from such action and calculation all Notes held by TMCC, TMCRC or
any of their Affiliates) notify the Indenture Trustee in writing that they
disapprove of such sale or liquidation and the termination of trusts created
hereby in connection therewith; and PROVIDED, FURTHER, that in connection
with any such sale the Indenture Trustee will afford the Holders of each
Class of Notes adequate advance notice and information as to the conduct of
such sale such that any such Holders (acting individually, as Classes, as a
single Class or otherwise) will be reasonably able to submit bids for the
purchase of the assets to be liquidated, and that the Indenture Trustee will
consider any and all such bids on the same bases that it considers any other
bids submitted by any other party or parties. The proceeds of such sale or
liquidation (net of the expenses incurred by the Indenture Trustee in
connection with the conduct thereof, which will be retained by the Indenture
Trustee from such proceeds) will be treated as collections and deposited into
the Collection Account by the Indenture Trustee for distribution to the
Noteholders and Certificateholders in accordance with the priorities
specified in Section 5.06(d) of the Sale and Servicing Agreement. The
Indenture Trustee will have no liability with respect to the amount of such
proceeds or the adequacy thereof to make payments in full of any Class of
Notes or the Certificates. The Indenture Trustee may, but need not, obtain
and rely upon an opinion of an Independent investment banking or accounting
firm of national reputation as to the commercial reasonableness of the
conduct of any such sale or liquidation and as to the expenses incurred by
the Indenture Trustee in connection therewith, the costs of obtaining which
may be retained by the Indenture Trustee from the proceeds of such sale or
liquidation.
SECTION 5.05. OPTIONAL PRESERVATION OF THE RECEIVABLES. Except as
provided in Section 5.04(d)(iv), if the Notes have been declared to be due
and payable under Section 5.02 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, unless otherwise directed by the Holders of at least
51% of the Outstanding Amount of the (a) Class A Notes (acting together as a
single Class) so long as any amounts remain unpaid with respect to such Notes
or (b) after the Class A Notes have been paid in full, the Class B Notes or
(c) after the Class B Notes have been paid in full, the Class C Notes, (in
each case excluding from such action and calculation all Notes held by TMCC,
TMCRC or any of their Affiliates), but need not, elect to maintain possession
of the Trust Estate and direct the Issuer, Servicer and Administrator not to
take steps to liquidate the Receivables. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for
the payment of principal of and interest on the Notes, and the Indenture
Trustee shall take such desire into account when determining whether or not
to maintain
33
possession of the Trust Estate. In determining whether to maintain possession
of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to
the sufficiency of the Trust Estate for such purpose.
SECTION 5.06. LIMITATION OF SUITS. No Holder of any Note shall have
any right to institute any Proceeding, judicial or otherwise, with respect to
this Indenture or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless such Holder has previously given written
notice to the Indenture Trustee of a continuing Event of Default, and:
(a) the Event of Default arises from the Servicer's failure to
remit payments when due or
(b) the Holders of not less than 25% of the Outstanding Amount of
the (i) Class A Notes, so long as any Class A Notes remain Outstanding
(acting together as a single class) or (ii) Class B Notes, after the Class A
Notes have been paid in full or (iii) Class C Notes, after the Class B Notes
have been paid in full, have made written request to the Indenture Trustee to
institute such Proceeding in respect of such Event of Default in its own name
as Indenture Trustee hereunder and have offered to the Indenture Trustee
reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request and the Indenture Trustee for 30 days
after its receipt of such notice, request and offer of indemnity has failed
to institute such Proceedings.
It is understood and intended that no one or more Holders of Notes
shall have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Notes or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture, except in
the manner herein provided.
SECTION 5.07. UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE
PRINCIPAL AND INTEREST. Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any,
on such Note on or after the respective due dates thereof expressed in such
Note and in this Indenture (in each case with reference to the calculations
to be made pursuant to the Sale and Servicing Agreement) and to institute
suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder; provided that each Holder or
Owner of a Class B Note will be deemed to have consented to any delay in the
payment thereto of any interest due thereon that is in accordance with the
payment of amounts pursuant to Section 5.06 of the Sale and Servicing
Agreement and to have waived its right to institute suit for enforcement of
any such payment for so long as any Class A Note is Outstanding, and each
Holder or Owner of a Class C Note will be deemed to have consented to any
delay in the payment thereto of any interest due thereon that is in
accordance with the payment of amounts pursuant to Section 5.06 of the Sale
and Servicing Agreement and to have waived its right to institute suit for
enforcement of any such payment for so long as any Class B Note is
Outstanding.
34
SECTION 5.08. RESTORATION OF RIGHTS AND REMEDIES. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had
been instituted.
SECTION 5.09. RIGHTS AND REMEDIES CUMULATIVE. No right or remedy
herein conferred upon or reserved to the Indenture Trustee or to the
Noteholders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.
SECTION 5.10. DELAY OR OMISSION NOT A WAIVER. No delay or omission
of the Indenture Trustee or any Holder of any Note to exercise any right or
remedy accruing upon any Default or Event of Default shall impair any such
right or remedy or constitute a waiver of any such Default or Event of
Default or an acquiescence therein. Every right and remedy given by this
Article V or by law to the Indenture Trustee or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee or by the Noteholders, as the case may be.
SECTION 5.11. CONTROL BY NOTEHOLDERS. The Holders of at least 51% of
the Outstanding Amount of the (i) Class A Notes, so long as any Class A Notes
remain Outstanding (acting together as a single class) or (ii) Class B Notes,
after the Class A Notes have been paid in full or (iii) Class C Notes, after
the Class B Notes have been paid in full, shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available
to the Indenture Trustee with respect to the Notes or exercising any trust or
power conferred on the Indenture Trustee; provided that:
(i) such direction shall not be in conflict with any rule
of law or with this Indenture;
(ii) any direction to the Indenture Trustee to sell or
liquidate the Trust Estate shall be by Holders of Notes representing
not less than percentages of the Outstanding Amount of the Notes of
the relevant Class set forth in Section 5.04 or 5.05, as applicable
(excluding for such purposes the outstanding principal amount of any
Notes held of record or beneficially owned by TMCC, TMCRC or any of
their Affiliates); and
(iii) the Indenture Trustee may take any other action deemed
proper by the Indenture Trustee that is not inconsistent with such
direction.
Notwithstanding the rights of Noteholders set forth in this Section,
subject to Sections 5.07 and 6.01, the Indenture Trustee need not take any
action that it determines would be illegal
35
or may not lawfully be taken, might subject it to personal liability or would
be unduly prejudicial to the rights of any Noteholders not consenting to such
action.
SECTION 5.12. WAIVER OF PAST DEFAULTS. Prior to the declaration of
the acceleration of the maturity of the Notes as provided in Section 5.02 or
the liquidation or sale of the Trust Estate pursuant to Section 5.04, (i) the
Holders of Class A Notes representing at least 51% of the Outstanding Amount
of the Class A Notes (acting together as a single Class), without the consent
of any Holder of the Class B Notes or Class C Notes or (ii) after the Class A
Notes have been paid in full, the Holders of the Class B Notes representing
at least 51% of the Outstanding Amount of the Notes, without the consent of
any Holder of the Class C Notes or (iii) after the Class B Notes have been
paid in full, the Holders of the Class C Notes representing at least 51% of
the Outstanding Amount of the Notes, without the consent of any Holder of the
Certificates (excluding for such purposes the outstanding principal amount of
any Notes held of record or beneficially owned by TMCC, TMCRC or any of their
Affiliates); may waive any past Default, Event of Default or Servicer Default
and its consequences except a (a) Servicer Default in the deposit of
collections or other required amounts into the Collection Account, Principal
Distribution Account, Payahead Account or Reserve Fund, or (b) Default in
respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Holder of each Note. In the case of any such
waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall
be restored to their former positions and rights hereunder, respectively; but
no such waiver shall extend to any subsequent or other Default or impair any
right consequent thereto.
Upon any such waiver, such Default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.
SECTION 5.13. UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Note or Note Owner by such Holder's acceptance
of such Note or beneficial interest therein, as the case may be, shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to (a) any suit instituted
by the Indenture Trustee, (b) any suit instituted by any Noteholder, or group
of Noteholders, in each case holding in the aggregate more than 25% of the
Outstanding Amount of Notes, or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture.
SECTION 5.14. WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead or in any manner whatsoever, claim or take the benefit
or advantage of, any stay or extension law
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wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this Indenture; and the Issuer (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Indenture Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.
SECTION 5.15. ACTION ON NOTES. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be
affected by the seeking, obtaining or application of any other relief under
or with respect to this Indenture. Neither the lien of this Indenture nor any
rights or remedies of the Indenture Trustee or the Noteholders shall be
impaired by the recovery of any judgment by the Indenture Trustee against the
Issuer or by the levy of any execution under such judgment upon any portion
of the Trust Estate or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04.
SECTION 5.16. PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS.
(a) Promptly following a request from the Indenture Trustee to do so
and at the Administrator's expense, the Issuer shall take all such lawful
action as the Indenture Trustee may request to compel or secure the
performance and observance by the Seller and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale
and Servicing Agreement or by the Seller of its remedies under or in
connection with the Receivables Purchase Agreement, and to exercise any and
all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Servicing Agreement to the extent
and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller or the Servicer
thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller or the Servicer of
each of their respective obligations under the Sale and Servicing Agreement.
(b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in
writing or by telephone, confirmed in writing promptly thereafter) of the
Holders of 66-2/3% of the Outstanding Amount of the (1) Class A Notes, so
long as any Class A Notes remain Outstanding (acting together as a single
class) or (2) Class B Notes, after the Class A Notes have been paid in full
or (3) Class C Notes, after the Class B Notes have been paid in full
(excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by TMCC, TMCRC or any of their
Affiliates), shall exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Seller or the Servicer under or in
connection with the Sale and Servicing Agreement, against the Seller under or
in connection with the Receivables Purchase Agreement, or against the
Administrator under the Administration Agreement, including the right or
power to take any action to compel or secure performance or observance by the
Seller, the Servicer or the Administrator, of each of their obligations to
the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension, or waiver thereunder and any right of the Issuer to take
such action shall be suspended.
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ARTICLE VI
THE INDENTURE TRUSTEE
SECTION 6.01. DUTIES OF INDENTURE TRUSTEE.
(a) The Indenture Trustee, both prior to and after the occurrence of a
Servicer Default under the Sale and Servicing Agreement, undertakes to
perform such duties and only such duties as are specifically set forth in
this Indenture.
(b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform on their face to the
requirements of this Indenture.
(c) No provision of this Indenture shall be construed to relieve the
Indenture Trustee from liability for its own negligent action, its own
negligent failure to act, its own bad faith or its own willful misfeasance;
PROVIDED, HOWEVER, that:
(i) the duties and obligations of the Indenture Trustee shall be
determined solely by the express provisions of this Indenture, the
Indenture Trustee shall not be liable except for the performance of such
duties and obligations as are specifically set forth in this Indenture,
no implied covenants or obligations shall be read into this Indenture
against the Indenture Trustee, the permissive right of the Indenture
Trustee to do things enumerated in this Indenture shall not be construed
as a duty and, in the absence of bad faith on the part of the Indenture
Trustee, the Indenture Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Indenture Trustee and
conforming on their face to the requirements of this Indenture;
(ii) the Indenture Trustee shall not be personally liable for an
error of judgment made in good faith by a Trust Officer, unless it shall
be proved that the Indenture Trustee was negligent in performing its
duties in accordance with the terms of this Indenture; and
(iii) the Indenture Trustee shall not be personally liable with
respect to any action taken, suffered or omitted to be taken in good
faith in accordance with the direction of (i) the Holders of at least
51% of the Outstanding Amount of the Class A Notes (acting together as a
single Class), without the consent of the Class B Notes or the Class C
Notes, or (ii) after the Class A Notes have been paid in full, the
Holders of at least 51% of the outstanding principal amount of Class B
Notes, without the consent of any holder of the Class C Notes or (iii)
after the Class B Notes have been paid in full, the Holders of at least
51% of the outstanding principal amount of Class C Notes (in each case
excluding for such purposes the outstanding principal amount of any
Notes held of record or beneficially owned by TMCC, TMCRC or any of
their Affiliates) relating to the time, method and place of conducting
any proceeding for any remedy available to the
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Indenture Trustee, or exercising any trust or power conferred upon the
Indenture Trustee under this Indenture. Moreover, if more than one
Indenture Trustee has been appointed, each Indenture Trustee shall owe any
and all fiduciary duties only to the Class or Classes of Notes on whose
behalf it shall have been appointed.
(d) The Indenture Trustee shall not be required to expend or risk its
own funds or otherwise incur financial liability in the performance of any of
its duties under this Indenture, or in the exercise of any of its rights or
powers, if there shall be reasonable grounds for believing that the repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.
(e) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, whether upon the
exercise of its rights under this Indenture or otherwise, shall be maintained
by the Indenture Trustee in confidence and shall not be disclosed to any
other Person, unless such disclosure is required by any applicable law or
regulation or pursuant to subpoena.
(f) Pursuant to Sections 3.02 and 4.08 of the Sale and Servicing
Agreement, in the event that a Trust Officer of the Indenture Trustee
discovers that a representation or warranty with respect to a Receivable was
incorrect as of the time specified with respect to such representation and
warranty or that a covenant of the Servicer has been breached, and such
incorrectness or breach materially and adversely affects the interests of the
Issuer, the Indenture Trustee shall give prompt written notice to the
Servicer and the Owner Trustee of such incorrectness.
SECTION 6.02. RIGHTS OF INDENTURE TRUSTEE.
(a) Except as otherwise provided in Section 6.01:
(i) the Indenture Trustee may rely and shall be protected in acting
or refraining from acting upon any resolution, Officer's Certificate,
certificate of an authorized signatory, certificate of auditors or any
other certificate, statement, instrument, opinion, report, notice,
request, consent, order, appraisal, bond or other paper or document
believed by it to be genuine and to have been signed or presented by the
proper party or parties;
(ii) the Indenture Trustee may consult with counsel and any Opinion
of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it under this
Indenture in good faith and in accordance with such Opinion of Counsel;
(iii) the Indenture Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture or
the Sale and Servicing Agreement, or to institute, conduct or defend any
litigation under this Indenture, or in relation to this Indenture or the
Sale and Servicing Agreement, at the request, order or direction of any
of the Noteholders pursuant to the provisions of this Indenture or the
Sale and Servicing Agreement, unless such Noteholders shall have offered
to the Indenture Trustee
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reasonable security or indemnity against the costs, expenses and
liabilities that may be incurred therein or thereby;
(iv) the Indenture Trustee shall not be personally liable for any
action taken, suffered or omitted by it in good faith and reasonably
believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture;
(v) the Indenture Trustee shall not be bound to recalculate,
reverify, or make any investigation into the facts of matters stated in
any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing to do so by Holders of Notes
evidencing not less than 25% of the aggregate Outstanding Amount of the
(1) Class A Notes, so long as any Class A Notes remain Outstanding
(acting together as a single class) or (2) Class B Notes, after the
Class A Notes have been paid in full or (3) Class C Notes, after the
Class B Notes have been paid in full (excluding for such purposes the
outstanding principal amount of any Notes held of record or beneficially
owned by TMCC, TMCRC or any of their Affiliates); PROVIDED, HOWEVER,
that if the payment within a reasonable time to the
Indenture Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of
the Indenture Trustee, not reasonably assured to the Indenture Trustee
by the security afforded to it by the terms of this Indenture, the
Indenture Trustee may require reasonable indemnity against such cost,
expense or liability as a condition to so proceeding; the reasonable
expense of every such examination shall be paid by the Administrator or,
if paid by the Indenture Trustee, shall be reimbursed by the
Administrator upon demand; and nothing in this clause shall derogate
from the obligation of the Servicer to observe any applicable law
prohibiting disclosure of information regarding the Obligors; and
(vi) the Indenture Trustee may execute any of the trusts or powers
under this Indenture or perform any duties under this Indenture either
directly or by or through agents or attorneys or a custodian.
(b) No Noteholder will have any right to institute any proceeding with
respect to this Indenture except upon satisfying the conditions set
forth in Section 5.06.
SECTION 6.03. INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial owner or pledgee of Notes and may otherwise deal with the Issuer
or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent
may do the same with like rights. However, in so doing the Indenture Trustee
must comply with Sections 6.11 and 6.12.
SECTION 6.04. INDENTURE TRUSTEE'S DISCLAIMER. The Indenture Trustee
makes no representations as to the validity or sufficiency of this Indenture
or of the Notes (other than the execution by the Indenture Trustee on behalf
of the Trust of, and the certificate of authentication on, the Notes), or of
the Certificates. The Indenture Trustee shall have no obligation to perform
any of the duties of the Servicer or the Administrator unless explicitly set
forth in this Indenture. The Indenture Trustee shall at no time have any
responsibility or liability for or with respect to
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the legality, validity and enforceability of the Notes or any Receivable, any
ownership interest in any Financed Vehicle, or the maintenance of any such
ownership interest, or for or with respect to the efficacy of the Trust or
its ability to generate the payments to be distributed to Noteholders under
this Indenture, including without limitation the validity of the assignment
of the Receivables to the Trust or of any intervening assignment; the
existence, condition, location and ownership of any Receivable or Financed
Vehicle; the existence and enforceability of any physical damage or credit
life or credit disability insurance; the existence and contents of any retail
installment sales contract or any computer or other record thereof; the
completeness of any retail installment sales contract; the performance or
enforcement of any retail installment sales contract; the compliance by the
Issuer with any covenant or the breach by the Issuer, Seller or Servicer of
any warranty or representation made under this Indenture or in any Basic
Document or other related document and the accuracy of any such warranty or
representation prior to the Indenture Trustee's receipt of notice or other
discovery of any noncompliance therewith or any breach thereof; the acts or
omissions of the Issuer, Seller or the Servicer; or any action by the
Indenture Trustee taken at the instruction of the Servicer, PROVIDED,
HOWEVER, that the foregoing shall not relieve the Indenture Trustee of its
obligation to perform its duties under this Indenture. Except with respect to
a claim based on the failure of the Indenture Trustee to perform its duties
under this Indenture or based on the Indenture Trustee's willful misconduct,
bad faith or negligence, no recourse shall be had for any claim based on any
provision of this Indenture, the Notes or Certificate or assignment thereof
against the institution serving as the Indenture Trustee in its individual
capacity. The Indenture Trustee shall not have any personal obligation,
liability or duty whatsoever to any Noteholder or any other Person with
respect to any such claim, and any such claim shall be asserted solely
against the Trust or any indemnitor who shall furnish indemnity as provided
in this Indenture. The Indenture Trustee shall not be accountable for the use
or application by the Issuer of any of the Notes or of the proceeds of such
Notes, or for the use or application of any funds paid to the Servicer in
respect of the Notes.
SECTION 6.05. NOTICE OF DEFAULTS. If a Trust Officer of the Indenture
Trustee knows that a Default has occurred and is continuing, the Indenture
Trustee shall mail to each Noteholder notice of such Default within 10 days
of the occurrence thereof. Except in the case of a Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold such
notice if and so long as a committee of its Trust Officers in good faith
determines that withholding the notice is in the interests of Noteholders.
SECTION 6.06. REPORTS BY INDENTURE TRUSTEE TO HOLDERS. The Indenture
Trustee shall deliver or cause to be delivered annually to each Noteholder of
record such information as may be required to enable such holder to prepare
its federal and state income tax returns. The Indenture Trustee shall also
deliver or cause to be delivered annually to each Noteholder of record a
report relating to its eligibility and qualification to continue as Indenture
Trustee under this Indenture, any amounts advanced by it under this
Indenture, the amount, interest rate and maturity date of certain
indebtedness owed by the Trust to such Indenture Trustee, in its individual
capacity, the property and funds physically held by such Indenture Trustee in
its capacity as such, and any action taken by it that materially affects the
Notes and that has not been previously reported.
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SECTION 6.07. COMPENSATION AND INDEMNITY. The Issuer shall pay or shall
cause the Servicer to pay to the Indenture Trustee from time to time
reasonable compensation for its services. The Indenture Trustee's
compensation shall not be limited by any law on compensation of a trustee of
an express trust. The Issuer shall reimburse or shall cause the Servicer to
reimburse the Indenture Trustee for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Indenture
Trustee's agents, counsel, accountants and experts. The Administrator shall
indemnify or shall cause the Servicer to indemnify the Indenture Trustee
against any and all loss, liability or expense (including reasonable
attorneys' fees) incurred by it in connection with the administration of this
trust and the performance of its duties hereunder. The Indenture Trustee
shall notify the Administrator and the Servicer promptly of any claim for
which it may seek indemnity. Failure by the Indenture Trustee to so notify
the Administrator and the Servicer shall not relieve the Administrator or the
Servicer of its obligations hereunder. In case any such action is brought
against the Indenture Trustee under this Section 6.07 and it notifies the
Administrator of the commencement thereof, the Administrator will assume the
defense thereof, with counsel reasonably satisfactory to the Indenture
Trustee (who may, unless there is, as evidenced by an opinion of counsel to
the Indenture Trustee stating that there is an unwaivable conflict of
interest, be counsel to the Administrator), and neither the Administrator nor
the Servicer will be liable to the Indenture Trustee under this Section for
any legal or other expenses subsequently incurred by the Indenture Trustee in
connection with the defense thereof, other than reasonable costs of
investigation. Neither the Administrator nor the Servicer need reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through the Indenture Trustee's own willful misconduct,
negligence or bad faith.
The Administrator's payment obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When
the Indenture Trustee incurs expenses after the occurrence of a Default
specified in Section 5.01(g) or (h) or the Seller incurs expenses after the
occurrence of an Insolvency Event with respect to the Seller, the expenses
are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.
SECTION 6.08. REPLACEMENT OF INDENTURE TRUSTEE. The Indenture Trustee
may resign at any time by providing written notice of its resignation to the
Issuer. The Administrator, on behalf of the Issuer, may remove the Indenture
Trustee if:
(a) the Indenture Trustee fails to comply with Section 6.11;
(b) the Indenture Trustee is adjudged a bankrupt or insolvent;
(c) a receiver or other public officer takes charge of the Indenture
Trustee or its property; or
(d) the Indenture Trustee otherwise becomes legally or practically
incapable of fulfilling its duties hereunder.
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If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the
Administrator, on behalf of the Issuer, shall promptly appoint a successor
Indenture Trustee. No resignation or removal of the Indenture Trustee and no
appointment of a successor Indenture Trustee shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this
Section 6.08.
A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Servicer and to the
Administrator. Thereupon the resignation or removal of the retiring Indenture
Trustee shall become effective, and the successor Indenture Trustee shall
have all the rights, powers and duties of the Indenture Trustee under this
Indenture. The successor Indenture Trustee shall mail a notice of its
succession to Noteholders. The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee.
If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator or the Holders of a majority in
Outstanding Amount of the Notes may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.
If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may at any time thereafter petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of
a successor Indenture Trustee.
Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Administrator's obligations under Section
6.07 shall continue for the benefit of the retiring Indenture Trustee.
SECTION 6.09. SUCCESSOR INDENTURE TRUSTEE BY MERGER. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another Person,
the resulting, surviving or transferee corporation without any further act
shall be the successor Indenture Trustee if such surviving Person or
transferee corporation or bank shall be otherwise qualified and eligible
under Section 6.11. The Indenture Trustee shall provide the Issuer, the
Servicer and the Rating Agencies reasonable prior written notice of any such
transaction.
In case at the time such successor or successors by merger, conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created
by this Indenture any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such
Notes so authenticated; and in case at that time any of the Notes shall not
have been authenticated, any successor to the Indenture Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the Notes
or in this Indenture provided that the certificate of the Indenture Trustee
shall have.
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SECTION 6.10. APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE
INDENTURE TRUSTEE.
(a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Trust Estate may at the time be located, the Indenture
Trustee shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or
separate trustee or separate trustees, of all or any part of the Trust, and
to vest in such Person or Persons, in such capacity and for the benefit of
the Noteholders, such title to the Trust Estate, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under
Section 6.11 and no notice to Noteholders of the appointment of any
co-trustee or separate trustee shall be required under Section 6.08 hereof.
(b) Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and
conditions:
(c) all rights, powers, duties and obligations conferred or imposed upon
the Indenture Trustee shall be conferred or imposed upon and exercised or
performed by the Indenture Trustee and such separate trustee or co-trustee
jointly (it being understood that such separate trustee or co-trustee is not
authorized to act separately without the Indenture Trustee joining in and/or
directing such act), except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed the
Indenture Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including
the holding of title to the Trust Estate or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate
trustee or co-trustee, but solely at the direction of the Indenture Trustee;
(i) no trustee hereunder shall be personally liable by reason of any
act or omission of any other trustee hereunder; and
(ii) the Indenture Trustee may at any time accept the resignation of
or remove any separate trustee or co-trustee.
(d) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement
and the conditions of this Article VI. Each separate trustee and co-trustee,
upon its acceptance of the trusts thereupon conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Indenture Trustee or separately, as may be provided therein,
subject to all the provisions of this Indenture, including every provision of
this Indenture relating to the conduct of, affecting the liability of, or
affording protection to, the Indenture Trustee. Every such instrument shall
be filed with the Indenture Trustee.
44
(e) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.
SECTION 6.11. ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as
set forth in its most recent published annual report of condition and it or
its parent shall have a long-term debt rating of Baa3 or better by Xxxxx'x or
shall otherwise be acceptable to Xxxxx'x. The Indenture Trustee shall comply
with TIA Section 310(b), including the optional provision permitted by the
second sentence of TIA Section 310(b)(9); provided, however, that there shall
be excluded from the operation of TIA Section 310(b)(1) any indenture or
indentures under which other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in TIA Section 310(b)(1) are met.
SECTION 6.12. PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). An Indenture Trustee who
has resigned or been removed shall be subject to TIA Section 311(a) to the
extent indicated.
SECTION 6.13. PENNSYLVANIA MOTOR VEHICLE SALES FINANCE ACT LICENSES. The
Indenture Trustee shall use its best efforts to maintain the effectiveness of
all licenses required under the Pennsylvania Motor Vehicle Sales Finance Act
in connection with this Indenture and the transactions contemplated hereby
until the lien and security interest of this Indenture shall no longer be in
effect in accordance with the terms hereof.
ARTICLE VII
NOTEHOLDERS' LISTS AND REPORTS
SECTION 7.01. NOTE REGISTRAR TO FURNISH NAMES AND ADDRESSES OF
NOTEHOLDERS. The Note Registrar shall furnish or cause to be furnished to the
Indenture Trustee, Owner Trustee, Servicer or Administrator, within 15 days
after receipt by the Note Registrar of a written request therefrom, a list of
the names and addresses of the Noteholders of any Class as of the most recent
Record Date. If three or more Holders of Notes of any Class, or one or more
Holders of such Notes evidencing not less than 25% of the Outstanding Amount
of such Notes (hereinafter referred to as "Applicants"), apply in writing to
the Indenture Trustee, and such application states that the Applicants desire
to communicate with other Noteholders with respect to their rights under this
Indenture or under the Notes and such application is accompanied by a copy of
the communication that such Applicants propose to transmit, then the
Indenture Trustee shall, within five Business Days after the receipt of such
application, afford such Applicants access, during normal business hours, to
the current list of Noteholders. Such Indenture Trustee may elect not to
afford the requesting Noteholders access to the list of Noteholders if it
agrees to
45
mail the desired communication by proxy, on behalf of and at the expense of
the requesting Noteholders, to all Noteholders. Every Noteholder, by
receiving and holding a Note, agrees with the Indenture Trustee and the
Issuer that none of the Indenture Trustee, the Owner Trustee, the Issuer, the
Servicer or the Administrator shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the
Noteholders under this Indenture, regardless of the source from which such
information was derived.
If the Indenture Trustee shall cease to be the Note Registrar, then
thereafter the Administrator will furnish or cause to be furnished to the
Indenture Trustee not more than five days after the most recent Record Date
or at such other times as the Indenture Trustee reasonably may request in
writing, a list, in such form as the Indenture Trustee reasonably may
require, of the names and addresses of the Holders of Notes as of such Record
Date.
SECTION 7.02. PRESERVATION OF INFORMATION; COMMUNICATIONS TO NOTEHOLDERS.
(a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.01 and the names and addresses of Holders of Notes
received by the Indenture Trustee in its capacity as Note Registrar. The
Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.01 upon receipt of a new list so furnished.
(b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under
the Notes.
(c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 3.12(c).
SECTION 7.03. REPORTS BY ISSUER.
(a) The Issuer shall:
(i) file with the Indenture Trustee, within 15 days after the
Issuer is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may
from time to time by rules and regulations prescribe) that the Issuer
may be required to file with the Commission pursuant to Section 13 or
15(d) of the Exchange Act;
(ii) file with the Indenture Trustee and the Commission in
accordance with the rules and regulations prescribed from time to time
by the Commission such additional information, documents and reports
with respect to compliance by the Issuer with the conditions and
covenants of this Indenture as may be required from time to time by such
rules and regulations; and
(iii) supply to the Indenture Trustee (and the Indenture Trustee
shall transmit by mail to all Noteholders described in TIA Section
313(c)) such summaries of any information, documents and reports
required to be filed by the Issuer pursuant to clauses
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(i) and (ii) of this Section 7.03(a) and by rules and regulations
prescribed from time to time by the Commission.
(b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on September 30 of each year.
SECTION 7.04. REPORTS BY INDENTURE TRUSTEE. If required by TIA Section
313(a), within 60 days after each September 30 beginning with 1999, the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).
A copy of each report at the time of its mailing to Noteholders shall be
filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. The Issuer shall notify the Indenture
Trustee if and when the Notes are listed on any stock exchange.
ARTICLE VIII
ACCOUNTS, DISBURSEMENTS AND RELEASES
SECTION 8.01. COLLECTION OF MONEY. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable
to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall apply all such money received by it as provided in
this Indenture. Except as otherwise expressly provided in this Indenture, if
any default occurs in the making of any payment or performance under any
agreement or instrument that is part of the Trust Estate, the Indenture
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim
a Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.
SECTION 8.02. TRUST ACCOUNTS.
(a) On or prior to the Closing Date, the Issuer shall cause the Servicer
to establish and maintain, in the name of the Indenture Trustee, for the
benefit of the Noteholders and, to the extent set forth herein, the
Certificateholders, the Collection Account and Payahead Account as provided
in Section 5.01 of the Sale and Servicing Agreement.
(b) On or prior to the Closing Date, the Seller shall, pursuant to the
Securities Account Control Agreement, establish and maintain with the
Indenture Trustee, for the benefit of the Noteholders, the Reserve Account as
provided in Section 5.07 of the Sale and Servicing Agreement. Upon the
execution and delivery by the parties hereto of this Indenture, the Indenture
Trustee will deliver to the Securities Intermediary the Prohibition Notice
provided for in the Securities Account Control Agreement. In connection with
the termination of this
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Indenture, the Indenture Trustee will deliver to the Securities Intermediary
the Rescission of Prohibition Notice provided for in the Securities Account
Control Agreement.
SECTION 8.03. [Reserved].
SECTION 8.04. GENERAL PROVISIONS REGARDING ACCOUNTS.
(a) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Collection Account and
Payahead Account shall be invested in Eligible Investments and reinvested by
the Indenture Trustee at the written direction of the Servicer, subject to
the provisions of Section 5.01 of the Sale and Servicing Agreement. All
income or other gain from investments of moneys deposited in the Collection
Account and Payahead Account shall be deposited by the Indenture Trustee in
the Collection Account and paid to the Servicer as servicing compensation on
each Payment Date, and any loss resulting from such investments in excess of
such income or gain (against which such losses will first be applied) shall
be charged to such account. The Servicer will not direct the Indenture
Trustee to make any investment of any funds or to sell any investment held in
the Collection Account or Payahead Account unless the security interest
granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.
(b) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Reserve Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee (by
delivery to the Securities Intermediary of appropriate Entitlement Orders) at
the written direction of the Seller, subject to the provisions of Section
5.07 of the Sale and Servicing Agreement and the provisions of the Securities
Account Control Agreement. All income or other gain from investments of
moneys deposited in the Reserve Account shall be paid by the Indenture
Trustee to the Seller on each Payment Date (by delivery to the Securities
Intermediary of appropriate Entitlement Orders). Subject to the right of the
Indenture Trustee to make withdrawals therefrom, as directed by the Servicer,
for the purposes and in the amounts set forth in Section 5.06 of the Sale and
Servicing Agreement, the Reserve Account and all funds held therein shall be
the property of the Seller and not the property of the Trust, the Owner
Trustee or the Indenture Trustee. The Seller will grant to the Indenture
Trustee, for the benefit of the Noteholders, a security interest in all funds
(including Eligible Investments, but not the income from such investments) in
the Reserve Account (including the Reserve Account Initial Deposit) and the
proceeds thereof, and the Indenture Trustee shall have all of the rights of a
secured party under the UCC with respect thereto; provided that all income
from the investment of funds in the Reserve Account and the right to receive
such income are retained by the Seller and are not transferred, assigned or
otherwise conveyed hereunder. The Seller will not direct the Indenture
Trustee to make any investment of any funds or to sell any investment held in
the Reserve Account unless the security interest granted and perfected in
such account will continue to be perfected in such investment or the proceeds
of such sale, in either case without any further action by any Person, and,
in connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the
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Seller shall deliver to the Indenture Trustee an Opinion of Counsel,
acceptable to the Indenture Trustee, to such effect.
(c) Subject to Section 6.01(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Collection Account,
Payahead Account or Reserve Account resulting from any loss on any Eligible
Investment included therein at the direction of the Servicer or Seller, as
the case may be, except for losses attributable to the Indenture Trustee's
failure to make payments on such Eligible Investments issued by the Indenture
Trustee, in its commercial capacity as principal obligor and not as trustee,
in accordance with the terms thereof.
(d) If (i) the Servicer or Seller shall have failed to give investment
directions for any funds on deposit in the Collection Account, Payahead
Account and Reserve Account, as the case may be, to the Indenture Trustee by
11:00 a.m. Eastern Time (or such other time as may be agreed by the Issuer
and Indenture Trustee) on any Business Day or (ii) a Default or Event of
Default shall have occurred and be continuing with respect to the Notes but
the Notes shall not have been declared due and payable pursuant to Section
5.02 or (iii) if such Notes shall have been declared due and payable
following an Event of Default, but amounts collected or receivable from the
Trust Estate are being applied in accordance with Section 5.05 as if there
had not been such a declaration, then the Indenture Trustee shall, to the
fullest extent practicable, invest and reinvest funds in the Trust Accounts
in one or more Eligible Investments specified in clause (h) of the definition
of Eligible Investments provided in the Sale and Servicing Agreement.
SECTION 8.05. RELEASE OF TRUST ESTATE.
(a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of
this Indenture, or convey the Indenture Trustee's interest in the same, in a
manner and under circumstances that are not inconsistent with the provisions
of this Indenture. No party relying upon an instrument executed by the
Indenture Trustee as provided in this Article VIII shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any moneys.
(b) The Indenture Trustee shall, at such time as there are no Notes
outstanding and all sums due the Indenture Trustee pursuant to Section 6.07
have been paid, release any remaining portion of the Trust Estate that
secured the Notes from the lien of this Indenture and release to or to the
order of the Issuer or, in the case of the Reserve Account, to the Seller,
entitled thereto any funds then on deposit in the Collection Account,
Payahead Account and Reserve Account, as the case may be. The Indenture
Trustee shall release property from the lien of this Indenture pursuant to
this Section 8.05(b) only upon receipt of an Issuer Request accompanied by an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.01.
SECTION 8.06. OPINION OF COUNSEL. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action
pursuant to Section 8.05(a),
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accompanied by copies of any instruments involved, and the Indenture Trustee
shall also require, as a condition to such action, an Opinion of Counsel, in
form and substance satisfactory to the Indenture Trustee, stating the legal
effect of any such action, outlining the steps required to complete the same,
and concluding that all conditions precedent to the taking of such action
have been complied with and such action will not materially and adversely
impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that
such Opinion of Counsel shall not be required to express an opinion as to the
fair value of the Trust Estate. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in
connection with any such action.
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.
Subject to Section 9.03, without the consent of the Holders of any Notes but
with prior notice to the Rating Agencies, the Issuer and the Indenture
Trustee, when authorized by an Issuer Order, at any time and from time to
time, may enter into one or more indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as in force at the date
of the execution thereof), in form satisfactory to the Indenture Trustee, for
any of the following purposes:
(a) to correct or amplify the description of any property at any time
subject to the lien of this Indenture, or better to assure, convey and
confirm unto the Indenture Trustee any property subject or required to be
subjected to the lien of this Indenture, or to subject to the lien of this
Indenture additional property;
(b) to evidence the succession, in compliance with the applicable
provisions hereof, of another person to the Issuer, and the assumption by any
such successor of the covenants of the Issuer herein and in the Notes
contained;
(c) to add to the covenants of the Issuer, for the benefit of the
Holders of the Notes, or to surrender any right or power herein conferred
upon the Issuer;
(d) to convey, transfer, assign, mortgage or pledge any property to or
with the Indenture Trustee;
(e) to cure any ambiguity, to correct or supplement any provision herein
or in any supplemental indenture that may be inconsistent with any other
provision herein or in any supplemental indenture or to make any other
provisions with respect to matters or questions arising under this Indenture
or in any supplemental indenture to the extent such action shall not
adversely affect the interests of the Holders of the Notes or the
Certificates;
(f) to evidence and provide for the acceptance of the appointment
hereunder by a successor trustee with respect to the Notes and to add to or
change any of the provisions of this
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Indenture as shall be necessary to facilitate the administration of the
trusts hereunder by more than one trustee, pursuant to the requirements of
Article VI; or
(g) to modify, eliminate or add to the provisions of this Indenture to
such extent as shall be necessary to effect the qualification of this
Indenture under the TIA or under any similar federal statute hereafter
enacted and to add to this Indenture such other provisions as may be
expressly required by the TIA.
The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate
agreements and stipulations that may be therein contained.
SECTION 9.02. SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS.
Subject to Section 9.03, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, also may, with prior notice to the Rating
Agencies and with the consent of (i) the Holders of at least 51% of the
Outstanding Amount of the Class A Notes (without the consent of the Class B
Notes or the Class C Notes), acting together as a single Class, or (ii) after
the Class A Notes have been paid in full, the Holders of at least 51% of the
outstanding principal amount of Class B Notes (without the consent of any
holder of the Class C Notes) or (iii) after the Class B Notes have been paid
in full, the Holders of at least 51% of the outstanding principal amount of
Class C Notes (in each case excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by TMCC,
TMCRC or any of their Affiliates), by Action of such Holders delivered to the
Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture.
The Indenture Trustee may in its discretion determine whether or not any
Notes would be adversely affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The
Indenture Trustee shall not be liable for any such determination made in good
faith.
It shall not be necessary for any Action of Noteholders under this
Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Action shall approve the
substance thereof.
Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee
shall mail to the Holders of the Notes to which such amendment or
supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture
Trustee to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture.
SECTION 9.03. LIMITATIONS ON SUPPLEMENTAL INDENTURES. The Issuer and the
Indenture Trustee, in accordance with Sections 9.01 and 9.02 above, may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in
51
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; PROVIDED, HOWEVER, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby:
(a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the Interest
Rate thereon, change the provisions of this Indenture relating to the
application of collections on, or the proceeds of the sale of, the Trust
Estate to payment of principal of or interest on the Notes, or change any
place of payment where, or the coin or currency in which, any Note or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of the provisions of this Indenture, to the extent provided in
Article V, requiring the application of funds available therefor to the
payment of any such amount due on the Notes on or after the respective due
dates thereof;
(b) reduce the percentage of the Outstanding Amount of the Notes (or the
Notes of any Class, as applicable), the consent of the Holders of which is
required for any such supplemental indenture, or the consent of the Holders
of which is required for any waiver of compliance with certain provisions of
this Indenture or certain defaults hereunder and their consequences provided
for in this Indenture;
(c) modify or alter the provisions of the proviso to the definition of
the term "Outstanding" or;
(d) reduce the percentage of the Outstanding Amount of the Notes (or the
Notes of any Class, as applicable) required to direct the Indenture Trustee
to direct the Issuer to sell or liquidate the Trust Estate pursuant to
Section 5.04;
(e) modify any provision of this Section except to increase any
percentage specified herein or to provide that certain additional provisions
of this Indenture or the Basic Documents cannot be modified or waived without
the consent of the Holder of each Outstanding Note affected thereby;
(f) modify any of the provisions of this Indenture in such manner as to
affect the calculation of the amount of any payment of interest or principal
due on any Note on any Payment Date (including the calculation of any of the
individual components of such calculation);
(g) permit the creation of any lien ranking prior to or on a parity with
the lien of this Indenture with respect to any part of the Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of
this Indenture on any property at any time subject hereto or deprive the
Holder of any Note of the security provided by the lien of this Indenture; or
(h) modify or alter the provisions hereof regarding the voting of Notes
held by the Indenture Trustee, the Owner Trustee, TMCC or any of its
affiliates or the Trust.
SECTION 9.04. EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the
52
modification thereby of the trusts created by this Indenture, the Indenture
Trustee shall be entitled to receive, and subject to Sections 6.01 and 6.02,
shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Indenture Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the Indenture
Trustee's own rights, duties, liabilities or immunities under this Indenture
or otherwise.
SECTION 9.05. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance
therewith with respect to the Notes affected thereby, and the respective
rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the
Holders of the Notes shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and
all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any
and all purposes.
SECTION 9.06. CONFORMITY WITH TRUST INDENTURE ACT. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as
then in effect so long as this Indenture shall then be qualified under the
Trust Indenture Act.
SECTION 9.07. REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee
shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.
ARTICLE X
TERMINATION OF THE TRUST
SECTION 10.01. TERMINATION OF THE TRUSTS CREATED BY INDENTURE.
(a) The trusts created hereby and the respective obligations and
responsibilities of the Issuer, the Administrator and the Indenture Trustee
shall terminate upon (i) the purchase as of any Payment Date by the Servicer,
or any successor to the Servicer, at its option of the Receivables primarily
comprising the corpus of the Owner Trust Estate as described in Section
10.02, (ii) the payment to the Noteholders of all amounts required to be paid
to them pursuant to this Agreement and the release to the Owner Trustee of
all remaining amounts or investments on deposit in the Collection Account or
Payahead Account and the release to the Seller of the amounts held in the
Reserve Account or (iii) the maturity or liquidation of the last Receivable
and the disposition of all property held as part of the Owner Trust Estate;
provided, however, that
53
in no event shall the trust created by this Indenture continue beyond the
expiration of 21 years from the death of the last survivor of the descendants
of Xxxxxx X. Xxxxxxx, the late ambassador of the United States to the Court
of St. Xxxxx, living on the date of this Indenture. The Owner Trustee shall
promptly notify the Indenture Trustee and each Rating Agency of any
prospective termination pursuant to this Section.
(b) Notice of any termination, specifying the Payment Date upon which
the Noteholders must surrender their Notes to the Indenture Trustee for
payment of the final distribution and retirement of the Notes, shall be given
promptly by the Indenture Trustee (at the written direction of the
Administrator) by letter to Noteholders mailed not later than the 15th day
and not earlier than the 30th day prior to the date on which such final
distribution is expected to occur specifying (i) the Payment Date upon which
final payment of the Notes shall be made upon presentation and surrender of
Notes at the office of the Indenture Trustee therein specified, (ii) the
amount of any such final payment and (iii) if applicable, that the Record
Date otherwise applicable to such Payment Date is not applicable, payments
being made only upon presentation and surrender of the Notes at the office of
the Indenture Trustee therein specified. The Indenture Trustee shall give
such notice to the Note Registrar (if other than the Indenture Trustee) at
the time such notice is given to Noteholders. In the event such notice is
given, the Seller, the Servicer, or any successor to the Servicer, or the
Trustee, as the case may be, shall make deposits into the Collection Account
in accordance with Section 5.02 of the Sale and Servicing Agreement, or, in
the case of an optional purchase of Receivables pursuant to Section 10.02,
shall deposit the amount specified in Section 10.02. Upon presentation and
surrender of the Notes, the Indenture Trustee shall cause to be distributed
to Noteholders amounts distributable on such Payment Date pursuant to Section
5.06 of the Sale and Servicing Agreement.
SECTION 10.02. OPTIONAL PURCHASE OF ALL RECEIVABLES. If the Servicer, or
any successor to the Servicer, shall notify the Owner Trustee and the
Indenture Trustee of its intention to exercise the option granted to it in
the Sale and Servicing Agreement to repurchase the outstanding Receivables
primarily comprising the Owner Trust Estate, then the Owner Trustee and
Indenture Trustee shall give written notice thereof to each Securityholder
and the Rating Agencies as soon as practicable after their receipt of notice
from the Servicer. Upon deposit by the Servicer or successor to the Servicer
of the amount necessary to effect such purchase of the corpus of the Owner
Trust Estate, the Indenture Trustee shall make the final distributions to the
Noteholders and Certificateholders as set forth in Section 5.06 of the Sale
and Servicing Agreement and Section 10.01 hereof and shall promptly transfer
all of its right, title and interest in and to any amounts or investments
remaining on deposit in the Trust Accounts (excluding any portion thereof
necessary to make distributions to Noteholders described in Section 3.03) to
the Owner Trustee for the benefit of the Certificateholders and release from
the lien of this Indenture all of the remaining Collateral. The Indenture
Trustee shall execute, deliver and file all agreements, certificates,
instruments or other documents necessary or reasonably requested by the Owner
Trustee in order to effect such release and the transfer to the Owner Trustee
of the Collateral.
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ARTICLE XI
MISCELLANEOUS
SECTION 11.01. COMPLIANCE CERTIFICATES AND OPINIONS, ETC.
(a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall, upon written request therefor from the Indenture Trustee, furnish to
the Indenture Trustee (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any,
have been complied with and (iii) (if required by the TIA) an Independent
Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section, except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no such written
request from the Indenture Trustee need be furnished (and only such expressly
required documents need be delivered in connection therewith).
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(i) a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition
and the definitions herein relating thereto;
(ii) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(iii) a statement that, in the opinion of each such signatory,
such signatory has made such examination or investigation as is
necessary to enable such signatory to express an informed opinion as
to whether or not such covenant or condition has been complied with;
and
(iv) a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.
(b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for
the release of any property or securities subject to the lien of this
Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.01(a) or elsewhere in this Indenture, furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value
(within 90 days of such deposit) to the Issuer of the Collateral or
other property or securities to be so deposited.
(ii) Whenever the Issuer is required to furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of any signatory thereof as to the
55
matters described in clause (i) above, the Issuer shall also deliver
to the Indenture Trustee an Independent Certificate as to the same
matters, if the fair value to the Issuer of the securities to be so
deposited and of all other such securities made the basis of any such
withdrawal or release since the commencement of the then-current
fiscal year of the Issuer, as set forth in the certificates delivered
pursuant to clause (i) above and this clause (ii), is 10% or more of
the Outstanding Amount of the Notes, but such a certificate need not
be furnished with respect to any securities so deposited, if the fair
value thereof to the Issuer as set forth in the related Officer's
Certificate is less than $25,000 or less than one percent of the
Outstanding Amount of the Notes.
(iii) Whenever any property or securities are to be released
from the lien of this Indenture, the Issuer shall also furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value
(within 90 days of such release) of the property or securities
proposed to be released and stating that in the opinion of such person
the proposed release will not impair the security under this Indenture
in contravention of the provisions hereof.
SECTION 11.02. FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person,
or that they be so certified or covered by only one document, but one such
Person may certify or give an opinion with respect to some matters and one or
more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an Authorized Officer of the Issuer
may be based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or in
the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which such officer's
certificate or opinion is based are erroneous. Any such certificate of an
Authorized Officer or Opinion of Counsel may be based, insofar as it relates
to factual matters, upon a certificate or opinion of, or representations by,
an officer or officers of the Servicer, the Seller, the Issuer or the
Administrator, stating that the information with respect to such factual
matters is in the possession of the Servicer, the Seller, the Issuer or the
Administrator, unless such counsel knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with
respect to such matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such
56
application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion
contained in any such document as provided in Article VI.
SECTION 11.03. ACTS OF NOTEHOLDERS.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly
required, to the Issuer. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as
the "Action" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section.
(b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.
(c) The ownership of Notes shall be proved by the Note Register.
(d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Notes shall bind the Holder of
every Note issued upon the registration thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by
the Indenture Trustee or the Issuer in reliance thereon, whether or not
notation of such action is made upon such Note.
SECTION 11.04. NOTICES, ETC., TO INDENTURE TRUSTEE, ISSUER AND
RATING AGENCIES. Any request, demand, authorization, direction, notice,
consent, waiver or Action of Noteholders or other documents provided or
permitted by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or Action of Noteholders is
to be made upon, given or furnished to or filed with:
(a) the Indenture Trustee by any Noteholder or by the Issuer shall
be sufficient for every purpose hereunder if made, given, furnished or filed
in writing to or with the Indenture Trustee at its Corporate Trust Office, or
(b) the Issuer by the Indenture Trustee or by any Noteholder shall
be sufficient for every purpose hereunder if in writing and mailed
first-class, postage prepaid to the Issuer addressed to: Toyota Auto
Receivables 1999-A Owner Trust, 00000 Xxxxx Xxxxxxx Xxxxxx, Xxxxxxxx,
Xxxxxxxxxx 00000, Attention: Treasury Department, Vice President, Treasury,
or at any other address previously furnished in writing to the Indenture
Trustee by the Issuer or the Administrator. The Issuer shall promptly
transmit any notice received by it from the Noteholders to the Indenture
Trustee.
57
Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Xxxxx'x Investors Service, Inc., ABS
Monitoring Department, 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, (ii) in the
case of Standard & Poor's, at the following address: Standard & Poor's Ratings
Group, 00 Xxxxxxxx (00xx Xxxxx), Xxx Xxxx, Xxx Xxxx 00000, Attention of Asset
Backed Surveillance Department; or as to each of the foregoing, at such other
address as shall be designated by written notice to the other parties.
SECTION 11.05. NOTICES TO NOTEHOLDERS; WAIVER. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) (a) in the
case of Book-Entry Notes, upon delivery to the Clearing Agency in writing and
(b) in the case of definitive Notes, when mailed, first-class, postage
prepaid to each Noteholder affected by such event, at his address as it
appears on the Note Register, in each case being delivered or mailed, as the
case may be, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Noteholder
shall affect the sufficiency of such notice with respect to other
Noteholders, and any notice that is mailed in the manner herein provided
shall conclusively be presumed to have been duly given.
Where this Indenture provides for notice in any manner, such notice
may be waived in writing by any Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such a waiver.
In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture
Trustee shall be deemed to be a sufficient giving of such notice.
Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute a Default
or Event of Default.
SECTION 11.06. ALTERNATE PAYMENT AND NOTICE PROVISIONS.
Notwithstanding any provision of this Indenture or any of the Notes to the
contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for
in this Indenture for such payments or notices. The Issuer will furnish to
the Indenture Trustee a copy of each such agreement and the Indenture Trustee
will cause payments to be made and notices to be given in accordance with
such agreements.
SECTION 11.07. CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this
58
Indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control.
The provisions of TIA Sections 310 through 317 that impose duties on
any person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.
SECTION 11.08. EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article
and Section headings herein and the Table of Contents are for convenience
only and shall not affect the construction hereof.
SECTION 11.09. SUCCESSORS AND ASSIGNS. All covenants and agreements
in this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee
in this Indenture shall bind its successors, co-trustees and agents.
SECTION 11.10. SEVERABILITY. If any one or more of the covenants,
agreements, provisions or terms of this Indenture shall be for any reason
whatsoever held invalid or unenforceable in any jurisdiction, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Indenture and
shall in no way affect the validity or enforceability of the other provisions
of this Indenture or of the Notes or the Certificates or the rights of the
Holders thereof.
SECTION 11.11. BENEFITS OF INDENTURE. Nothing in this Indenture or
in the Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, the Administrator, the
Servicer and the Noteholders, and any other party secured hereunder, and any
other Person with an ownership interest in any part of the Trust Estate, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
SECTION 11.12. GOVERNING LAW. This indenture shall be governed by
and 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.
SECTION 11.13. COUNTERPARTS. This Indenture may be executed
simultaneously in any number of counterparts, each of which shall be deemed
to be an original, and all of which shall constitute but one and the same
instrument.
SECTION 11.14. RECORDING OF INDENTURE. If this Indenture is subject
to recording in any appropriate public recording offices, such recording is
to be effected by the Issuer and at its expense accompanied by an Opinion of
Counsel (which may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any
other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.
59
SECTION 11.15. TRUST OBLIGATION. No recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Owner
Trustee or the Indenture Trustee on the Notes or Certificates or under this
Indenture or any certificate or other writing delivered in connection
herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
in its individual capacity, (ii) any Certificateholder or other owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the
Owner Trustee in its individual capacity, any Certificateholder or other
owner of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or
the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee, in their capacities as such, have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any
unpaid consideration for stock, unpaid capital contribution or failure to pay
any installment or call owing to such entity. For all purposes of this
Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Article VI, VII and VIII of the
Trust Agreement.
SECTION 11.16. NO PETITION. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Seller or the
Issuer, or join in any institution against the Seller or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Certificates or any of the Basic Documents.
SECTION 11.17. INSPECTION. The Issuer agrees that, on reasonable
prior notice, it will permit any representative of the Indenture Trustee,
during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause (at the expense of the requesting party) such
books to be audited by Independent certified public accountants, and to
discuss the Issuer's affairs, finances and accounts with the Issuer's
officers, employees, and Independent certified public accountants, all at
such reasonable times and as often as may be reasonably requested. The
Indenture Trustee shall and shall cause its representatives to hold in
confidence all such information except to the extent disclosure may be
required by law (and all reasonable applications for confidential treatment
are unavailing) and except to the extent that the Indenture Trustee may
reasonably determine that such disclosure is consistent with its obligations
hereunder.
60
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, thereunto duly
authorized and duly attested, all as of the day and year first above written.
TOYOTA AUTO RECEIVABLES 1999-A OWNER
TRUST
By: U.S. BANK NATIONAL ASSOCIATION,
not in its individual capacity but
solely as Owner Trustee
By: /S/ XXXXXX X. XXXXXXXXX
-----------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: Vice President
U.S. BANK NATIONAL ASSOCIATION,
not in its individual capacity but
solely as Indenture Trustee
By: /S/ XXXXXX X. XXXXXXXXX
-----------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: Vice President
S-1
STATE OF ____________________
COUNTY OF __________________
BEFORE ME, the undersigned authority, a Notary Public in and for
said county and state, on this day personally appeared, known to me to be
the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said U.S. BANK
NATIONAL ASSOCIATION, not in its individual capacity but as Owner Trustee of
the TOYOTA AUTO RECEIVABLES 1999-A OWNER TRUST, a Delaware business trust,
and that such person executed the same as the act of said business trust for
the purpose and consideration therein expressed, and in the capacities
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of July, 1999.
Notary Public in and for the State of ____________
(Seal)
My commission expires:
__________________________
STATE OF ____________________
COUNTY OF __________________
BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared, known to me to be the person
and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said U.S. BANK NATIONAL
ASSOCIATION, not in its individual capacity but as Indenture Trustee and
Securities Intermediary in connection with the Toyota Auto Receivables 1999-A
Owner Trust, a Delaware business trust, and that such person executed the same
as the act of said business trust for the purpose and consideration therein
expressed, and in the capacities therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of July, 1999.
Notary Public in and for the State of ____________
(Seal)
My commission expires:
EXHIBIT A
(Form of Class A-1 Note, Class A-2 Note, Class A-3 Note, Class B Note and Class
C Note)
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR TOYOTA MOTOR CREDIT RECEIVABLES
CORPORATION, TOYOTA MOTOR CREDIT CORPORATION, TOYOTA MOTOR SALES, U.S.A., INC.,
ANY TRUSTEE OR ANY OF THEIR AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE
IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE
RESERVE ACCOUNT.
No._____ $__________
TOYOTA AUTO RECEIVABLES 1999-A OWNER TRUST
CLASS [A-1][A-2][A-3][B][C] ____% ASSET BACKED NOTES
Toyota Auto Receivables 1999-A Owner Trust, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of _______________ DOLLARS ($__________)
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $[INSERT INITIAL PRINCIPAL
AMOUNT OF NOTE] and the denominator of which is $[INSERT INITIAL CLASS BALANCE]
by (ii) the aggregate amount, if any, payable from the Collection Account or
Principal Distribution Account in respect of principal on the Class
[A-1][A-2][A-3][B][C] Notes pursuant to Section 3.01 of the Indenture dated as
of July 1, 1999, between the Issuer and U.S. Bank National Association, a
national banking association, as Indenture Trustee
A-1
(the "Indenture Trustee") and Sections 5.06(c), (d) and (e) of the Sale and
Servicing Agreement dated as of July 1, 1999, between the Issuer, TMCRC, as
Seller, and TMCC, as Servicer (which amounts will be limited to the portion
of Available Collections available to make the payments specified in such
Sections); provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the earlier of the Payment Date occurring in
_______ (the "Class [A-1][A-2][A-3][B][C] Final Scheduled Payment Date") and
the Payment Date described in Section 10.01 of the Indenture. Capitalized
terms used but not defined herein have the meanings ascribed thereto in the
Indenture and the Sale and Servicing Agreement, as the case may be.
The Issuer will pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date), subject to certain limitations contained in Section
3.01 of the Indenture. Interest on this Note will accrue for each Payment Date
during the calendar month preceding such Payment Date (or, in the case of the
first Payment Date, from the Closing Date). Interest will be computed on the
basis specified in the Indenture for each Interest Period. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.
The principal of and interest on this Note is payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.
Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.
Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.
A-2
IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.
Date: July 22, 1999
TOYOTA AUTO RECEIVABLES 1999-A
OWNER TRUST
By: U.S. BANK NATIONAL ASSOCIATION
not in its individual capacity but
solely as Owner Trustee under the
Trust Agreement,
By:
---------------------------------------
Authorized Signatory
A-3
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Notes designated above and referred to in the
within-mentioned Indenture.
Date: July 22, 1999
U.S. BANK NATIONAL ASSOCIATION,
not in its individual capacity but
solely as Indenture Trustee,
By:
----------------------------------------
Authorized Signatory
A-4
This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its ____% Asset Backed Notes, Class [A-1][A-2][A-3][B][C] (herein
called the "Class [A-1][A-2][A-3] Notes"), all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes. The Class
[A-1][A-2][A-3][B][C] Notes are subject to all terms of the Indenture.
The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class B Notes and the Class C Notes (collectively, the "Notes") are and will be
equally and ratably secured by the collateral pledged as security therefor as
provided in the Indenture.
Principal of the Class [A-1][A-2][A-3][B][C] Notes will be payable on
each Payment Date in an amount described in the Indenture. "Payment Date" means
the fifteenth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing August 16, 1999.
Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or (i) the
Holders of at least 51% of the Outstanding Amount of the Class A Notes, acting
together as a single class (without the consent of the Class B Notes or the
Class C Notes) or (ii) after the Class A Notes have been paid in full, the
Holders of at least 51% of the outstanding principal amount of Class B Notes
(without the consent of any holder of the Class C Notes) or (iii) after the
Class B Notes have been paid in full, the Holders of at least 51% of the
outstanding principal amount of Class C Notes (in each case excluding for such
purposes the outstanding principal amount of any Notes held of record or
beneficially owned by TMCC, TMCRC or any of their Affiliates) have declared the
Notes to be immediately due and payable in the manner provided in Section 5.02
of the Indenture or following the termination or liquidation of the Trust Estate
in connection with the exercise by the Servicer of its option to purchase the
Receivables pursuant to Section 9.01 of the Sale and Servicing Agreement and
Section 10.02 of the Indenture or within 90 days of certain Insolvency Events
with respect to TMCRC. All principal payments on the Class [A-1][A-2][A-3][B][C]
Notes shall be made pro rata to the Class [A-1][A-2][A-3][B][C] Noteholders
entitled thereto.
Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered on the Record Date. With respect to
Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payment will be made by wire
transfer in immediately available funds to the account designated by such
nominee, except for the final installment of principal payable with respect to
such Note on a Payment Date or on the applicable Final Scheduled Payment Date,
which shall be payable as provided below. Such payment will be made by check
mailed first-class postage prepaid to such Person's address as it appears on the
Note Register on such Record Date or by wire transfer to the account specified
by the registered holder of any Note with a face amount of at least $10,000,000.
Any reduction in the principal amount of this Note (or any one or more
Predecessor Notes) effected by any payments made on any Payment Date shall be
binding upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu
A-5
hereof, whether or not noted hereon. If funds are expected to be available,
as provided in the Indenture, for payment in full of the then remaining
unpaid principal amount of this Note on a Payment Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person
who was the Registered Holder hereof as of the Record Date preceding such
Payment Date by notice mailed or transmitted by facsimile prior to such
Payment Date, and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal
Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in The City of New York.
The Issuer shall pay interest on overdue installments of interest at
the Class [A-1][A-2][A-3][B][C] Rate to the extent lawful.
[FOR CLASS B AND CLASS C NOTES] Default in the payment of interest on
this Class [B][C] Note is not an Event of Default under the Indenture so long as
any Class [A][B] Notes are Outstanding. By acceptance of this Class [B][C] Note
or any beneficial interest herein, you are deemed to have consented to the delay
in payment of interest on such Class [B][C] Note and waived your rights to
institute suit for enforcement of any such payment to the extent described in
the Indenture.
As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, and thereupon
one or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the Issuer may be required to pay a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.
Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee, in their capacities as such, have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. The Holder of this Note by its
acceptance hereof agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
A-6
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture
or in this Note.
Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Seller or the Issuer, or join in any
institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Basic Documents.
The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.
Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall
be affected by notice to the contrary.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture, in some
cases without the consent of the Holders of any Class of Notes and in other
cases with the consent of Holders of only certain Classes of Notes. Section 5.12
of the Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the Outstanding Amount of the Notes of the
Class or Classes specified therein, on behalf of the Holders of all the Notes,
to waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note (or any one or more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Notes issued thereunder.
The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.
A-7
The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and the
Holders of Notes under the Indenture.
The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.
This Note and the Indenture 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
and thereunder shall be determined in accordance with such laws.
No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the obligation of the Issuer, which
is absolute and unconditional, to pay the principal of and interest on this
Note at the times, place and rate, and in the coin or currency herein
prescribed.
A-8
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of assignee:
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:
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(name and address of assignee)
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints , attorney, to transfer said Note on the books kept for
registration thereof, with full power of substitution in the premises.
Dated: */
-----------------------------
Signature Guaranteed:
*/
-----------------------------
*/ NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.
A-9
EXHIBIT B
(Form of Note Depository Agreement)
