EXECUTION COPY
CHASE MANHATTAN AUTO OWNER TRUST 2002-A
ASSET BACKED CERTIFICATES
CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION
Seller and Servicer
CERTIFICATE UNDERWRITING AGREEMENT
February 26, 2002
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
1. INTRODUCTORY. Chase Manhattan Bank USA, National Association, a
national banking association (the "Bank"), proposes to form Chase Manhattan Auto
Owner Trust 2002-A (the "TRUST") to sell $50,600,000 aggregate principal amount
of 4.17% Asset Backed Certificates (the "CERTIFICATES"), each representing a
fractional undivided interest in the Trust.
The assets of the Trust will include, among other things, a pool of
simple interest retail installment sales contracts and purchase money notes and
other notes (the "RECEIVABLES") secured by new and used automobiles (the
"FINANCED VEHICLES") and certain monies received thereunder on or after the
opening of business on March 1, 2002, such Receivables to be transferred to the
Trust and serviced by the Bank, as Servicer, or by a successor Servicer. The
Original Pool Balance of the Receivables will equal to $2,024,000,000. The
Certificates will be issued pursuant to the Amended and Restated Trust Agreement
to be dated as of March 1, 2002 (as amended and supplemented from time to time,
the "TRUST AGREEMENT"), between the Bank and Wilmington Trust Company, as owner
trustee (the "OWNER TRUSTEE").
Simultaneously with the issuance and sale of the Certificates as
contemplated herein, the Trust will issue $445,000,000 aggregate principal
amount of Class A-1 1.9425% Asset Backed Notes (the "CLASS A-1 Notes"),
$460,000,000 aggregate principal amount of Class A-2 2.63% Asset Backed Notes
(the "CLASS A-2 NOTES"), $570,000,000 aggregate principal amount of Class A-3
3.49% Asset Backed Notes (the "CLASS A-3 NOTES") and $498,400,000 aggregate
principal amount of Class A-4 4.24% Asset Backed Notes (the "CLASS A-4 NOTES"
and, together with the CLASS A-1 NOTES, the CLASS A-2 NOTES and the CLASS A-3
NOTES, the "NOTES"), pursuant to the Indenture to be dated as of March 1, 2002
(as amended and supplemented from time to time, the "INDENTURE"), between the
Trust and Xxxxx Fargo Bank Minnesota, National Association, as indenture trustee
(the "INDENTURE TRUSTEE"), which will be sold pursuant to an underwriting
agreement dated the date hereof (the "NOTE UNDERWRITING AGREEMENT"; together
with this Agreement, the "UNDERWRITING AGREEMENTS") among the Bank and the
underwriters
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named therein (the "NOTE UNDERWRITERS"). The Notes and the Certificates are
sometimes referred to collectively herein as the "SECURITIES".
Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to such terms in the Sale and Servicing Agreement to be dated
as of March 1, 2002 (as amended and supplemented from time to time, the "SALE
AND SERVICING AGREEMENT"), between the Trust and the Bank, as Seller and
Servicer.
This is to confirm the agreement concerning the purchase of the
Certificates from the Bank by X.X. Xxxxxx Securities Inc. (the "UNDERWRITER").
2. REPRESENTATIONS AND WARRANTIES OF THE BANK. The Bank represents and
warrants to, and agrees with, the Underwriter, that:
(a) Two registration statements on Form S-3 (Nos. 333-36939 and
333-74600) have been filed with the Securities and Exchange Commission (the
"COMMISSION") in accordance with the provisions of the Securities Act of 1933,
as amended (the "ACT"), and the Rules and Regulations under the Act (the "RULES
AND REGULATIONS"). Such registration statements, as amended on the date that
each such registration statement or the most recent post-effective amendment
thereto became effective under the Act, including the exhibits thereto, are
hereinafter referred to as the "REGISTRATION STATEMENT." The Registration
Statement has become effective, and no stop order suspending the effectiveness
of the Registration Statement has been issued, and no proceeding for that
purpose has been instituted or, to the knowledge of the Bank, threatened by the
Commission. The conditions to the use of a registration statement on Form S-3
under the Act, as set forth in the General Instructions to Form S-3, and the
conditions of Rule 415 of the Rules and Regulations, have been satisfied with
respect to the Registration Statement. The Bank proposes to file with the
Commission pursuant to Rule 424(b) of the Rules and Regulations a prospectus
supplement to the Base Prospectus (as defined herein) relating to the sale of
the Securities (the "PROSPECTUS SUPPLEMENT"). The base prospectus filed as part
of the Registration Statement, in the form it appears in the Registration
Statement, or in the form most recently revised and filed with the Commission
pursuant to Rule 424(b), is hereinafter referred to as the "BASE PROSPECTUS."
The Base Prospectus as supplemented by the Prospectus Supplement is hereinafter
referred to as the "PROSPECTUS."
(b) Except to the extent that the Underwriter shall have agreed to a
modification, the Prospectus shall be in all substantive respects in the form
furnished to the Underwriter prior to the execution of this Agreement or, to the
extent not completed at such time, shall contain only such material changes as
the Bank has advised the Underwriter, prior to such time, will be included or
made therein.
(c) The Registration Statement, at the time it became effective, and
the Prospectus, as of the date of the Prospectus Supplement, complied in all
material respects with the applicable requirements of the Act and the Trust
Indenture Act of 1939 and the Rules and Regulations and did not include any
untrue statement of a material fact and, in the case of the Registration
Statement, did not omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading and, in the case of
the Prospectus, did not omit to state any material fact necessary in order to
make the statements therein, in light of
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the circumstances under which they were made, not misleading; on the Closing
Date (as defined herein), the Registration Statement and the Prospectus, as
amended or supplemented as of the Closing Date, will comply in all material
respects with the applicable requirements of the Act and the Rules and
Regulations, and neither the Prospectus nor any amendment or supplement thereto
will include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading; PROVIDED, HOWEVER,
that the Bank makes no representation and warranty with respect to information
contained in or omitted from the Registration Statement or the Prospectus in
reliance upon, or in conformity with, information furnished in writing to the
Bank by the Underwriter specifically for use in connection with the preparation
of the Registration Statement or the Prospectus.
(d) The Bank is a national banking association organized under the laws
of the United States, with full power and authority to own its properties and
conduct its business as described in the Prospectus, and had at all relevant
times and has power, authority and legal right to acquire, own, sell and service
the Receivables.
(e) When the Notes have been duly executed and delivered by the Owner
Trustee and, when authenticated by the Indenture Trustee in accordance with the
Indenture and delivered upon the order of the Bank to the Note Underwriters
pursuant to the Note Underwriting Agreement and the Sale and Servicing
Agreement, the Notes will be duly issued and will constitute legal, valid and
binding obligations of the Trust enforceable against the Trust in accordance
with their terms, except to the extent that the enforceability thereof may be
subject to bankruptcy, insolvency, reorganization, conservatorship, moratorium
or other similar laws now or hereafter in effect relating to creditors' rights
as such laws would apply in the event of the insolvency, liquidation or
reorganization or other similar occurrence with respect to the Bank or the Trust
or in the event of any moratorium or similar occurrence affecting the Bank or
the Trust and to general principles of equity.
(f) The direction by the Bank to the Owner Trustee to execute and
authenticate the Certificates has been duly authorized by the Bank and, when the
Certificates have been duly executed, authenticated and delivered by the Owner
Trustee in accordance with the Trust Agreement and delivered upon the order of
the Bank to the Underwriter pursuant to this Agreement and the Sale and
Servicing Agreement, the Certificates will be duly issued and entitled to the
benefits and security afforded by the Trust Agreement.
(g) The execution, delivery and performance by the Bank of this
Agreement, the Note Underwriting Agreement and the Basic Documents to which the
Bank is a party, and the consummation by the Bank of the transactions provided
for herein and therein have been, or will have been, duly authorized by the Bank
by all necessary action on the part of the Bank; and neither the execution and
delivery by the Bank of such instruments, nor the performance by the Bank of the
transactions herein or therein contemplated, nor the compliance by the Bank with
the provisions hereof or thereof, will (i) conflict with or result in a breach
or violation of any of the material terms and provisions of, or constitute a
material default under, any of the provisions of the articles of association or
by-laws of the Bank, (ii) conflict with any of the provisions of any law,
governmental rule, regulation, judgment, decree or order binding on the Bank or
its properties, (iii) conflict with any of the material provisions of any
material indenture, mortgage, contract or other instrument to which the Bank is
a party or by which it is bound, or (iv) result in the creation or imposition of
any lien, charge or encumbrance upon any of its property pursuant to the terms
of any such indenture, mortgage,
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contract or other instruments, except, in the case of clauses (ii) and (iii),
for any such breaches or conflicts as would not individually or in the aggregate
have a material adverse effect on the transactions contemplated hereby or on the
ability of the Bank to consummate such transactions.
(h) When executed and delivered by the parties thereto, each of the
Sale and Servicing Agreement and the Trust Agreement will constitute a legal,
valid and binding obligation of the Bank, enforceable against the Bank in
accordance with its terms, except to the extent that the enforceability thereof
may be subject to bankruptcy, insolvency, reorganization, conservatorship,
moratorium or other similar laws now or hereafter in effect relating to
creditors' rights as such laws would apply in the event of the insolvency,
liquidation or reorganization or other similar occurrence with respect to the
Bank or in the event of any moratorium or similar occurrence affecting the Bank
and to general principles of equity.
(i) All approvals, authorizations, consents, orders or other actions of
any person, corporation or other organization, or of any court, governmental
agency or body or official (except with respect to the state securities or "blue
sky" laws of various jurisdictions), if so required in connection with the
execution, delivery and performance of this Agreement, the Note Underwriting
Agreement and the Basic Documents to which the Bank is a party has been or will
be taken or obtained on or prior to the Closing Date.
(j) As of the Closing Date, the representations and warranties of the
Bank, as Seller and Servicer, in the Trust Agreement will be true and correct.
(k) This Agreement and the Note Underwriting Agreement have been duly
executed and delivered by the Bank.
3. PURCHASE, SALE, PAYMENT AND DELIVERY OF THE CERTIFICATES. On the
basis of the representations, warranties and agreements herein contained, but
subject to the terms and conditions herein set forth, the Bank agrees to sell to
the Underwriter, and the Underwriter agrees to purchase from the Bank, at a
purchase price of 99.701644% of the face amount thereof, the Certificates plus
accrued interest at the Certificate Rate from March 6, 2002 to but excluding the
Closing Date.
The Bank will deliver the Certificates to the Underwriter against
payment of the purchase price in immediately available funds drawn to the order
of the Bank at the offices of Xxxxxxx Xxxxxxx & Xxxxxxxx in New York, New York
at 10:00 a.m., New York City time, on March 6, 2002 or at such other time not
later than seven full business days thereafter as the Underwriter and the Bank
determine, such time being herein referred to as the "CLOSING DATE." The
Certificates to be so delivered will be initially represented by one or more
definitive Certificates registered in the name of Cede & Co., the nominee of The
Depository Trust Company ("DTC") and will be made available for inspection by
the Underwriter at the office where delivery and payment for such Certificates
is to take place no later than 1:00 p.m., New York City time, on the Business
Day prior to the Closing Date.
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4. OFFERING BY THE UNDERWRITER. It is understood that the Underwriter
proposes to offer the Certificates for sale to the public (which may include
selected brokers and dealers) as set forth in the Prospectus.
5. COVENANTS OF THE BANK. The Bank covenants and agrees with the
Underwriter that:
(a) The Bank will file the Prospectus with the Commission pursuant to
Rule 424(b) of the Rules and Regulations within the time prescribed therein and
will provide evidence satisfactory to the Underwriter of such timely filing.
During any period that a prospectus relating to the Certificates is required to
be delivered to purchasers of the Certificates by the Underwriter and dealers
participating in the initial offering and sale of the Certificates on the
Closing Date under the Act (without regard to any market making prospectus
required to be delivered by the Underwriter pursuant to the Act) (a "PROSPECTUS
DELIVERY PERIOD"), the Bank will not file any amendments to the Registration
Statement, or any amendments or supplements to the Prospectus, unless it shall
first have delivered copies of such amendments or supplements to the
Underwriter, and if the Underwriter shall have reasonably objected thereto
promptly after receipt thereof; the Bank will promptly advise the Underwriter or
its counsel (i) when notice is received from the Commission that any
post-effective amendment to the Registration Statement has become or will become
effective, (ii) of any request by the Commission for any amendment or supplement
to the Registration Statement or the Prospectus or for any additional
information and (iii) of any order or communication suspending or preventing, or
threatening to suspend or prevent, the offer and sale of the Certificates or of
any proceedings or examinations that may lead to such an order or communication,
whether by or of the Commission or any authority administering any state
securities or "blue sky" law, as soon as the Bank is advised thereof, and will
use its reasonable efforts to prevent the issuance of any such order or
communication and to obtain as soon as possible its lifting, if issued.
(b) If, at any time during the prospectus delivery period, any event
occurs as a result of which the Prospectus as then amended or supplemented would
include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary
at any time to amend the Prospectus in order to comply with the Act or the Rules
and Regulations, the Bank promptly will prepare and file with the Commission
(subject to the Underwriter's prior review pursuant to paragraph (a) of this
Section 5), an amendment or supplement which will correct such statement or
omission or an amendment or supplement which will effect such compliance.
(c) The Bank will furnish to the Underwriter copies of the Registration
Statement, each preliminary prospectus supplement relating to the Certificates,
the Prospectus, and all amendments and supplements to such documents, in each
case as soon as available and in such quantities as the Underwriter may
reasonably request.
(d) The Bank will cooperate with the Underwriter in arranging for the
qualification of the Certificates for sale and the determination of their
eligibility for investment under the laws of such jurisdictions as the
Underwriter designates and will cooperate in continuing such qualifications in
effect so long as required for the distribution of the Certificates;
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provided, however, that neither the Bank nor the Trust shall be obligated to
qualify to do business in any jurisdiction in which it is not currently so
qualified or to take any action which would subject it to general or unlimited
service of process in any jurisdiction where it is not now so subject.
(e) For a period from the date of this Agreement until the retirement
of the Certificates, the Bank, as Servicer, will furnish to the Underwriter
copies of each certificate and the annual statements of compliance delivered to
independent certified public accountants' and reports furnished to the Indenture
Trustee or the Owner Trustee pursuant to the Sale and Servicing Agreement, as
soon as practicable after such statements and reports are furnished to the
Indenture Trustee or the Owner Trustee.
(f) So long as any of the Certificates is outstanding, the Bank will
furnish to the Underwriter as soon as practicable, (A) all documents
distributed, or caused to be distributed, by the Bank to the Certificateholders,
(B) all documents filed, or caused to be filed, by the Bank with respect to the
Trust with the Commission pursuant to the Securities Exchange Act of 1934, as
amended (the "EXCHANGE ACT"), and any order of the Commission thereunder or
pursuant to a "no-action" letter from the staff of the Commission and (C) from
time to time, such other information in the possession of the Bank concerning
the Trust and any other information concerning the Bank filed with any
governmental or regulatory authority which is otherwise publicly available, as
the Underwriter may reasonably request.
(g) On or before the Closing Date, the Bank shall cause its computer
records relating to the Receivables to be marked to show the Trust's absolute
ownership of the Receivables, and from and after the Closing Date neither the
Bank nor the Servicer shall take any action inconsistent with the Trust's
ownership of such Receivables and the security interest of the Indenture Trustee
therein, other than as permitted by the Sale and Servicing Agreement.
(h) To the extent, if any, that the rating provided with respect to the
Certificates by Xxxxx'x, Standard & Poor's and/or Fitch is conditional upon the
furnishing of documents or the taking of any other actions by the Bank agreed
upon on or prior to the Closing Date, the Bank shall furnish such documents and
take any such other actions.
(i) For the period beginning on the date hereof and ending on the
Closing Date, unless waived by the Underwriter, neither the Bank nor any trust
originated, directly or indirectly, by the Bank will offer to sell or sell notes
(other than the Notes) collateralized by, or certificates (other than the
Certificates) evidencing an ownership interest in, receivables generated
pursuant to retail automobile or light-duty truck installment sale contracts or
purchase money loans.
6. PAYMENT OF EXPENSES. The Bank will pay all expenses incident to the
performance of its obligations under this Agreement, including (i) the printing
and filing of the Registration Statement as originally filed and of each
amendment thereto, (ii) the Indenture Trustee's and Owner Trustee's acceptance
fee and the reasonable fees and disbursements of the counsel to the Indenture
Trustee and counsel to the Owner Trustee, (iii) the fees and disbursements of
PricewaterhouseCoopers LLP, (iv) the fees of the Rating Agencies and (v) blue
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sky expenses; PROVIDED, HOWEVER, that the Underwriter may reimburse the Bank for
certain expenses incurred by the Bank as agreed to by the Underwriter and the
Bank.
7. CONDITIONS TO THE OBLIGATION OF THE UNDERWRITER. The obligation of
the Underwriter to purchase and pay for the Certificates will be subject to the
accuracy of the representations and warranties on the part of the Bank herein on
the date hereof and as of the Closing Date, to the accuracy of the statements of
officers of the Bank made pursuant to the provisions hereof, to the performance
by the Bank of its obligations hereunder and to the following additional
conditions precedent:
(a) On or prior to the date hereof, the Underwriter shall have received
a letter (a "PROCEDURES LETTER"), dated the date of this Agreement of
PricewaterhouseCoopers LLP verifying the accuracy of such financial and
statistical data contained in the Prospectus as the Underwriter shall deem
reasonably advisable. In addition, if any amendment or supplement to the
Prospectus made after the date hereof contains financial or statistical
data, the Underwriter shall have received a letter dated the Closing Date
confirming each Procedures Letter and providing additional comfort on such
new data.
(b) The Prospectus Supplement shall have been filed in the manner and
within the time period required by Rule 424(b) of the Rules and Regulations;
and prior to the Closing Date, no stop order suspending the effectiveness of
the Registration Statement shall have been issued and no proceedings for
that purpose shall have been instituted or threatened.
(c) Subsequent to the execution and delivery of this Agreement, there
shall not have occurred (i) any change, or any development involving a
prospective change, in or affecting particularly the business or properties
of the Bank, JPMorgan Chase or X.X. Xxxxxx Xxxxx & Co. which, in the
reasonable judgment of the Underwriter, materially impairs the investment
quality of the Certificates or makes it impractical to market the
Certificates; (ii) any suspension or material limitation of trading in
securities generally on the New York Stock Exchange, or any setting of
minimum prices for trading on such exchange, or any suspension of trading of
any securities of the Bank, JPMorgan Chase or X.X. Xxxxxx Xxxxx & Co. on any
exchange or in the over-the-counter market by such exchange or
over-the-counter market or by the Commission; (iii) any banking moratorium
declared by federal or New York authorities; or (iv) any outbreak or
material escalation of major hostilities or any other substantial national
or international calamity or emergency if, in the reasonable judgment of the
Underwriter, the effect of any such outbreak, escalation, calamity or
emergency on the United States financial markets makes it impracticable or
inadvisable to proceed with completion of the sale of and any payment for
the Certificates.
(d) The Underwriter shall have received opinions, dated the Closing
Date and reasonably satisfactory, when taken together, in form and substance
to the Underwriter, of Xxxxxxx Xxxxxxx & Xxxxxxxx, special counsel to the
Bank, Xxxxxxxx, Xxxxxx & Finger, P.A., special counsel to the Trust, and
such other counsel otherwise reasonably acceptable to the Underwriter, with
respect to such matters as are customary for the type of transaction
contemplated by this Agreement.
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(e) The Underwriter shall have received an opinion or opinions of
Xxxxxxx Xxxxxxx & Xxxxxxxx, special counsel to the Bank, dated the Closing
Date and reasonably satisfactory in form and substance to the Underwriter,
with respect to certain matters relating to the treatment of the transfer of
the Receivables from the Bank to the Trust by the Federal Deposit Insurance
Corporation and with respect to a grant of a security interest in the
Receivables to the Indenture Trustee, and an opinion of Xxxxxxxx, Xxxxxx &
Finger, P.A., special counsel to the Bank, with respect to the perfection of
the Trust's and the Indenture Trustee's interests in the Receivables.
(f) The Underwriter shall have received from Sidley Xxxxxx Xxxxx & Xxxx
LLP, counsel to the Underwriter, such opinion or opinions, dated the Closing
Date and satisfactory in form and substance to the Underwriter, with respect
to the validity of the Certificates, the Registration Statement, the
Prospectus and other related matters as the Underwriter may require, and the
Bank shall have furnished to such counsel such documents as they reasonably
request for the purpose of enabling them to pass upon such matters.
(g) The Underwriter shall have received an opinion of Xxxxxxx Xxxxxxx &
Xxxxxxxx, special tax counsel to the Bank, dated the Closing Date and
reasonably satisfactory in form and to the effect (a) that under current law
the Notes will be characterized as debt, and the Trust will not be
characterized as an association (or a publicly traded partnership) taxable
as a corporation for United States federal income tax purposes and (b) that,
subject to the qualifications set forth therein, the statements made in the
Prospectus Supplement under the caption "Certain Federal Income Tax
Consequences" insofar as they purport to constitute summaries of matters of
United States federal tax law and regulations or legal conclusions with
respect thereto, constitute accurate summaries of the matters described
therein in all material respects.
(h) The Underwriter shall have received an opinion of Xxxxxxxx, Xxxxxx
& Finger, P.A., special counsel to the Owner Trustee, and such other counsel
reasonably satisfactory to the Underwriter and its counsel, dated the
Closing Date and satisfactory in form and substance to the Underwriter, with
respect to such matters as are customary for the type of transaction
contemplated by this Agreement.
(i) The Certificates have been rated "A" by Standard & Xxxx'x, "X0" by
Xxxxx'x and "A" by Fitch.
(j) The Underwriter shall have received a certificate, dated the
Closing Date, of an attorney-in-fact, a Vice President or more senior
officer of the Bank in which such person, to the best of his or her
knowledge after reasonable investigation, shall state that (i) the
representations and warranties of the Bank in this Agreement are true and
correct in all material respects on and as of the Closing Date, (ii) the
Bank has complied with all agreements and satisfied all conditions on its
part to be performed or satisfied hereunder at or prior to the Closing Date,
(iii) the representations and warranties of the Bank, as Seller and
Servicer, in the Sale and Servicing Agreement and, as Depositor, in the
Trust Agreement, are true and correct as of the dates specified in the Sale
and Servicing Agreement and the Trust Agreement, (iv) no stop order
suspending the effectiveness of
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the Registration Statement has been issued and no proceedings for that
purpose have been instituted or are threatened by the Commission, (v)
subsequent to the date of the Prospectus, there has been no material adverse
change in the financial position or results of operation of the Bank's
automotive finance business except as set forth in or contemplated by the
Prospectus or as described in such certificate and (vi) the Prospectus does
not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading.
(k) On the Closing Date, all of the Notes shall have been issued and
sold pursuant to the Note Underwriting Agreement.
(l) The Class A-1 Notes shall have been rated "A-1+" by Standard &
Poor's, "P-1" by Xxxxx'x and "F1+" by Fitch, and the Class A-2 Notes, Class
A-3 Notes and Class A-4 Notes shall have been rated "AAA" by Standard &
Poor's, "Aaa" by Xxxxx'x and "AAA" by Fitch.
(m) On the Closing Date, the Class R Certificate shall have been issued
to the Bank pursuant to the Trust Agreement.
The Bank will furnish the Underwriter, or cause the Underwriter to be
furnished, with such number of conformed copies of such opinions, certificates,
letters and documents as the Underwriter reasonably requests.
8. INDEMNIFICATION. (a) The Bank will indemnify and hold harmless the
Underwriter against any losses, claims, damages or liabilities, to which the
Underwriter may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of, or are based upon, any untrue statement or alleged untrue statement of any
material fact contained in any preliminary prospectus supplement, the
Registration Statement, the Prospectus (other than any market making prospectus)
or any amendment or supplement thereto, or arise out of, or are based upon, the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading; and
will reimburse the Underwriter for any legal or other expenses reasonably
incurred by the Underwriter in connection with investigating or defending any
such action or claim; PROVIDED, HOWEVER, that (i) the Bank shall not be liable
in any such case to the extent that any such loss, claim, damage or liability
arises out of, or is based upon, an untrue statement or alleged untrue statement
or omission or alleged omission made in any preliminary prospectus supplement,
the Registration Statement or the Prospectus or any such amendment or supplement
in reliance upon and in conformity with written information furnished to the
Bank by the Underwriter expressly for use therein and (ii) such indemnity with
respect to any preliminary prospectus supplement shall not inure to the benefit
of the Underwriter (or any person controlling the Underwriter) from whom the
person asserting any such loss, claim, damage or liability purchased the
Certificates which are the subject thereof if such person did not receive a copy
of the Prospectus (or the Prospectus as supplemented) at or prior to the
confirmation of the sale of such Certificates to such person in any case where
such delivery is required by the Act and the untrue statement or omission of a
material fact contained in such
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preliminary prospectus supplement was corrected in the Prospectus (or the
Prospectus as supplemented).
(b) The Underwriter agrees to indemnify and hold harmless the Bank, its
directors, each of its officers or agents who signed the Registration Statement,
and each person, if any, who controls the Bank within the meaning of Section 15
of the Act against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section 8, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in any preliminary prospectus supplement,
the Registration Statement or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished
to the Bank by the Underwriter expressly for use in such preliminary prospectus
supplement, the Registration Statement or the Prospectus (or any amendment or
supplement thereto).
(c) Each indemnified party shall give prompt notice to the indemnifying
party of any action commenced against the indemnified party in respect of which
indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability which it may
have hereunder or otherwise, other than on account of this indemnity agreement.
In case any such action shall be brought against an indemnified party and it
shall have notified the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate therein and, to the extent
that it shall wish, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party with respect to
such action), and it being understood that the indemnifying party shall not, in
connection with any one such action or separate but substantially similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys, and, after notice from the
indemnifying party to the indemnified party of its election so to assume the
defense thereof, the indemnifying party shall not be liable to the indemnified
party under subsections (a) or (b) of this Section 8 for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by the
indemnified party, in connection with the defense thereof other than reasonable
costs of investigation.
(d) The obligations of the Bank under this Section 8 shall be in
addition to any liability which the Bank may otherwise have and shall extend,
upon the same terms and conditions, to each person, if any, who controls the
Underwriter within the meaning of the Act; and the Underwriter's obligations
under this Section 8 shall be in addition to any liability which the Underwriter
may otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Bank and to each person, if any, who controls the
Bank within the meaning of Section 15 of the Act.
9. CONTRIBUTION. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Section 8 is for any reason held to be unavailable other than in accordance with
its terms, the Bank and the Underwriter shall contribute to the aggregate
losses, liabilities, claims, damages and expenses of the nature contemplated by
said indemnity agreement incurred by the Bank or the Underwriter, as incurred,
in such proportions so that the Underwriter is responsible for that portion
represented by the
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percentage that the underwriting discount and commissions bear to the initial
public offering price appearing thereon and the Bank is responsible for the
balance; PROVIDED, HOWEVER, that no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section, each person, if any, who
controls the Underwriter within the meaning of Section 15 of the Act shall have
the same rights to contribution as the Underwriter, and each director of the
Bank, each officer or agent of the Bank who signed the Registration Statement,
and each person, if any, who controls the Bank within the meaning of Section 15
of the Act shall have the same rights to contribution as the Bank.
10. SURVIVAL OF CERTAIN REPRESENTATIONS AND OBLIGATIONS. The respective
indemnities, agreements, representations, warranties and other statements of the
Bank or its officers and of the Underwriter set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation or statement as to the results thereof, made by or on behalf of
the Underwriter, the Bank or any of their respective representatives, officers
or directors or any controlling person, and will survive delivery of and payment
for the Certificates. If for any reason the purchase of the Certificates by the
Underwriter is not consummated, the Bank shall remain responsible for the
expenses to be paid or reimbursed by it pursuant to Section 6 and the respective
obligations of the Bank and the Underwriter pursuant to Sections 8 and 9 shall
remain in effect. If the purchase of the Certificates by the Underwriter is not
consummated for any reason other than solely because of the occurrence of any
event specified in clauses (ii), (iii) or (iv) of Section 7(c), the Bank will
reimburse the Underwriter for all out-of-pocket expenses (including fees and
disbursements of counsel) reasonably incurred by it in connection with the
offering of the Certificates.
11. NOTICES. All communications hereunder will be in writing and, if
sent to the Underwriter, will be mailed, delivered or telegraphed and confirmed
to the Underwriter at X.X. Xxxxxx Securities Inc., 000 Xxxx Xxxxxx, 00xx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: North American ABS, or, if sent to the
Bank, will be mailed, delivered, or telegraphed and confirmed to Chase Manhattan
Bank USA, National Association, c/o Chase Manhattan Automotive Finance
Corporation, 000 Xxxxxxx Xxxxxx, Xxxxxx Xxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Financial Controller.
12. SUCCESSORS. This Agreement will inure to the benefit of, and be
binding upon, the parties hereto and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any person, firm or corporation, other than the parties hereto and their
respective successors and the controlling persons and officers and directors
referred to in Sections 8 and 9 and their heirs and legal representatives, any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision herein contained. This Agreement and all conditions and
provisions hereof are intended to be for the sole and exclusive benefit of the
parties hereto and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the
benefit of no other person, firm or corporation. No purchaser of Certificates
from the Underwriter shall be deemed to be a successor by reason merely of such
purchase.
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13. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.
14. NO BANKRUPTCY PETITION. The Underwriter covenants and agrees that,
prior to the date which is one year and one day after the payment in full of all
securities issued by the Trust, it will not institute against, or join any other
person in instituting against, the Trust any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under
any federal or state bankruptcy or similar law.
15. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
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If the foregoing is in accordance with the Underwriter's understanding
of our agreement, kindly sign and return to us the enclosed duplicate hereof,
whereupon it will become a binding agreement between the Bank and the
Underwriter in accordance with its terms.
Very truly yours,
CHASE MANHATTAN BANK USA,
NATIONAL ASSOCIATION
By /s/ Xxxxxx X. Xxxxxxxxx
----------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: Vice President
The foregoing
Underwriting Agreement is
hereby confirmed and
accepted as of the date
first written above:
X.X. XXXXXX SECURITIES INC.
By /s/ Xxxxxxx Xxxxx
-----------------------------
Name: Xxxxxxx Xxxxx
Title: Vice President
