ASSET REPRESENTATIONS REVIEW AGREEMENT BMW VEHICLE LEASE TRUST 2022-1, as Issuer and BMW FINANCIAL SERVICES NA, LLC, as Servicer
Exhibit 10.10
Execution Version
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as Issuer
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and
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BMW FINANCIAL SERVICES NA, LLC,
as Servicer
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and
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XXXXXXX FIXED INCOME SERVICES LLC,
as Asset Representations Reviewer
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_____________________________
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Dated as of January 19, 2022
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_____________________________
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TABLE OF CONTENTS
Page
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ARTICLE I. DEFINITIONS
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1
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Section 1.01
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Definitions.
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1
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ARTICLE II. ENGAGEMENT; ACCEPTANCE
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3
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Section 2.01
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Engagement; Acceptance.
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3
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Section 2.02
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Eligibility of Asset Representations Reviewer.
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3
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Section 2.03
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Independence of the Asset Representations Reviewer.
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3
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ARTICLE III. DUTIES OF THE ASSET REPRESENTATIONS REVIEWER
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3
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Section 3.01
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Review Scope.
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3
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Section 3.02
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Review Notices.
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4
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Section 3.03
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Review Materials.
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4
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Section 3.04
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Missing or Insufficient Review Materials.
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5
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Section 3.05
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The Asset Representations Review.
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5
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Section 3.06
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Review Period.
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5
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Section 3.07
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Completion of Review for Certain Review Assets.
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5
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Section 3.08
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Review Report.
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6
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Section 3.09
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Review and Procedure Limitations.
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6
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Section 3.10
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Review Systems.
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7
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Section 3.11
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Representatives.
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7
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Section 3.12
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Dispute Resolution.
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7
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Section 3.13
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Records Retention.
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7
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ARTICLE IV. PAYMENTS TO ASSET REPRESENTATIONS REVIEWER
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8
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Section 4.01
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Asset Representations Reviewer Fees.
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8
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Section 4.02
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Reimbursable Expenses.
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9
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Section 4.03
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Dispute Resolution Expenses.
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9
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ARTICLE V. OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS REVIEWER
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9
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Section 5.01
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Representations and Warranties of the Asset Representations Reviewer.
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9
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Section 5.02
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Limitation of Liability.
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10
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Section 5.03
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Inspections of Asset Representations Reviewer
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11
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Section 5.04
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Indemnification of Asset Representations Reviewer.
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TABLE OF CONTENTS
(continued)
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Section 5.05
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Proceedings
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12
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Section 5.06
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Delegation of Obligations
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12
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Section 5.07
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Indemnification by Asset Representations Reviewer.
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12
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ARTICLE VI. REMOVAL, RESIGNATION
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13
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Section 6.01
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Removal of Asset Representations Reviewer.
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13
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Section 6.02
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Appointment of Successor.
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13
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Section 6.03
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Merger or Consolidation of, or Assumption of the Obligations of, Asset the Representations Reviewer.
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14
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Section 6.04
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Asset Representations Reviewer Not to Resign.
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14
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Section 6.05
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Cooperation of Asset Representations Reviewer.
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ARTICLE VII. TREATMENT OF CONFIDENTIAL INFORMATION
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15
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Section 7.01
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Confidential Information.
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15
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Section 7.02
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Safeguarding Personally Identifiable Information.
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ARTICLE VIII. OTHER MATTERS PERTAINING TO THE ISSUER
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18
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Section 8.01
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Termination of the Issuer.
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18
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ARTICLE IX. MISCELLANEOUS PROVISIONS
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18
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Section 9.01
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Amendment.
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19
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Section 9.02
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Notices.
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19
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Section 9.03
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Severability Clause.
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20
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Section 9.04
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Counterparts.
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21
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Section 9.05
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Governing Law.
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21
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Section 9.06
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Relationship of the Parties.
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21
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Section 9.07
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Captions.
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21
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Section 9.08
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Waivers.
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21
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Section 9.09
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Assignment.
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21
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Section 9.10
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Benefit of the Agreement; Third-Party Beneficiaries.
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21
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Section 9.11
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Exhibits.
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22
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Section 9.12
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No Petition.
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Section 9.13
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Limitation of Liability of Owner Trustee.
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This ASSET REPRESENTATIONS REVIEW AGREEMENT (this βAgreementβ), entered into as of the 19th day of January 2022, by and among BMW VEHICLE LEASE TRUST 2022-1, a
Delaware statutory trust (the βIssuerβ), BMW FINANCIAL SERVICES NA, LLC, a Delaware limited liability companyΒ (the βServicerβ), and XXXXXXX FIXED INCOME SERVICES LLC, a Delaware limited liability company (the βAsset Representations
Reviewerβ).
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WHEREAS, the Issuer desires to engage the Asset Representations Reviewer to perform reviews of certain 2022-1 Leases for compliance with certain representations and
warranties made with respect thereto.
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NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
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ARTICLE I.
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DEFINITIONS
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Section 1.01 Β Β Definitions.
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Any capitalized terms used and not defined in this Agreement shall have the meanings ascribed to such terms in the Indenture or the Servicing Supplement, as
applicable.Β Whenever used in this Agreement, the following words and phrases shall have the following meanings:
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βAnnual Feeβ has the meaning stated in Section 4.01(a).
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βARR Indemnified Personβ has the meaning stated in Section 5.04.
βClient Recordsβ has the meaning stated in Section 3.13.
βClosing Dateβ means January 19, 2022.
βConfidential Informationβ has the meaning stated in Section 7.01(b).
βDisqualification Eventβ has the meaning stated in Section 6.01.
βEligible Representationsβ shall mean those representations identified within the βTestsβ included in Exhibit A.
βIndemnified Personβ has the meaning stated in Section 5.07.
βIndentureβ means the Indenture, dated as of the Closing Date, between the Issuer and the Indenture Trustee, as the same may be amended, supplemented or
modified from time to time.
βIndenture Trusteeβ means U.S. Bank National Association, in its capacity as indenture trustee.
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βInitial Review Periodβ has the meaning stated in Section 3.06.
βOwner Trusteeβ means Wilmington Trust, National Association, not in its individual capacity but solely as owner trustee of the Issuer.
βPersonally Identifiable Informationβ has the meaning stated in Section 7.02.
βPrivacy Lawsβ has the meaning stated in Section 7.02(a).
βReviewβ means the performance by the Asset Representations Reviewer of the Tests for each Review Asset in accordance with the terms of Section 3.05.
βReview Assetsβ means those 2022-1 Leases identified by the Servicer as requiring a Review by the Asset Representations Reviewer following receipt of a Review
Notice.
βReview Feeβ has the meaning stated in Section 4.01(b).
βReview Noticeβ means a notice delivered to the Asset Representations Reviewer pursuant to Section 12.02 of the Indenture.
βReview Materialsβ means the applicable documents, data, and other information listed in Exhibit A.
βReview Reportβ means, with respect to a Review, the related report prepared by the Asset Representations Reviewer in accordance with the terms of Section 3.08.
βServicing Supplementβ means the 2022-1 Servicing Supplement, dated as of the Closing Date, among the Servicer, Financial Services Vehicle Trust and BMW
Manufacturing L.P., as the same may be amended, supplemented or modified from time to time.
βSponsorβ means BMW Financial Services NA, LLC.
βTest Failβ has the meaning stated in Section 3.05.
βTest Passβ has the meaning stated in Section 3.05.
βTestsβ means, with respect to any 2022-1 Lease or 2022-1 Vehicle, the procedures listed in Exhibit A with respect thereto.
βTrust Agreementβ means the Amended and Restated Trust Agreement, dated as of the Closing Date, between BMW Auto Leasing LLC and the Owner Trustee, as the same
may be amended, supplemented or modified from time to time.
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βUnderwritersβ means MUFG Securities Americas Inc., Citigroup Global Markets Inc., TD Securities (USA) LLC, HSBC Securities (USA) Inc. and Lloyds Securities
Inc.
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ARTICLE II.
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ENGAGEMENT; ACCEPTANCE
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Section 2.01 Β Β Engagement; Acceptance.
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The Issuer hereby engages Xxxxxxx Fixed Income Services LLC to act as the Asset Representations Reviewer for the Issuer.Β Xxxxxxx Fixed Income Services LLC hereby
accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms stated in this Agreement.
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Section 2.02 Β Β Eligibility of Asset Representations
Reviewer.
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The Asset Representations Reviewer is a Person who (i) is not affiliated with the Issuer, the Servicer, the Depositor, the Indenture Trustee, the Owner Trustee or any
of their respective affiliates and (ii) was not engaged, or affiliated with a Person that was, engaged by the Sponsor or the Underwriters to perform pre-closing due diligence work on the 2022-1 Leases; and (iii) is not disqualified by the Securities
and Exchange Commission or other applicable regulatory authority from acting as the Asset Representations Reviewer hereunder.Β The Asset Representations Reviewer will promptly notify the Issuer and the Servicer if it no longer satisfies, or it
reasonably expects that it will no longer satisfy, the conditions described in the immediately preceding sentence.
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Section 2.03 Β Β Independence of the Asset
Representations Reviewer.
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The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of the Issuer for the manner in which it accomplishes
the performance of its obligations under this Agreement.Β Unless expressly authorized by the Issuer, the Asset Representations Reviewer will have no authority to act for or represent the Issuer and will not be considered an agent of the Issuer.Β
Nothing in this Agreement will make the Asset Representations Reviewer and the Issuer members of any partnership, joint venture or other separate entity or impose any liability as such on any of them.Β For the avoidance of doubt, the Indenture
Trustee will not be responsible for monitoring the performance by the Asset Representations Reviewer of its obligations under this Agreement.
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ARTICLE III.
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DUTIES OF THE ASSET REPRESENTATIONS REVIEWER
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Section 3.01 Β Β Review Scope.
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The Reviews are designed to determine whether certain 2022-1 Leases were in compliance with certain representations and warranties made about them in the Servicing
Supplement.
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The Reviews are not designed to determine any of the following:
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(a) |
reason for delinquency;
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(b) |
creditworthiness of the Lessees, either at the time of the Review or as of the time of the origination of the related 2022-1 Leases;
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(c) |
overall quality of any Review Asset;
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(d) |
whether the Servicer has serviced any 2022-1 Lease in compliance with the terms of the Servicing Supplement;
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(e) |
whether noncompliance with the representations or warranties constitutes a breach of the Servicing Supplement;
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(f) |
whether the 2022-1 Leases complied with the representations and warranties set forth in the Servicing Supplement, except as expressly described in this Agreement; or
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(g) |
establish cause, materiality or recourse for any failed Test as described in Section 3.05.
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Section 3.02 Β Β Review Notices.
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Upon (i) receipt of a Review Notice from the Indenture Trustee and (ii) receipt of a list of Review Assets from the Servicer (which list will be delivered by the
Servicer to the Asset Representations Reviewer within ten (10) Business Days of the Servicerβs receipt of a Review Notice), the Asset Representations Reviewer will start a Review.
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The Asset Representations Reviewer will not be obligated to start a Review until a Review Notice and the related list of Review Assets is received by it.Β The Asset
Representations Reviewer is not obligated to verify (i) whether the Indenture Trustee properly determined that a Review Notice was required or (ii) the accuracy or completeness of the list of Review Assets provided by the Servicer.
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Section 3.03 Β Β Review Materials.
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Within sixty (60) days of the delivery of a Review Notice, the Servicer will provide the Asset Representations Reviewer with access to the Review Materials for all of
the Review Assets in one or more of the following ways: (i) by providing access to the Servicerβs systems, either remotely or at an office of the Servicer, (ii) by electronic posting to a password-protected website to which the Asset Representations
Reviewer has access, (iii) by providing originals or photocopies at an office of the Servicer or (iv) in another manner agreed by the Servicer and the Asset Representations Reviewer.Β The Servicer may redact or remove Personally Identifiable
Information from the Review Materials to the extent such redaction or removal does not change the meaning or usefulness of the Review Materials.Β The Asset Representations Reviewer shall be entitled to rely in good faith, without independent
investigation or verification, that the Review Materials are accurate and complete in all material respects, and not misleading in any material respect.
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Section 3.04 Β Β Missing or Insufficient Review
Materials.
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The Asset Representations Reviewer will review the Review Materials to determine if any Review Materials are missing or insufficient for the Asset Representations
Reviewer to perform any Test.Β If the Asset Representations Reviewer determines that there are missing or insufficient Review Materials, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than twenty (20)
Business Days before the end of the Initial Review Period.Β The Servicer will have fifteen (15) Business Days from receipt of such notification to give the Asset Representations Reviewer access to the missing Review Materials or other documents or
information to correct any such insufficiency.Β If the missing or insufficient Review Materials or other documents or information have not been provided by the Servicer within such fifteen (15) Business Day period, the related review of such Review
Asset will be considered completed and the Review Report will report a Test Fail for each Test in respect of which such missing or insufficient Review Materials is necessary to determine whether a Test Pass result is appropriate.
Section 3.05 Β Β The Asset
Representations Review.
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For each Review, the Asset Representations Reviewer will perform, for each related Review Asset, the applicable procedures listed under βTestsβ in Exhibit A for each
Eligible Representation, using the Review Materials necessary to perform the procedures listed under such Test in Exhibit A.Β For each Test and Review Asset, the Asset Representations Reviewer will determine if the Test has been satisfied (a βTest
Passβ) or if the Test has not been satisfied (a βTest Failβ).
If a Review Asset was included in a prior Review, the Asset Representations Reviewer will not conduct additional Tests on such Review Asset, and will include the
previously reported Test results in the Review Report for the current Review, unless the Asset Representations Reviewer has reason to believe that the prior Review was conducted in a manner that would not have ascertained the compliance of that
Review Asset with a specific representation or warranty, in which case the Asset Representations Reviewer may conduct additional Tests.Β If the same Test is required for more than one Eligible Representation, the Asset Representations Reviewer will
only perform the Test once for each Review Asset, and will report the results of the Test for each applicable Eligible Representation on the Review Report.
Section 3.06 Β Β Review Period.
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The Asset Representations Reviewer will complete the Review of all applicable Review Assets within sixty (60) days after having received access to the related Review
Materials pursuant to Section 3.03 (the βInitial Review Periodβ).Β However, if additional Review Materials are provided to the Asset Representations Reviewer in respect of any Review Assets, as described in Section 3.04, the Initial Review
Period will be extended for an additional thirty (30) days in respect of any such Review Assets.
Section 3.07 Β Β Completion of Review for Certain
Review Assets.
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Following the delivery of the list of the Review Assets and before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the
Asset Representations Reviewer if a Review Asset is paid in full by the related Lessee or purchased from the Issuer in accordance with the terms of the Basic Documents.Β On receipt of such notice, the Asset Representations Reviewer will immediately
terminate all Tests of the related Review Asset, and the Review of such Review Asset will be considered complete (a βTest Completeβ).Β In this case, the related Review
Report will indicate a Test Complete for such Review AssetΒ and the related reason.
If a Review is in process and the Notes will be paid in full on the next Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture
Trustee no less than ten (10) days before that Payment Date.Β On receipt of such notice, the Asset Representations Reviewer will terminate the Review immediately and will not be obligated to deliver a Review Report.
Section 3.08 Β Β Review Report.
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Within five (5) days following the applicable Review period described in Section 3.06, the Asset Representations Reviewer will provide the Issuer, the Servicer, the
Administrator and the Indenture Trustee with a Review Report indicating for each Review Asset whether there was a Test Pass, Test Fail or Test Complete for each related Test.Β For each Test Fail or Test Complete, the Review Report will indicate the
related reason, including (for example) whether the Review Asset was a Test Fail as a result of missing or incomplete Review Materials.Β The Review Report will contain a summary of the Review results to be included in the Issuerβs Form 10-D report in
accordance with Section 1.21 of the Issuer Administration Agreement.Β The Asset Representations Reviewer will ensure that the Review Report does not contain any Personally Identifiable Information.Β On reasonable request of the Servicer, the Asset
Representations Reviewer will provide additional details on the Test results.
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Section 3.09 Β Β Review and Procedure Limitations.
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The Asset Representations Reviewer will have no obligation (i) to determine whether a Delinquency Trigger has occurred, (ii) to determine whether the required
percentage of Noteholders has voted to direct a Review, (iii) to determine which 2022-1 Leases are subject to a Review, (iv) to obtain or confirm the validity of the Review Materials, (v) to obtain missing or
insufficient Review Materials (except to the extent set forth in Section 3.04), (vi) to take any action or cause any other party to take any action under any of the Basic Documents to enforce any remedies for breaches of any Eligible Representations
or (vii) to determine whether any Test Fail constitutes a breach of any Basic Document.
The Asset Representations Reviewer will only be required to perform the Tests provided in Exhibit A in consideration of the Review Materials made accessible to it in
accordance with the terms of this Agreement, and will have no obligation to perform additional testing procedures on any Review Assets other than as specified in this Agreement.Β The Asset Representations Reviewer will have no obligation to provide
reporting or information in addition to that described in Section 3.08.Β However, the Asset Representations Reviewer may review and report
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on additional information that it determines in good faith to be material to its performance under this Agreement.
The Issuer expressly agrees that the Asset Representations Reviewer is not advising the Issuer or any Noteholder or any investor or future investor concerning the
suitability of the Notes or any investment strategy.Β The Issuer expressly acknowledges and agrees that the Asset Representations Reviewer is not an expert in accounting, tax, regulatory, or legal matters, and that the Asset Representations Reviewer
does not provide legal advice as to any matter.
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Section 3.10 Β Β Review Systems.
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The Asset Representations Reviewer will maintain and utilize an electronic case management system to manage the Tests and provide systematic control over each step in
the Review process and ensure consistency and repeatability among the Tests.
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Section 3.11 Β Β Representatives.
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(a)Β Servicer Representative.Β The Servicer will provide reasonable access to one or more designated representatives to respond to reasonable requests and inquiries made by the Asset Representations Reviewer in its completion
of a Review.
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(b)Β Asset Representations Reviewer Representative. The Asset Representations Reviewer will provide reasonable access to one or more designated representatives to respond to reasonable requests and inquiries made by the
Servicer, the Issuer or the Indenture Trustee during the Asset Representations Reviewerβs completion of a Review.Β The Asset Representations Reviewer will not be obligated to respond to questions or requests for clarification from Noteholders or
any other Person, and will direct any such Persons to submit written questions or requests to the Servicer.
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Section 3.12 Β Β Dispute Resolution.
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If a Review Asset that was the subject of Review becomes the subject of a dispute resolution proceeding under Section 4.2 of the Servicing Supplement, the Asset
Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding.Β The reasonable out-of-pocket expenses of the Asset Representations Reviewer for its participation in any dispute resolution
proceeding will be considered expenses of the requesting party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or arbitrator for the dispute resolution according to Section 4.2 of the
Servicing Supplement.Β If not paid by a party to the dispute resolution, the reasonable expenses of the Asset Representations Reviewer will be reimbursed by the Issuer according to Section 4.03 of this Agreement.
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Section 3.13 Β Β Records Retention.
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The Asset Representations Reviewer will maintain copies of Review Materials, Review Reports and internal work papers and correspondence (collectively the βClient
Recordsβ) for a period of two (2) years after the delivery of the related Review Report.Β At the expiration of the retention period, the Asset Representations Reviewer shall return all Client Records to the
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Servicer, in such format as mutually agreed by the Servicer and the Asset Representations Reviewer.Β Upon the return of the Client Records, the Asset Representations Reviewer shall have
no obligation to retain such Client Records or to respond to inquiries concerning the Review.
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ARTICLE IV.
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PAYMENTS TO ASSET REPRESENTATIONS REVIEWER
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Section 4.01 Β Β Asset Representations Reviewer Fees.
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(a)Β Annual Fee.
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As compensation for its activities hereunder, the Asset Representations Reviewer shall be entitled to receive an annual fee (the βAnnual Feeβ) with respect to
each annual period prior to the termination of the Issuer, in an amount equal to $5,000, which shall be paid in accordance with Section 4.01(c).
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(b)Β Review Fee.
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Following the completion of a Review and the delivery to the Indenture Trustee, the Issuer, the Servicer and the Administrator of the related Review Report, or the
termination of a Review according to Section 3.07, and the delivery to the Servicer, the Issuer, the Administrator and the Indenture Trustee of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of $175 for each Review
Asset for which a Review was started (the βReview Feeβ).Β However, no Review Fee will be charged for any Review Asset which was included in a prior Review or for which no Tests were completed prior to the Asset Representations Reviewer being
notified of a termination of the Review according to Section 3.07 or due to missing or insufficient Review Materials in accordance with Section 3.04.
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(c)Β Payment.
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All payments required to be made to the Asset Representations Reviewer shall be made to the following wire account or to such other account as may be specified by the
Asset Representations Reviewer from time to time:
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Xxxxxxx Fixed Income Services LLC
ABA#:Β 000000000
Account #:Β 114778965
JPMorgan Chase, 000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000
The initial Annual Fee will be paid by the Servicer on the Closing Date. Each other Annual Fee, each Review Fee and the amount of any properly invoiced expenses or
claims to be reimbursed or paid by the Issuer pursuant to the terms of this Agreement, will become due and payable by the Issuer (i) in the case of such other Annual Fees, on the Payment Date occurring in February of each year, beginning in 2023, and
continuing until this Agreement is terminated in accordance with the priority of payments set forth in Section 5.04 or 8.04 of the Indenture, as applicable, and (ii) in the case of the Review Fee and such other expenses or claims (including under
Sections 4.02, 4.03, and 5.04), on the Payment Date in the calendar month subsequent to
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the calendar month in which the related detailed written invoice is received by the Issuer and the Servicer, to be paid in accordance with the priority of payments set forth in Section
5.04 or 8.04 of the Indenture, as applicable; provided that, in the event that any such properly invoiced fees, expenses or claims are not paid or reimbursed in full by the Issuer on the related Payment Date, BMW Financial Services NA, LLC, in its
capacity as Administrator, shall promptly pay the Asset Representations Reviewer for any such unpaid amounts in accordance with the terms of the Issuer Administration Agreement; provided further, that if, subsequent to any such payment by the
Administrator to the Asset Representations Reviewer, the Asset Representations Reviewer receives payment or reimbursement in respect of the related fee, expense or claim, in part or in full, from the Issuer, then the Asset Representations Reviewer
shall promptly refund the Administrator for the amount of such payment or reimbursement received from the Issuer on such subsequent date. If a Review is terminated in accordance with Section 3.07, the Asset Representations Reviewer must submit its
invoice for the related Review Fee no later than ten (10) Business Days before the final Payment Date in order to be reimbursed on such final Payment Date.
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Section 4.02 Β Β Reimbursable Expenses.
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If the Servicer provides access to the Review Materials at one of its properties, the Issuer will reimburse the Asset Representations Reviewer for its reasonable
travel expenses incurred in connection with the Review upon receipt of a detailed written invoice provided to the Issuer and the Servicer; provided that such expenses may not exceed $3,000 for any Review.Β Such expenses shall be paid on the Payment
Date in the calendar month subsequent to the calendar month in which such invoice in received. The Asset Representations Reviewer will also be reimbursed for any expenses related to a dispute resolution proceeding as set forth in Section 4.03.
Β
Section 4.03 Β Β Dispute Resolution Expenses.
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If the Asset Representations Reviewer participates in a dispute resolution proceeding under Section 3.12 of this Agreement and its reasonable out-of-pocket expenses
for participating in the proceeding are not paid by a party to the dispute resolution within ninety (90) days after the end of the proceeding, the Issuer will reimburse the Asset Representations Reviewer for such expenses upon receipt of a detailed
written invoice.Β Such expenses shall be paid on the Payment Date in the calendar month subsequent to the calendar month in which such invoice is received.
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ARTICLE V.
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OTHER MATTERS PERTAINING TO THE ASSET REPRESENTATIONS REVIEWER
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Section 5.01 Β Β Representations and Warranties of the
Asset Representations Reviewer.
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The Asset Representations Reviewer hereby makes the following representations, warranties and covenants as of the Closing Date:
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(a)Β Organization and Good Standing.Β The Asset Representations Reviewer is a limited liability company duly formed and validly existing in good standing under the laws of the
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State of Delaware, with the power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted, and has
the power, authority and legal right to perform its obligations under this Agreement.
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(b)Β Due Qualification.Β The Asset Representations Reviewer is duly qualified to do business and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct
of its business shall require such qualifications.
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(c)Β Due Authorization.Β The execution, delivery and performance by the Asset Representations Reviewer of this Agreement have been duly authorized by the Asset Representations Reviewer by all necessary limited liability
company action on the part of the Asset Representations Reviewer and this Agreement will remain, from the time of its execution, an official record of the Asset Representations Reviewer.
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(d)Β Binding Obligation.Β This Agreement constitutes a legal, valid and binding obligation of the Asset Representations Reviewer enforceable in accordance with its terms subject to bankruptcy, insolvency and other similar laws
affecting creditorsβ rights generally and subject to equitable principles.
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(e) Β Β Β No Violation. The execution and delivery of this Agreement by the Asset Representations Reviewer, and the performance by the Asset Representations Reviewer of the obligations contemplated by this
Agreement and the fulfillment by the Asset Representations Reviewer of the terms hereof applicable to the Asset Representations Reviewer, will not conflict with, violate, result in any breach of any of the material terms and provisions of, or
constitute (with or without notice or lapse of time or both) a default under, any Federal or State statute, rule or regulation that is applicable to the Asset Representations Reviewer, or any indenture, contract, agreement, mortgage, deed of trust
or other instrument to which the Asset Representations Reviewer is a party or by which it is bound.
Β
(f)Β No Proceedings.Β There are no proceedings or investigations pending or, to the best knowledge of the Asset Representations Reviewer, threatened against the Asset Representations Reviewer before any court, regulatory body,
administrative agency or other tribunal or governmental instrumentality seeking to prevent the issuance of the Notes or the Trust Certificates or the consummation of any of the transactions contemplated by this Agreement, seeking any determination
or ruling that, in the reasonable judgment of the Asset Representations Reviewer, would materially and adversely affect the performance by the Asset Representations Reviewer of its obligations under this Agreement, or seeking any determination or
ruling that would materially and adversely affect the validity or enforceability of this Agreement.
Β
(g)Β Compliance with Applicable Law.Β The Asset Representations Reviewer will act in accordance with all requirements applicable to an asset representations reviewer under applicable law (as amended from time to time) and
other state or federal securities law applicable to asset representations reviewers in effect during the term of this Agreement.
Β
Section 5.02 Β Β Limitation of Liability.
Β
To the fullest extent permitted by applicable law, the Asset Representations Reviewer shall not be under any liability to the Issuer, the Servicer, or the Indenture
Trustee, or any other
Β
10
Person for any action taken or not taken, in each case in good faith and in its capacity as Asset Representations Reviewer pursuant to this Agreement, or for errors in judgment, whether
arising from express or implied duties under this Agreement; provided, however, that this provision shall not protect the Asset Representations Reviewer against any liability which would otherwise by imposed by reason of willful misconduct, bad
faith, or negligence in the performance of its duties or by reason of reckless disregard of its obligations and duties hereunder.Β In no event will the Asset Representations Reviewer be liable for special, indirect or consequential loss or damage
(including loss of profit) even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of action.
Β
Β The Asset Representations Reviewer and any director, officer, employee, or agent may rely in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder.Β The Asset Representations Reviewer shall not be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its duties under this Agreement
which in its reasonable opinion may involve it in any expense or liability in respect of which it shall not have received sufficient security or indemnity.
Section 5.03 Β Β Inspections of Asset Representations
Reviewer
Β
The Asset Representations Reviewer agrees that, with reasonable prior notice not more than once during any year, it will permit authorized representatives of the
Issuer, the Servicer or the Administrator, during the Asset Representations Reviewerβs normal business hours, to examine and review the books of accounts, records, reports and other documents and materials of the Asset Representations Reviewer
relating to (a) the performance of the Asset Representations Reviewerβs obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance under this Agreement and (c) any claim made by the
Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit the Issuerβs, the Servicerβs or the Administratorβs authorized representatives to make copies and extracts of any of those documents and
to discuss them with the Asset Representations Reviewerβs officers and employees.Β Each of the Issuer, the Servicer and the Administrator, will, and will cause its authorized representatives to, hold in confidence such information except if
disclosure may be required by law or if the Issuer, the Servicer or the Administrator reasonably determines that it is required to make the disclosure under this Agreement or the other Basic Documents.Β The Asset Representations Reviewer will
maintain all relevant books, records, reports and other documents and materials for a period of at least two years after the termination of its obligations under this Agreement.
Β
Section 5.04 Β Β Indemnification of Asset
Representations Reviewer.
Β
The Issuer will indemnify the Asset Representations Reviewer and its officers, directors, employees and agents (each, an βARR Indemnified Personβ), for all
costs, expenses, losses, damages and liabilities resulting from the performance of its obligations under this Agreement (including the costs and expenses of defending itself against any loss, damage or liability), but excluding any cost, expense,
loss, damage or liability resulting from (i) the Asset Representations Reviewerβs willful misconduct, bad faith or negligence or reckless disregard of
Β
11
its obligations and duties hereunder or (ii) the Asset Representations Reviewerβs breach of any of its representations, warranties, covenants or agreements in this Agreement.
Β
Section 5.05 Β Β Proceedings
Β
Promptly on receipt by an ARR Indemnified Person of notice of a Proceeding against it, the ARR Indemnified Person, will, if a claim is to be made under Section 5.04,
notify the Issuer and the Servicer of the Proceeding.Β The Issuer or the Servicer may participate in and assume the defense and settlement of a Proceeding at its expense.Β If the Issuer or the Servicer notifies the ARR Indemnified Person of its
intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the ARR Indemnified Person, and so long as the Issuer or the Servicer assumes the defense of the Proceeding in a manner reasonably satisfactory to the ARR
Indemnified Person, the Issuer and the Servicer will not be liable for legal expenses of counsel to the ARR Indemnified Person unless there is a conflict between the interests of the Issuer or the Servicer, as applicable, and an ARR Indemnified
Person.Β If there is a conflict, the Issuer or the Servicer will pay for the reasonable fees and expenses of separate counsel to the ARR Indemnified Person.Β No settlement of a Proceeding may be made without the approval of the Issuer and the
Servicer and the ARR Indemnified Person, which approval will not be unreasonably withheld.
Β
Section 5.06 Β Β Delegation of Obligations
Β
The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of the Issuer and the Servicer.
Β
Section 5.07 Β Β Indemnification by Asset
Representations Reviewer.
Β
To the fullest extent permitted by law, the Asset Representations Reviewer shall indemnify and hold harmless the Issuer, the Depositor, the Servicer, the Owner Trustee
and the Indenture Trustee, and their respective officers, directors, trustees, successors, assigns, legal representatives, agents, and servants (each an βIndemnified Personβ), from and against any and all liabilities, obligations, losses,
damages, penalties, taxes, claims, actions, investigations, proceedings, costs, expenses or disbursements (including reasonable legal fees and expenses, including those incurred by an Indemnified Person in connection with the enforcement of any
indemnification or other obligation of the Asset Representations Reviewer) of any kind and nature whatsoever which may be imposed on, incurred by, or asserted at any time against an Indemnified Person (whether or not also indemnified against by any
other person) which arose out of the negligence, willful misconduct or bad faith of the Asset Representations Reviewer in the performance of its obligations and duties under this Agreement; provided, however, that the Asset Representations Reviewer
shall not be liable for or required to indemnify an Indemnified Person from and against expenses arising or resulting from (i) the Indemnified Personβs own willful misconduct, bad faith or negligence, or (ii) the inaccuracy of any representation or
warranty made by the Indemnified Person.
In case any such action, investigation or proceeding will be brought involving an Indemnified Person, the Asset Representations Reviewer will assume the defense
thereof, including the employment of counsel and the payment of all expenses.Β The Issuer, the
12
Depositor, the Servicer, the Owner Trustee and the Indenture Trustee each will have the right to employ separate counsel in any such action, investigation or proceeding and to
participate in the defense thereof and the reasonable attorneyβs fees will be paid by the Asset Representations Reviewer.Β In the event of any claim, action, or proceeding for which indemnity will be sought pursuant to this Section 5.07, the
Issuerβs, the Depositorβs, the Servicerβs, the Owner Trusteeβs and the Indenture Trusteeβs choice of legal counsel shall be subject to the approval of the Asset Representations Reviewer, which approval shall not be unreasonably withheld.
The indemnification obligations set forth in Section 5.04 and this Section 5.07 will survive the termination of this Agreement and the resignation or removal of the
Asset Representations Reviewer.Β The obligations pursuant to this Section 5.07 shall not constitute a claim against the Issuer or the Trust Estate (as defined in the Indenture) and the Asset Representations Reviewer shall not be liable for any amount
in excess of the fees received by it in accordance with the terms of this Agreement.Β To the extent amounts due to the Indenture Trustee and the Owner Trustee under this Section 5.07 are in excess of the limitation set forth in the immediately
preceding sentence, such amounts will be paid by the Issuer in accordance with the priority of payments set forth in Section 5.04 or 8.04 of the Indenture, as applicable.
Β
ARTICLE VI.
Β
REMOVAL, RESIGNATION
Β
Section 6.01 Β Β Removal of Asset Representations
Reviewer.
Β
If any one of the following events (βDisqualification Eventsβ) shall occur and be continuing:
Β
(a)Β the Asset Representations Reviewer no longer meets the eligibility requirements in Section 2.02;
Β
(b)Β any failure by the Asset Representations Reviewer duly to observe or perform in any material respect any other covenant or agreement of the Asset Representations Reviewer set forth in this Agreement; or
Β
(c)Β an Insolvency Event occurs with respect to the Asset Representations Reviewer;
Β
then, the Issuer may, but shall not be required to, remove the Asset Representations Reviewer and promptly appoint a successor Asset Representations Reviewer by written instrument, in
duplicate, one copy of which instrument shall be delivered to the Asset Representations Reviewer so removed and one copy to the successor Asset Representations Reviewer. Any removal of the Asset Representations Reviewer shall not take effect until a
successor Asset Representations Reviewer is assigned in accordance with Section 6.02.
Β
Section 6.02 Β Β Appointment of Successor.
Β
If a successor Asset Representations Reviewer has not been appointed by the Issuer within thirty (30) days after the giving of written notice of resignation by the
Asset Representations Reviewer pursuant to Section 6.04 or the delivery of the written instrument with
13
respect to the removal of the Asset Representations Reviewer pursuant to Section 6.01, the Asset Representations Reviewer or the Servicer may apply to any court of competent jurisdiction
to appoint a successor Asset Representations Reviewer meeting the requirements of Section 2.02 to act until such time, if any, as a successor Asset Representations Reviewer has been appointed as above provided.
Β
Section 6.03 Β Β Merger or Consolidation of, or
Assumption of the Obligations of, Asset the Representations Reviewer.
Β
Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or consolidation to
which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 2.02, will be the successor to the Asset Representations Reviewer under this Agreement.Β Such Person shall execute and deliver to the Issuer, the Servicer and the Indenture Trustee an agreement to assume the Asset Representations Reviewerβs obligations under this
Agreement (unless the assumption happens by operation of law).
Β
Section 6.04 Β Β Asset Representations Reviewer Not to
Resign.
Β
The Asset Representations Reviewer shall not resign from the obligations and duties hereby imposed on it except upon determination that (i) the performance of its
duties hereunder is no longer permissible under applicable law and (ii) there is no reasonable action which the Asset Representations Reviewer could take to make the performance of its duties hereunder permissible under applicable law. Any such
determination permitting the resignation of the Asset Representations Reviewer shall be evidenced as to clause (i) above by an Opinion of Counsel and as to clause (ii) by an officerβs certificate of the Asset Representations Reviewer, each to such
effect delivered to the Issuer, the Servicer, and the Indenture Trustee.Β The Asset Representations Reviewer shall promptly notify the Issuer, the Servicer and the Indenture Trustee upon having made any such determination permitting its resignation
hereunder, and shall provide, with such notice, appropriate evidence thereof (as described in the immediately preceding sentence). Upon receipt of such notice, the Issuer shall promptly appoint a successor Asset Representations Reviewer by written
instrument, in duplicate, one copy of which instrument shall be delivered to the Asset Representations Reviewer so removed and one copy to the successor Asset Representations Reviewer.Β No such resignation shall become effective until a successor
Asset Representations Reviewer shall have assumed the responsibilities and obligations of the Asset Representations Reviewer in accordance with Section 6.02 hereof.
Section 6.05 Β Β Cooperation of Asset Representations
Reviewer.
Β
In the event of any resignation or removal of the Asset Representations Reviewer pursuant to the terms of this Agreement, the Asset Representations Reviewer shall
cooperate with the Issuer and the Servicer and take all reasonable steps requested to assist the Issuer and the Servicer in making an orderly transfer of the duties of the Asset Representations Reviewer.Β To the extent expenses incurred by the Asset
Representations Reviewer in connection with the replacement of the Asset Representations Reviewer are not paid by the Asset Representations
Β
14
Reviewer that is being replaced, the Issuer will pay such expenses in accordance with the priority of payments set forth in Section 5.04 or 8.04 of the Indenture, as applicable.
Β
ARTICLE VII.
Β
TREATMENT OF CONFIDENTIAL INFORMATION
Β
Section 7.01 Β Β Confidential Information.
Β
(a)Β Treatment.Β The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence and under the terms and conditions of this Article VII, and will implement
and maintain safeguards to further assure the confidentiality of the Confidential Information.Β The Confidential Information will not, without the prior consent of the Issuer and the Servicer, be disclosed or used by the Asset Representations
Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the βInformation Recipientsβ) other than for the purposes of performing Reviews of Review Assets or performing its
obligations under this Agreement.Β The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not (i) purchase or sell securities issued by the Issuer or its Affiliates or special purpose entities on the basis of
Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters or other publications or similar communications.
Β
(b)Β Definition.Β βConfidential Informationβ means oral, written and electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset
Representations Reviewer for the purposes contemplated by this Agreement, including:
Β
(i) Β Β Β Β lists of Review Assets and any related Review Materials;
Β
(ii)Β Β Β Β Β Β origination and servicing guidelines, policies and procedures, and form contracts; and
Β
(iii) Β Β Β notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information supplied by or on behalf of the Servicer or its representatives.
Β
However, Confidential Information will not include information that (A) is or becomes generally available to the public other than as a result of disclosure by the
Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer or the Servicer before its disclosure to the Information Recipients who, to
the knowledge of the Information Recipient is not bound by a confidentiality agreement with the Issuer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is independently developed by the
Information Recipients without the use of the Confidential Information, as shown by the Information Recipientsβ files and records or other evidence in the Information Recipientsβ possession or (D) the Issuer or the Servicer provides permission to the
applicable Information Recipients to release.
Β
15
(c)Β Protection.Β The Asset Representations Reviewer will take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of Confidential Information, including those measures that it takes to
protect its own confidential information and not less than a reasonable standard of care.Β The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also subject to the additional requirements in Section 7.02.
Β
(d)Β Disclosure.Β If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential
Information, it may disclose the Confidential Information.Β However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable efforts to provide the Issuer and the
Servicer with notice of the requirement and will cooperate, at the Servicerβs expense, in the Issuerβs and the Servicerβs pursuit of a proper protective order or other relief for the disclosure of the Confidential Information.Β If the Issuer or the
Servicer is unable to obtain a protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised
by its legal counsel it is legally required to disclose.
Β
(e)Β Responsibility for Information Recipients.Β The Asset Representations Reviewer will be responsible for a breach of this Article VII by its Information Recipients.
Β
(f)Β Violation.Β The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to the Issuer and the Servicer and the Issuer and the Servicer may seek injunctive relief in addition
to legal remedies.Β If an action is initiated by the Issuer or the Servicer to enforce this Article VII, the prevailing party will be entitled to reimbursement of costs and expenses, including reasonable attorneyβs fees, incurred by it for the
enforcement.
Β
Section 7.02 Β Β Safeguarding Personally Identifiable
Information.
Β
(a)Β Definition.Β βPersonally Identifiable Informationβ means information in any format about an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), any
other actual or assigned attribute associated with or identifiable to an individual and any information that when used separately or in combination with other information could identify an individual, as further described in Β§ 501(b) of the
Xxxxx-Xxxxx-Xxxxxx Act and the Interagency Guidelines Establishing Standards for Safeguarding Customer Information (12 C.F.R. Section 208, Appendix D-2) (collectively, the βPrivacy Lawsβ), that is provided or made available to the Asset
Representations Reviewer pursuant to this Agreement.Β βIssuer PIIβ means Personally Identifiable Information furnished by the Issuer, the Servicer or their Affiliates to the Asset Representations Reviewer and Personally Identifiable Information
developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.
Β
(b)Β Use of Issuer PII.Β The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII except (A) for the Asset Representations Reviewer personnel who require
Issuer PII to perform a Review, (B) with the prior consent of the Issuer and the Servicer or (C) as required by applicable law.Β When
Β
16
permitted, the disclosure of or access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task.Β The Asset Representations
Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII.Β The Asset Representations Reviewer will
not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent of the Issuer and the Servicer.
Β
(c)Β Safeguards.Β The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this Agreement.Β The Asset Representations Reviewer will use Issuer PII only to perform its
obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these purposes.Β The Asset Representations Reviewer must comply with all laws applicable to
Personally Identifiable Information, Issuer PII and the Asset Representations Reviewerβs business, including any legally required codes of conduct, including those relating to privacy, security and data protection.Β The Asset Representations
Reviewer will protect and secure the Issuer PII.Β The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this Agreement.Β The Asset Representations Reviewer will
implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards designed to (i) protect the security, confidentiality and integrity of Issuer PII, (ii) ensure against
anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement.Β These safeguards include a written
data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission protection) and physical security measures.
Β
(d)Β Information. The Asset Representations Reviewer agrees to provide the Issuer with information regarding its privacy and information security systems, policies and procedures as the Issuer may reasonably request relating
to compliance with this Agreement and applicable Privacy Laws. The Asset Representations Reviewer shall provide training in the Privacy Laws and the Asset Representations Reviewerβs information security policies to all personnel whose duties
pursuant to this Agreement could bring them in contact with Personally Identifiable Information.
Β
(e)Β Breach.Β The Asset Representations Reviewer will notify the Issuer and the Servicer promptly in the event of an actual or reasonably suspected security breach, unauthorized access, misappropriation or other compromise of
the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach.Β In the event of any actual or apparent theft, unauthorized use or disclosure of any Personally Identifiable
Information, the Asset Representations Reviewer will commence all reasonable efforts to investigate and correct the causes and remediate the results thereof, and as soon as practicable following discovery of any such event, provide the Issuer
notice thereof, and such further information and assistance as may be reasonably requested.
Β
(f)Β Return or Disposal of Issuer PII.Β Except where return or disposal is prohibited by applicable law, promptly on the earlier of the completion of a Review or the request of the Issuer, all Issuer PII in any medium in the
Asset Representations Reviewerβs possession or under
Β
17
its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations
Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer.Β Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset Representations Reviewerβs further
use or disclosure of Issuer PII to that required by applicable law.
Β
(g)Β Compliance; Modification.Β The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the Asset Representations Reviewerβs compliance with this Section 7.02.Β The Asset
Representations Reviewer, the Issuer and the Servicer agree to modify this Section 7.02 as necessary for either party to comply with applicable law.
Β
(h)Β Audit of Asset Representations Reviewer.Β The Asset Representations Reviewer will permit the Issuer, the Servicer and their respective authorized representatives to audit the Asset Representations Reviewerβs compliance
with this Section 7.02 during the Asset Representations Reviewerβs normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year unless circumstances necessitate additional audits.Β
The Issuer and the Servicer agree to make reasonable efforts to schedule any audit described in this Section 7.02 with the inspections described in Section 5.03.Β The Asset Representations Reviewer will also permit the Issuer during normal business
hours on reasonable advance written notice to audit any service providers used by the Asset Representations Reviewer to fulfill the Asset Representations Reviewerβs obligations under this Agreement.
Β
(i)Β Affiliates and Third Parties.Β If the Asset Representations Reviewer processes the Personally Identifiable Information of the Issuerβs Affiliates or a third party when performing a Review, and if such Affiliate or third
party is identified to the Asset Representations Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 7.02, and this Agreement is intended to benefit the Affiliate or third party.Β The Affiliate or third
party may enforce the Personally Identifiable Information-related terms of this Section 7.02 against the Asset Representations Reviewer as if each were a signatory to this Agreement.
Β
ARTICLE VIII.
Β
OTHER MATTERS PERTAINING TO THE ISSUER
Β
Section 8.01 Β Β Termination of the Issuer.
Β
This Agreement will terminate, except for obligations under Article VII and Sections 5.04 and 5.07, on the earlier of (i) the payment in full of all outstanding Notes
and the satisfaction and discharge of the Indenture and (ii) the date the Issuer is terminated in accordance with the terms of the Trust Agreement.
Β
ARTICLE IX.
Β
MISCELLANEOUS PROVISIONS
Β
18
Section 9.01 Β Amendment.
Β
(a)Β This Agreement may be amended by the Asset Representations Reviewer, the Issuer and the Servicer, without the consent of any of the Noteholders, (i) to comply with any change in any applicable federal or state law, 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; provided, however, that such
action shall not, as evidenced by an Opinion of Counsel delivered to the Issuer and the Servicer, adversely affect in any material respect the interests of any Noteholder whose consent has not been obtained, or (ii) to correct any manifest error in
the terms of this Agreement as compared to the terms expressly set forth in the Prospectus.
Β
(b)Β This Agreement may also be amended from time to time by the Asset Representations Reviewer, the Issuer and the Servicer, with the consent of the Noteholders of Notes evidencing at least a majority of the Outstanding Amount of
the Notes, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders.
Β
(c)Β It shall not be necessary for any consent of Noteholders pursuant to this Section 9.01 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance
thereof.
Β
(d)Β Prior to the execution of any amendment to this Agreement, the Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this
Agreement.Β The Owner Trustee may, but shall not be obligated to, execute and deliver such amendment which affects its rights, powers, duties or immunities hereunder.
Β
(e)Β Notwithstanding anything to the contrary in this Section 9.01, any amendment to this Agreement that affects the rights or obligations of either the Indenture Trustee or the Owner Trustee will require the consent of the Indenture
Trustee or the Owner Trustee, as applicable.
Β
Section 9.02 Β Β Notices.
Β
All notices hereunder shall be given by United States certified or registered mail or by other telecommunication device capable of creating written record of such
notice and its receipt.Β Notices hereunder shall be effective when received and shall be addressed to the respective parties hereto at the addresses set forth below, or at such other address as shall be designated by any party hereto in a written
notice to each other party pursuant to this section.
Β
If to the Asset Representations Reviewer, to:
Β
via Electronic mail:
XXXXxxxxxx@xxxxxxx.xxx
Β
and to:
Β
Β
19
Xxxxxxx Fixed Income Services LLC
0000 Xxxxx Xxxxxxxxxx Xxxx
Riverview, FL 33578
Attention: SVP
Β
with a copy to:
Β
Xxxxxxx Fixed Income Services LLC
000 X. Xxxxxxxx Xxxx., Xxxxx 000
Glendale, CO 80246
Attention: General Counsel
If to the Issuer, to:
Β
c/o Wilmington Trust, National Association
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Wilmington, Delaware 19890-1600
Attention: Corporate Trust Administration
with a copy to the Administrator, at:
Β
BMW Financial Services NA, LLC
000 Xxxxxxxx Xxxxx Xxxx,
Woodcliff Lake, New Jersey 07677
Attention: General Counsel
Β
If to the Servicer, to:
Β
BMW Financial Services NA, LLC
000 Xxxxxxxx Xxxxx Xxxx,
Woodcliff Lake, New Jersey 07677
Attention: General Counsel
Β
Section 9.03 Β Β Severability Clause.
Β
This Agreement constitutes the entire agreement among the Asset Representations Reviewer, the Issuer and the Servicer. All prior representations, statements,
negotiations and undertakings with regard to the subject matter hereof are superseded hereby.
Β
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remaining
terms and provisions of this Agreement, or the application of such terms or provisions to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this
Agreement shall be valid and enforced to the fullest extent permitted by law.
Β
20
Section 9.04 Β Β Counterparts.
Β
This Agreement may be executed simultaneously in any number of counterparts.Β Each counterpart shall be deemed to be an original, and all such counterparts shall
constitute one and the same instrument. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Agreement or such other
documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility to the fullest extent permitted by law.
Β
Section 9.05 Β Β Governing Law.
Β
THIS AGREEMENT 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 (OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 9.06 Β Β Relationship of the Parties.
Β
The Asset Representations Reviewer is an independent contractor and, except for the services which it agrees to perform hereunder, the Asset Representations Reviewer
does not hold itself out as an agent of any other party hereto.Β Nothing herein contained shall create or imply an agency relationship among the Asset Representations ReviewerΒ and any other party hereto, nor
shall this Agreement be deemed to constitute a joint venture or partnership between the parties.
Β
Section 9.07 Β Β Captions.
Β
The captions used herein are for the convenience of reference only and not part of this Agreement, and shall in no way be deemed to define, limit, describe or modify
the meanings of any provision of this Agreement.
Β
Section 9.08 Β Β Waivers.
Β
No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or
modification is sought to be enforced.
Β
Section 9.09 Β Β Assignment.
Β
This Agreement may not be assigned by the Asset Representations Reviewer except as permitted under Section 6.03 hereof.
Β
Section 9.10 Β Β Benefit of the Agreement; Third-Party
Beneficiaries.
Β
This Agreement is for the benefit of and will be binding on the parties to this Agreement and their permitted successors and assigns.Β The Owner Trustee and the
Indenture Trustee, for the benefit of the Noteholders, will be third-party beneficiaries of this Agreement entitled to
Β
21
enforce this Agreement against the Asset Representations Reviewer and the Servicer.Β No other Person will have any right or obligation under this Agreement, except as provided in Section
7.02(i).
Β
Section 9.11 Β Β Exhibits.
Β
The exhibits to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement.
Β
Section 9.12 Β Β No Petition.
Β
Each of the parties hereto covenants and agrees that prior to the date that is one year and one day after the date upon which all obligations and payments under the
Securitized Financing have been paid in full, they will not institute against, or join any Person in instituting against any Noteholder, any Note Owner, the UTI Beneficiary (and the general partner of the UTI Beneficiary that is a partnership, or the
managing member of the UTI Beneficiary that is a limited liability company), the Vehicle Trustee, the Vehicle Trust, any Special Purpose Affiliate (and the general partner of any Special Purpose Affiliate that is a partnership, or the managing member
of any Special Purpose Affiliate that is a limited liability company) that holds a beneficial interest in the Vehicle Trust, the Transferor, the Transferee, the Indenture Trustee or any Affiliate or beneficiary of the same, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other proceedings under any United States federal or state bankruptcy or similar law; provided, however, that nothing herein shall be deemed to prohibit the Asset Representations
Reviewer from filing a claim in, or otherwise participating in, any such action or proceeding that is not prohibited hereunder.
Β
Section 9.13 Β Β Limitation of Liability of Owner
Trustee.
Β
The parties hereto are put on notice and hereby acknowledge and agree that (a) this Agreement is executed and delivered by Wilmington Trust, National Association, not
individually or personally but solely as Owner Trustee of the Issuer, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made
and intended not as personal representations, undertakings and agreements by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any
liability on Wilmington Trust, National Association, individually or personally, to perform any covenant either expressed or implied contained herein of the Issuer, all such liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto, (d) Wilmington Trust, National Association has made no investigation as to the accuracy or completeness of any representations and warranties made by the Issuer in this Agreement and (e) under
no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or
undertaken by the Issuer under this Agreement or any other related documents.
Β
22
IN WITNESS WHEREOF, the Issuer, the Servicer and the Asset Representations Reviewer have caused their names to be signed hereto by their respective officers thereunto
duly authorized as of the date first above written.
Β
Β | ||
Β |
as Issuer
|
|
Β | Β | Β |
Β |
By:Β Β
|
Wilmington Trust, National Association,
|
Β | Β |
not in its individual capacity but solely
|
Β | Β |
as Owner Trustee
|
Β | Β | Β |
Β |
By:
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/s/ Xxxxxxx XxxxxxΒ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β
|
Β | Β |
Name:Β Xxxxxxx Xxxxxx
|
Β | Β |
Title:Β Β Β Vice President
|
Β | Β | Β |
Β |
BMW FINANCIAL SERVICES NA, LLC,
|
|
Β |
as Servicer
|
|
Β | Β | Β |
Β |
By:
|
/s/ Xxx XxxxxxΒ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β
|
Β | Β |
Name:Β Xxx Xxxxxx
|
Β | Β |
Title:Β Β Β Vice President β Finance & Chief
Β Β Β Β Β Β Β Β Β Β Β Β Financial Officer
|
Β | Β | Β |
Β | Β | Β |
Β |
By:
|
/s/ Xxxxxxxxx XxxxΒ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β
|
Β | Β |
Name:Β Xxxxxxxxx Xxxx
|
Β | Β |
Title:Β Β Β Treasurer
|
Β | Β | Β |
Β | Β | Β |
Β | Β | Β |
Β |
XXXXXXX FIXED INCOME SERVICES LLC,
|
|
Β |
as Asset Representations Reviewer
|
|
Β | Β | Β |
Β |
By:
|
/s/ Xxxxxxx XxxxxΒ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β
|
Β | Β |
Name:Β Xxxxxxx Xxxxx
|
Β | Β |
Title:Β Β Β Senior Vice President
|
Β
Β
23
EXHIBIT A
Β
Representations and Warranties
Made as of the Closing Date
(or as of Such Other Date Specified Below)
|
Tests
|
||
1.
|
The 2022-1 Vehicle was a new BMW passenger car or BMW light truck at the time of origination of the related 2022-1 Lease.
|
1.
|
Observe the related Lease Agreement and confirm that the 2022-1 Vehicle is described therein as being a new BMW passenger car or BMW light truck.
|
2.
|
The 2022-1 Vehicle has a model year of 2018 or later.
|
2.
|
Observe the related Lease Agreement and confirm that the 2022-1 Vehicle is described therein as having a model year of 2018 or later.
|
3.
|
The 2022-1 Lease provides for level payments that fully amortize the Adjusted Capitalized Cost of the 2022-1 Lease at the related Lease Rate to the related Contract Residual Value
over the lease term and, in the event of a lessee-initiated early termination, provides for payment of the related Early Termination Cost.
|
3.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date: (i) each Monthly Payment was described therein as being equal, except that the final payment may be
different, (ii) such Monthly Payments fully amortize the Adjusted Capitalized Cost to the Contract Residual Value over the term of such 2022-1 Lease, and (iii) such Lease Agreement contained language indicating that the related Lessee will
have to pay Early Termination Costs if such Lessee initiates early termination of such 2022-1 Lease.
|
4.
|
The 2022-1 Lease was originated on or after May 1, 2019.
|
4.
|
Observe the related Lease Agreement and confirm that the origination date of the 2022-1 Lease is described therein as being a date on or after May 1, 2019.
|
5.
|
The 2022-1 Lease has a Maturity Date on or after the April 2022 Payment Date and no later than the November 2024 Payment Date.
|
5.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date, the Maturity Date of the related 2022-1 Lease described therein was: (i) on or after the Payment Date in
April 2022 and (ii) no later than the Payment Date in November 2024.
|
6.
|
The 2022-1 Lease is not more than 29 days past due as of the Cutoff Date.
|
6.
|
Observe the data tape provided by BMW FS for the purposes of such review (the βData Tapeβ) and confirm that, as of the Closing Date, the 2022-1 Lease is not described thereon as being
more than 29 days past due as of the Cutoff Date.
|
7.
|
The 2022-1 Lease was originated by BMW FS in the United States, for a Lessee with a U.S. address, in the ordinary course of BMW FSβ business and in compliance with BMW FSβ customary
credit policies and practices.
|
7.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date: (i) the Lesseeβs address was within the United States of America (exclusive of any territories, army post
offices, fleet post offices and diplomatic post offices) and (ii) such Lease Agreement was on a form included in the list of approved forms of lease agreements provided to Xxxxxxx Fixed Income Services LLC (βXxxxxxxβ) by BMW FS.
|
8.
|
The 2022-1 Lease is a U.S. dollar-denominated obligation.
|
8.
|
Observe the related Lease Agreement and confirm that the Monthly Payments required to be made by the related Lessee are not specifically described as being in a currency other than
U.S. dollars.
|
A-1
Representations and Warranties
Made as of the Closing Date
(or as of Such Other Date Specified Below)
|
Tests
|
||
9.
|
The 2022-1 Lease was created in compliance in all material respects with all applicable federal and state laws, including consumer credit, truth in lending, equal credit opportunity
and applicable disclosure laws.
|
9.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date, such Lease Agreement was on a form included in the list of approved forms of lease agreements provided to
Xxxxxxx by BMW FS.
|
10.
|
The 2022-1 Lease (a) is a legal, valid and binding payment obligation of the Lessee, enforceable against the Lessee in accordance with its terms, as amended, (b) has not been
satisfied, subordinated, rescinded, canceled or terminated, and (c) no right of rescission, setoff, counterclaim or defense with respect to such 2022-1 Lease has been asserted or threatened in writing.
|
10.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date,Β such Lease Agreement was on a form included in the list of approved forms of lease agreements provided
to Xxxxxxx by BMW FS.Β Observe the Data Tape and confirm that, as of the Closing Date, the 2022-1 Lease has one of the status codes provided by BMW FS to Xxxxxxx for the purpose of such confirmation.Β Observe the related 2022-1 Lease in the
Data Tape and confirm it was an active account on the Closing Date.
|
11.
|
For each 2022-1 Lease that was executed electronically, an electronic executed copy of the documentation associated with the 2022-1 Lease is located at one of BMW FSβ offices.
|
11.
|
Observe the electronic Lease Agreement in BMW FSβ customer service system and confirm that, if the related Lease Agreement was executed electronically, an electronic copy of the
executed Lease Agreement appears therein.
|
12.
|
The 2022-1 Lease requires the related Lessee to obtain physical damage and liability insurance that names BMW FS or the lessor as loss payee covering the related 2022-1 Vehicle.
|
12.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date, the face of such Lease Agreement required that the related Lessee to obtain physical damage and liability
insurance naming BMW FS or the lessor as loss payee.
|
13.
|
The 2022-1 Lease has been validly assigned to the Vehicle Trust by the related Center and is owned by the Vehicle Trust, free of all liens, encumbrances or rights of others other than
liens relating to administration of title and tax issues.
|
13.
|
Observe (a) the copy of the related Lease Agreement in the Lease File and confirm on the face of the Lease Agreement that it is marked appropriately to indicate the assignment of the
related 2022-1 Lease to the Vehicle Trust and (b) the related Lease Agreement and confirm there is no notation on the face of the related Lease Agreement of any lien, encumbrances or rights of others (other than liens relating to
administration of title and tax issues).
|
14.
|
As of the Cutoff Date, the Lessee of the 2022-1 Lease has a garaging state address in a Trust State and such Lessee is not BMW FS, the Depositor or any of their respective affiliates.
|
14.
|
Observe the face of the related Lease Agreement and confirm that, as of the Cutoff Date, (i) the garaging state address of the related Lessee was in a State on the list of Trust
States provided to Xxxxxxx by BMW FS, and (ii) the Lessee is not BMW FS, the Depositor or any other entity on the list of affiliates provided to Xxxxxxx by BMW FS.
|
A-2
Representations and Warranties
Made as of the Closing Date
(or as of Such Other Date Specified Below)
|
Tests
|
||
15.
|
The Certificate of Title for the vehicle related to the 2022-1 Lease is registered in the name of the Vehicle Trust or the Vehicle Trustee (or a properly completed application for
such certificate of title has been submitted to the appropriate titling authority).
|
15.
|
Observe the related Lease File and confirm that either (i) the copy of the Certificate of Title for the related 2022-1 Vehicle contained therein is registered to the Vehicle Trust or
the Vehicle Trustee or (ii) such Lease File contains evidence that, as of the Closing Date, a properly completed application for the Certificate of Title to be registered to the Vehicle Trust or the Vehicle Trustee has been submitted to a
titling authority.
|
16.
|
The 2022-1 Lease is a closed-end lease that required all Monthly Payments to be made within 36 months of the date of origination of such lease.
|
16.
|
Observe the related Lease Agreement and confirm that, as of the Closing Date, the lease term stated on the face of such Lease Agreement was no more than 36 months.
|
17.
|
The 2022-1 Lease is fully assignable and does not require the consent of the Lessee as a condition to any transfer, sale or assignment of the rights of the related originator.
|
17.
|
Observe the related Lease Agreement and confirm that the face of such Lease Agreement contains a statement thereon indicating that the 2022-1 Lease may be transferred, sold or
assigned without the consent of the related Lessee.
|
18.
|
The 2022-1 Lease has not been deferred or otherwise modified except in accordance with BMW FSβ normal credit and collection policies and practices.
|
18.
|
Observe the related Lease File and confirm that, as of the Closing Date, the 2022-1 Lease has not been deferred or otherwise modified except in accordance with BMW FSβ normal credit
and collection policies and practices.
|
19.
|
The 2022-1 Lease is not an asset of an Other SUBI.
|
19.
|
Observe the Data Tape and confirm that the 2022-1 Lease is described therein as being an asset of the 2022-1 SUBI (through a unique βITβ code to be provided by BMW) which identifies
the 2022-1 SUBI.
|
20.
|
The servicing systems of BMW FS do not indicate that the Lessee of the 2022-1 Lease is currently the subject of a bankruptcy proceeding.
|
20.
|
Observe the Data Tape and confirm that, as of the Closing Date, the 2022-1 Lease is not described thereon as being the subject of a bankruptcy proceeding.
|
21.
|
The 2022-1 Lease constitutes tangible βchattel paperβ or βelectronic chattel paperβ for purposes of the UCC and, if such 2022-1 Lease constitutes βelectronic chattel paper,β the
Vehicle Trust has βcontrolβ (as such term is used in Section 9-105 of the UCC) over the βauthoritative copyβ (as such term is used in Section 9-105 of the UCC) of such 2022-1 Lease.
|
21.
|
Observe the related Lease Agreement and confirm that (i) such Lease Agreement was on a form included in the list of approved forms of lease agreements provided to Xxxxxxx by BMW FS,
and (ii) if such Lease Agreement was completed electronically, the face of such Lease Agreement indicates that it is the βAuthoritative Copyβ.
|
Β
A-3