Execution Copy
RECEIVABLES PURCHASE AGREEMENT dated as of December 9, 1996, among NAL
ACCEPTANCE CORPORATION, a Florida corporation ("NAL"), AUTORICS, INC., a
Delaware Corporation (the "Seller"), and AUTORICS II, INC., a Delaware
corporation (the "Purchaser").
WHEREAS in the regular course of its business, the Seller has purchased
certain motor vehicle retail installment sale contracts secured by new and used
automobiles, light-duty trucks and vans from NAL which, in turn purchased such
contracts from motor vehicle dealers and 3 others; and
WHEREAS the Purchaser wishes to purchase the Receivables (as
hereinafter defined) and to transfer the Receivables to NAL Auto Trust 1996-4
(the "Trust"), which will issue the 6.90% Asset Backed Notes (the "Notes"),
payment of which will be secured by the Receivables, and the 8.15% Asset Backed
Certificates representing fractional undivided interests in the property of the
Trust including the Receivables, subject to the rights of the Indenture Trustee
on behalf of the Noteholders;
WHEREAS the Seller and Purchaser are wholly owned subsidiaries of NAL
and NAL wishes to facilitate the transfer of the Receivables and, to that end,
has agreed to make certain representations and warranties relating to the
Receivables and to pay certain expenses and amounts with respect hereto; and
WHEREAS NAL, the Seller and the Purchaser wish to set forth the terms
pursuant to which the Seller will sell the Receivables to the Purchaser;
NOW, THEREFORE, in consideration of the foregoing, other good and
valuable consideration and the mutual terms and covenants contained herein, the
parties hereto agree as follows:
ARTICLE I
Certain Definitions
Terms not defined in this Agreement shall have the meaning set forth in
the Sale and Servicing Agreement or the Indenture, as applicable. As used in
this Agreement, the following terms shall, unless the context otherwise
requires, have the following meanings (such meanings to be equally applicable to
the singular and plural forms of the terms defined):
"Agreement" shall mean this Receivables Purchase Agreement, as the same
may be amended and supplemented from time to time.
"Assignment" shall mean the document of assignment substantially in the
form of Exhibit A.
"Certificates" shall mean the Trust Certificates (as defined in the
Trust Agreement).
"Certificateholders" shall mean the holders of Certificates.
"Closing Date" shall mean December 18, 1996.
"Collections" shall mean all amounts collected by the Servicer (from
whatever source) on or with respect to the Receivables.
"Cutoff Date" means December 9, 1996.
"Indenture" shall mean the Indenture dated as of December 9, 1996
between the Trust and Bankers Trust Company, as trustee (the "Indenture
Trustee"), as the same may be amended and supplemented from time to time.
"NAL" shall mean NAL Acceptance Corporation, a Florida corporation, its
successors and assigns.
"Noteholders" shall mean the holders of the Notes.
"Private Placement Memorandum" shall mean the Private Placement
Memorandum dated December 16, 1996, relating to the Notes and the Certificates.
"Purchaser" shall mean AUTORICS II, Inc., a Delaware corporation, its
successors and assigns.
"Receivable" shall mean any Contract listed on Schedule I hereto (which
Schedule may be in the form of microfiche).
"Repurchase Event" shall have the meaning specified in Section 6.02.
"Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement dated as of December 9, 1996, among the Trust, the Purchaser, Bankers
Trust Company, as Back- up Servicer, and the Seller, as the same may be amended
and supplemented from time to time.
"Schedule of Receivables" shall mean the list of Receivables annexed
hereto as Schedule I.
"Seller" shall mean Autorics, Inc., a Delaware corporation, its
successors and assigns.
"Trust Agreement" shall mean the Trust Agreement dated as of December
9, 1996, between the Purchaser and Wilmington Trust Company, as the owner
trustee (the "Owner Trustee"), as the same may be amended and supplemented from
time to time.
ARTICLE II
Conveyance of Receivables
SECTION 2.01. Conveyance of Receivables. In consideration of the
Purchaser's delivery to or upon the order of the Seller of $83,232,671.28, the
Seller does hereby sell, transfer, assign, set over and otherwise convey to the
Purchaser, without recourse (subject
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to the obligations of the Seller and NAL herein), all right, title and interest
of the Seller in and to (but none of the obligations of the Seller with respect
to):
(a) the Receivables, and all moneys received thereon on and after
the Cutoff Date plus all Payaheads as of the Cutoff Date;
(b) the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables, any other right to realize upon property
securing a Receivable and any other interest of the Seller in such Financed
Vehicles including the Seller's right, title and interest in the lien on the
Financed Vehicles in the name of Autorics, Inc. or the Seller's agents, NAL
or SFI;
(c) any proceeds with respect to the Receivables from claims on
any Insurance Policies relating to the Financed Vehicles or Obligors;
(d) proceeds of any recourse (but none of the obligations) to
Dealers on Receivables;
(e) any Financed Vehicle that shall have secured a Receivable and
shall have been acquired by or on behalf of the Seller, the Purchaser, or, upon
the assignment contemplated by the Sale and Servicing Agreement, the Servicer
or the Trust;
(f) the Receivables Files;
(g) the obligations, duties and responsibilities of NAL to the
Seller made hereunder, including without limitation, the representations and
warranties made by NAL pursuant to Section 3.02(b) of this Agreement and the
representations and warranties on the Receivables made by NAL pursuant to
Section 3.02(c) of this Agreement and the right of the Seller to cause NAL to
purchase the Receivables under certain circumstances; and
(h) the proceeds of any and all of the foregoing.
SECTION 2.02. The Closing. The sale and purchase of the Receivables
shall take place at a closing (the "Closing") at the offices of Xxxxx & Xxxx
LLP, Xxx Xxxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 on the Closing Date,
simultaneously with the closings under (a) the Sale and Servicing Agreement and
(b) the Indenture.
ARTICLE III
Representations and Warranties
SECTION 3.01. Representations and Warranties of the Purchaser. The
Purchaser hereby represents and warrants to the Seller as of the Closing Date:
(a) Organization and Good Standing. The Purchaser has been duly
organized and is validly existing as a corporation in good standing under the
laws of the 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 had at all relevant times, and
has, the power, authority and legal right to acquire and own the Receivables.
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(b) Due Qualification. The Purchaser is duly qualified to do
business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals, in all jurisdictions in which the ownership
or lease of its property or the conduct of its business shall require such
qualifications.
(c) Power and Authority. The Purchaser has the power and authority
to execute and deliver this Agreement and to carry out its terms, and the
execution, delivery and performance of this Agreement has been duly authorized
by the Purchaser by all necessary corporate action.
(d) No Violation. The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof do not
conflict with, result in any breach of any of the terms and provisions of, or
constitute (with or without notice or lapse of time) a default under, the
certificate of incorporation or bylaws of the Purchaser, or any indenture,
agreement or other instrument to which the Purchaser is a party or by which it
is bound; or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other
instrument (other than the Sale and Servicing Agreement, the Indenture and the
Trust Agreement); or violate any law or, to the best of the Purchaser's
knowledge, any order, rule or regulation applicable to the Purchaser of any
court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Purchaser or its
properties.
(e) No Proceedings. There are no proceedings or investigations
pending or, to the Purchaser's best knowledge, threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Purchaser or its properties: (i) asserting the
invalidity of this Agreement, (ii) seeking to prevent the consummation of any of
the transactions contemplated by this Agreement or (iii) seeking any
determination or ruling that might materially and adversely affect the
performance by the Purchaser of its obligations under, or the validity or
enforceability of, this Agreement.
SECTION 3.02. Representations and Warranties of the Seller and NAL.
(a) The Seller hereby represents and warrants to the Purchaser as of the
Closing Date:
(i) Organization and Good Standing. The Seller has been
duly organized and is validly existing as a corporation in good
standing under the laws of the 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 had at all relevant times, and has, the power, authority
and legal right to acquire and own the Receivables.
(ii) Due Qualification. The Seller is duly qualified to
do business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals, in all jurisdictions in which the
ownership or lease of its property or the conduct of its business shall
require such qualifications.
(iii) Power and Authority. The Seller has the power and
authority to execute and deliver this Agreement and to carry out its
terms; the Seller has full power and authority to sell and assign the
property sold and assigned to the Purchaser hereby and has duly
authorized such sale and assignment to the Purchaser by all necessary
corporate action; and the execution, delivery and performance of this
Agreement has been duly authorized by the Seller by all necessary
corporate action.
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(iv) No Violation. The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof
shall not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time)
a default under, the articles of incorporation or bylaws of the Seller,
or any indenture, agreement or other instrument to which the Seller is
a party or by which it is bound; or result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms
of any such indenture, agreement or other instrument (other than this
Agreement); or violate any law or, to the best of the Seller's
knowledge, any order, rule or regulation applicable to the Seller of
any court or of any federal or state regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over
the Seller or its properties.
(v) No Proceedings. There are no proceedings or
investigations pending or, to the Seller's best knowledge, threatened
before any court, regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Seller or its
properties: (A) asserting the invalidity of this Agreement, (B) seeking
to prevent the consummation of any of the transactions contemplated by
this Agreement or (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Seller of its
obligations under or the validity or enforceability of, this Agreement.
(vi) Principal Place of Business. The principal place of
business and chief executive office of the Seller are located at the
place set forth in Section 6.08(a) and such location has not changed
since the date the Seller was incorporated.
(vii) Use of Names. The legal name of the Seller is the
name used by it in this Agreement and the Seller has not changed its
name since the date of its incorporation and does not have trade names,
fictitious names, assumed names or "doing business" names.
(viii) Solvency. The Seller is solvent and will not become
insolvent after giving effect to the transactions contemplated in this
Agreement; the Seller is paying its debts, if any, as they become due;
the Seller, after giving effect to the transactions contemplated in
this Agreement, will have adequate capital to conduct its business.
(b) NAL hereby represents and warrants to the Seller as of the
Closing Date:
(i) Organization and Good Standing. NAL has been duly
organized and is validly existing as a corporation in good standing
under the laws of the State of Florida, 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 had at
all relevant times, and has, the power, authority and legal right to
acquire and own the Receivables.
(ii) Due Qualification. NAL is duly qualified to do
business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals, in all jurisdictions in which the
ownership or lease of its property or the conduct of its business shall
require such qualifications.
(iii) Power and Authority. NAL has the power and
authority to execute and deliver this Agreement and to carry out its
terms; NAL has full power and authority to
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perform its obligations under this Agreement; and the execution,
delivery and performance of this Agreement has been duly authorized by
NAL by all necessary corporate action.
(iv) No Violation. The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof
shall not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time)
a default under, the articles of incorporation or bylaws of NAL, or any
indenture, agreement or other instrument to which NAL is a party or by
which it is bound; or result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than this Agreement); or violate
any law or, to the best of NAL's knowledge, any order, rule or
regulation applicable to NAL of any court or of any federal or state
regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over NAL or its properties.
(v) No Proceedings. There are no proceedings or
investigations pending or, to NAL's best knowledge, threatened before
any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over NAL or its properties: (A)
asserting the invalidity of this Agreement, (B) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement
or (C) seeking any determination or ruling that might materially and
adversely affect the performance by NAL of its obligations under or the
validity or enforceability of, this Agreement.
NAL agrees that such representations and warranties shall be conveyed
hereunder by the Seller to the Purchaser, by the Purchaser to the Issuer under
the Sale and Servicing Agreement, and pledged by the Issuer to the Indenture
Trustee. NAL further agrees that any such Person to whom such rights are
conveyed may enforce any and all remedies for the breach thereof directly
against NAL. NAL agrees that the Purchaser shall rely on such representations
and warranties in accepting the Receivables.
(c) NAL makes the following representations and warranties to the
Seller in respect of the Receivables. NAL agrees that such representations and
warranties shall be conveyed hereunder by the Seller to the Purchaser, by the
Purchaser to the Issuer under the Sale and Servicing Agreement, and pledged by
the Issuer to the Indenture Trustee. NAL further agrees that any such Person to
whom such rights are conveyed may enforce any and all remedies for the breach
thereof directly against NAL. NAL agrees that the Purchaser shall rely on such
representations and warranties in accepting the Receivables. Such
representations and warranties speak as of the execution and delivery of this
Agreement, but shall survive the sale, transfer and assignment of the
Receivables to the Purchaser and the subsequent sale, assignment and transfer of
the Receivables pursuant to the Sale and Servicing Agreement and the Grant
thereof pursuant to the Indenture:
(i) Characteristics of Receivables. Each Receivable (A)
was originated in the United States of America by a Dealer for the
retail sale of a Financed Vehicle in the ordinary course of such
Dealer's business, was fully and properly executed by the parties
thereto, was purchased by NAL from such Dealer under an existing dealer
agreement, and was validly assigned by such Dealer to NAL in accordance
with the terms of such dealer agreement and from NAL to the Seller
pursuant to the Contract Purchase Agreement dated September 5, 1995
between NAL and the Seller, (B) has
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created a valid, subsisting and enforceable first priority security
interest in favor of the Seller in the Financed Vehicle, which security
interest is assignable by the Seller to the Purchaser, by the Purchaser
to the Trust and by the Trust to the Indenture Trustee, (C) contains
customary and enforceable provisions such that the rights and remedies
of the holder thereof are adequate for realization against the
collateral of the benefits of the security, (D) provides for level
monthly payments (provided that the payment in the first or last month
in the life of the Receivable may be different from the level payments)
that fully amortize the Amount Financed by maturity and yield interest
at the Annual Percentage Rate, and (E) provides, in the event that such
Contract is prepaid, for a prepayment that fully pays the Principal
Balance of the Receivable and includes a full month's interest in the
month of prepayment at the Annual Percentage Rate.
(ii) Schedule of Receivables. The information set forth
in Schedule I to this Agreement is true and correct in all material
respects as of the opening of business on the Cutoff Date, and no
selection procedures believed to be adverse to the Noteholders or the
Certificateholders were utilized in selecting the Receivables. The
computer tape regarding the Receivables made available to the Purchaser
and its assigns is true and correct in all respects.
(iii) Compliance with Law. Each Receivable and the sale
of the related Financed Vehicle complied at the time it was originated
or made, and at the execution of this Agreement complies, in all
material respects with all requirements of applicable federal, state
and local laws and regulations thereunder, including usury laws, the
Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the
Federal Trade Commission Act, the Xxxxxxxx-Xxxx Warranty Act, the
Federal Reserve Board's Regulations B and S and state adaptations of
the National Consumer Act and of the Uniform Consumer Credit Code, and
other consumer credit laws and equal credit opportunity and disclosure
laws.
(iv) Binding Obligation. Each Receivable represents the
genuine, legal, valid and binding payment obligation in writing of the
Obligor, enforceable by the holder thereof in accordance with its
terms.
(v) No Government Obligor. None of the Receivables is
due from the United States of America or any state or from any agency,
department or instrumentality of the United States of America or any
state.
(vi) Security Interest in Financed Vehicle. Immediately
prior to the sale, assignment and transfer thereof, each Receivable
shall be secured by a validly perfected first security interest in the
Financed Vehicle in favor of the Seller as secured party or all
necessary and appropriate actions have been commenced that would result
in the perfection of a first security interest in the Financed Vehicle
in favor of the Seller as secured party.
(vii) Receivables in Force. No Receivable has been
satisfied, subordinated or rescinded, nor has any Financed Vehicle been
released from the lien granted by the related Receivable in whole or in
part.
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(viii) No Waiver. No provision of a Receivable has been
waived except by a writing constituting an amendment to the applicable
Contract.
(ix) No Amendments. No Receivable has been amended such
that the amount of the Obligor's scheduled payments has been increased.
(x) No Defenses. No right of rescission, setoff,
counterclaim or defense has been asserted or threatened with respect to
any Receivable.
(xi) No Liens. To the best of the Seller's knowledge, no
liens or claims have been filed for work, labor or materials relating
to a Financed Vehicle that are liens prior to, or equal or coordinate
with, the security interest in the Financed Vehicle created by any
Receivable.
(xii) No Default. No Receivable has a payment that is
more than 30 days overdue as of the Cutoff Date and no default, breach,
violation or event permitting acceleration under the terms of any
Receivable has occurred; no continuing condition that with notice or
the lapse of time would constitute a default, breach, violation or
event permitting acceleration under the terms of any Receivable has
arisen; and the Seller has not waived any of its rights regarding the
occurrence of any of the foregoing.
(xiii) Insurance. The Seller, in accordance with its
customary procedures, has determined that each Obligor has obtained
physical damage insurance covering the Financed Vehicle and under the
terms of the Receivable the Obligor is required to maintain such
insurance.
(xiv) Title. It is the intention of the parties hereto
that the transfer and assignment herein contemplated constitute a sale
of the Receivables from the Seller to the Purchaser, and that the
beneficial interest in and title to the Receivables not be part of the
debtor's estate in the event of the filing of a bankruptcy petition by
or against the Seller under any bankruptcy law. Immediately prior to
the transfer and assignment herein contemplated, the Seller had good
and marketable title to each Receivable free and clear of all Liens
and, immediately upon the transfer thereof, the Purchaser shall have
good and marketable title to each Receivable, free and clear of all
Liens; and the transfer has been perfected under the UCC.
(xv) Lawful Assignment. No Receivable was originated in,
or is subject to the laws of, any jurisdiction under which the sale,
transfer and assignment of such Receivable or any Receivable under this
Agreement, the Sale and Servicing Agreement or the Indenture is
unlawful, void or voidable.
(xvi) All Filings Made. All filings (including UCC
filings) necessary in any jurisdiction to give the Purchaser a first
perfected ownership interest in the Receivables have been made.
(xvii) One Original. There is only one executed original
of each Receivable.
(xviii) Maturity of Receivables. Each Receivable has an
original maturity of not more than 60 months; the weighted average
remaining term of the Receivables is 50.03 months as of the Cutoff
Date.
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(xix) Scheduled Payments. (A) Each Receivable has a first
Scheduled Payment due, in the case of Precomputed Receivables, or a
scheduled due date, in the case of Simple Interest Receivables, on or
prior to January 17, 1997 and (B) no Receivable has a final scheduled
payment date later than the Final Scheduled Maturity Date.
(xx) Location of Receivable Files. The Receivable Files
are kept at one or more of the locations listed in Schedule II hereto.
(xxi) Outstanding Principal Balance. The Amount Financed
pursuant to each Receivable is at least $1,000.
(xxii) Financing. Approximately 78.32% of the aggregate
principal balance of the Receivables, constituting 82.83% of the number
of Receivables as of the Cutoff Date, represent financing of used
vehicles; the remainder of the Receivables represent financing of new
vehicles; approximately 88.54% of the aggregate principal balance of
the Receivables as of the Cut-off Date represent Precomputed
Receivables; and the remainder of the Receivables represent Simple
Interest Receivables. The aggregate Principal Balance of the
Receivables as of the Cutoff Date is $88,044,150.40.
(xxiii) No Bankruptcies. As of the Cutoff Date, no Obligor
on any Receivable was noted in the related Receivable File as having
filed for bankruptcy.
(xxiv) No Repossessions. No Financed Vehicle securing any
Receivable is in repossession status.
(xxv) Chattel Paper. Each Receivable constitutes "chattel
paper" as defined in the UCC.
(xxvi) Underwriting Guidelines. Each Receivable was
originated by the Dealer and purchased by NAL in accordance with the
underwriting guidelines described in the Private Placement Memorandum.
(xxvii) Servicing. As of the Cutoff Date each Receivable
was being serviced by the Servicer and no other person had a right to
service such Receivable.
(xxviii) Full Amount Advanced. The full principal amount of
each Receivable has been advanced to each Obligor, and there is no
requirement for future advances thereunder. The Obligor with respect to
the Receivable does not have any option under the Receivables to borrow
from any person additional funds secured by the Financed Vehicle.
(xxix) Obligation to Dealers or Others. The Purchaser and
its assignees will assume no obligations to Dealers or other
originators of prior holders of the Receivables (including, but not
limited to obligations under dealer reserves) as a result of its
purchase of the Receivables.
(xxx) Collection Practices. The Collection practices
utilized by any person servicing a Receivable in seeking payment under
the documentation evidencing such Receivable have been in all respects
legal, proper and customary in the automobile loan servicing business.
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(xxxi) First Payment. The first payment on each Receivable
with respect to which the first payment was not yet due as of the
Cutoff Date will be made in full no later than the 45th day after its
due date.
(xxxii) Private Placement Memorandum. The Private Placement
Memorandum does not contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements
therein not misleading.
(xxxiii) Subsequent Transfer. The representations and
warranties of the Depositor in Section 3.01 of the Sale and Servicing
Agreement are true and correct.
ARTICLE IV
Conditions
SECTION 4.01. Conditions to Obligation of the Purchaser. The
obligation of the Purchaser to purchase the Receivables is subject to the
satisfaction of the following conditions:
(a) Representations and Warranties True. The representations and
warranties of the Seller and NAL hereunder shall be true and correct on the
Closing Date with the same effect as if then made, and each of the Seller and
NAL shall have performed all obligations to be performed by it hereunder on or
prior to the Closing Date.
(b) Computer Files Marked. The Seller shall, at its own expense,
on or prior to the Closing Date indicate in its computer files that the
Receivables have been sold to the Purchaser pursuant to this Agreement, and
deliver to the Purchaser the Schedule of Receivables certified by the Chairman,
the President, a Vice President or the Treasurer to be true, correct and
complete.
(c) Documents To Be Delivered by the Seller at the Closing.
(i) The Assignment. At the Closing, the Seller will execute
and deliver an Assignment in the form of Exhibit A hereto.
(ii) Evidence of UCC Filing. On or prior to the Closing Date,
the Seller shall record and file, at its own expense, a UCC-1 financing
statement in each jurisdiction in which required by applicable law,
executed by the Seller, as seller or debtor, and naming the Purchaser
as purchaser or secured party, describing the Receivables and the other
property included in the Owner Trust Estate, meeting the requirements
of the laws of each such jurisdiction and in such manner as is
necessary to perfect the sale, transfer, assignment and conveyance of
such Receivables to the Purchaser. The Seller shall deliver a
file-stamped copy or other evidence satisfactory to the Purchaser of
such filing to the Purchaser on or prior to the Closing Date.
(iii) Other Documents. Such other documents as the Purchaser
may reasonably request.
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(d) Other Transactions. The transactions contemplated by the Sale
and Servicing Agreement, the Indenture and the Trust Agreement to be consummated
on the Closing Date shall be consummated on such date.
SECTION 4.02. Conditions to Obligation of the Seller. The obligation of
the Seller to sell the Receivables to the Purchaser is subject to the
satisfaction of the following conditions:
(a) Representations and Warranties True. The representations and
warranties of the Purchaser hereunder shall be true and correct on the Closing
Date with the same effect as if then made, and the Seller shall have performed
all obligations to be performed by it hereunder on or prior to the Closing Date.
(b) Receivables Purchase Price. On the Closing Date, the
Purchaser shall have delivered to the Seller the purchase price specified in
Section 2.01.
ARTICLE V
Covenants of the Seller and NAL
The Seller and NAL agree with the Purchaser as follows:
SECTION 5.01. Protection of Right, Title and Interest. (a) Filings. NAL
and the Seller shall cause all financing statements and continuation statements
and any other necessary documents covering the right, title and interest of the
Seller and the Purchaser, respectively, in and to the Receivables and the other
property included in the Owner Trust Estate to be promptly filed and at all
times to be kept recorded, registered and filed, all in such manner and in such
places as may be required by law fully to preserve and protect the right, title
and interest of the Purchaser hereunder in and to the Receivables and the other
property included in the Owner Trust Estate. NAL and the Seller shall deliver to
the Purchaser file stamped copies of, or filing receipts for, any document
recorded, registered or filed as provided above, as soon as available following
such recordation, registration or filing. The Purchaser shall cooperate fully
with NAL and the Seller (and the Seller will cooperate with NAL) in connection
with the obligations set forth above and will execute any and all documents
reasonably required to fulfill the intent of this paragraph.
(b) Name Change. Within 15 days after the Seller makes any change in
its name, identity or corporate structure that would make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the applicable provisions of the UCC or any title
statute, the Seller shall give the Purchaser notice of any such change and, no
later than 5 days after the effective date thereof, shall file such financing
statements or amendments as may be necessary to continue the perfection of the
Purchaser's interest in the property included in the Owner Trust Estate.
(c) Resolution. The Seller shall have an obligation to give the
Purchaser at least 60 days' prior written notice of any relocation of its
principal executive office if, as a result of such relocation, the applicable
provisions of the UCC would require the filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement and shall promptly file any such amendment or new financing statement.
The
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Servicer shall at all times maintain each office from which it shall service
Receivables, and its principal executive office, within the United States of
America.
(d) Notice. If at any time the Seller shall propose to sell, grant a
security interest in, or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender or other transferee, the Seller
shall give to such prospective purchaser, lender or other transferee computer
tapes, records or printouts (including any restored from backup archives) that,
if they shall refer in any manner whatsoever to any Receivable, shall indicate
clearly that such Receivable has been sold and is owned by the Purchaser. Should
any third party inquire of the Seller as to the Receivables, the Seller will
promptly indicate to such party that the Receivables have been sold to the
Purchaser pursuant to this Agreement.
SECTION 5.02. Other Liens or Interests. Except for the conveyances
hereunder and under the Sale and Servicing Agreement, the Indenture, the Trust
Agreement and the other Basic Documents, the Seller will not sell, pledge,
assign or transfer to any Person, or grant, create, incur, assume or suffer to
exist any Lien on, or any interest in, to or under the Receivables, and the
Seller shall defend the right, title and interest of the Purchaser in, to and
under the Receivables against all claims of third parties claiming through or
under the Seller; provided, however, that the Seller's obligations under this
Section shall terminate upon the termination of the Trust pursuant to the Trust
Agreement.
SECTION 5.03. Costs and Expenses. NAL agrees to pay all reasonable
costs and disbursements in connection with the perfection, as against all third
parties, of the Seller's or any of its assignees right, title and interest in
and to the Receivables.
SECTION 5.04. Indemnification. NAL shall indemnify the Purchaser for
any liability resulting from the failure of a Receivable to be originated in
compliance with all requirements of law and for any breach of any of its or the
Seller's representations and warranties contained herein and for any failure by
the Seller to comply with its obligations under Sections 5.01 and 5.02 hereof.
These indemnity obligations shall be in addition to any obligation that NAL or
the Seller may otherwise have.
ARTICLE VI
Miscellaneous Provisions
SECTION 6.01. Obligations of Seller and NAL. The obligations of the
Seller and NAL under this Agreement shall not be affected by reason of any
invalidity, illegality or irregularity of any Receivable.
SECTION 6.02. Repurchase Events. NAL hereby covenants and agrees with
the Seller for the benefit of the Seller and its assignees or their respective
assignees the occurrence of a breach of any of NAL's representations and
warranties contained in Section 3.02(c), unless any such breach shall have been
cured by the last day of the Collection Period following the discovery thereof
by NAL, or receipt by NAL of written notice from the Owner Trustee, the
Indenture Trustee, the Depositor, the Servicer, or the Back-up Servicer, shall
constitute an event obligating NAL to purchase as of such last day any
Receivable hereunder with respect to which such breach occurred if such breach
has had a material and adverse effect on the interests of the Purchaser or the
Trust in and to such Receivable (each, a "Repurchase Event"), at the Purchase
Amount from the Purchaser or, upon the assignment
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contemplated by the Sale and Servicing Agreement, from the Trust. The repurchase
obligation of NAL shall constitute the sole remedy (other than that provided by
Section 5.04) of the Purchaser, the Trust, the Indenture Trustee, the
Noteholders, the Owner Trustee or the Certificateholders against NAL with
respect to any Repurchase Event.
SECTION 6.03. Purchaser Assignment of Repurchased Receivables. With
respect to all Receivables purchased by NAL pursuant to this Agreement, the
Purchaser shall assign, without recourse, representation or warranty, to NAL all
the Purchaser's right, title and interest in and to such Receivables and all
security and documents relating thereto.
SECTION 6.04. The Trust. The Seller and NAL acknowledge and agree that
(a) the Purchaser will, pursuant to the Sale and Servicing Agreement, sell the
Receivables to the Trust and assign its rights under this Agreement to the
Trust, (b) the Trust will, pursuant to the Indenture, Grant the Receivables and
its rights under this Agreement and the Sale and Servicing Agreement to the
Indenture Trustee on behalf of the Noteholders and (c) the representations and
warranties contained in this Agreement and the rights of the Purchaser under
this Agreement, including under Section 6.02 are intended to benefit the Trust,
the Certificateholders and the Noteholders. The Seller and NAL hereby consent to
all such sales and assignments and agree that the Owner Trustee or, if pursuant
to the Indenture, the Indenture Trustee may exercise the rights of the Purchaser
and enforce the obligations of the Seller and NAL hereunder directly and without
the consent of the Purchaser.
SECTION 6.05. Amendment. This Agreement may be amended from time to
time, with prior written notice to each Rating Agency, by a written amendment
duly executed and delivered by NAL, the Seller and the Purchaser, to cure any
ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to add any other provision with
respect to matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement or the Sale and Servicing
Agreement, the Trust Agreement or the Indenture; provided that such amendment
shall not, in the Opinion of Counsel satisfactory to the Owner Trustee and the
Indenture Trustee, materially and adversely affect the interest of any
Noteholder or Certificateholder in the Trust or the Receivables. This Agreement
may also be amended by NAL, the Seller and the Purchaser, with prior written
notice to each Rating Agency, with the consent of the holders of Notes
evidencing at least a majority of the Outstanding Amount of the Notes and the
holders of Certificates evidencing at least a majority of the Certificate
Balance 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 or the Certificateholders in the Trust or
Receivables; provided, however, that no such amendment may (i) increase or
reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that are required to be
made for the benefit of Noteholders or Certificateholders or (ii) reduce the
aforesaid percentage of the Notes and Certificates that is required to consent
to any such amendment, without the consent of the holders of all the outstanding
Notes and Certificates.
SECTION 6.06. Accountants' Letters. (a) Price Waterhouse LLP will
review the characteristics of the Receivables and will compare those
characteristics to the information with respect to the Receivables contained in
the Private Placement Memorandum; (b) the Seller will cooperate with the
Purchaser and Price Waterhouse LLP in making available all information and
taking all steps reasonably necessary to permit such accountants to complete the
review set forth in clause (a) above and to deliver the letters required of them
under the Private Placement Memorandum; (c) Price Waterhouse LLP will deliver to
the Purchaser a letter, dated
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the date of the Private Placement Memorandum, in the form previously agreed to
by the Seller and the Purchaser, with respect to the financial and statistical
information contained in the Private Placement Memorandum and with respect to
such other information as may be agreed in the form of letter.
SECTION 6.07. Waivers. No failure or delay on the part of the
Purchaser, or any assignee of the Purchaser, in exercising any power, right or
remedy under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or remedy preclude any other
or further exercise thereof or the exercise of any other power, right or remedy.
SECTION 6.08. Notices. All demands, notices and communications under
this Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, or recognized overnight courier or by facsimile
confirmed by delivery or mail as described above, and shall be deemed to have
been duly given upon receipt (a) in the case of the Seller, to AUTORICS, Inc.,
000 Xxxxxxx Xxxxx Xxxx Xxxx, Xxxxx 000, Xxxx Xxxxxxxxxx, Xxxxxxx 00000,
Telephone: 000-000-0000: Fax: 000-000-0000, Attention: Xxxxxx XxXxxxx; (b) in
the case of the Purchaser, to AUTORICS II, Inc., 000 Xxxxxxx Xxxxx Xxxx Xxxx,
Xxxxx 000, Xxxx Xxxxxxxxxx, Xxxxxxx 00000, Telephone: 000-000-0000; Fax:
000-000-0000, Attention: Xxxxxx XxXxxxx; (c) in the case of NAL, to NAL
ACCEPTANCE CORPORATION, 000 Xxxxxxx Xxxxx Xxxx Xxxx, Xxxxx 000, Xxxx Xxxxxxxxxx,
Xxxxxxx 00000, Telephone: 305-938- 8200; Fax: 000-000-0000, Attention: Xxxxxx
XxXxxxx; and (d) in the case of each Rating Agency, to Duff & Xxxxxx Credit
Rating Co., 00 Xxxx Xxxxxx Xxxxxx, Xxxxxxx, Xxx. 00000; Tel: 000-000-0000; Fax:
000-000-0000; Attn: Asset-Backed Research and Monitoring and to Fitch Investors
Service, L.P., Xxx Xxxxx Xxxxxx Xxxxx, 00xx Xxxxx, Xxx Xxxx, X.X. 00000 Tel:
(000) 000-0000; Fax: (000) 000-0000; Attn: Xxxxxxx X. Xxxxxx; or as to each of
the foregoing, at such other address as shall be designated by written notice to
the other parties.
SECTION 6.09. Costs and Expenses. The Seller shall pay all expenses
incident to the performance of its obligations under this Agreement and NAL
agrees to pay all reasonable out-of-pocket costs and expenses of the Purchaser,
excluding fees and expenses of counsel, in connection with the perfection as
against third parties of the Purchaser's right, title and interest in and to the
Receivables and the enforcement of any obligation of the Seller hereunder.
SECTION 6.10. Representations of the Seller and the Purchaser. The
respective agreements, representations, warranties and other statements by NAL,
the Seller and the Purchaser set forth in or made pursuant to this Agreement
shall remain in full force and effect and will survive the sales and assignments
referred to in Section 6.04.
SECTION 6.11. Confidential Information. The Purchaser agrees that it
will neither use nor disclose to any Person the names and addresses of the
Obligors, except in connection with the enforcement of the Purchaser's rights
hereunder, under the Receivables, under the Sale and Servicing Agreement, the
Indenture, the Trust Agreement or any other Basic Document or as required by any
of the foregoing or by law.
SECTION 6.12. Headings and Cross-References. The various headings in
this Agreement are included for convenience only and shall not affect the
meaning or interpretation of any provision of this Agreement. References in this
Agreement to Section names or numbers are to such Sections of this Agreement.
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SECTION 6.13. GOVERNING LAW. THIS AGREEMENT AND THE ASSIGNMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER OR THEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
SECTION 6.14. Counterparts. This Agreement may be executed in two or
more counterparts and by different parties on separate counterparts, each of
which shall be an original, but all of which together shall constitute one and
the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers duly authorized as of the date and year
first above written.
AUTORICS, INC.,
by ____________________________________
Name: Xxxxxx Xxxxxxx
Title: Vice President/Finance
NAL ACCEPTANCE CORPORATION,
by ____________________________________
Name: Xxxxxx Xxxxxxx
Title: Vice President/Finance
AUTORICS II, INC.,
by __________________________________
Name: Xxxxxx Xxxxxxx
Title: Vice President/Finance
16
ASSIGNMENT
For value received, in accordance with the Receivables Purchase
Agreement dated as of December 9, 1996, among AUTORICS, INC. (the "Seller"), NAL
ACCEPTANCE CORPORATION and AUTORICS II, INC. (the "Purchaser"), the Seller does
hereby sell, assign, transfer and otherwise convey unto the Purchaser, without
recourse (subject to the obligations of the Seller and NAL in the Receivables
Purchase Agreement), all right, title and interest of the Seller in and to (but
none of the obligations of the Seller with respect to) (i) the Receivables, and
all moneys received thereon on and after the Cutoff Date plus all Payaheads as
of the Cutoff Date; (ii) the security interests in the Financed Vehicles granted
by Obligors pursuant to the Receivables, any other right to realize upon
property securing a Receivable and any other interest of the Seller in such
Financed Vehicles including the Seller's right, title and interest in the lien
on the Financed Vehicles in the name of Autorics, Inc. or the Seller's agents,
NAL or SFI; (iii) any proceeds with respect to the Receivables from claims on
any Insurance Policies relating to the Financed Vehicles or Obligors; (iv)
proceeds of any recourse (but none of the obligations) to Dealers on
Receivables; (v) any Financed Vehicle that shall have secured a Receivable and
shall have been acquired by or on behalf of the Purchaser, or, upon the
assignment contemplated by the Sale and Servicing Agreement, the Servicer or the
Trust; (vi) the Receivables Files; (vii) the obligations, duties and
responsibilities of NAL to the Seller made under the Receivables Purchase
Agreement, including without limitation, the representations and warranties on
the Receivables made by NAL pursuant to Section 3.02(b) of the Receivables
Purchase Agreement and the representations and warranties on the Receivables
made by NAL pursuant to Section 3.02(c) of the Receivables Purchase Agreement
and the right of the Seller to cause NAL to purchase the Receivables under
certain circumstances; and (viii) the proceeds of any and all of the foregoing.
The foregoing sale does not constitute and is not intended to result in any
assumption by the Purchaser of any obligation of the undersigned to the
Obligors, insurers, Dealers or any other person in connection with the
Receivables, Receivable Files, any insurance policies or any agreement or
instrument relating to any of them.
This Assignment is made pursuant to and upon the representations,
warranties and agreements on the part of the undersigned contained in the
Receivables Purchase Agreement.
Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to them in the Receivables Purchase Agreement.
IN WITNESS WHEREOF, the undersigned has caused this Assignment to be
duly executed as of December 9, 1996.
AUTORICS, INC.
by ________________________
Name:
Title:
SCHEDULE I
Schedule of Receivables
[To Be Delivered at Closing]
I-1
SCHEDULE II
Location of Receivable Files
Bankers Trust Company
Four Xxxxxx Xxxxxx
Xxx Xxxx, XX 00000
II-1
