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EXHIBIT 1.1
FORM OF UNDERWRITING
AGREEMENT
Onyx Acceptance Grantor Trust 1997-1
____% Auto Loan Pass-Through Certificates
Onyx Acceptance Financial Corporation
as Seller
Onyx Acceptance Corporation
as Servicer
UNDERWRITING AGREEMENT
March ___, 1997
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
World Financial Center
Xxxxx Xxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Ladies and Gentlemen:
1. Introductory. Onyx Acceptance Financial Corporation (the
"Company") proposes to cause Onyx Acceptance Grantor Trust 1997-1 (the "Trust")
to sell to Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated (the
"Underwriter") ____% Auto Loan Pass-Through Certificates, Series 1996-4 (the
"Certificates"). The Certificates will be issued pursuant to a Pooling and
Servicing Agreement between the Company, as Seller, Onyx Acceptance Corporation
as Servicer (the "Servicer" or "Onyx"), Bankers Trust Company as Trustee (the
"Trustee"), dated as of March __, 1997 (the "Pooling and Servicing
Agreement"). Pursuant to an insurance and reimbursement agreement (the
"Insurance Agreement") among the Company, Onyx Acceptance Corporation, the
Trustee and Capital Markets Assurance Corporation ("the Insurer"), the Insurer
has issued its surety bond (the "Surety Bond") to the Trustee for the benefit of
the Certificateholders guaranteeing timely payment of interest and principal on
the Certificates. In addition, Onyx will enter into a yield supplement agreement
dated as of March ___, 1997 with the Company (the "Yield Supplement Agreement")
which will assign it to the Trust. The assets of the Trust will include, among
other things, (i) a pool (the
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"Contract Pool") of fixed rate Rule of 78's and Simple Interest Method motor
vehicle retail installment sales contracts (the "Contracts") secured by new and
used automobiles and light-duty trucks (the "Initial Financed Vehicles"),
certain monies due or to become due thereunder on or after the Cutoff Date (as
hereinafter defined), such Contracts to be sold to the Trust by the Seller and
serviced by the Servicer, (ii) the Surety Bond, (iii) security interests in the
Financed Vehicles and the rights to receive proceeds from claims on certain
insurance policies covering the Financed Vehicles or the individual obligors
under each related Contract and the right to proceeds under a blanket insurance
policy, (iv) all amounts on deposit in the Collection Account, (v) the right of
the Company to cause Onyx to repurchase certain Contracts under certain
circumstances and (vi) all proceeds of the foregoing. The Certificates will be
issued in an aggregate principal amount of $___________ which is equal to the
sum of the Original Pool Balance of the Contracts and the amount on deposit in
the Pre-Funding Account as of the opening of business on March __, 1997 (the
"Cutoff Date"). Capitalized terms used herein and not otherwise herein defined
shall have the meanings assigned to such terms in the Pooling and Servicing
Agreement.
The Company hereby agrees with the Underwriter, as follows:
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2. Representations and Warranties of the Company.
The Company represents and warrants to, and agrees with the
Underwriter that:
(i) A registration statement on Form
S-1 (No. 333-22301), including a prospectus and such amendments thereto
as may have been required on the date hereof, relating to the
Certificates, has been filed with the Securities and Exchange
Commission (the "Commission"). The conditions to the use of a
registration statement on Form S-1 under the Securities Act of 1933, as
amended (the "Act"), as set forth in the General Instructions to Form
S-1, have been, or will prior to the effective date of the Registration
Statement be, satisfied in all material respects with respect to the
Company and the Registration Statement.
(ii) The Company will next file with
the Commission either, (A) prior to the effectiveness of such
registration statement, a further amendment thereto (including the form
of final prospectus) or (B) after effectiveness of such registration
statement, a final prospectus in accordance with Rules 430A and 424(b)
(each, as hereinafter defined). In the case of clause (B), the Company
has included in such registration statement, as amended at the
Effective Date (as hereinafter defined), all information (other than
Rule 430A Information (as hereinafter defined)) required by the Act and
the rules and regulations thereunder (the "Rules and Regulations") to
be included in the prospectus with respect to the Certificates and the
offering thereof. As filed, such amendment and form of final
prospectus, or such final prospectus, shall include all Rule 430A
Information and, except to the extent the Underwriter shall agree in
writing to a modification, shall be in all substantive respects in the
form furnished to the Underwriter prior to the Execution Time (as
hereinafter defined) or, to the extent not completed at the Execution
Time, shall contain only such specific additional information and other
changes (beyond that contained in the latest Preliminary Prospectus (as
hereinafter defined) which has previously been furnished to the
Underwriter) as the Company has advised the Under-
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writer, prior to the Execution Time, will be included or made therein.
The terms which follow, when used in this Agreement,
shall have the meanings indicated. The term "Effective Date" shall mean
each date that the Registration Statement and any post-effective
amendment or amendments thereto became or become effective under the
Act. "Execution Time" shall mean the date and time that this Agreement
is executed and delivered by the parties hereto. "Preliminary
Prospectus" shall mean any preliminary prospectus referred to in the
preceding paragraph and any preliminary prospectus included in the
Registration Statement which, as of the Effective Date, omits Rule 430A
Information. "Prospectus" shall mean the prospectus relating to the
Certificates that is first filed with the Commission pursuant to Rule
424(b) and any prospectus subsequently filed pursuant to Rule 424 or,
if no filing pursuant to Rule 424(b) is required, shall mean the form
of final prospectus included in the Registration Statement at the
Effective Date. "Registration Statement" shall mean the registration
statement referred to in the preceding paragraph and any registration
statement required to be filed under the Act or the Rules and
Regulations, including incorporated documents, exhibits and financial
statements, in the form in which it has, or shall, become effective
and, in the event that any post effective amendment thereto becomes
effective prior to the Closing Date (as hereinafter defined), shall
also mean such registration statement as so amended. Such term shall
include Rule 430A Information deemed to be included therein at the
Effective Date as provided by Rule 430A. "Rule 424" and "Rule 430A"
refer to such rules and regulations under the Act. "Rule 430A
Information" means information with respect to the Certificates and the
offering thereof permitted to be omitted from the Registration
Statement when it becomes effective pursuant to Rule 430A.
(iii) On the Effective Date, the
Registration Statement did, or will, comply in all material respects
with the applicable requirements of the Act and the Rules and
Regulations; on the Effective Date and when the Prospectus is first
filed
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(if required) in accordance with Rule 424(b) and on the Closing Date,
the Prospectus (and any supplements thereto) will comply in all
material respects with the applicable requirements of the Act and the
Rules and Regulations; on the Effective Date, the Registration
Statement did not, or will not, contain any untrue statement of a
material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not
misleading; and, on the Effective Date, the Prospectus, if not filed
pursuant to Rule 424(b), did not, or will not, and on the date of any
filing pursuant to Rule 424(b) and on the Closing Date, the Prospectus
(together with any supplement thereto) will not, include any untrue
statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that the Company makes no representations or warranties as to
the information contained in, or omitted from, the Registration
Statement or the Prospectus (or any supplements thereto) in reliance
upon, and in conformity with, information furnished in writing to the
Company on the Underwriter's behalf specifically for use in connection
with the preparation of the Registration Statement or the Prospectus
(or any supplements thereto).
(iv) The Company has been duly in-
corporated and is validly existing as a corporation in good standing
under the laws of its jurisdiction of incorporation, with full power
and authority (corporate and other) to own its properties and conduct
its businesses as described in the Prospectus, and is duly qualified to
transact business as a foreign corporation in good standing under the
laws of each jurisdiction where the ownership or leasing of its
properties or the conduct of its business requires such qualification.
(v) As of the Closing Date the
representations and warranties of the Company, as Seller, in the
Pooling and Servicing Agreement will be true and correct, and each
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Contract will satisfy the conditions set forth in Section 2.2(b)
thereof.
(vi) No consent, approval, authorization or
order of, or filing with, any court or governmental agency or body is
required to be obtained or made by the Company for the consummation of
the transactions contemplated by this Agreement, except such as have
been obtained and made under the Act, such as may be required under
state securities laws and the filing of any financing statements
required to perfect the Trust's interest in the Contracts.
(vii) The Company is not in violation of its
Certificate of Incorporation or By-Laws or in default in the
performance or observance of any obligation, agreement, covenant or
condition contained in any agreement or instrument to which it is a
party or by which it or its properties are bound which would have a
material adverse effect on the transactions contemplated herein or in
the Pooling and Servicing Agreement, the Purchase Agreement, the
Insurance Agreement or the Yield Supplement Agreement. The execution,
delivery and performance of this Agreement, the Pooling and Servicing
Agreement, the Purchase Agreement, the Insurance Agreement or the Yield
Supplement Agreement and the issuance and sale of the Certificates and
compliance with the terms and provisions thereof will not result in a
breach or violation of any of the terms and provisions of, or
constitute a default under, any statute, rule, regulation or order of
any governmental agency or body or any court having jurisdiction over
the Company or any of its properties or any agreement or instrument to
which the Company is a party or by which the Company is bound or to
which any of the properties of the Company is subject, or By-Laws of
the Company and the Company has full power and authority to authorize,
cause the Trust to issue, and sell the Certificates as contemplated by
this Agreement, to enter into this Agreement, the Pooling and Servicing
Agreement, the Purchase Agreement, the Insurance Agreement and the
Yield Supplement Agreement and to consummate the transactions
contemplated herein and therein.
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(viii) This Agreement has been duly
authorized, executed and delivered by the Company.
3. Purchase, Sale, Payment and Delivery of Certificates. On
the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Company agrees to
sell to the Underwriter, and the Underwriter agrees to purchase from the Company
$85,000,000 aggregate principal amount of the Certificates. The Certificates
are to be purchased at a purchase price of _________% of the aggregate principal
amount thereof plus accrued interest, if any, from March __, 1997.
The Company will deliver the Certificates to the Underwriter
against payment of the purchase price in immediately available funds drawn to
the order of the Company at the offices of Xxxxxxx, Phleger & Xxxxxxxx LLP in
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000-0000 at 10:00 a.m., New York City time on
March __, 1997 or at such other time not later than seven full business days
thereafter as the Underwriter and the Company determine, such time being herein
referred to as the "Closing Date". The Certificates so to be delivered shall be
represented by definitive certificates registered in the name of Cede & Co., as
nominee for The Depository Trust Company and definitive certificate(s)
registered in the name(s) provided by the Underwriter, each in such numbers as
the Underwriter shall request. The Company shall make such definitive
certificates representing the Certificates available for inspection by the
Underwriter at the office at which the Certificates are to be delivered no later
than 10:00 a.m., New York City time, on the business day prior to the Closing
Date.
4. Offering by the Underwriter. (a) It is understood that,
after the Registration Statement becomes effective, the Underwriter proposes to
offer the Certificates for sale to the public (which may include selected
brokers and dealers) as set forth in the Prospectus.
(b) The Underwriter may prepare and provide to prospective
investors certain ABS Term Sheets, Structural Term Sheets and Collateral Term
Sheets in connection with its offering of the Certificates, subject to the
following conditions:
(i) The Underwriter shall have complied with the
requirements of the no-action letter, dated February 17, 1995,
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issued by the Commission to the Public Securities Association
(the "No-Action Letter").
(ii) For purposes hereof, "ABS Term Sheets",
"Structured Term Sheets" and "Collateral Term Sheets" shall have the meanings
given such terms in the No-Action Letter but shall include only those ABS Term
Sheets, Structured Term Sheets or Collateral Term Sheets that have been prepared
or delivered to prospective investors by or at the direction of the Underwriter.
(iii) All ABS Term Sheets provided to prospec-
tive investors that are required to be filed pursuant to the No-Action Letter
shall bear a legend substantially in the form attached hereto as Exhibit A. The
Company shall have the right to require specific legends or notations to appear
on any ABS Term Sheets, the right to require changes regarding the use of
terminology and the right to determine the types of information appearing
therein. Notwithstanding the foregoing, this subsection (iii) will be satisfied
if all ABS Term Sheets referred to herein bear a legend in a form previously
approved in writing by the Company.
(iv) The Underwriter shall have provided the Company with
representative forms of all ABS Term Sheets prior to their first use, to the
extent such forms have not previously been approved in writing by the Company
for use by the Underwriter. The Underwriter shall have provided to the Company,
for filing as a post-effective amendment to the Registration Statement as
provided in Section 5(i), copies (in such format as required by the Company) of
all ABS Term Sheets that are required to be filed with the Commission pursuant
to the No-Action Letter. The Underwriter may provide copies of the foregoing in
a consolidated or aggregated form including all information required to be
filed. All ABS Term Sheets described in this subsection (iv) shall have been
provided to the Company not later than 10:00 a.m. (New York City time) not less
than one business day before filing thereof is required to be made with the
Commission pursuant to the No-Action Letter. The Underwriter shall have not
provided to any investor or prospective investor in the Certificates any ABS
Term Sheets on or after the day on which ABS Term Sheets are required to be
provided to the Company pursuant to this subsection (iv) (other than copies of
ABS Term Sheets previously submitted to the Company in accordance with this
subsection (iv) for filing pursuant to Section 5(i)), unless such ABS Term
Sheets are preceded or accompanied by the delivery of a Prospectus to such
investor or prospective investor.
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(v) All information included in the ABS Term Sheets shall have
been generated based on substantially the same methodology and assumptions that
are used to generate the information in the Prospectus as set forth therein;
provided that the ABS Term Sheets may have included information based on
alternative methodologies or assumptions if specified therein. If any ABS Term
Sheets that are required to be filed were based on assumptions with respect to
the Contract Pool that differ from the final Contract Pool information in any
material respect or on Certificate structuring terms that were revised in any
material respect prior to the printing of the Prospectus, the Underwriter shall
have prepared revised ABS Term Sheets based on the final Contract Pool
information and structuring assumptions, shall have circulated such revised ABS
Term Sheets to all recipients of the preliminary versions thereof that indicated
orally to the Underwriter they would purchase all or any portion of the
Certificates, and shall have included such revised ABS Term Sheets (marked, "as
revised") in the materials delivered to the Company pursuant to subsection (iv)
above.
(vi) The Company shall not be obligated to file any ABS Term
Sheets that have been determined to contain any material error or omission,
provided that, at the request of the Underwriter, the Company will file ABS Term
Sheets that contain a material error or omission if clearly marked "superseded
by materials dated _______" and accompanied by corrected ABS Term Sheets that
are marked, "supersedes material previously dated _______, as corrected." If,
within the period during which the Prospectus relating to the Certificates is
required to be delivered under the Act, any ABS Term Sheets are determined, in
the reasonable judgment of the Company or the Underwriter, to contain a material
error or omission, the Underwriter shall prepare a corrected version of such ABS
Term Sheets, shall circulate such corrected ABS Term Sheets to all recipients of
the prior versions thereof that either indicated orally to the Underwriter they
would purchase all or any portion of the Certificates, or actually purchased all
or any portion thereof, and shall deliver copies of such corrected ABS Term
Sheets (marked, "as corrected") to the Company for filing with the Commission in
a subsequent post-effective amendment to the Registration Statement (subject to
the Company's obtaining an accountant's comfort letter in respect of such
corrected ABS Term Sheets, which shall be at the expense of the Underwriter).
(vii) The Underwriter shall be deemed to have represented as
of the Closing Date, that, except for ABS Term Sheets provided to the Company
pursuant to subsection (iv)
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above, the Underwriter did not provide any prospective investors with any
information in written or electronic form in connection with the offering of the
Certificates that is required to be filed with the Commission in accordance with
the No-Action Letter.
(viii) In the event of any delay in the delivery by the
Underwriter to the Company of all ABS Term Sheets required to be delivered in
accordance with subsection (iv) above, or in the delivery of the accountant's
comfort letter in respect thereof pursuant to Section 5(x), the Company shall
have the right to delay the release of the Prospectus to investors or to the
Underwriter, to delay the Closing Date and to take other appropriate actions in
each case as necessary in order to allow the Company to comply with its
agreement set forth in Section 5(x) to file the ABS Term Sheets by the time
specified therein.
5. Certain Agreements of the Company. The Company
agrees with the Underwriter that:
(i) The Company will use its best ef-
forts to cause the Registration Statement, and any amendment thereto,
if not effective at the Execution Time, to become effective. If the
Registration Statement has become or becomes effective pursuant to Rule
430A, or filing of the Prospectus is otherwise required under Rule
424(b), the Company will file the prospectus, properly completed,
pursuant to Rule 424(b) within the time period prescribed and will
provide evidence satisfactory to the Underwriter of such timely filing.
The Company will advise the Underwriter promptly of any proposal to
amend or supplement the Registration Statement or the Prospectus, and
will not effect any such amendment or supplementation to which the
Underwriter shall reasonably object. The Company will also advise you
promptly of the effectiveness of any amendment or supplementation of
the Registration Statement or Prospectus, of any request by the
Commission for any amendment or supplementation of the Registration
Statement or the Prospectus or for any additional information, of the
receipt by the Company of any notification with respect to the
suspension of qualification of the Certificates for sale in any
jurisdiction or the initiation or threatening of any proceeding for
such purpose and of the institution by the Commission of any stop order
proceeding in respect of the Registration
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Statement, and will use its best efforts to prevent the issuance of any
such stop order and to obtain as soon as possible its lifting, if
issued.
(ii) If, at any time when a prospectus
relating to the Certificates is required to be delivered under the Act,
any event occurs as a result of which the Prospectus as then amended or
supplemented would include an untrue statement of a material fact or
omit to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading, or if it is necessary at any time to amend the
Prospectus to comply with the Act, the Company promptly will prepare
and file with the Commission (subject to the Underwriter's prior review
pursuant to paragraph (i) of this Section 5) an amendment or supplement
which will correct such statement or omission or an amendment or
supplement which will effect such compliance.
(iii) As soon as practicable, the
Company will cause the Trust to make generally available to the
Certificateholders of the Trust an earning statement or statements of
the Trust covering a period of at least 12 months beginning after the
Effective Date of the Registration Statement which will satisfy the
provisions of Section 11(a) of the Act and Rule 158 of the Commission
promulgated thereunder.
(iv) The Company will furnish to the
Underwriter copies of the Registration Statement, each related
preliminary prospectus, the Prospectus and all amendments and
supplements to such documents, in each case as soon as available and in
such quantities as the Underwriter may reasonably request.
(v) The Company will cooperate with
the Underwriter in arranging for the qualification of the Certificates
for sale and the determination of their eligibility for investment
under the laws of such jurisdictions as the Underwriter designates and
will continue such qualifications in effect so long as required for the
distribution of the Certificates; provided, however, that the Company
shall not be obligated to qualify to do business in any jurisdiction in
which it is not currently so qualified or to take any action which
would subject it to general or
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unlimited service of process in any jurisdiction where
it is not now so subject.
(vi) For a period from the date of
this Agreement until the retirement of the Certificates, the Company
will furnish to the Underwriter copies of each certificate and the
annual statements of compliance delivered to the Trustee pursuant to
Article III of the Pooling and Servicing Agreement and the annual
independent public accountant's reports furnished to the Trustee
pursuant to Article III of the Pooling and Servicing Agreement, as soon
as practicable after such statements and reports are furnished to the
Trustee.
(vii) So long as any of the Certificates
are outstanding, the Company will furnish to you as soon as
practicable, (A) all documents distributed, or caused to be
distributed, by the Servicer to the Certificateholders, (B) all
documents filed, or caused to be filed, by the Company with the
Commission pursuant to the Securities Act of 1934, as amended, any
order of the Commission thereunder or pursuant to a "no-action" letter
from the staff of the Commission and (C) from time to time, such other
information in the possession of the Company concerning the Trust and
any other information concerning the Company filed with any
governmental or regulatory authority which is otherwise publicly
available as you may reasonably request.
(viii) On or before the Closing Date with
respect to the Initial Contracts, and on or before each Subsequent
Transfer Date with respect to the Subsequent Contracts to be
transferred to the Trust on such date, the Company shall cause its
computer records relating to the Contracts to be marked to show the
Trust's absolute ownership of the Contracts and shall cause the
Servicer to xxxx its computer records relating to the Contracts to show
the sale to the Company of the Contracts and its subsequent transfer to
the Trust, and from and after the Closing Date or such Subsequent
Transfer Date, as the case may be the Company shall not and shall
instruct the Servicer not to take any action inconsistent with the
Trust's ownership of such Contracts, other than as permitted by the
Pooling and Servicing Agreement.
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(ix) To the extent, if any, that the rating provided
with respect to the Certificates by Xxxxx'x Investors Service, Inc. and
Standard & Poor's Corporation is conditional upon the furnishing of
documents or the taking of any other action by the Company agreed upon
on or prior to the Closing Date, the Company shall furnish such
documents and take any such action.
(x) The Company shall provide the Underwriter with
copies of all agreements, certificates, opinions and other documents
executed or delivered in connection with any Subsequent Closing Date,
and such other documents relating to any Subsequent Contracts as it may
reasonably request from the Company.
(xi) The Company will file with the Commission a
post-effective amendment setting forth all ABS Terms Sheet provided to
the Company by the Underwriter and identified by it as such within the
time period allotted for such filing pursuant to the No-Action Letter;
provided, however, that prior to such filing of the ABS Term Sheets
(other than any ABS Term Sheets that are not based on the Contract Pool
information) by the Company, the Underwriter must comply with its
obligations pursuant to Section 4 and the Company must receive a letter
from Coopers & Xxxxxxx, certified public accountants, satisfactory in
form and substance to the Company, to the effect that such accountants
have performed certain specified procedures, all of which have been
agreed to by the Company, as a result of which they have determined
that the information included in the ABS Term Sheets (if any), provided
by the Underwriter to the Company for filing on a post-effective
amendment pursuant to Section 4 and, if the Company then so specifies,
this subsection (i), and that the accountants have examined in
accordance with such agreed upon procedures, is accurate except as to
such matters that are not deemed by the Company to be material. The
foregoing letter shall be at the expense of the Underwriter. The
Company shall file any corrected ABS Term Sheets described in Section
4(b)(vi) as soon as practicable following receipt thereof.
6. Payment of Expenses. The Company will pay all expenses
incident to the performance of its obligations under this Agreement, including
(i) the printing and filing of the Registration Statement as originally filed
and of each amendment thereto, (ii) the Trustee's fees and the fees and
disbursements
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of the counsel to the Trustee, (iii) any up-front fees and premiums payable to
the Insurer and the fees and disbursements of counsel to the Insurer, (iv) the
fees and disbursements of the accountants, (v) the fees of the rating agencies
and (vi) blue sky expenses.
7. Conditions to the Obligations of the Underwriter. The
obligation of the Underwriter to purchase and pay for the Certificates will be
subject to the accuracy of the representations and warranties on the part of the
Company herein, to the accuracy of the statements of officers of the Company
made pursuant to the provisions hereof, to the performance by the Company of its
obligations hereunder and to the following additional conditions precedent:
(i) On or prior to the date of this
Agreement, the Underwriter shall have received a letter, dated the date
of this Agreement, of Coopers and Xxxxxxx and substantially in the form
heretofore agreed, which letter shall be in form and substance agreed
to by the Underwriter.
(ii) If the Registration Statement has
not become effective prior to the date of this Agreement, unless the
Underwriter agrees in writing to a later time, the Registration
Statement shall have become effective not later than (A) 6:00 p.m., New
York City time, on the date of determination of the public offering
price, if such determination occurred at or prior to 12:00 noon, New
York City time, on such date or (B) 3:00 p.m. on the business day
following the day on which the public offering price was determined, if
such determination occurred after 12:00 noon, New York City time, on
such date; if filing of the Prospectus, or any supplement thereto, is
required pursuant to Rule 424(b), the Prospectus shall be filed in the
manner and within the time period required by Rule 424(b); and no stop
order suspending the effectiveness of the Registration Statement shall
have been issued and no proceedings for that purpose shall have been
instituted or threatened.
(iii) Subsequent to the execution and
delivery of this Agreement, there shall have not occurred (a) any
change, or any development involving a prospective change, in or
affecting particularly the business or properties of the Company or
Onyx which,
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in the reasonable judgment of the Underwriter materially impairs the
investment quality of the Certificates; (b) any suspension or material
limitation of trading in securities generally on the New York Stock
Exchange, or any setting of minimum prices for trading on such
exchange, or any suspension of trading of any securities of Onyx on any
exchange or in the over-the-counter market by such exchange or
over-the-counter market or by the Commission; (c) any banking
moratorium declared by Federal, New York or California authorities; (d)
any outbreak or material escalation of major hostilities or any other
substantial national or international calamity or emergency if, in the
reasonable judgment of the Underwriter, the effect of any such
outbreak, escalation, calamity or emergency on the United States
financial markets makes it impracticable or inadvisable to proceed with
completion of the sale of, and any payment for, the Certificates.
(iv) The Underwriter shall have received an opinion,
dated the Closing Date, of Xxxxxxx, Phleger & Xxxxxxxx, counsel of the
Company, substantially to the effect that:
(a) The Company (1) has been duly
organized and is validly existing and in good standing under
the laws of the State of Delaware, (2) has the power and
authority to own its properties and conduct its business as
described in the Prospectus and (3) had at all relevant times,
and now has, the power, authority and legal right to acquire,
own and sell the Contracts;
(b) The Company has, or at the time
such agreement was executed and delivered, had, the power and
authority to execute and deliver this Agreement, the Pooling
and Servicing Agreement, the Yield Supplement Agreement, the
Purchase Agreement, and the Insurance Agreement and to
consummate the transactions contemplated herein and therein;
(c) No consent, approval, au
thorization or order of, or filing with, any California,
Delaware or federal governmental agency or body or any court
is or was required by
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the Company to perform the transactions contemplated by this
Agreement, Pooling and Servicing Agreement, the Purchase
Agreement, the Yield Supplement Agreement, or the Insurance
Agreement except for (1) filing of a Uniform Commercial Code
financing statement in the State of California with respect
to the transfer of the Contracts to the Trust pursuant to the
Pooling and Servicing Agreement and the sale of the Contracts
to the Company pursuant to the Purchase Agreement and (2) such
consents, approvals, authorizations, orders or filings as may
be required under the federal and state securities laws;
(d) None of the execution, delivery
and performance by the Company of this Agreement, the Pooling
and Servicing Agreement, the Purchase Agreement, the Yield
Supplement Agreement, or the Insurance Agreement, the transfer
of the Contracts to the Trust, the assignment of the security
interests of the Company in the Financed Vehicles, the
issuance and sale of the Certificates or the consummation of
any other of the transactions contemplated herein or in the
Pooling and Servicing Agreement, the Purchase Agreement, the
Yield Supplement Agreement, or the Insurance Agreement has
conflicted or will conflict with, has resulted or will result
in a breach, violation or acceleration of any of the terms of,
or has constituted or will constitute a default under, the
By-Laws or the Certificate of Incorporation of the Company, as
amended, or, to the best of such counsel's knowledge, any
rule, order, statute or regulation known to such counsel to be
currently applicable to the Company of any court, regulatory
body, administrative agency or governmental body having
jurisdiction over the Company or the terms of any material
indenture or other material agreement or instrument known to
such counsel to which the Company is a party or by which it or
its properties are bound;
(e) To the best knowledge of such
counsel, after due inquiry, there are no actions, proceedings
or investigations pending or threatened before any court,
administrative agency or
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other tribunal (1) asserting the invalidity of this Agreement,
the Pooling and Servicing Agreement, the Purchase Agreement,
the Yield Supplement Agreement or the Insurance Agreement or
the Certificates, (2) seeking to prevent the issuance of the
Certificates or the consummation of any of the transactions
contemplated by this Agreement, the Pooling and Servicing
Agreement, the Purchase Agreement, the Yield Supplement
Agreement or the Insurance Agreement (3) seeking adversely to
affect the federal income tax attributes of the Certificates
as described in the Prospectus under the headings "Prospectus
Summary -- Tax Status" and "Certain Tax Consequences";
(f) This Agreement, the Pooling and
Servicing Agreement, the Purchase Agreement, the Yield
Supplement Agreement and the Insurance Agreement have each
been duly authorized, executed and delivered by the Company;
(g) The Contracts constitute
"chattel paper" as defined in Section 9-105(a)(2) of the
Uniform Commercial Code of the State of California;
(h) The statements in the Pro-
spectus under the caption "Certain Legal Aspects of the
Contracts," and "ERISA Considerations" to the extent they
constitute matters of California or federal law or legal
conclusions, are correct in all material respects;
(i) The Certificates have been duly
and validly authorized and, when executed, authenticated and
issued in accordance with the terms of the Pooling and
Servicing Agreement, and delivered to and paid for by the
Underwriter pursuant to this Agreement, will be duly and
validly issued and outstanding and will be entitled to the
benefits of the Pooling and Servicing Agreement;
(j) Assuming the authorization,
execution and delivery thereof by the Trustee and the Servicer
with respect to the Pooling and Servicing Agreement, and by
Onyx with respect to
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Purchase Agreement and the Yield Supplement Agreement and the
Insurer with respect to the Insurance Agreement, each such
agreement constitutes the legal, valid and binding agreement
of the Company, enforceable against the Company in accordance
with its terms, subject, as to enforcement, to (1) the effect
of bankruptcy, insolvency, reorganization, moratorium,
conservatorship, receivership or other similar laws of
general application relating to or affecting creditors' rights
generally (2) the application of general principles of equity
(regardless of whether such enforceability is considered in a
proceeding in equity or at law); and (3) the unenforceability
under certain circumstances of provisions indemnifying a party
against liability where such indemnification is contrary to
public policy;
(k) The Registration Statement
became effective under the Act as of the date and time
specified in such opinion; after due inquiry, to the best of
such counsel's knowledge, no stop order suspending the
effectiveness of the Registration Statement has been issued
and no proceedings for that purpose have been instituted or
are pending or contemplated under the Act; the Registration
Statement, and each amendment thereof or supplement thereto as
of its Effective Date and the Prospectus as of its date of
issuance complied as to form in all material respects with the
requirements of the Act and the Rules and Regulations; and
such counsel has no reason to believe that either the
Registration Statement or the Prospectus or any such amendment
thereof or supplement thereto as of its Effective Date or date
of issuance, as the case may be, contained any untrue
statement of a material fact or omitted to state any material
fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which
they were made, not misleading; it being understood that such
counsel need express no opinion as to the financial statements
or other financial data contained in the Registration
Statement or the Prospectus;
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(l) The Certificates, the Pooling
and Servicing Agreement, the Purchase Agreement, the Yield
Supplement Agreement and the Insurance Agreement conform in
all material respects to the descriptions thereof contained in
the Registration Statement and the Prospectus;
(m) The Pooling and Servicing
Agreement is not required to be qualified under the Trust
Indenture Act of 1939, as amended; and
(n) The Trust is not now, and
immediately following the sale of the Certificates pursuant to
this Agreement will not be, required to be registered under
the Investment Company Act of 1940, as amended.
In addition, such counsel shall opine as to
certain matters relating to the acquisition by the Company of a
perfected first priority security interest in the vehicles financed by
motor vehicle installment loans made by the Company.
In rendering such opinion, such counsel may
rely as to matters of fact, to the extent deemed proper and as stated
therein, on certificates of responsible officers of the Company and
public officials. References to the Prospectus in this paragraph (iv)
include any supplements thereto.
(v) The Underwriter shall have received an opinion,
dated the Closing Date, of Xxxxxxx, Phleger & Xxxxxxxx, counsel to
Onyx, substantially to the effect that:
(a) Onyx (1) has been duly
incorporated and is validly existing and in good standing
under the laws of the State of California, (2) has the power
and authority to own its properties and conduct its business
as described in the Prospectus and (3) had at all relevant
times, and now has, the power, authority and legal right to
acquire, own and sell the Contracts;
(b) Onyx has the power and au-
thority to execute and deliver the Pooling and Servicing
Agreement the Yield Supplement Agree-
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ment and the Purchase Agreement and at the time it was
executed and delivered, had the power and authority to execute
and deliver the Purchase Agreement, the Yield Supplement
Agreement, and the Pooling and Servicing Agreement and to
consummate the transactions contemplated herein and therein;
(c) No consent, approval, au-
thorization or order of, or filing with, any California or
federal governmental agency or body or any court is required
by Onyx to perform the transactions contemplated by the
Pooling and Servicing Agreement, the Yield Supplement
Agreement or the Purchase Agreement except for (1) filing of a
Uniform Commercial Code financing statement in the State of
California with respect to the sale of the Contracts to the
Company pursuant to the Purchase Agreement and the transfer of
the Contracts to the Trust pursuant to the Pooling and
Servicing Agreement and (2) such consents, approvals,
authorizations, orders or filings as may be required under the
federal and state securities laws;
(d) None of the execution, de-
livery and performance by Onyx of the Pooling and Servicing
Agreement, the Yield Supplement Agreement or the Purchase
Agreement, or the transfer of the Contracts to the Company,
has conflicted with or will conflict with, has resulted or
will result in a breach, violation or acceleration of any of
the terms of, or has constituted or will constitute a default
under, the By-Laws or the Certificate of Incorporation of
Onyx, as amended, or, to the best of such counsel's knowledge,
any rule, order, statute or regulation known to such counsel
to be currently applicable to Onyx of any court, regulatory
body, administrative agency or governmental body having
jurisdiction over Onyx or the terms of any material indenture
or other material agreement or instrument known to such
counsel to which Onyx is a party or by which it or its
properties are bound;
(e) The Pooling and Servicing
Agreement, the Yield Supplement Agreement and the
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Purchase Agreement have each been duly authorized, executed
and delivered by Onyx; and
(f) The indemnification agreement
dated as of the date hereof, between Onyx and the Underwriter
has been duly authorized, executed and delivered by Onyx.
(g) Assuming the authorization,
execution and delivery thereof by the Trustee and the Company
with respect to the Pooling and Servicing Agreement and the
Yield Supplement Agreement and by the Company with respect to
Purchase Agreement, each such agreement constitutes the legal,
valid and binding agreement of Onyx, enforceable against Onyx
in accordance with its terms, subject, as to enforcement, to
(1) the effect of bankruptcy, insolvency, reorganization,
moratorium, conservatorship, receivership or other similar
laws of general application relating to or affecting
creditors' rights generally (2) the application of general
principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at
law); and (3) the unenforceability under certain circumstances
of provisions indemnifying a party against liability where
such indemnification is contrary to public policy;
In rendering such opinion, such counsel may rely as
to matters of fact, to the extent deemed proper and as stated therein,
on certificates of responsible officers of Onyx and public officials.
(vi) The Underwriter shall have received
an opinion or opinions of Xxxxxxx, Phleger & Xxxxxxxx, counsel to the
Company, dated the Closing Date and satisfactory in form and substance
to you, with respect the characterization of the transfer of the
Contracts by Onyx to the Company as a sale and with respect to the
perfection of the Trust's interests in the Contracts and with respect
to the non-consolidation of the Company with Onyx in the event of
bankruptcy filing with respect to Onyx and with respect to certain
other matters.
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(vii) The Underwriter shall have received
an opinion of Xxxxxxx, Phleger & Xxxxxxxx, tax counsel to the Company,
dated the Closing Date and satisfactory in form and substance to you
substantially to the effect that:
(a) the Trust created by the Pooling
and Servicing Agreement will not be classified as an
association taxable as a corporation for federal income tax
purposes and, instead, under subpart E, part I of subchapter J
of the Internal Revenue Code of 1986, as amended, the Trust
will be treated as a grantor trust, and subject to possible
recharacterization of certain amounts paid by the Trust to the
Servicer, the holders of the Certificates will be treated as
owning an undivided pro-rata interest in the income and corpus
attributable to the Trust;
(b) The statements in the Reg-
istration Statement and Prospectus under the headings
"Prospectus Summary -- Tax Status" and "Certain Tax
Consequences" to the extent that they constitute matters of
law or legal conclusions with respect thereto, have been
prepared or reviewed by such counsel and are correct in all
material respects; and
(c) For California franchise tax
purposes, the Trust created by the Pooling and Servicing
Agreement will not be subject to California franchise or
income taxes, and Certificateholders who are not residents
of or otherwise subject to the tax in California will not be
subject to California franchise or income taxes with respect
to interest received from the Certificates or with respect to
any of the Contracts.
(viii) The Underwriter shall have received
an opinion, dated the Closing Date, of Shaw, Pittman, Xxxxx &
Xxxxxxxxxx, counsel to the Insurer, substantially to the effect that:
(a) The Insurer is a corporation
validly existing, in good standing and licensed to transact
the business of surety and financial
22
23
guaranty insurance under the laws of the State of
New York;
(b) The Insurer has the corporate
power to execute and deliver, and to take all action required
of it under the Surety Bond, the Insurance Agreement and the
Indemnification Agreement;
(c) Except as have already been
obtained, no authorization, consent, approval, license, formal
exemption or declaration from, nor any registration or filing
with, any court or governmental agency or body of the United
States of America or the State of New York, which if not
obtained would affect or impair the validity or enforceability
of the Surety Bond, the Insurance Agreement or the
Indemnification Agreement against the Insurer, is required in
connection with the execution and delivery by the Insurer of
the Surety Bond, the Insurance Agreement or the
Indemnification Agreement or in connection with the Insurer's
performance of its obligations thereunder;
(d) The Surety Bond, the Insurance
Agreement and the Indemnification Agreement have been duly
authorized, executed and delivered by the Insurer, and the
Surety Bond and, assuming due authorization, execution and
delivery of the Insurance Agreement by the parties thereto
(other than the Insurer), the Insurance Agreement constitute
the legally valid and binding obligations of the Insurer,
enforceable in accordance with their respective terms subject,
as to enforcement, to (1) bankruptcy, reorganization,
insolvency, moratorium and other similar laws relating to or
affecting the enforcement of creditors' rights generally,
including, without limitation, laws relating to fraudulent
transfers or conveyances, preferential transfers and equitable
subordination, presently or from time to time in effect and
general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at
law), as such laws may be applied in any such proceeding with
respect to the Insurer and (2) the
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qualification that the remedy of specific performance may be
subject to equitable defenses and to the discretion of the
court before which any proceedings with respect thereto may be
brought; and
(e) The Surety Bond is not required
to be registered under the Securities Act of 1933, as amended.
In rendering such opinion, such counsel may rely as
to matters of fact, to the extent deemed proper and as stated therein,
on certificates of responsible officers of the Insurer and public
officials. References to the Prospectus in this paragraph (viii)
include any supplements thereto.
(ix) The Underwriter shall have received an
opinion of counsel to the Trustee, dated the Closing Date and
satisfactory in form and substance to you, substantially to the effect
that:
(a) The Trustee is a banking cor-
poration validly existing under the laws of the State of New
York;
(b) The Trustee has the requisite
power and authority to execute, deliver and perform its
obligations under the Pooling and Servicing Agreement, and has
taken all necessary action to authorize the execution,
delivery and performance by it of the Pooling and Servicing
Agreement; and
(c) The Pooling and Servicing
Agreement has been duly executed and delivered by the Trustee
and constitutes a legal, valid and binding obligation of the
Trustee, enforceable against the Trustee in accordance with
its terms, except that certain of such obligations may be
enforceable solely against the Trust Estate and except that
such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium, liquidation, or other similar laws
applicable to banking corporations affecting the enforcement
of creditors' rights generally, and by general principles of
equity , including, without limitation, concepts of
materiality, reasonableness,
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good faith and fair dealing (regardless of whether such
enforceability is considered in a proceeding in equity or at
law).
(x) The Underwriter shall have received
from Skadden, Arps, Slate, Xxxxxxx & Xxxx, counsel to the Underwriter,
such opinion or opinions, dated the Closing Date and satisfactory in
form and substance to you, with respect to the validity of the
Certificates, the Registration Statement, the Prospectus and other
related matters as the Underwriter may require, and the Company shall
have furnished to such counsel such documents as they reasonably
request for the purpose of enabling them to pass upon such matters.
(xi) The Underwriter shall have received a letter,
dated the Closing Date, of Coopers and Xxxxxxx which meets the
requirements of the subsection (i) of this Section 7, except that the
specified date referred to in such subsection will be a date not more
than five days prior to the Closing Date for the purposes of this
subsection.
(xii) The Underwriter shall have received
evidence satisfactory to them that the Certificates have been rated in
the highest rating category by Xxxxx'x Investors Service, Inc. and by
Standard & Poor's Corporation.
(xiii) The Underwriter shall have received
a certificate, dated the Closing Date, of a Vice President or more
senior officer of the Company in which such officer shall state that,
to the best of his or her knowledge after reasonable investigation, the
representations and warranties of the Company in this Agreement are
true and correct on and as of the Closing Date, that the Company has
complied with all agreements and satisfied all conditions on its part
to be performed or satisfied hereunder at or prior to the Closing Date,
that the representations and warranties of the Company, as Seller, in
the Pooling and Servicing Agreement and the conditions set forth in
Section 2.2(b) of the Pooling and Servicing Agreement, are true and
correct as of the dates specified in the Pooling and Servicing
Agreement, that no stop order suspending the effectiveness of the
Registration
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26
Statement has been issued and no proceedings for that purpose have been
instituted or are threatened by the Commission and that, subsequent to
the date of the Prospectus, there has been no material adverse change
in the financial position or results of operation of the Company's
motor vehicle installment loan business except as set forth in or
contemplated by the Prospectus or as described in such certificate.
(xiv) The Underwriter shall have received
a certificate, dated the Closing Date, of a Vice President or more
senior officer of Onyx in which such officer shall state that, to the
best of his or her knowledge after reasonable investigation, the
representations and warranties of Onyx in the Purchase Agreement are
true and correct in all material respects on and as of the Closing
Date, that Onyx has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied thereunder at or
prior to the Closing Date, that the representations and warranties of
Onyx, as Servicer, in the Pooling and Servicing Agreement are true and
correct as of the dates specified in the Pooling and Servicing
Agreement, there has been no material adverse change in the financial
position or results of operation of Onyx's motor vehicle installment
loan business except as set forth in or contemplated by the Prospectus
or as described in such certificate.
(xv) The Surety Bond shall have been duly
authorized, executed, issued and delivered by the Insurer; all fees due
and payable to the Insurer as of the Closing Date shall have been paid
in full; and the Surety Bond shall conform to the description thereof
in the Registration Statement and the Prospectus.
(xvi) The Underwriter shall have received a
Certificate from a senior officer of the Insurer to the effect that
such officer has no reason to believe that the section of the
Prospectus captioned "Description of the Insurer" or any such amendment
thereof or supplement thereto as of its Effective Date or date of
issuance, as the case may be, contained any untrue statement of a
material fact or omitted to state any material fact required to be
stated therein or necessary to make the statements
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therein, in light of the circumstances under which
they were made, not misleading.
The Company will furnish or cause to be furnished to the
Underwriter such number of conformed copies of such opinions, certificates,
letters and documents as the Underwriter reasonably requests.
8. Indemnification.
(i) The Company will indemnify and hold
harmless the Underwriter and each person, if any, who controls the
Underwriter with the meaning of Section 15 of the Act against any
losses, claims, damages or liabilities, joint or several, to which the
Underwriter may become subject, under the Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of, or are based upon, any untrue statement or
alleged untrue statement of any material fact contained in the
Registration Statement, the Prospectus, or any amendment or supplement
thereto, or arise out of, or are based upon, the omission or alleged
omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading; and will
reimburse the Underwriter for any legal or other expenses reasonably
incurred by the Underwriter in connection with investigating or
defending any such action or claim; provided, however, that the Company
shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of, or is based upon, an untrue
statement or alleged untrue statement or omission or alleged omission
made in the Registration Statement or the Prospectus or any such
amendment or supplement in reliance upon and in conformity with written
information furnished to the Company by the Underwriter expressly for
use therein.
(ii) The Underwriter severally agrees to
indemnify and hold harmless the Company, its directors, each of its
officers or agents who signed the Registration Statement, and each
person, if any, who controls the Company within the meaning of Section
15 of the Act against any and all loss, liability, claim, damage and
expense described in the indemnity contained in subsection (i) of this
Section 8, as in-
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curred, but only with respect to untrue statements or omissions, or
alleged untrue statements or omissions, (A) made in the Registration
Statement (or any amendment thereto) or any preliminary prospectus or
the Prospectus (or any amendment or supplement thereto) in reliance
upon and in conformity with written information furnished to the
Company by the Underwriter through Xxxxxxx Lynch, Pierce, Xxxxxx &
Xxxxx Incorporated expressly for use in the Registration Statement (or
any amendment thereto) or such preliminary prospectus or the Prospectus
(or any amendment or supplement thereto) or (B) made in the ABS Term
Sheets distributed by the Underwriter and filed as a post-effective
amendment to the Registration Statement or the Prospectus as a result
of any filing pursuant to Section 5(x); provided however that the
Underwriter will not be liable in any such case to the extent that any
such loss, claim or damage or liability arises out of, or is based
upon, an untrue statement or omission made in the ABS Term Sheet or any
supplement thereto in reliance upon and in conformity with (x)
information furnished to the Underwriter by the Company or (y)
information contained in the Registration Statement or any preliminary
prospectus or the Prospectus other than information described in clause
(A) above.
(iii) Each indemnified party shall give
prompt notice to the indemnifying party of any action commenced against
the indemnified party in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not
relieve such indemnifying party from any liability which it may have
hereunder or otherwise than on account of this indemnity agreement. In
case any such action shall be brought against an indemnified party and
it shall have notified the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, to assume the defense
thereof, with counsel, satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel
to the indemnifying party with respect to such action), and it being
understood that the indemnifying party shall not, in connection with
any one such action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general
allegations or circum-
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stances, be liable for the reasonable fees and expenses of more than
one separate firm of attorneys, and, after notice from the indemnifying
party to the indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be liable to the indemnified
party under subsections (i) or (ii) of this Section 8 for any legal
expenses of other counsel or any other expenses, in each case
subsequently incurred by the indemnified party, in connection with the
defense thereof other than reasonable costs of investigation.
9. Contribution. In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Section 8 is for any reason held to be unavailable other than in accordance with
its terms, then each indemnifying party shall contribute to the amount paid or
payable by such indemnifying party as a result of the losses, claims, damages or
liabilities referred to in 8(i) and 8(ii) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriter on the other from the offering of the Certificates or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and of the Underwriter on the other in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriter on
the other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Company bear to
the total underwriting discounts and commissions received by the Underwriter.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Underwriter and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this Section 9 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
Section 9. Notwith-
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standing the provisions of this Section 9, the Underwriter shall not be required
to contribute any amount in excess of the underwriting discount or commission
applicable to the Certificates purchased by it hereunder. The Company and the
Underwriter agrees that it would not be just and equitable if contribution
pursuant to this Section 9 were determined by pro rata allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to above in this Section 9. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.
10. Termination. The Underwriter may terminate this Agreement
immediately upon notice to the Company, if at any time, prior to the Closing
Date, there has occurred: (a) any change, or any development involving a
prospective change, in or affecting particularly the business or properties of
the Company or Onyx which, in the reasonable judgment of the Underwriter,
materially impairs the investment quality of the Certificates; (b) any
suspension or material limitation of trading in securities generally on the New
York Stock Exchange, or any setting of minimum prices for trading on such
exchange, or any suspension of trading of any securities of the Company or of
Onyx on any exchange or in the over-the-counter market by such exchange or
over-the-counter market or by the Commission; (c) any banking moratorium
declared by Federal, New York or California authorities; or (d) any outbreak or
material escalation of major hostilities or any other substantial national or
international calamity or emergency if, in the reasonable judgment of the
Underwriter, the effect of any such outbreak, escalation, calamity or emergency
on the United States financial markets makes it impracticable or inadvisable to
proceed with completion of the sale of and any payment for the Certificates.
11. Survival of Certain Representations and Obligations. The
respective indemnities, agreements, representations, warranties and other
statements of the Company or its officers and of the Underwriter set forth in or
made pursuant to this Agreement will remain in full force and effect, regardless
of any investigation, or statement as to the results thereof, made by or on
behalf of the Underwriter, the Company or any of their respective
representatives, officers or directors or any controlling person, and will
survive delivery of and payment for the Certificates. If for any reason the
purchase of the Certificates by the Underwriter is not consummated, the Company
shall remain responsible for the expenses to be paid or xxxx-
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31
bursed by it pursuant to Section 6 and the respective obligations of the Company
and the Underwriter pursuant to Sections 6, 8 and 9 shall remain in effect. If
the purchase of the Certificates by the Underwriter is not consummated for any
reason other than solely because of the occurrence of any event specified in
clauses (b), (c) or (d) of Section 7(iii), the Company will reimburse the
Underwriter for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by it in connection with the offering of the
Certificates.
12. Notices. All communications hereunder will be in writing
and, if sent to the Underwriter, will be mailed, delivered or telegraphed and
confirmed to the Underwriter at c/o Merrill Xxxxx & Co., World Financial Center,
Attention: Managing Director, Asset-Backed Securities Department, or to such
other address as the Underwriter may designate in writing to the Company, or if
sent to the Company, will be mailed, delivered or telegraphed and confirmed to
the Company at Onyx Acceptance Financial Corporation, 0000 Xxxxxx Xxxxxx Xxxxx,
0xx Xxxxx, Xxxxxx XX 00000, Attention: Xxxxx X. Xxxxx, Esq., Executive Vice
President.
13. Successors. This Agreement will inure to the benefit of,
and be binding upon, the parties hereto and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any person, firm or corporation, other than the parties hereto and their
respective successors and the controlling persons and officers and directors
referred to in Sections 8 and 9 and their heirs and legal representatives, any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision herein contained. This Agreement and all conditions and
provisions hereof are intended to be for the sole and exclusive benefit of the
parties hereto and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the
benefit of no other person, firm or corporation. No purchaser of Certificates
from the Underwriter shall be deemed to be a successor by reason merely of such
purchase.
14. Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed to be
an original, but all such counterparts shall together constitute
one and the same Agreement.
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15. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
16. Severability of Provisions. Any covenant, provisions,
agreement or term of this Agreement that is prohibited or is held to be void or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof.
17. Entire Agreement. This Agreement constitutes the entire
agreement and understanding of the parties hereto with respect to the matters
and transactions contemplated hereby and supersedes all prior agreements and
understandings whatsoever relating to such matters and transactions.
18. Amendment. Neither this Agreement nor any term hereof may
be changed, waived, discharged or terminated orally, but only by an instrument
in writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought.
19. Heading. The headings in this Agreement are for the
purposes of reference only and shall not limit or otherwise affect the meaning
hereof.
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33
If the foregoing is in accordance with your understanding of
our agreement, kindly sign and return to us the enclosed duplicate thereof,
whereupon it will become a binding agreement among the undersigned in accordance
with its terms.
Very truly yours,
ONYX ACCEPTANCE FINANCIAL
CORPORATION
By:______________________
Name:
Title:
The foregoing Underwriting Agreement is hereby confirmed and accepted as of the
date first above written.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
_____________________________________
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Exhibit A
The information herein has been provided solely by Xxxxxxx
Lynch, Pierce, Xxxxxx & Xxxxx Incorporated A("Xxxxxxx Xxxxx"). Neither Xxxxxxx
Xxxxx, the Issuer of the securities nor any of its affiliates make any
representation as to the accuracy or completeness of the information herein. The
information herein is preliminary, and will be superseded by the final
prospectus and by any other information subsequently filed with the Securities
and Exchange Commission.
The information contained herein will be superseded by the
description of the collateral pool contained in the final prospectus relating to
the securities.
34
