ADMINISTRATION AGREEMENT among FORD CREDIT AUTO OWNER TRUST 2011-B, as Issuer, FORD MOTOR CREDIT COMPANY LLC, as Administrator and THE BANK OF NEW YORK MELLON, as Indenture Trustee Dated as of July 1, 2011
Exhibit 99.3
among
FORD CREDIT AUTO OWNER TRUST 2011-B,
as Issuer,
as Issuer,
FORD MOTOR CREDIT COMPANY LLC,
as Administrator
as Administrator
and
THE BANK OF NEW YORK MELLON,
as Indenture Trustee
as Indenture Trustee
Dated as of July 1, 2011
TABLE OF CONTENTS
ARTICLE I USAGE AND DEFINITIONS | 1 | |||||
Section 1.1. |
Usage and Definitions | 1 | ||||
ARTICLE II ENGAGEMENT OF ADMINISTRATOR | 1 | |||||
Section 2.1. |
Engagement | 1 | ||||
Section 2.2. |
Compensation | 1 | ||||
ARTICLE III DUTIES OF THE ADMINISTRATOR | 1 | |||||
Section 3.1. |
Duties of the Administrator with Respect to the DTC Letter | 1 | ||||
Section 3.2. |
Duties of the Administrator with Respect to the Indenture | 2 | ||||
Section 3.3. |
Additional Duties | 5 | ||||
Section 3.4. |
Audits of the Administrator | 6 | ||||
Section 3.5. |
Additional Information to Be Furnished to the Issuer | 6 | ||||
Section 3.6. |
Prohibition on Certain Actions | 6 | ||||
ARTICLE IV INDEMNIFICATION | 6 | |||||
Section 4.1. |
Indemnification | 6 | ||||
ARTICLE V RESIGNATION AND REMOVAL OF THE ADMINISTRATOR; TERM OF AGREEMENT | 8 | |||||
Section 5.1. |
Resignation and Removal of the Administrator | 8 | ||||
Section 5.2. |
Appointment of Successor Administrator | 8 | ||||
Section 5.3. |
Action upon Termination, Resignation or Removal | 9 | ||||
Section 5.4. |
Term of Agreement | 9 | ||||
ARTICLE VI MISCELLANEOUS | 9 | |||||
Section 6.1. |
Independence of the Administrator | 9 | ||||
Section 6.2. |
Transactions with Affiliates; Other Transactions | 9 | ||||
Section 6.3. |
Amendments | 9 | ||||
Section 6.4. |
Notices | 10 | ||||
Section 6.5. |
Assignment | 10 | ||||
Section 6.6. |
Third-Party Beneficiary | 11 | ||||
Section 6.7. |
GOVERNING LAW | 11 | ||||
Section 6.8. |
Submission to Jurisdiction | 11 | ||||
Section 6.9. |
WAIVER OF JURY TRIAL | 11 | ||||
Section 6.10. |
Severability | 11 | ||||
Section 6.11. |
Counterparts | 11 | ||||
Section 6.12. |
Headings | 11 | ||||
Section 6.13. |
No Petition | 11 | ||||
Section 6.14. |
Not Applicable to Ford Credit in Other Capacities | 12 | ||||
Section 6.15. |
Limitation of Liability of Owner Trustee and Indenture Trustee | 12 |
i
ADMINISTRATION AGREEMENT, dated as of July 1, 2011 (this “Agreement”), among FORD
CREDIT AUTO OWNER TRUST 2011-B, a Delaware statutory trust, as Issuer, FORD MOTOR CREDIT COMPANY
LLC, a Delaware limited liability company, as Administrator, and THE BANK OF NEW YORK MELLON, a New
York banking corporation, not in its individual capacity but solely as Indenture Trustee.
BACKGROUND
The Issuer was formed pursuant to the Trust Agreement and is issuing the Notes pursuant to the
Indenture.
The Issuer has entered into certain agreements in connection with the issuance of the Notes,
including the DTC Letter and the Indenture.
The Issuer and the Owner Trustee desire to have the Administrator perform certain duties of
the Issuer and the Owner Trustee under the Transaction Documents on the terms set forth in this
Agreement.
ARTICLE I
USAGE AND DEFINITIONS
USAGE AND DEFINITIONS
Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined
in this Agreement are defined in Appendix A to the Sale and Servicing Agreement, dated as of July
1, 2011, among Ford Credit Auto Owner Trust 2011-B, as Issuer, Ford Credit Auto Receivables Two
LLC, as Depositor, and Ford Motor Credit Company LLC, as Servicer. Appendix A also contains rules
as to usage applicable to this Agreement. Appendix A is incorporated by reference into this
Agreement.
ARTICLE II
ENGAGEMENT OF ADMINISTRATOR
ENGAGEMENT OF ADMINISTRATOR
Section 2.1. Engagement. The Issuer and the Owner Trustee engage the Administrator to
perform certain duties of the Issuer and the Owner Trustee under the Transaction Documents on the
terms set forth in this Agreement and the Administrator accepts such engagement.
Section 2.2. Compensation. As compensation for the performance of the Administrator’s
obligations under this Agreement and as reimbursement for its expenses related to its obligations
under this Agreement, the Depositor will pay the Administrator a fee in an amount agreed upon by
the Depositor and the Administrator.
ARTICLE III
DUTIES OF ADMINISTRATOR
DUTIES OF ADMINISTRATOR
Section 3.1. Duties of the Administrator with respect to the DTC Letter. The
Administrator agrees to perform all its duties as Administrator and the duties of the Issuer under
the DTC Letter. The Administrator will monitor the performance of the Issuer and will advise the
Owner Trustee when action is necessary to comply with the Issuer’s duties under the DTC Letter. The
Administrator will prepare, or cause to be prepared, for execution by the Issuer, or
execute as Administrator on behalf of the Issuer, all documents, reports, filings, instruments,
certificates and opinions that are the duty of the Issuer to prepare, file or deliver pursuant to
the DTC Letter.
Section 3.2. Duties of the Administrator with respect to the Indenture. The
Administrator will consult with the Owner Trustee regarding the duties of the Issuer under the
Indenture. The Administrator will monitor the performance of the Issuer and will advise the Owner
Trustee when action is necessary to comply with the Issuer’s duties under the Indenture. The
Administrator will prepare, or cause to be prepared, for execution by the Issuer, or execute as
Administrator on behalf of the Issuer, all documents, reports, filings, instruments, certificates,
notices and opinions that are the duty of the Issuer to prepare, file or deliver pursuant to the
Indenture. The Administrator will take all action that is the duty of the Issuer or the Owner
Trustee to take pursuant to the Indenture including (references are to sections of the Indenture):
(a) preparing or obtaining the documents and instruments required for authentication of the
Notes and delivering such documents and instruments to the Indenture Trustee (Section 2.2);
(b) causing the Note Register to be kept and giving the Indenture Trustee notice of any
appointment of a new Note Registrar and the location, or change in location, of the Note Register
(Section 2.4(a));
(c) determining whether the requirements of UCC Section 8-401(a) are met (Section 2.4(b) and
(c));
(d) determining whether the requirements of UCC Section 8-405 are met (Section 2.5) and
preparing an Issuer Request requesting the Indenture Trustee to authenticate and deliver
replacement Notes in lieu of mutilated, destroyed, lost or stolen Notes (Section 2.5);
(e) causing the Indenture Trustee to notify the Noteholders of the final principal payment on
their Notes (Section 2.7(b));
(f) causing the Indenture Trustee to release property from the Lien of the Indenture (Section
2.9);
(g) preparing Definitive Notes in accordance with the instructions of the Clearing Agency
(Section 2.11);
(h) ensuring that the Indenture Trustee maintains an office or agency in the Borough of
Manhattan, The City of New York, for registration of transfer or exchange of Notes (Section 3.2);
(i) directing the Indenture Trustee to deposit monies with any Note Paying Agents other than
the Indenture Trustee (Section 3.3);
(j) causing any newly appointed Note Paying Agents to deliver to the Indenture Trustee the
instrument specified in the Indenture regarding funds held in trust (Section 3.3(b));
2
(k) directing any Note Paying Agent to pay to the Indenture Trustee all sums to be held by the
Indenture Trustee (Section 3.3(c));
(l) obtaining and preserving the Issuer’s qualification to do business in each jurisdiction in
which such qualification is or will be necessary to protect the validity and enforceability of the
Indenture, the Notes and the Collateral (Section 3.4);
(m) preparing all supplements and amendments to the Indenture and all financing statements,
continuation statements, instruments of further assurance and other instruments as may be required
in connection with such supplement or amendment and taking such other action as is necessary or
advisable to protect the Collateral (Section 3.5);
(n) notifying the Indenture Trustee in an Officer’s Certificate of any Person with whom the
Issuer has contracted to perform its duties under the Indenture (Section 3.6(b));
(o) notifying the Indenture Trustee and the Rating Agencies of any Servicer Termination Event
under the Sale and Servicing Agreement and, if such Servicer Termination Event arises from the
failure of the Servicer to perform any of its duties and obligations under the Sale and Servicing
Agreement with respect to the Receivables, taking all reasonable steps available to cause the
Servicer to remedy such failure (Section 3.6(d));
(p) effecting the recording of the Indenture, if applicable, and obtaining an Opinion of
Counsel (Section 3.8);
(q) delivering the Opinion of Counsel on the Closing Date, the annual Opinions of Counsel as
to the Collateral, the annual Officer’s Certificate and certain other statements as to compliance
with the Indenture (Sections 3.8 and 3.9);
(r) preparing and obtaining the documents and instruments required for the consolidation or
merger of the Issuer with or into any other Person or the conveyance or transfer by the Issuer of
any of its properties or assets to any other Person (Section 3.10);
(s) notifying the Indenture Trustee and the Rating Agencies of each Event of Default under the
Indenture (Section 3.15);
(t) monitoring the Issuer’s obligations as to the satisfaction and discharge of the Indenture,
preparing an Officer’s Certificate and obtaining the required Opinions of Counsel (Section 4.1);
(u) notifying the Indenture Trustee (with a copy of such notice to any Qualified Institution
(if not the Indenture Trustee) maintaining any Bank Accounts) of the occurrence of an event set
forth in Section 5.1(a)(iii) of the Indenture, which with the giving of notice and the lapse of
time would become an Event of Default, describing such Default, the status of such Default and what
action the Administrator is taking or proposes to take with respect to such Default (Section 5.1);
3
(v) complying with any written directive of the Indenture Trustee with respect to the sale of
the Collateral at one or more public or private sales called and conducted in any manner permitted
by law if an Event of Default has occurred and is continuing (Section 5.6);
(w) causing the Servicer to comply with its duties and obligations under the Sale and
Servicing Agreement (Section 5.17);
(x) removing the Indenture Trustee upon the occurrence of one of the events specified in
Section 6.8(b) of the Indenture and appointing a successor Indenture Trustee upon the resignation
or removal of the Indenture Trustee (Section 6.8);
(y) notifying the Rating Agencies of the events specified in Section 6.9(a) of the Indenture
(Section 6.9);
(z) preparing any written instruments required to confirm the authority of any co-trustee or
separate trustee and any written instruments necessary in connection with the resignation or
removal of any co-trustee or separate trustee (Section 6.10);
(aa) inspecting the Indenture Trustee’s books and records (Section 6.13);
(bb) furnishing the Indenture Trustee with the names and addresses of Noteholders during any
period when the Indenture Trustee is not the Note Registrar (Section 7.1);
(cc) preparing and, after execution by the Issuer, filing with the Securities and Exchange
Commission and delivering to the Indenture Trustee documents and reports required to be filed with
the Securities and Exchange Commission and any additional information, documents and reports (or
summaries) with respect to compliance by the Issuer with the conditions and covenants of the
Indenture required to be filed with the Securities and Exchange Commission under rules and
regulations prescribed by the Securities and Exchange Commission (Section 7.3);
(dd) notifying the Indenture Trustee of the listing of the Notes on any stock exchange
(Section 7.4(b));
(ee) preparing, obtaining and filing the instruments, opinions, certificates and other
documents required for the release of property from the Lien of the Indenture (Sections 8.4 and
10.1);
(ff) preparing Issuer Orders and Officer’s Certificates, providing prior notice to the Rating
Agencies, obtaining Opinions of Counsel, evidence of satisfaction of the Rating Agency Condition
and the necessary consents with respect to the execution of supplemental indentures and preparing
such supplemental indentures and notices with respect to the execution of such supplemental
indentures (Sections 9.1 and 9.2);
(gg) causing the execution of, and after execution by the Issuer, the delivery of new Notes
conforming to any supplemental indenture (Section 9.6);
4
(hh) causing the Indenture Trustee to notify the Noteholders of the redemption of the Notes
(Section 10.1);
(ii) preparing all Officer’s Certificates and obtaining Opinions of Counsel and Independent
Certificates with respect to any requests by the Issuer to the Indenture Trustee to take any action
under the Indenture (Section 11.1(a)); and
(jj) preparing Officer’s Certificates and obtaining Independent Certificates, if necessary,
for the release of property from the Lien of the Indenture (Section 11.1(c)).
Section 3.3. Additional Duties.
(a) The Administrator will perform all duties required to be performed by the
Administrator pursuant to the Indenture.
(b) In addition to the duties of the Administrator set forth in Sections 3.1 and 3.2, the
Administrator will perform calculations and will prepare, file and deliver on behalf of the Issuer
or the Owner Trustee, all such documents that the Issuer or the Owner Trustee is required to
prepare, file or deliver pursuant to the Transaction Documents, and at the request of the Owner
Trustee will take all appropriate action that the Issuer or the Owner Trustee is required to take
pursuant to the Transaction Documents. Subject to Section 6.1 of this Agreement, the Administrator
will administer, perform or supervise the performance of such other activities in connection with
the Collateral (including those under the Transaction Documents) that are not covered by any of the
foregoing provisions and that are expressly requested by the Owner Trustee and are reasonably
within the capability of the Administrator, including:
(i) obtaining and maintaining, at its own expense, any licenses required to be obtained
or maintained by the Issuer under the laws of any State in connection with the Issuer’s
duties and obligations under the Transaction Documents; and
(ii) notifying the Owner Trustee, on or before the Closing Date and from time to time
thereafter, of any licenses required to be obtained or maintained by the Owner Trustee under
the laws of any State in connection with the duties and obligations of the Owner Trustee
under the Transaction Documents.
(c) The Administrator will be responsible for performing the duties of the Owner Trustee set
forth in Section 2.11 of the Trust Agreement, except that if the Owner Trustee is notified by the
Administrator that the Issuer is deemed to be taxable as a partnership for U.S. federal income tax
purposes, the Owner Trustee will retain responsibility for the distribution to the Depositor and
the holder of the Residual Interest such information as may be required to enable the Depositor and
any such holder to prepare its U.S. federal and State income tax returns.
(d) The Administrator will be responsible for notifying the Owner Trustee if any withholding
tax is imposed on the Issuer’s payments (or allocations of income) to the holder of the Residual
Interest as contemplated by Section 4.1(c) of the Trust Agreement, the amount of any withholding
tax required to be withheld by the Owner Trustee pursuant to Section 4.1(c) of the Trust Agreement
and the procedures to be followed to comply with the requirements under the Code. The Administrator
will notify the Owner Trustee in each instance that any additional
5
tax withholding is subsequently required or any previously required tax withholding is no
longer required.
(e) The Administrator will perform the duties of the Administrator specified in Sections 7.2,
7.3 and 9.2 of the Trust Agreement required to be performed in connection with the resignation or
removal of the Owner Trustee and any other duties required to be performed by the Administrator
pursuant to the Trust Agreement.
(f) The Administrator will either prepare, execute and deliver, or will direct the Servicer or
the Depositor, as applicable, to prepare, execute and deliver, on behalf of the Issuer all
certificates and other documents required to be delivered by the Xxxxxxxx-Xxxxx Act of 2002.
(g) Upon final distribution of any funds to the holder of the Residual Interest, the
Administrator will direct the Owner Trustee to cause the Certificate of Trust to be cancelled in
accordance with Section 8.1(c) of the Trust Agreement.
Section 3.4. Audits of the Administrator. The Administrator will, upon reasonable
prior notice, permit any authorized representative of the Issuer, the Depositor, the Owner Trustee
or the Indenture Trustee, during the Administrator’s normal business hours, to examine and audit
the books of account, records, reports and other documents and materials of the Administrator
relating to the performance of the Administrator’s obligations under this Agreement. In addition,
the Administrator will permit such representatives to make copies and extracts of any such books
and records and to discuss the same with the Administrator’s officers and Independent certified
public accountants, all at such reasonable times and as often as may reasonably be requested. Each
of the Issuer, the Depositor, the Owner Trustee or the Indenture Trustee will, and will cause its
authorized representatives to, hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that such party, may reasonably determine that such disclosure
is consistent with its obligations under this Agreement.
Section 3.5. Additional Information To Be Furnished to the Issuer. The Administrator
will furnish to the Issuer such additional information regarding the Collateral as the Issuer may
reasonably request.
Section 3.6. Prohibition on Certain Actions. Notwithstanding anything to the contrary
in this Agreement, the Administrator will not (a) make any payments to the Noteholders under the
Transaction Documents, (b) sell the Collateral pursuant to Section 5.6 of the Indenture or (c) take
any other action that the Owner Trustee or the Indenture Trustee directs the Administrator not to
take on its behalf.
ARTICLE IV
INDEMNIFICATION
INDEMNIFICATION
Section 4.1. Indemnification.
(a) The Depositor and the Administrator will, jointly and severally, indemnify, defend
and hold harmless the Indenture Trustee (in each of its capacities under the Transaction Documents,
including as Financial Institution) and its officers, directors, employees and agents,
6
from and against any and all costs, expenses, losses, damages, claims and liabilities
(including the reasonable compensation, expenses and disbursements of the Indenture Trustee’s
agents, counsel, accountants and experts) incurred by it in connection with the administration of
and the performance of its duties under the Indenture, including the costs and expenses of
defending itself against any loss, damage, claim or liability incurred by it in connection with the
exercise or performance of any of its powers or duties under the Indenture and the other
Transaction Documents, but excluding any cost, expense, loss, damage, claim or liability (i)
incurred by the Indenture Trustee through the Indenture Trustee’s willful misconduct, bad faith or
negligence (except for errors in judgment) or (ii) arising from the Indenture Trustee’s breach of
any of its representations or warranties set forth in the Indenture.
(b) The Depositor and the Administrator will, jointly and severally, indemnify, defend and
hold harmless the Owner Trustee and its officers, directors, employees and agents, from and against
any and all costs, expenses, losses, damages, claims and liabilities (including the reasonable
compensation, expenses and disbursements of the Owner Trustee’s agents, counsel, accountants and
experts) incurred by it in connection with the administration of and the performance of its duties
under the Trust Agreement, including the costs and expenses of defending itself against any loss,
damage, claim or liability incurred by it in connection with the exercise or performance of any of
its powers or duties under the Indenture, but excluding any cost, expense, loss, damage, claim or
liability (i) incurred by the Owner Trustee through the Owner Trustee’s own willful misconduct, bad
faith or negligence (except for errors in judgment) or (ii) arising from the Owner Trustee’s breach
of any of its representations or warranties set forth in the Trust Agreement.
(c) The Depositor and the Administrator will, jointly and severally, indemnify, defend and
hold harmless the Issuer and its officers, directors, employees and agents, from and against any
and all costs, expenses, losses, damages, claims and liabilities (including the reasonable
compensation, expenses and disbursements of the Issuer’s agents, counsel, accountants and experts)
incurred as a result of the Issuer’s failure to be licensed as a “debt collector”, “debt collection
agency” or any substantially similar designation, as required by any federal, state or local law or
regulation. If, pursuant to a final, non-appealable judgment in any jurisdiction, any fine or
penalty is imposed upon the Issuer with respect to a Receivable under any such law or regulation as
a result of its failure to be so licensed, the Administrator, in its capacity as Servicer, will
purchase from the Issuer such Receivable in accordance with Section 3.2 of the Sale and Servicing
Agreement.
(d) Promptly upon receipt by any Indemnified Person of notice of the commencement of any
Proceeding against any such Indemnified Person, such Indemnified Person will, if a claim in respect
of such Proceeding is to be made against the Depositor or the Administrator under Section 4.1(a),
(b) or (c), notify the Depositor and the Administrator of the commencement of such Proceeding. The
Depositor or the Administrator may participate in and assume the defense and settlement of any such
Proceeding at its expense, and no settlement of such Proceeding may be made without the approval of
the Depositor or the Administrator and such Indemnified Person, which approvals will not be
unreasonably withheld, delayed or conditioned. After notice from the Depositor or the Administrator
to the Indemnified Person of the Depositor’s or the Administrator’s intention to assume the defense
of such Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as
the Depositor or the Administrator so
7
assumes the defense of such Proceeding in a manner reasonably satisfactory to the Indemnified
Person, as applicable, the Depositor or the Administrator will not be liable for any legal expenses
of counsel to the Indemnified Person unless there is a conflict between the interests of the
Depositor or the Administrator and an Indemnified Person, in which case the Depositor or the
Administrator will pay for the separate counsel to the Indemnified Person which is reasonably
satisfactory to the Administrator. The obligations of the Administrator under this Article IV will
survive the termination of this Agreement.
ARTICLE V
RESIGNATION AND REMOVAL OF THE ADMINISTRATOR;
TERM OF AGREEMENT
RESIGNATION AND REMOVAL OF THE ADMINISTRATOR;
TERM OF AGREEMENT
Section 5.1. Resignation and Removal of the Administrator.
(a) Subject to Section 5.2(a), the Administrator may resign its duties under this
Agreement by providing the Issuer, the Owner Trustee and the Indenture Trustee with at least 60
days’ prior notice.
(b) Subject to Section 5.2(a), if any of the following events occurs and is continuing, the
Owner Trustee, with the consent of Noteholders of Notes evidencing not less than a majority of the
Note Balance of the Controlling Class (or if no Notes are Outstanding, the holder of the Residual
Interest), by notice to the Administrator may terminate all of the rights and obligations of the
Administrator under this Agreement:
(i) the Administrator defaults in the performance of any of its duties under this
Agreement and, after notice of such default by the Issuer, the Indenture Trustee or the
Owner Trustee, does not cure such default within 15 days (or, if such default cannot be
cured in such time, does not give within 15 days such assurance of cure as is reasonably
satisfactory to the Issuer); or
(ii) an Insolvency Event occurs with respect to the Administrator.
(c) The Administrator will notify the Issuer and the Indenture Trustee within five Business
Days after the occurrence of an Insolvency Event with respect to the Administrator.
Section 5.2. Appointment of Successor Administrator.
(a) No resignation or removal of the Administrator pursuant to Section 5.1(a) or (b) will
be effective until (i) a successor Administrator has been appointed by the Issuer at the direction
of Noteholders of a majority of the Note Balance of the Controlling Class, or if no Notes are
Outstanding, by the holder of the Residual Interest, (ii) such successor Administrator has
executed, acknowledged and delivered to the Issuer and to its predecessor Administrator an
instrument accepting its appointment under this Agreement, and (iii) the Rating Agency Condition
has been satisfied with respect to the proposed appointment. The Issuer will notify the Indenture
Trustee of any such resignation or removal.
8
(b) Upon the appointment of a successor Servicer pursuant to the Sale and Servicing Agreement,
the Administrator will immediately resign and such successor Servicer will automatically become the
Administrator under this Agreement.
Section 5.3. Action upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 5.4 or the resignation or
removal of the Administrator pursuant to Sections 5.1 or 5.2(b), the Administrator will be entitled
to be paid all fees and reimbursable expenses accruing to it through the date of such termination,
resignation or removal. If this Agreement is terminated pursuant to Section 5.4, the Administrator
will promptly deliver to the Issuer all property and documents relating to the Collateral then in
the custody of the Administrator. If the Administrator resigns or is removed pursuant to Sections
5.1 or 5.2(b), the Administrator will cooperate with the Issuer and take all reasonable steps
requested to assist the Issuer in making an orderly transfer of the duties of the Administrator to
the successor Administrator.
Section 5.4. Term of Agreement. This Agreement will continue in force until the
termination of the Issuer in accordance with Section 8.1 of the Trust Agreement, upon which event
this Agreement will automatically terminate.
ARTICLE VI
MISCELLANEOUS
MISCELLANEOUS
Section 6.1. Independence of the Administrator. The Administrator will be an
independent contractor and will not be subject to the supervision of the Issuer or the Owner
Trustee with respect to the manner in which it accomplishes the performance of its obligations
under this Agreement. Unless expressly authorized by the Issuer, the Administrator will have no
authority to act for or represent the Issuer or the Owner Trustee in any way and will not otherwise
be deemed an agent of the Issuer or the Owner Trustee. Nothing contained in this Agreement will
constitute the Administrator and either of the Issuer or the Owner Trustee as members of any
partnership, joint venture or other separate entity or impose any liability as such on any of them.
Section 6.2. Transactions with Affiliates; Other Transactions. In carrying out any of
its obligations under this Agreement, the Administrator may enter into transactions or otherwise
deal with any of its Affiliates. Nothing in this Agreement will prevent the Administrator or its
Affiliates from engaging in other businesses or from acting in a similar capacity as an
administrator for any other person or entity even though such person or entity may engage in
business activities similar to those of the Issuer.
Section 6.3. Amendments. This Agreement may be amended by a written amendment executed
and delivered by the Issuer, the Administrator and the Indenture Trustee, with the consent of the
Owner Trustee, without the consent of the Noteholders, so long as the Issuer or the Administrator
delivers an Opinion of Counsel to the Indenture Trustee and the Owner Trustee to the effect that
such amendment will not materially adversely affect the interest of the Noteholders. This Agreement
also may be amended by the Issuer, the Administrator and the Indenture Trustee with the consent of
the Owner Trustee and the Noteholders of a majority of the Note Balance of each Class of Notes
Outstanding (with each affected Class voting separately,
9
except that all Noteholders of Class A Notes will vote together as a single class);
provided that no such amendment may reduce the percentage of the Noteholders required to
consent to any such amendment, without the consent of each Noteholder adversely affected.
Section 6.4. Notices.
(a) All notices, requests, demands, consents, waivers or other communications to or from
the parties to this Agreement must be in writing and will be deemed to have been given:
(i) upon delivery or, in the case of a letter mailed by registered first class mail,
postage prepaid, three days after deposit in the mail;
(ii) in the case of a fax, when receipt is confirmed by telephone, reply email or reply
fax from the recipient;
(iii) in the case of an email, when receipt is confirmed by telephone or reply email
from the recipient; and
(iv) in the case of an electronic posting to a password-protected website to which the
recipient has been provided access, upon delivery (without the requirement of confirmation
of receipt) of an email to such recipient stating that such electronic posting has occurred.
Any such notice, request, demand, consent or other communication must be delivered or
addressed as set forth on Schedule B to the Sale and Servicing Agreement or at such other address
as any party may designate by notice to the other parties.
(b) Any notice required or permitted to be mailed to a Noteholder (i) in the case of
Definitive Notes, must be sent by overnight delivery, mailed by registered first class mail,
postage prepaid, or sent by fax, to the address of such Person as shown in the Note Register or
(ii) in the case of Book-Entry Notes, must be delivered pursuant to the applicable procedures of
the Clearing Agency. Any notice so mailed within the time prescribed in this Agreement will be
conclusively presumed to have been properly given, whether or not the Noteholder receives such
notice.
Section 6.5. Assignment. This Agreement may not be assigned by the Administrator
unless the Administrator obtains the consent of the Issuer and the Owner Trustee and satisfaction
of the Rating Agency Condition for such action. Notwithstanding the foregoing, this Agreement may
be assigned by the Administrator without the consent of the Issuer or the Owner Trustee or
satisfaction of the Rating Agency Condition to a Person that is a successor (by merger,
consolidation or purchase of assets) to the Administrator or to an Affiliate of the Administrator;
provided, that such Person or such Affiliate executes and delivers to the Issuer, the Owner
Trustee and the Indenture Trustee an agreement in which such Person or such Affiliate agrees to be
bound under this Agreement in the same manner as the Administrator is bound under this Agreement.
Subject to the foregoing, this Agreement will bind any successors or assigns of the parties to this
Agreement.
10
Section 6.6. Third-Party Beneficiary. This Agreement will inure to the benefit of and
be binding upon the parties to this Agreement. The Owner Trustee will be a third-party beneficiary
of this Agreement. Except as otherwise provided in this Agreement, no other Person will have any
right or obligation under this Agreement.
Section 6.7. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Section 6.8. Submission to Jurisdiction. The parties submit to the nonexclusive
jurisdiction of the United States District Court for the Southern District of New York and of any
New York State Court sitting in New York, New York for purposes of all legal proceedings arising
out of or relating to this Agreement. The parties irrevocably waive, to the fullest extent they may
do so, any objection that they may now or hereafter have to the laying of the venue of any such
proceeding brought in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum.
Section 6.9. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.
Section 6.10. Severability. If any of the covenants, agreements or terms of this
Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the
remaining covenants, agreements or terms of this Agreement and will in no way affect the validity,
legality or enforceability of the remaining Agreement.
Section 6.11. Counterparts. This Agreement may be executed in any number of
counterparts. Each counterpart will be an original, and all counterparts will together constitute
one and the same instrument.
Section 6.12. Headings. The headings in this Agreement are included for convenience
only and will not affect the meaning or interpretation of any provision of this Agreement.
Section 6.13. No Petition.
(a) Notwithstanding any prior termination of this Agreement, the Depositor, the
Administrator, the Owner Trustee and the Indenture Trustee will not, before the date which is one
year and one day (or, if longer, any applicable preference period) after the payment in full of the
Notes, institute against, or join any other Person in instituting against, the Issuer any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings
under any U.S. federal or State bankruptcy or similar law in connection with any obligations
relating to the Notes, this Agreement or any of the Transaction Documents.
(b) Notwithstanding any prior termination of this Agreement, the Issuer, the Administrator,
the Owner Trustee and the Indenture Trustee will not, before the date which is one year and one day
(or, if longer, any applicable preference period) after the payment in full of
11
all securities issued by the Depositor or by a trust for which the Depositor was depositor,
institute against, or join any other Person in instituting against, the Depositor any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any
U.S. federal or State bankruptcy or similar law in connection with any obligations relating to the
Notes, this Agreement or any of the Transaction Documents.
Section 6.14. Not Applicable to Ford Credit in Other Capacities. Nothing in this
Agreement will affect any right or obligation Ford Credit may have in any other capacity.
Section 6.15. Limitation of Liability of Owner Trustee and Indenture Trustee.
(a) This Agreement has been signed on behalf of the Issuer by U.S. Bank Trust National
Association not in its individual capacity but solely in its capacity as Owner Trustee of the
Issuer. In no event will U.S. Bank Trust National Association in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer under this Agreement or in any of the certificates,
notices or agreements delivered pursuant to this Agreement. For all purposes of this Agreement, in
the performance of any duties or obligations of the Issuer under this Agreement, the Owner Trustee
will be subject to, and entitled to the benefits of, the terms and provisions of the Trust
Agreement.
(b) This Agreement has been signed by The Bank of New York Mellon, not in its individual
capacity but solely as Indenture Trustee. In no event will The Bank of New York Mellon have any
liability for the representations, warranties, covenants, agreements or other obligations of the
Issuer under this Agreement or in any of the certificates, notices or agreements delivered pursuant
to this Agreement, as to all of which recourse will be had solely to the assets of the Issuer. For
all purposes of this Agreement, the Indenture Trustee will be subject to, and entitled to the
benefits of, the terms and provisions of the Indenture.
[Remainder of Page Intentionally Left Blank]
12
EXECUTED BY:
FORD CREDIT AUTO OWNER TRUST 2011-B, as Issuer |
||||
By: | U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee |
|||
By: | ||||
Name: | ||||
Title: | ||||
THE BANK OF NEW YORK MELLON, not in its individual capacity but solely as Indenture Trustee |
||||
By: | ||||
Name: | ||||
Title: | ||||
FORD MOTOR CREDIT COMPANY LLC, as Administrator |
||||
By: | ||||
Name: | ||||
Title: | ||||
AGREED AND ACCEPTED BY:
FORD CREDIT AUTO RECEIVABLES TWO LLC, as Depositor |
||||
By: | ||||
Name: | ||||
Title: | ||||