EXHIBIT 4.6
Nissan Auto Receivables Corporation II
000 Xxxx 000xx Xxxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Dated as of
[______________]
YIELD SUPPLEMENT AGREEMENT
[NAME OF [INDENTURE] TRUSTEE]
[__________________]
[__________________]
[NAME OF TRUST]
[NAME OF [OWNER] TRUSTEE]
[__________________]
[__________________]
Ladies and Gentlemen:
Nissan Auto Receivables Corporation II (the "Company") hereby confirms
arrangements made as of the date hereof with you, as [Indenture] Trustee and
[Owner] Trustee for the benefit of [the Noteholders] [and] [the [Class [__]]
Certificateholders], to be effective upon (i) receipt by the Company of the
enclosed copy of this letter agreement (the "Yield Supplement Agreement"),
executed by Nissan Motor Acceptance Corporation ("NMAC") [the Indenture Trustee]
[and the Owner Trustee], (ii) execution of the Purchase Agreement, dated as of
the date hereof (the "Purchase Agreement"), between the Company and NMAC, (iii)
receipt by NMAC of the payment by the Company of the purchase price under the
Purchase Agreement, and (iv) the receipt by the Company of the capital
contribution of NMAC in connection with the payment of the purchase price under
the Purchase Agreement. Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings given to them in the Sale and
Servicing Agreement, dated as of the date hereof, among NMAC, as Servicer, the
Company, and [Nissan Auto Receivables ____-_____ Owner Trust, as Issuer] [[NAME
OF TRUSTEE], in its capacity as Trustee] (the "Sale and Servicing Agreement").
1. On or prior to each Determination Date, the Servicer shall notify
the Company[, Indenture Trustee] and the [Owner] Trustee of the "Yield
Supplement Deposit" (as defined below) for the related Distribution Date, the
amount on deposit in the Yield Supplement Account (as defined below) and the
amount of reinvestment income during the related Collection Period on the Yield
Supplement Account. The "Yield Supplement Deposit" means, with respect to any
Distribution Date, the amount by which (i) the aggregate amount of interest that
would have been due during the related Collection Period on all Yield
Supplemented Receivables (as defined below) if such Yield Supplemented
Receivables bore interest at the Required Rate (as defined below) exceeds (ii)
the amount of interest accrued on such Yield Supplemented Receivables at their
respective APRs and due during such Collection Period. "Required Rate" means,
with respect to each Collection Period, the sum of (i) the [Class B Interest
Rate][weighted average interest rate of the Notes and the Class C Pass-Through
Rate][specify rate] and (2) the Servicing Rate. "Yield Supplemented Receivable"
means any Receivable that has an APR less than the Required Rate.
2. On or before the date hereof, the Owner Trustee shall establish and
maintain with [the Securities Intermediary] and pledge to the [Indenture]
Trustee [and the Owner Trustee] a segregated account in the name of the
[Indenture] Trustee for the benefit of [the Noteholders] [and] [the Class [__]
Certificateholders] [the Certificateholders] a segregated trust account in the
name of the [Indenture] Trustee (the "Yield Supplement Account") [in accordance
with the Securities Account Control Agreement to secure the payment of interest
[on the Notes] [and] [on the Certificates], or such other account as may be
acceptable to the Rating Agencies, and the [Company][Trust] hereby grants to the
[Indenture] Trustee [and the Owner Trustee] for the benefit of [the Noteholders]
[and] [the Class [__] Certificateholders] [Certificateholders] a first priority
security interest in the Yield Supplement Account and the monies on deposit and
the other property that from time to time comprise the Yield Supplement Account
(including the Initial Yield Supplement Amount), and any and all proceeds
thereof (collectively, the "Yield Supplement Account Property"). The [Relevant]
Trustee shall possess all of the rights of a secured party under the UCC with
respect thereto. The Yield Supplement Account Property and the Yield Supplement
Account shall be under the sole dominion and control of the [Relevant] Trustee.
Neither the Company, the Trust nor any Person claiming by, through or under the
Company or the Trust shall have any right, title or interest in, any control
over the use of, or any right to withdraw amounts from, the Yield Supplement
Account Property or the Yield Supplement Account. All Yield Supplement Account
Property in the Yield Supplement Account shall be applied by the [Relevant]
Trustee as specified in this Yield Supplement Agreement and the Sale and
Servicing Agreement. The [Relevant] Trustee shall, not later than 5:00 P.M., New
York City time on the Business Day preceding each Distribution Date, withdraw
from the Yield Supplement Account and deposit in the [Collection Account]
[Certificate Account] an amount equal to the Yield Supplement Deposit plus the
amount of reinvestment income on the Yield Supplement Account for such
Distribution Date.
3. On or prior to the date hereof, the Company shall [(i) [make a
capital contribution to the Trust by depositing an amount equal to $___________]
[deposit an amount equal to $_________] [in cash] into the Yield Supplement
Account][, (ii) transfer retail installment sales contracts with an aggregate
principal balance, as of the Cut-Off Date, of $_________ to the Trust] [and
(iii) transfer receivables or other assets (including retail installment sale
contracts and vehicle lease contracts) in an amount, collectively, equal to
$__________ to the Trust] ([the][collectively,] "Initial Yield Supplement
Amount"). [On each Distribution Date, the Servicer will deposit payments
received with respect to the retail installment sales contracts referred to in
clause (ii) above into the Yield Supplement Account.] [On each Distribution
Date, the Servicer will deposit payments received with respect to those
receivables or other assets referred to in clause (iii) above into the Yield
Supplement Account.] The amount required to be on deposit in the Yield
Supplement Account on the date of issuance of [the Notes] [the Certificates] and
for each Distribution Date until the [Notes of all Classes and the Class [ ]
Certificates] [Certificates of all Classes] have been paid in full [or the
Indenture is otherwise terminated] (the "Required Yield Supplement Amount"), as
determined by the Servicer and notified to the [Relevant] Trustee, means an
amount equal to the lesser of (i) the aggregate amount of each Yield Supplement
Deposit that will become due on each future Distribution Date, assuming that
payments on the Receivables are made on their scheduled due dates, no Receivable
becomes a prepaid Receivable, and a discount rate of [ ]% and (ii) the Initial
Yield Supplement Amount. The Required Yield Supplement Amount may decline as a
result of prepayments or repayments in full of the Receivables. The [Relevant]
Trustee shall have no duty or liability to determine the Required Yield
Supplement Amount and may fully rely on the determination thereof by the
Servicer. If, on any Distribution Date, the funds in the Yield Supplement
Account are in excess of the Required Yield Supplement Amount for such
Distribution Date after giving effect to all distributions to be made on such
Distribution Date, the [Relevant] Trustee shall deposit the amount of such
excess into the [Collection Account] [Certificate Account] for distribution by
the [Relevant] Trustee in accordance with the terms of Sections 5.06(c), (d) and
(e) of the Sale and Servicing Agreement. [The Yield Supplement Account shall
[not] be part of the Trust.] [It is the intent of the parties that the Yield
Supplement Account Property be treated as property of the Trust for all federal,
state and local income and franchise tax purposes.] The provisions of this Yield
Supplement Agreement should be interpreted accordingly. [Further, the Trust
shall include in its gross income all income earned on the Yield Supplement
Account Property and the Yield Supplement Account.]
4. All or a portion of the Yield Supplement Account may be invested and
reinvested in the manner specified in Section [5.08] [5.01] of the [Sale]
[Pooling] and Servicing Agreement in accordance with written instructions from
the Servicer [or the Secured Party (as defined in the Securities Account Control
Agreement) under the Securities Account Control Agreement, as the case may be].
All such investments shall be made in the name of the [Relevant] Trustee.
Earnings on investment of funds in the Yield Supplement Account shall be
deposited in the
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[Collection Account] [Certificate Account] on each Distribution Date, and losses
and any investment expenses shall be charged against the funds on deposit
therein. Upon payment in full of the Notes under the Indenture, as directed in
writing by the Servicer, the [Relevant] Trustee will release any amounts
remaining on deposit in the Yield Supplement Account to the Owner Trustee for
the benefit of the Certificateholders, which amounts the Owner Trustee shall
deposit into the Trust Collection Account. If for any reason the Yield
Supplement Account is no longer an Eligible Deposit Account, the [Relevant]
Trustee shall promptly cause the Yield Supplement Account to be moved to another
institution or otherwise changed so that the Yield Supplement Account becomes an
Eligible Deposit Account.
5. Our agreements set forth in this Yield Supplement Agreement are our
primary obligations and such obligations are irrevocable, absolute and
unconditional, shall not be subject to any counterclaim, setoff or defense
(other than full and strict compliance by us with our obligations hereunder) and
shall remain in full force and effect without regard to, and shall not be
released, discharged or in any way affected by, any circumstances or condition
whatsoever.
6. [In order to more fully protect the interests of [the Noteholders]
[and] [the Certificateholders], the Company will transfer, assign and convey its
interest in this Yield Supplement Agreement to the Nissan Auto Receivables
[____-____] [Owner] [Grantor] Trust established under the Trust Agreement.
Following such transfer, assignment and conveyance,] this Yield Supplement
Agreement shall not be amended, modified or terminated except in accordance with
the provisions for amendments, modifications and terminations of the Sale and
Servicing Agreement as set forth in Section 10.01 of the Sale and Servicing
Agreement.
7. This Yield Supplement Agreement shall be governed by, and construed
in accordance with, the internal laws of the State of New York, without
reference to its conflict of law provisions (other than section 5-1401 of the
general obligations law of the State of New York), and the obligations, rights
and remedies of the parties under this agreement shall be determined in
accordance with such laws.
8. Except as otherwise provided herein, all notices pursuant to this
Yield Supplement Agreement shall be in writing, personally delivered, sent by
telecopier, sent by courier or mailed by certified mail, return receipt
requested, and shall be effective upon receipt thereof. All notices shall be
directed as set forth below, or to such other address or telecopy number or to
the attention of such other person as the relevant party shall have designated
for such purpose in a written notice.
The Company:
Nissan Auto Receivables Corporation II
000 Xxxx 000xx Xxxxxx
Xxxxxxxx, Xxxxxxxxxx 00000
Attention: Treasurer
Facsimile No.: 000-000-0000
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[Indenture] Trustee:
[__________________]
[__________________]
[__________________]
[__________________]
Trust:
[__________________]
[__________________]
[__________________]
[__________________]
9. This Yield Supplement Agreement may be executed in one or more
counterparts and by the different parties hereto on separate counterparts, all
of which shall be deemed to be one and the same document.
[10. Each of the parties hereto agrees and acknowledges that all of the
rights and interests of the Indenture Trustee hereunder shall be automatically
transferred to the Owner Trustee, and the Owner Trustee shall succeed to all
such rights and interests, upon the payment in full of the Notes in accordance
with the terms of the Indenture and the Sale and Servicing Agreement.]
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If the foregoing satisfactorily sets forth the terms and conditions of
our agreement, please indicate your acceptance thereof by signing in the space
provided below and returning to us the enclosed duplicate original of this
letter.
Very truly yours,
NISSAN AUTO RECEIVABLES CORPORATION II
By:
----------------------------------
Name:
Title:
Agreed and accepted as of [_________,____]
NISSAN MOTOR ACCEPTANCE CORPORATION
By:
--------------------------------------
Name:
Title:
[INDENTURE TRUSTEE] [TRUSTEE]
AS [INDENTURE] TRUSTEE
By:
--------------------------------------
Name:
Title:
TRUST
By: [OWNER] TRUSTEE
AS [OWNER] TRUSTEE
By:
--------------------------------------
Name:
Title:
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