EXHIBIT 10.129
(Bluegreen to Depositor - Subsequent Timeshare Loans)
PURCHASE AND CONTRIBUTION AGREEMENT
This PURCHASE AND CONTRIBUTION AGREEMENT (this "AGREEMENT"), dated
as of June 15, 2004, is by and among Bluegreen Corporation, a Massachusetts
corporation ("BLUEGREEN" or a "SELLER") and Bluegreen Receivables Finance
Corporation VIII, a Delaware corporation (the "DEPOSITOR") and their respective
permitted successors and assigns.
W I T N E S S E T H:
WHEREAS, on the Closing Date, the Depositor, as seller, intends to
enter into that certain Sale Agreement dated as of June 15, 2004 (the "SALE
AGREEMENT"), by and between the Depositor and BXG Receivables Note Trust 2004-B,
a Delaware statutory trust (the "ISSUER") pursuant to which the Depositor
intends to sell to the Issuer, certain other timeshare loans acquired by the
Depositor pursuant to a transfer agreement, dated as of June 15, 2004, by and
among the Depositor, Bluegreen and BXG Receivables Note Trust 2001-A pursuant to
the terms thereof;
WHEREAS, on the Closing Date, the Company intends to enter into that
certain Indenture dated as of June 15, 2004 (the "INDENTURE"), by and among the
Issuer, Bluegreen, as servicer (in such capacity, the "SERVICER"), Vacation
Trust, Inc., a Florida corporation, as club trustee (the "CLUB TRUSTEE"), and
U.S. Bank National Association, as indenture trustee (the "INDENTURE TRUSTEE"),
paying agent and custodian, whereby the Issuer will pledge the Trust Estate (as
defined in the Indenture) to the Indenture Trustee to secure the Issuer's 4.445%
Timeshare Loan-Backed Notes, Series 2004-B, Class A, 4.695% Timeshare
Loan-Backed Notes, Series 2004-B, Class B, 5.190% Timeshare Loan-Backed Notes,
Series 2004-B, Class C, 6.680% Timeshare Loan-Backed Notes, Series 2004-B, Class
D and 7.180% Timeshare Loan-Backed Notes, Series 2004-B, Class E (collectively,
the "NOTES");
WHEREAS, (i) the Seller desires to sell, and the Depositor desires
to purchase, from time to time during the Prefunding Period, Timeshare Loans
originated by the Seller or an Affiliate thereof (the "SUBSEQUENT TIMESHARE
LOANS") and (ii) Bluegreen, as the sole shareholder of the Depositor, desires to
make a contribution of capital pursuant to the terms hereof;
WHEREAS, pursuant to the terms of (i) the Sale Agreement, the
Depositor shall sell to the Issuer any Subsequent Timeshare Loans acquired from
the Seller to the Issuer and (ii) the Indenture, the Issuer shall pledge such
Subsequent Timeshare Loans, as part of the Trust Estate, to the Indenture to
secure the Notes;
WHEREAS, the Seller may, and in certain circumstances will be
required to cure, repurchase or substitute and provide Qualified Substitute
Timeshare Loans for Subsequent
Timeshare Loans that are Defective Timeshare Loans, previously sold to the
Depositor hereunder and pledged to the Indenture Trustee pursuant to the
Indenture; and
WHEREAS, the Depositor may, at the direction of the Seller, be
required to exercise the Seller's option to purchase or replace Subsequent
Timeshare Loans that become subject to an Upgrade or Defaulted Timeshare Loans
previously sold to the Issuer and pledged to the Indenture Trustee pursuant to
the Indenture.
NOW, THEREFORE, in consideration of the mutual covenants set forth
herein, and for other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto covenant and agree as follows:
SECTION 1. Definitions; Interpretation. Capitalized terms used but
not defined herein shall have the meanings specified in "Standard Definitions"
attached hereto as Annex A.
SECTION 2. Acquisition of Subsequent Timeshare Loans and
Contribution of Capital to the Depositor.
(a) Timeshare Loans and Contribution of Capital. On each Transfer
Date during the Prefunding Period, the Seller hereby agrees to sell in part and
contribute in part to the Depositor, in return for the Timeshare Loan
Acquisition Price (to be paid (A) in cash equal to 91% of the Timeshare Loan
Acquisition Price of each of the Subsequent Timeshare Loans to be sold on such
date and (B) an increase in its equity ownership of the Depositor) hereby
transfers, assigns, sells and grants to the Depositor, without recourse (except
as provided in Section 6 and Section 8 hereof), any and all of the Seller's
right, title and interest in and to (i) any Subsequent Timeshare Loans listed on
the related Subsequent Transfer Notice, (ii) the Receivables in respect of such
Subsequent Timeshare Loans due after the related Cut-Off Date, (iii) the related
Timeshare Loan Documents (excluding any rights as developer or declarant under
the Timeshare Declaration, the Timeshare Program Consumer Documents or the
Timeshare Program Governing Documents), (iv) all Related Security in respect of
each such Subsequent Timeshare Loan and (v) all income, payments, proceeds and
other benefits and rights related to any of the foregoing (the property in
clauses (i)-(v), being the "ASSETS"). Upon such contribution, sale and transfer,
the ownership of each Subsequent Timeshare Loan and all collections allocable to
principal and interest thereon since the related Cut-Off Date and all other
property interests or rights conveyed pursuant to and referenced in this Section
2(a)(i) shall immediately vest in the Depositor, its successors and assigns. The
Seller shall not take any action inconsistent with such ownership nor claim any
ownership interest in any Subsequent Timeshare Loan for any purpose whatsoever
other than for federal and state income tax reporting, if applicable. The
parties to this Agreement hereby acknowledge that the "credit risk" of the
Subsequent Timeshare Loans conveyed hereunder shall be borne by the Depositor
and its subsequent assignees.
(b) Delivery of Timeshare Loan Documents. In connection with the
contribution, sale, transfer, assignment and conveyance of the Subsequent
Timeshare Loans hereunder, the Seller hereby agrees to deliver or cause to be
delivered to the Custodian all related Timeshare Loan Files and to the Servicer
all related Timeshare Loan Servicing Files.
(c) Collections. The Seller shall deposit or cause to be deposited
all collections in respect of Subsequent Timeshare Loans received by the Seller
or its Affiliates after the related Cut-Off Date in the Lockbox Account.
(d) Limitation of Liability. Neither the Depositor nor any
subsequent assignee of the Depositor shall have any obligation or liability with
respect to any Subsequent Timeshare Loan nor shall the Depositor or any
subsequent assignee have any liability to any Obligor in respect of any
Subsequent Timeshare Loan. No such obligation or liability is intended to be
assumed by the Depositor or any subsequent assignee herewith and any such
liability is hereby expressly disclaimed.
SECTION 3. Intended Characterization; Grant of Security Interest. It
is the intention of the parties hereto that each transfer of Subsequent
Timeshare Loans to be made pursuant to the terms hereof shall constitute a sale,
in part, and a capital contribution, in part, by the Seller to the Depositor and
not a loan secured by such Subsequent Timeshare Loans. In the event, however,
that a court of competent jurisdiction were to hold that any such transfer
constitutes a loan and not a sale and contribution, it is the intention of the
parties hereto that the Seller shall be deemed to have granted to the Depositor
as of the date hereof a first priority perfected security interest in all of the
Seller's right, title and interest in, to and under the Assets specified in
Section 2 hereof and that with respect to such conveyance, this Agreement shall
constitute a security agreement under applicable law. In the event of the
characterization of any such transfer as a loan, the amount of interest payable
or paid with respect to such loan under the terms of this Agreement shall be
limited to an amount which shall not exceed the maximum non-usurious rate of
interest allowed by the applicable state law or any applicable law of the United
States permitting a higher maximum non-usurious rate that preempts such
applicable state law, which could lawfully be contracted for, charged or
received (the "HIGHEST LAWFUL RATE"). In the event any payment of interest on
any such loan exceeds the Highest Lawful Rate, the parties hereto stipulate that
(a) to the extent possible given the term of such loan, such excess amount
previously paid or to be paid with respect to such loan be applied to reduce the
principal balance of such loan, and the provisions thereof immediately be deemed
reformed and the amounts thereafter collectible thereunder reduced, without the
necessity of the execution of any new document, so as to comply with the then
applicable law, but so as to permit the recovery of the fullest amount otherwise
called for thereunder and (b) to the extent that the reduction of the principal
balance of, and the amounts collectible under, such loan and the reformation of
the provisions thereof described in the immediately preceding clause (a) is not
possible given the term of such loan, such excess amount will be deemed to have
been paid with respect to such loan as a result of an error and upon discovery
of such error or upon notice thereof by any party hereto such amount shall be
refunded by the recipient thereof.
The characterization of the Seller as "debtor" and the Depositor as
"secured party" in any such financing statement required hereunder is solely for
protective purposes and shall in no way be construed as being contrary to the
intent of the parties that this transaction be treated as a sale and
contribution to the Depositor of the Seller's entire right, title and interest
in and to the Assets.
Each of the Seller, Club Trust, Club Trustee and any of their Affiliates
hereby agrees to make the appropriate entries in its general accounting records
to indicate that the Subsequent Timeshare Loans have been transferred to the
Depositor and its subsequent assignees.
SECTION 4. Conditions Precedent to Acquisition of Subsequent
Timeshare Loans by the Depositor. The obligations of the Depositor to purchase
any Subsequent Timeshare Loans hereunder shall be subject to the satisfaction of
the following conditions:
(a) With respect to each Transfer Date for each Subsequent Timeshare
Loan or any Qualified Substitute Timeshare Loan replacing a Subsequent Timeshare
Loan, all representations and warranties of the Seller contained in Section 5(a)
hereof shall be true and correct on such date as if made on such date, and all
representations and warranties as to the Timeshare Loans contained in Section
5(b) hereof and all information provided in the Schedule of Timeshare Loans in
respect of each such Timeshare Loan conveyed on such Transfer Date shall be true
and correct on such Transfer Date.
(b) On or prior to a Transfer Date, the Seller shall have delivered
or shall have caused the delivery of (i) the related Timeshare Loan Files to the
Custodian and the Custodian shall have delivered a receipt therefore pursuant to
the Custodial Agreement and (ii) the Timeshare Loan Servicing Files to the
Servicer.
(c) The Seller shall have delivered or caused to be delivered all
other information theretofore required or reasonably requested by the Depositor
to be delivered by the Seller or performed or caused to be performed all other
obligations required to be performed as of the related Transfer Date, including
all filings, recordings and/or registrations as may be necessary in the
reasonable opinion of the Depositor, the Issuer or the Indenture Trustee to
establish and preserve the right, title and interest of the Depositor, the
Issuer or the Indenture Trustee, as the case may be, in the related Timeshare
Loans.
(d) On the related Transfer Date, the Indenture shall be in full
force and effect.
(e) The Depositor shall apply funds received from the Issuer
withdrawn from the Prefunding Account, to the extent necessary, to pay the
Seller the Timeshare Loan Acquisition Price for each Subsequent Timeshare Loan.
Each Subsequent Timeshare Loan conveyed on a Transfer Date shall be an Eligible
Timeshare Loan and each of the conditions herein and in the Indenture for the
purchase of Subsequent Timeshare Loans shall have been satisfied.
(f) Each Qualified Substitute Timeshare Loan replacing a Subsequent
Timeshare Loan shall satisfy each of the criteria specified in the definition of
"Qualified Substitute Timeshare Loan" and each of the conditions herein and in
the Indenture for substitution of Timeshare Loans shall have been satisfied.
(g) The Depositor shall have received such other certificates and
opinions as it shall reasonably request.
SECTION 5. Representations and Warranties and Certain Covenants of
the Seller.
(a) The Seller represents and warrants to the Depositor and the
Indenture Trustee for the benefit of the Noteholders, on the Closing Date and on
each Transfer Date (with respect to any Subsequent Timeshare Loans or Qualified
Substitute Timeshare Loans transferred on such Transfer Date) as follows:
(i) Due Incorporation; Valid Existence; Good Standing. It is a
corporation duly organized and validly existing in good standing under the
laws of the jurisdiction of its incorporation; and is duly qualified to do
business as a foreign corporation and in good standing under the laws of
each jurisdiction where the character of its property, the nature of its
business or the performance of its obligations under this Agreement makes
such qualification necessary, except where the failure to be so qualified
will not have a material adverse effect on its business or its ability to
perform its obligations under this Agreement or any other Transaction
Document to which it is a party or under the transactions contemplated
hereunder or thereunder or the validity or enforceability of any Timeshare
Loans.
(ii) Possession of Licenses, Certificates, Franchises and
Permits. It holds, and at all times during the term of this Agreement will
hold, all material licenses, certificates, franchises and permits from all
governmental authorities necessary for the conduct of its business, and
has received no notice of proceedings relating to the revocation of any
such license, certificate, franchise or permit, which singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding,
would materially and adversely affect its ability to perform its
obligations under this Agreement or any other Transaction Document to
which it is a party or under the transactions contemplated hereunder or
thereunder or the validity or enforceability of any Timeshare Loans.
(iii) Corporate Authority and Power. It has, and at all times
during the term of this Agreement will have, all requisite corporate power
and authority to own its properties, to conduct its business, to execute
and deliver this Agreement and all documents and transactions contemplated
hereunder and to perform all of its obligations under this Agreement and
any other Transaction Document to which it is a party or under the
transactions contemplated hereunder or thereunder. The Seller has all
requisite corporate power and authority to acquire, own, transfer and
convey Timeshare Loans to the Depositor.
(iv) Authorization, Execution and Delivery Valid and Binding.
This Agreement and all other Transaction Documents and instruments
required or contemplated hereby to be executed and delivered by the Seller
have been duly authorized, executed and delivered by the Seller and,
assuming the due execution and delivery by, the other party or parties
hereto and thereto, constitute legal, valid and binding agreements
enforceable against the Seller in accordance with their respective terms
subject, as to enforceability, to bankruptcy, insolvency, reorganization,
liquidation, dissolution, moratorium and other similar applicable laws
affecting the enforceability of creditors' rights generally applicable in
the event of the bankruptcy, insolvency, reorganization, liquidation or
dissolution, as applicable, of the Seller and to general principles of
equity, regardless of whether such enforceability shall be considered in a
proceeding in equity or at law. This Agreement constitutes a valid
transfer of the Seller's interest in the Subsequent Timeshare Loans to the
Depositor or, in the event of the characterization of any such transfer as
a loan, the valid creation of a first priority perfected security interest
in such Timeshare Loans in favor of the Depositor.
(v) No Violation of Law, Rule, Regulation, etc. The execution,
delivery and performance by the Seller of this Agreement and any other
Transaction Document to which it is a party do not and will not (A)
violate any of the provisions of its articles of incorporation or bylaws,
(B) violate any provision of any law, governmental rule or regulation
currently in effect applicable to it or its properties or by which the
Seller or its properties may be bound or affected, including, without
limitation, any bulk transfer laws, where such violation would have a
material adverse effect on its ability to perform its obligations under
this Agreement or any other Transaction Document to which it is a party or
under the transactions contemplated hereunder or thereunder or the
validity or enforceability of the Timeshare Loans, (C) violate any
judgment, decree, writ, injunction, award, determination or order
currently in effect applicable to it or its properties or by which the
Seller or its properties are bound or affected, where such violation would
have a material adverse effect on its ability to perform its obligations
under this Agreement or any other Transaction Document to which it is a
party or under the transactions contemplated hereunder or thereunder or
the validity or enforceability of any Timeshare Loans, (D) conflict with,
or result in a breach of, or constitute a default under, any of the
provisions of any indenture, mortgage, deed of trust, contract or other
instrument to which it is a party or by which it is bound where such
violation would have a material adverse effect on its ability to perform
its obligations under this Agreement or any other Transaction Document to
which it is a party or under the transactions contemplated hereunder or
thereunder or the validity or enforceability of Timeshare Loans or (E)
result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, mortgage, deed of
trust, contract or other instrument.
(vi) Governmental Consent. No consent, approval, order or
authorization of, and no filing with or notice to, any court or other
Governmental Authority in respect of the Seller is required which has not
been obtained in connection with the authorization, execution, delivery or
performance by the Seller of this Agreement or any of the other
Transaction Documents to which it is a party or under the transactions
contemplated hereunder or thereunder, including, without limitation, the
transfer of Timeshare Loans and the creation of the security interest of
the Depositor therein pursuant to Section 3 hereof.
(vii) Defaults. It is not in default under any material
agreement, contract, instrument or indenture to which it is a party or by
which it or its properties is or are bound, or with respect to any order
of any court, administrative agency, arbitrator or governmental body, in
each case, which would have a material adverse effect on the transactions
contemplated hereunder or on its business, operations, financial condition
or assets, and no event has occurred which with notice or lapse of time or
both would constitute such a default with respect to any such agreement,
contract, instrument or
indenture, or with respect to any such order of any court, administrative
agency, arbitrator or governmental body.
(viii) Insolvency. It is solvent and will not be rendered
insolvent by the transfer of any Timeshare Loans hereunder. On and after
the Closing Date, it will not engage in any business or transaction the
result of which would cause the property remaining with it to constitute
an unreasonably small amount of capital.
(ix) Pending Litigation or Other Proceedings. Other than as
described in the Offering Circular, there is no pending or, to the its
Knowledge, threatened action, suit, proceeding or investigation before any
court, administrative agency, arbitrator or governmental body against or
affecting it which, if decided adversely, would materially and adversely
affect (A) its condition (financial or otherwise), business or operations,
(B) its ability to perform its obligations under, or the validity or
enforceability of, this Agreement or any other documents or transactions
contemplated under this Agreement, (C) any Timeshare Loan or title of any
Obligor to any related Timeshare Property or (D) the Depositor's or any of
its assigns' ability to foreclose or otherwise enforce the liens of the
Mortgage Notes and the rights of the Obligors to use and occupy the
related Timeshare Properties.
(x) Information. No document, certificate or report furnished
or required to be furnished by or on behalf of the Seller pursuant to this
Agreement, in its capacity as Seller, contains or will contain when
furnished any untrue statement of a material fact or fails or will fail to
state a material fact necessary in order to make the statements contained
therein not misleading in light of the circumstances in which it was made.
There are no facts known to the Seller which, individually or in the
aggregate, materially adversely affect, or which (aside from general
economic trends) may reasonably be expected to materially adversely affect
in the future, the financial condition or assets or business of the
Seller, or which may impair the ability of the Seller to perform its
obligations under this Agreement, which have not been disclosed herein or
therein or in the certificates and other documents furnished to the
Depositor by or on behalf of the Seller specifically for use in connection
with the transactions contemplated hereby or thereby.
(xi) Foreign Tax Liability. It is not aware of any Obligor
under a Timeshare Loan who has withheld any portion of payments due under
such Timeshare Loan because of the requirements of a foreign taxing
authority, and no foreign taxing authority has contacted it concerning a
withholding or other foreign tax liability.
(xii) Employee Benefit Plan Liability. As of the Closing Date
and each Transfer Date, as applicable, (i) no "accumulated funding
deficiency" (as such term is defined under ERISA and the Code), whether or
not waived, exists with respect to any "employee pension benefit plan" (as
such term is defined under ERISA) sponsored, maintained or contributed to
by the Seller or any of its affiliates, and, to the Seller's knowledge, no
event has occurred or circumstance exists that may result in an
accumulated funding deficiency as of the last day of the current plan year
of any such
plan; (ii) the Seller and each of its affiliates has made all
contributions required under each multiemployer plan (as such term is
defined under ERISA) (a "Multiemployer Plan") to which the Seller or any
of its affiliates contributes or in which the Seller or any of its
affiliates participates (a "Seller Multiemployer Plan"); and (iii) neither
the Seller nor any of its affiliates has withdrawn from any Multiemployer
Plan with respect to which there is any outstanding liability and, to the
Seller's knowledge, no event has occurred or circumstance exists that
presents a risk of the occurrence of any withdrawal from, or the
partition, termination, reorganization or insolvency of, any Seller
Multiemployer Plan that could result in any liability to the Seller.
(xiii) Taxes. It has filed all tax returns (federal, state and
local) which it reasonably believes are required to be filed and has paid
or made adequate provision for the payment of all taxes, assessments and
other governmental charges due from it or is contesting any such tax,
assessment or other governmental charge in good faith through appropriate
proceedings or except where the failure to file or pay will not have a
material adverse effect on the rights and interests of the Depositor. It
knows of no basis for any material additional tax assessment for any
fiscal year for which adequate reserves have not been established. It
intends to pay all such taxes, assessments and governmental charges when
due.
(xiv) Place of Business. The principal place of business and
chief executive office where the Seller keeps its records concerning
Timeshare Loans will be 0000 Xxxxxxxxxx Xxx Xxxxx, Xxxxx 000, Xxxx Xxxxx,
Xxxxxxx 00000 (or such other place specified by the Seller by written
notice to the Depositor and the Indenture Trustee). The Seller is a
corporation formed under the laws of the Commonwealth of Massachusetts.
(xv) Securities Laws. It is not an "investment company" or a
company "controlled" by an "investment company" within the meaning of the
Investment Company Act of 1940, as amended. No portion of the Timeshare
Loan Acquisition Price for each of the Timeshare Loans will be used by it
to acquire any security in any transaction which is subject to Section 13
or Section 14 of the Securities Exchange Act of 1934, as amended.
(xvi) Bluegreen Vacation Club. With respect to the Club Loans:
(A) The Club Trust Agreement, of which a true and
correct copy is attached hereto as Exhibit B is in full force and
effect; and a certified copy of the Club Trust Agreement has been
delivered to the Indenture Trustee together with all amendments and
supplements in respect thereof;
(B) The arrangement of contractual rights and
obligations (duly established in accordance with the Club Trust
Agreement under the laws of the State of Florida) was established
for the purpose of holding and preserving certain property for the
benefit of the Beneficiaries referred to in the Club Trust
Agreement. The Club Trustee has all necessary trust and other
authorizations and powers required to carry out its obligations
under the Club Trust Agreement in the
State of Florida and in all other states in which it owns Resort
Interests. The Club is not a corporation or business trust under the
laws of the State of Florida. The Club is not taxable as an
association, corporation or business trust under federal law or the
laws of the State of Florida;
(C) The Club Trustee is a corporation duly formed,
validly existing and in good standing under the laws of the State of
Florida. The Club Trustee is authorized to transact business in no
other state. The Club Trustee is not an affiliate of the Servicer
for purposes of Chapter 721, Florida Statutes and is in compliance
with the requirements of such Chapter 721 requiring that it be
independent of the Servicer;
(D) The Club Trustee had all necessary corporate power
to execute and deliver, and has all necessary corporate power to
perform its obligations under this Agreement, the other Transaction
Documents to which it is a party, the Club Trust Agreement and the
Club Management Agreement. The Club Trustee possesses all requisite
franchises, operating rights, licenses, permits, consents,
authorizations, exemptions and orders as are necessary to discharge
its obligations under the Club Trust Agreement;
(E) The Club Trustee holds all right, title and interest
in and to all of the Timeshare Properties related to the Club Loans
solely for the benefit of the Beneficiaries referred to in, and
subject in each case to the provisions of, the Club Trust Agreement
and the other documents and agreements related thereto. Except with
respect to the Mortgages, the Club Trustee has permitted none of
such related Timeshare Loans to be made subject to any lien or
encumbrance during the time it has been a part of the trust estate
under the Club Trust Agreement;
(F) There are no actions, suits, proceedings, orders or
injunctions pending against the Club or the Club Trustee, at law or
in equity, or before or by any governmental authority which, if
adversely determined, could reasonably be expect to have a material
adverse effect on the Trust Estate or the Club Trustee's ability to
perform its obligations under the Transaction Documents;
(G) Neither the Club nor the Club Trustee has incurred
any indebtedness for borrowed money (directly, by guarantee, or
otherwise);
(H) All ad valorem taxes and other taxes and assessments
against the Club and/or its trust estate have been paid when due and
neither the Servicer nor the Club Trustee knows of any basis for any
additional taxes or assessments against any such property. The Club
has filed all required tax returns and has paid all taxes shown to
be due and payable on such returns, including all taxes in respect
of sales of Owner Beneficiary Rights (as defined in the Club Trust
Agreement) and Vacation Points;
(I) The Club and the Club Trustee are in compliance in
all material respects with all applicable laws, statutes, rules and
governmental regulations applicable to it and in compliance with
each material instrument, agreement or document to which it is a
party or by which it is bound, including, without limitation, the
Club Trust Agreement;
(J) Except as expressly permitted in the Club Trust
Agreement, the Club Trustee has maintained the One-to-One
Beneficiary to Accommodation Ratio (as such terms are defined in the
Club Trust Agreement);
(K) Bluegreen Vacation Club, Inc. is a non-stock
corporation duly formed, validly existing and in good standing under
the laws of the State of Florida;
(L) Upon purchase of the Club Loans and related Trust
Estate hereunder, the Depositor is an "Interest Holder Beneficiary"
under the Club Trust Agreement and each of the Club Loans
constitutes "Lien Debt", "Purchase Money Lien Debt" and "Owner
Beneficiary Obligations" under the Club Trust Agreement; and
(M) Except as disclosed to the Indenture Trustee in
writing, each Mortgage associated with a Club Loan and granted by
the Club Trustee or the Obligor on the related Club Loan, as
applicable, has been duly executed, delivered and recorded by or
pursuant to the instructions of the Club Trustee under the Club
Trust Agreement and such Mortgage is valid and binding and effective
to create the lien and security interests in favor of the Indenture
Trustee (upon assignment thereof to the Indenture Trustee). Each of
such Mortgages was granted in connection with the financing of a
sale of a Resort Interest.
(b) The Seller hereby makes the representations and warranties
relating to the Subsequent Timeshare Loans contained in Schedule I hereto for
the benefit of the Depositor, the Issuer and the Indenture Trustee for the
benefit of the Noteholders as of each Transfer Date (with respect to each
Subsequent Timeshare Loan or Qualified Substitute Timeshare Loan transferred on
such Transfer Date), as applicable.
(c) It is understood and agreed that the representations and
warranties set forth in this Section 5 shall survive the sale and contribution
of each Timeshare Loan to the Depositor and any assignment of such Timeshare
Loans by the Depositor and shall continue so long as any such Timeshare Loans
shall remain outstanding or until such time as such Timeshare Loans are
repurchased, purchased or a Qualified Substitute Timeshare Loan is provided
pursuant to Section 6 hereof. The Seller acknowledges that it has been advised
that the Depositor intends to assign all of its right, title and interest in and
to each Timeshare Loan and its rights and remedies under this Agreement to the
Issuer. The Seller agrees that, upon any such assignment, the Depositor and any
of its assignees may enforce directly, without joinder of the Depositor (but
subject to any defense that the Seller may have under this Agreement) all rights
and remedies hereunder.
(d) With respect to any representations and warranties contained in
Section 5 which are made to the Seller's Knowledge, if it is discovered that any
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of a Timeshare Loan or the interests of the
Depositor or any subsequent assignee thereof, then notwithstanding such lack of
Knowledge of the accuracy of such representation and warranty at the time such
representation or warranty was made (without regard to any Knowledge
qualifiers), such inaccuracy shall be deemed a breach of such representation or
warranty for purposes of the repurchase or substitution obligations described in
Sections 6(a)(i) or (ii) below.
SECTION 6. Repurchases and Substitutions.
(a) Mandatory Repurchases and Substitutions for Breaches of
Representations and Warranties. Upon the receipt of notice by the Seller of a
breach of any of the representations and warranties in Section 5 hereof (on the
date on which such representation or warranty was made) which materially and
adversely affects the value of a Subsequent Timeshare Loan or the interests of
the Depositor or any subsequent assignee of the Depositor (including the Issuer
and the Indenture Trustee on behalf of the Noteholders) therein, the Seller
shall, within 60 days of receipt of such notice, cure in all material respects
the circumstance or condition which has caused such representation or warranty
to be incorrect or either (i) repurchase the Depositor's interest in such
Defective Timeshare Loan from the Depositor at the Repurchase Price or (ii)
provide one or more Qualified Substitute Timeshare Loans and pay the related
Substitution Shortfall Amounts, if any. (b) Optional Purchases or Substitutions
of Club Loans. The Depositor hereby irrevocably grants to the Seller any options
to repurchase or substitute Original Club Loans it has under the Sale Agreement,
the Transfer Agreement and as described in the following sentence. With respect
any Original Club Loans for which the Seller and the related Obligor have
elected to effect an Upgrade, the Seller will (at its option) either (i) pay the
Repurchase Price for such Original Club Loan or (ii) substitute one or more
Qualified Substitute Timeshare Loans for such Original Club Loan and pay the
related Substitution Shortfall Amounts, if any; provided, however, that the
Seller's option to substitute one or more Qualified Substitute Timeshare Loan
for an Original Club Loan is limited on any date to (x) 20% of Aggregate Closing
Date Collateral Balance less (y) the Loan Balances of all Original Club Loans
previously substituted by the Seller on the related substitution dates pursuant
to this Agreement, the Sale Agreement and/or the Transfer Agreement. The Seller
shall use best efforts to exercise its substitution option with respect to
Original Club Loans prior to exercise of its repurchase option. To the extent
that the Seller shall elect to substitute Qualified Substitute Timeshare Loans
for an Original Club Loan, the Seller shall use best efforts to cause each such
Qualified Substitute Timeshare Loan to be, in the following order of priority,
(i) the Upgrade Club Loan related to such Original Club Loan and (ii) an Upgrade
Club Loan unrelated to such Original Club Loan.
(c) Optional Purchases or Substitutions of Defaulted Timeshare
Loans. The depositor hereby irrevocably grants to the Seller any options to
repurchase or substitute Defaulted Club Loans it has under the Sale Agreement,
the Transfer Agreement and as described in the following sentence. With respect
to Defaulted Timeshare Loans on any date, the Seller will have the option, but
not the obligation, to either (i) purchase a related Defaulted Timeshare Loan
subject to the lien of the Indenture at the Repurchase Price for such related
Defaulted Timeshare Loan or (ii) substitute one or more Qualified Substitute
Timeshare Loans for such related Defaulted Timeshare Loan and pay the related
Substitution Shortfall Amounts, if any; provided, however, that the Seller's
option to purchase a related Defaulted Timeshare Loan or to substitute one or
more Qualified Substitute Timeshare Loans for a related Defaulted Timeshare Loan
is limited on any date to the Optional Purchase Limit and the Optional
Substitution Limit, respectively. The Seller may irrevocably waive its option to
purchase or substitute a related Defaulted Timeshare Loan by delivering to the
Indenture Trustee a Waiver Letter in the form of Exhibit A attached hereto.
(d) Payment of Repurchase Prices and Substitution Shortfall Amounts.
The Seller hereby agrees to remit or cause to be remitted all amounts in respect
of Repurchase Prices and Substitution Shortfall Amounts payable during the
related Due Period in immediately available funds to the Indenture Trustee to be
deposited in the Collection Account on the related Transfer Date in accordance
with the provisions of the Indenture. In the event that more than one Subsequent
Timeshare Loan is replaced pursuant to Sections 6(a), (b) or (c) hereof on any
Transfer Date, the Substitution Shortfall Amounts and the Loan Balances of
Qualified Substitute Timeshare Loans shall be calculated on an aggregate basis
for all substitutions made on such Transfer Date.
(e) Schedule of Timeshare Loans. The Seller hereby agrees, on each
date on which a Timeshare Loan has been repurchased, purchased or substituted,
to provide or cause to be provided to the Depositor, the Issuer and the
Indenture Trustee with a electronic supplement to Schedule III hereto and the
Schedule of Timeshare Loans reflecting the removal and/or substitution of
Subsequent Timeshare Loans and subjecting any Qualified Substitute Timeshare
Loans to the provisions of this Agreement.
(f) Qualified Substitute Timeshare Loans. On the related Transfer
Date, the Seller hereby agrees to deliver or to cause the delivery of the
Timeshare Loan Files relating to the Qualified Substitute Timeshare Loans to the
Indenture Trustee or to the Custodian, at the direction of the Indenture
Trustee, in accordance with the provisions of the Indenture. As of such related
Transfer Date, the Seller does hereby transfer, assign, sell and grant to the
Depositor, without recourse (except as provided in Section 6 and Section 8
hereof), any and all of the Seller's right, title and interest in and to (i)
each Qualified Substitute Timeshare Loan conveyed to the Depositor on such
Transfer Date, (ii) the Receivables in respect of the Qualified Substitute
Timeshare Loans due after the related Cut-Off Date, (iii) the related Timeshare
Loan Documents (excluding any rights as developer or declarant under the
Timeshare Declaration, the Timeshare Program Consumer Documents or the Timeshare
Program Governing Documents), (iv) all Related Security in respect of such
Qualified Substitute Timeshare Loans and (v) all income, payments, proceeds and
other benefits and rights related to any of the foregoing. Upon such sale, the
ownership of each Qualified Substitute Timeshare Loan and all collections
allocable to principal and interest thereon since the related Cut-Off Date and
all other property interests or rights conveyed pursuant to and referenced in
this Section 6(f) shall immediately vest in the Depositor, its successors and
assigns. The Seller shall not take any action inconsistent with such ownership
nor claim any ownership interest in any Qualified Substitute Timeshare Loan for
any purpose whatsoever other than consolidated financial and federal and state
income tax reporting.
The Seller agrees that such Qualified Substitute Timeshare Loans shall be
subject to the provisions of this Agreement and shall thereafter be deemed a
"Subsequent Timeshare Loan" for the purposes of this Agreement.
(g) Officer's Certificate for Qualified Substitute Timeshare Loans.
The Seller shall, on each related Transfer Date, certify or cause to be
certified in writing to the Depositor, the Issuer and the Indenture Trustee that
each new Timeshare Loan meets all the criteria of the definition of "Qualified
Substitute Timeshare Loan" and that (i) the Timeshare Loan Files for such
Qualified Substitute Timeshare Loans have been delivered to the Custodian, and
(ii) the Timeshare Loan Servicing Files for such Qualified Substitute Timeshare
Loans have been delivered to the Servicer.
(h) Subsequent Transfer Notices. The Seller shall, on each related
Transfer Date, deliver a Subsequent Transfer Notice in the form attached as
Exhibit J to the Indenture, as specified by Section 4.3 of the Indenture.
(i) Release. In connection with any repurchase, purchase or
substitution of one or more Subsequent Timeshare Loans contemplated by this
Section 6, upon satisfaction of the conditions contained in this Section 6, the
Depositor, the Issuer and the Indenture Trustee shall execute and deliver or
shall cause the execution and delivery of such releases and instruments of
transfer or assignment presented to it by the Seller, in each case without
recourse, as shall be necessary to vest in the Seller or its designee the legal
and beneficial ownership of such Subsequent Timeshare Loans. The Depositor, the
Issuer and the Indenture Trustee shall cause the Custodian to release the
related Timeshare Loan Files to the Seller or its designee and the Servicer to
release the related Timeshare Loan Servicing Files to the Seller or its
designee.
(j) Sole Remedy. It is understood and agreed that the obligations of
the Seller contained in Section 6(a) to cure a material breach, or to repurchase
or substitute Defective Timeshare Loans and the obligation of the Seller to
indemnify pursuant to Section 8, shall constitute the sole remedies available to
the Depositor or its subsequent assignees for the breaches of any its
representation or warranty contained in Section 5 and such remedies are not
intended to and do not constitute "credit recourse" to the Seller.
SECTION 7. Additional Covenants of the Seller. The Seller hereby
covenants and agrees with the Depositor as follows:
(a) It shall comply with all applicable laws, rules, regulations and
orders applicable to it and its business and properties except where the failure
to comply will not have a material adverse effect on its business or its ability
to perform its obligations under this Agreement or any other Transaction
Document to which it is a party or under the transactions contemplated hereunder
or thereunder or the validity or enforceability of the Timeshare Loans.
(b) It shall preserve and maintain its existence (corporate or
otherwise), rights, franchises and privileges in the jurisdiction of its
organization and except where the failure to so preserve and maintain will not
have a material adverse effect on its business or its ability to perform its
obligations under this Agreement or any other Transaction Document to which it
is a
party or under the transactions contemplated hereunder or thereunder or the
validity or enforceability of the Timeshare Loans.
(c) On each Transfer Date, as applicable, it shall indicate in its
and its Affiliates' computer files and other records that each Subsequent
Timeshare Loan has been sold to the Depositor.
(d) It shall respond to any inquiries with respect to ownership of a
Subsequent Timeshare Loan by stating that such Subsequent Timeshare Loan has
been sold to the Depositor and that the Depositor is the owner of such
Subsequent Timeshare Loan.
(e) On or prior to the Closing Date, it shall file or cause to be
filed, at its own expense, financing statements in favor of the Depositor, and,
if applicable, the Issuer and the Indenture Trustee on behalf of the
Noteholders, with respect to the Subsequent Timeshare Loans, in the form and
manner reasonably requested by the Depositor or its assigns. The Seller shall
deliver file-stamped copies of such financing statements to the Depositor, the
Issuer and the Indenture Trustee on behalf of the Noteholders.
(f) It agrees from time to time to, at its expense, promptly execute
and deliver all further instruments and documents, and to take all further
actions, that may be necessary, or that the Depositor, the Issuer or the
Indenture Trustee may reasonably request, to perfect, protect or more fully
evidence the sale and contribution of the Subsequent Timeshare Loans to the
Depositor, or to enable the Depositor to exercise and enforce its rights and
remedies hereunder or under any Subsequent Timeshare Loan including, but not
limited to, powers of attorney, UCC financing statements and assignments of
mortgage. It hereby appoints the Depositor, the Issuer and the Indenture Trustee
as attorneys-in-fact, which appointment is coupled with an interest and is
therefore irrevocable, to act on behalf and in the name of the Seller under this
Section 7(f).
(g) Any change in the legal name of the Seller and any use by it of
any tradename, fictitious name, assumed name or "doing business as" name
occurring after the Closing Date shall be promptly disclosed to the Depositor
and the Indenture Trustee in writing.
(h) Upon the discovery or receipt of notice by a Responsible Officer
of the Seller of a breach of any of its representations or warranties and
covenants contained herein, the Seller shall promptly disclose to the Depositor,
the Issuer and the Indenture Trustee, in reasonable detail, the nature of such
breach.
(i) In the event that the Seller shall receive any payments in
respect of a Subsequent Timeshare Loan after the Closing Date or Transfer Date,
as applicable (including any insurance proceeds that are not payable to the
related Obligor), the Seller shall, within two (2) Business Days of receipt,
transfer or cause to be transferred, such payments to the Lockbox Account.
(j) The Seller will keep its principal place of business and chief
executive office and the office where it keeps its records concerning the
Subsequent Timeshare Loans at the address of Bluegreen listed herein.
(k) In the event that the Seller or the Depositor or any assignee of
the Depositor should receive actual notice of any transfer taxes arising out of
the transfer, assignment and conveyance of a Subsequent Timeshare Loan to the
Depositor, on written demand by the Depositor, or upon the Seller otherwise
being given notice thereof, the Seller shall pay, and otherwise indemnify and
hold the Depositor, or any subsequent assignee harmless, on an after-tax basis,
from and against any and all such transfer taxes.
(l) The Seller authorizes the Depositor, the Issuer and the
Indenture Trustee to file continuation statements, and amendments thereto,
relating to the Subsequent Timeshare Loans and all payments made with regard to
the related Subsequent Timeshare Loans without the signature of the Seller where
permitted by law. A photocopy or other reproduction of this Agreement shall be
sufficient as a financing statement where permitted by law. The Depositor
confirms that it is not its present intention to file a photocopy or other
reproduction of this Agreement as a financing statement, but reserves the right
to do so if, in its good faith determination, there is at such time no
reasonable alternative remaining to it.
SECTION 8. Indemnification.
(a) The Seller agrees to indemnify the Depositor, the Issuer, the
Indenture Trustee, the Noteholders and the Initial Purchaser (collectively, the
"INDEMNIFIED PARTIES") against any and all claims, losses, liabilities,
(including reasonable legal fees and related costs) that the Depositor, the
Issuer, the Indenture Trustee, the Noteholders or the Initial Purchaser may
sustain directly related to any breach of the representations and warranties of
the Seller under Section 5 hereof (the "INDEMNIFIED AMOUNTS") excluding, however
(i) Indemnified Amounts to the extent resulting from the gross negligence or
willful misconduct on the part of such Indemnified Party; (ii) any recourse for
any uncollectible Subsequent Timeshare Loan not related to a breach of
representation or warranty; (iii) recourse to the Seller for a Defective
Timeshare Loan so long as the same is cured, substituted or repurchased pursuant
to Section 6 hereof, (iv) income, franchise or similar taxes by such Indemnified
Party arising out of or as a result of this Agreement or the transfer of the
Subsequent Timeshare Loans; (v) Indemnified Amounts attributable to any
violation by an Indemnified Party of any requirement of law related to an
Indemnified Party; or (vi) the operation or administration of the Indemnified
Party generally and not related to the enforcement of this Agreement. The Seller
shall (A) promptly notify the Depositor and the Indenture Trustee if a claim is
made by a third party with respect to this Agreement or the Subsequent Timeshare
Loans, and relating to (i) the failure by the Seller to perform its duties in
accordance with the terms of this Agreement or (ii) a breach of the Seller's
representations, covenants and warranties contained in this Agreement, (B)
assume (with the consent of the Depositor, the Issuer, the Indenture Trustee,
the Noteholders or the Initial Purchaser, as applicable, which consent shall not
be unreasonably withheld) the defense of any such claim and (C) pay all expenses
in connection therewith, including legal counsel fees and promptly pay,
discharge and satisfy any judgment, order or decree which may be entered against
it or the Depositor, the Issuer, the Indenture Trustee, the Noteholders or the
Initial Purchaser in respect of such claim. If the Seller shall have made any
indemnity payment pursuant to this Section 8 and the recipient thereafter
collects from another Person any amount relating to the matters covered by the
foregoing indemnity, the recipient shall promptly repay such amount to the
Seller.
(b) The obligations of the Seller under this Section 8 to indemnify
the Depositor, the Issuer, the Indenture Trustee, the Noteholders and the
Initial Purchaser shall survive the termination of this Agreement and continue
until the Notes are paid in full or otherwise released or discharged.
SECTION 9. No Proceedings. The Seller hereby agrees that it will
not, directly or indirectly, institute, or cause to be instituted, or join any
Person in instituting, against the Depositor or any Association, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy or similar law so long as
there shall not have elapsed one year plus one day since the latest maturing
Notes issued by the Issuer.
SECTION 10. Notices, Etc. All notices and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing and
mailed or telecommunicated, or delivered as to each party hereto, at its address
set forth below or at such other address as shall be designated by such party in
a written notice to the other parties hereto. All such notices and
communications shall not be effective until received by the party to whom such
notice or communication is addressed.
Seller
Bluegreen Corporation
0000 Xxxxxxxxxx Xxx Xxxxx, Xxxxx 000
Xxxx Xxxxx, Xxxxxxx 00000
Attention: Xxxxx Xxxx, Senior Vice President
Telecopier: (000) 000-0000
Depositor
Bluegreen Receivables Finance Corporation VIII
0000 Xxxxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxx Xxxxx, Xxxxxxx 00000
Attention: Xxxxx Xxxxx, President
Telecopier: (000) 000-0000
SECTION 11. No Waiver; Remedies. No failure on the part of the
Seller, the Depositor or any assignee thereof to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any other remedies provided by law.
SECTION 12. Binding Effect; Assignability. This Agreement shall be
binding upon and inure to the benefit of the Depositor and their respective
successors and assigns. Any assignee of the Depositor shall be an express third
party beneficiary of this Agreement, entitled to directly enforce this
Agreement. The Seller may not assign any of its rights and obligations hereunder
or any interest herein without the prior written consent of the Depositor and
any
assignee thereof. The Depositor may, and intends to, assign all of its rights
hereunder to the Issuer and the Seller consents to any such assignment. This
Agreement shall create and constitute the continuing obligations of the parties
hereto in accordance with its terms, and shall remain in full force and effect
until its termination; provided, however, that the rights and remedies with
respect to any breach of any representation and warranty made by the Seller
pursuant to Section 5 and the repurchase or substitution and indemnification
obligations shall be continuing and shall survive any termination of this
Agreement but such rights and remedies may be enforced only by the Depositor,
the Issuer and the Indenture Trustee.
SECTION 13. Amendments; Consents and Waivers. No modification,
amendment or waiver of, or with respect to, any provision of this Agreement, and
all other agreements, instruments and documents delivered thereto, nor consent
to any departure by the Seller from any of the terms or conditions thereof shall
be effective unless it shall be in writing and signed by each of the parties
hereto, the written consent of the Indenture Trustee on behalf of the
Noteholders is given and confirmation from the Rating Agencies that such action
will not result in a downgrade, withdrawal or qualification of any rating
assigned to a Class of Notes is received. The Seller shall provide the Indenture
Trustee and the Rating Agencies with such proposed modifications, amendments or
waivers. Any waiver or consent shall be effective only in the specific instance
and for the purpose for which given. No consent to or demand by the Seller in
any case shall, in itself, entitle it to any other consent or further notice or
demand in similar or other circumstances. The Seller acknowledges that in
connection with the intended assignment by the Depositor of all of its right,
title and interest in and to each Timeshare Loan to the Issuer, the Issuer
intends to issue the Notes, the proceeds of which will be used by the Issuer to
purchase the Timeshare Loans from the Depositor under the terms of the Sale
Agreement.
SECTION 14. Severability. In case any provision in or obligation
under this Agreement shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation, shall not in any
way be affected or impaired thereby in any other jurisdiction. Without limiting
the generality of the foregoing, in the event that a Governmental Authority
determines that the Depositor may not purchase or acquire Timeshare Loans, the
transactions evidenced hereby shall constitute a loan and not a purchase and
sale and contribution to capital, notwithstanding the otherwise applicable
intent of the parties hereto, and the Seller shall be deemed to have granted to
the Depositor as of the date hereof, a first priority perfected security
interest in all of the Seller's right, title and interest in, to and under such
Timeshare Loans and the related property as described in Section 2 hereof.
SECTION 15. GOVERNING LAW; CONSENT TO JURISDICTION.
(A) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS
PRINCIPLES OF CONFLICTS OF LAW.
(B) THE PARTIES TO THIS AGREEMENT HEREBY SUBMIT TO THE
NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES DISTRICT COURT LOCATED IN THE
BOROUGH OF MANHATTAN IN NEW YORK CITY AND EACH PARTY WAIVES PERSONAL
SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE
OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH ON
THE SIGNATURE PAGE HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE
COMPLETED FIVE DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S.
MAILS, POSTAGE PREPAID. THE PARTIES HERETO EACH WAIVES ANY OBJECTION BASED
ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS
SECTION 15 SHALL AFFECT THE RIGHT OF THE parties to this agreement TO
SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE
RIGHT OF ANY OF THEM TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF
ANY OTHER JURISDICTION.
SECTION 16. Heading. The headings herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.
SECTION 17. Execution in Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and both of which when taken together
shall constitute one and the same agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective officers thereunto duty authorized, as of the date
first above written.
Very truly yours,
BLUEGREEN RECEIVABLES FINANCE
CORPORATION VIII, as Depositor
By: /S/ XXXXX X. XXXX
Printed Name: Xxxxx X. Xxxx
Title: Vice President and Assistant Secretary
BLUEGREEN CORPORATION, as Seller
By: /S/ XXXX X. XXXXXX
Printed Name: Xxxx X. Xxxxxx
Title: Senior Vice President, Chief Financial
Officer and Treasurer
Agreed and acknowledged as
to the last paragraph of Section 3
herein only:
BLUEGREEN VACATION CLUB TRUST
By: Vacation Trust, Inc., Individually and as Club Trustee
By: /S/ XXXXX X. XXXXX
Printed Name: Xxxxx X. Xxxxx
Title: Secretary/Treasurer
[Signature Page to the Purchase and Contribution Agreement]
SCHEDULE I
Representations and Warranties of the Seller Regarding the Timeshare Loans
With respect to each Timeshare Loan, as of the related Transfer Date:
(a) except if such Timeshare Loan is listed on Schedule II(a) hereto,
payments due under the Timeshare Loan are fully-amortizing and
payable in level monthly installments;
(b) payment obligations under the Timeshare Loan bear a fixed rate of
interest;
(c) the Obligor thereunder has made a down payment by cash, check or
credit card of at least 10% percent of the actual purchase price
(including closing costs) of the Timeshare Property (which cash down
payment may, in the case of Upgraded Club Loans only, be represented
by the principal payments on such Timeshare Loan since its date of
origination) and no part of such payment has been made or loaned to
Obligor by Bluegreen or an Affiliate thereof;
(d) as of the related Cut-Off Date, no principal or interest due with
respect to the Timeshare Loan is sixty (60) days or more Delinquent;
(e) the Obligor is not an Affiliate of Bluegreen or any Subsidiary;
provided, that solely for the purposes of this representation, a
relative of an employee and employees of Bluegreen or any Subsidiary
(or any of its Affiliates) shall not be deemed to be an "Affiliate";
(f) immediately prior to the conveyance of the Timeshare Loan to the
Depositor, the Seller will own full legal and equitable title to
such Timeshare Loan, and the Timeshare Loan (and the related
Timeshare Property) is free and clear of adverse claims, liens and
encumbrances and is not subject to claims of rescission, invalidity,
unenforceability, illegality, defense, offset, abatement,
diminution, recoupment, counterclaim or participation or ownership
interest in favor of any other Person;
(g) the Timeshare Loan (other than an Aruba Loan) is secured directly by
a first priority Mortgage on the related purchased Timeshare
Property;
(h) with respect to each Club Loan, the Timeshare Property mortgaged by
or at the direction of the related Obligor constitutes a fractional
fee simple timeshare interest in real property at the related Resort
that entitles the holder of the interest to the use of a specific
property for a specified number of days each year or every other
year; the related Mortgage has been delivered for filing and
recordation with all appropriate governmental authorities in all
jurisdictions in which such Mortgage is required to be filed and
recorded to create a valid, binding and enforceable first Lien on
the related Timeshare Property and such Mortgage
creates a valid, binding and enforceable first Lien on the related
Timeshare Property, subject only to Permitted Liens; and the Seller
is in compliance with any Permitted Lien respecting the right to the
use of such Timeshare Property; each of the Assignments of Mortgage
and each related endorsement of the related Mortgage Note
constitutes a duly executed, legal, valid, binding and enforceable
assignment or endorsement, as the case may be, of such related
Mortgage and related Mortgage Note, and all monies due or to become
due thereunder, and all proceeds thereof;
(i) with respect to the Obligor and a particular Timeshare Property
purchased by such Obligor, there is only one original Mortgage and
Mortgage Note, in the case of a Club Loan, and, only one Finance
Agreement, in the case of an Aruba Loan; all parties to the related
Mortgage and the related Mortgage Note (and, in the case of an Aruba
Loan, Finance Agreement) had legal capacity to enter into such
Timeshare Loan Documents and to execute and deliver such related
Timeshare Loan Documents, and such related Timeshare Loan Documents
have been duly and properly executed by such parties; any amendments
to such related Timeshare Loan Documents required as a result of any
mergers involving the Seller or its predecessors, to maintain the
rights of the Seller or its predecessors thereunder as a mortgagee
(or a Seller, in the case of the Aruba Loan) have been completed;
(j) at the time the related Originator originated such Timeshare Loan to
the related Obligor, such Originator had full power and authority to
originate such Timeshare Loan and the Obligor had good and
indefeasible fee title or good and marketable fee simple title, or,
in the case of an Aruba Loan, a cooperative interest, as applicable,
to the Timeshare Property related to such Timeshare Loan, free and
clear of all Liens, except for Permitted Liens;
(k) the related Mortgage (or, in the case of an Aruba Loan, the related
Finance Agreement) contains customary and enforceable provisions so
as to render the rights and remedies of the holder thereof adequate
for the realization against the related Timeshare Property of the
benefits of the security interests or lender's contractual rights
intended to be provided thereby, including (a) if the Mortgage is a
deed of trust, by trustee's sale, including power of sale, (b)
otherwise by judicial foreclosure or power of sale and/or (c)
termination of the contract, forfeiture of Obligor deposits and
payments towards the related Timeshare Loan and expulsion from the
related Association; in the case of the Club Loans, there is no
exemption available to the related Obligor which would interfere
with the mortgagee's right to sell at a trustee's sale or power of
sale or right to foreclose such related Mortgage, as applicable;
(l) the related Mortgage Note is not and has not been secured by any
collateral except the Lien of the related Mortgage;
(m) if a Mortgage secures a Timeshare Loan, the title to the related
Timeshare Property is insured (or a binding commitment for title
insurance, not subject to
any conditions other than standard conditions applicable to all
binding commitments, has been issued) under a mortgagee title
insurance policy issued by a title insurer qualified to do business
in the jurisdiction where the related Timeshare Property is located
in a form generally acceptable to prudent originators of similar
mortgage loans, insuring the Seller or its predecessor and its
successors and assigns, as to the first priority mortgage Lien of
the related Mortgage in an amount equal to the outstanding Loan
Balance of such Timeshare Loan, and otherwise in form and substance
acceptable to the Indenture Trustee; the Seller or its assignees is
a named insured of such mortgagee's title insurance policy; such
mortgagee's title insurance policy is in full force and effect; no
claims have been made under such mortgagee's title insurance policy
and no prior holder of such Timeshare Loan has done or omitted to do
anything which would impair the coverage of such mortgagee's title
insurance policy; no premiums for such mortgagee's title insurance
policy, endorsements and all special endorsements are past due;
(n) the Seller has not taken (or omitted to take), and has no notice
that the related Obligor has taken (or omitted to take), any action
that would impair or invalidate the coverage provided by any hazard,
title or other insurance policy on the related Timeshare Property;
(o) all applicable intangible taxes and documentary stamp taxes were
paid as to the related Timeshare Loan;
(p) the proceeds of the Timeshare Loan have been fully disbursed, there
is no obligation to make future advances or to lend additional funds
under the originator's commitment or the documents and instruments
evidencing or securing the Timeshare Loan and no such advances or
loans have been made since the origination of the Timeshare Loan;
(q) the terms of each Timeshare Loan Document has not been impaired,
waived, altered or modified in any respect, except (x) by written
instruments which are part of the related Timeshare Loan Documents
or (y) in accordance with the Credit Policy or the Servicing
Standard (provided that no Timeshare Loan has been impaired, waived,
altered, or modified in any respect more than once). No other
instrument has been executed or agreed to which would effect any
such impairment, waiver, alteration or modification; the Obligor has
not been released from liability on or with respect to the Timeshare
Loan, in whole or in part; if required by law or prudent originators
of similar loans in the jurisdiction where the related Timeshare
Property is located, all waivers, alterations and modifications have
been filed and/or recorded in all places necessary to perfect,
maintain and continue a valid first priority Lien of the related
Mortgage, subject only to Permitted Liens;
(r) other than if it is an Aruba Loan, the Timeshare Loan is principally
and directly secured by an interest in real property;
(s) the Timeshare Loan was originated by one of the Seller's Affiliates
in the normal course of its business; the Timeshare Loan originated
by the Seller's Affiliates was underwritten in accordance with its
underwriting guidelines; to the Seller's Knowledge, the origination,
servicing and collection practices used by the Seller's Affiliates
with respect to the Timeshare Loan have been in all respects, legal,
proper, prudent and customary;
(t) the related Timeshare Loan is assignable to and by the obligee and
its successors and assigns and the related Timeshare Property is
assignable upon liquidation of the related Timeshare Loan, without
the consent of any other Person (including any Association,
condominium association, homeowners' or timeshare association);
(u) the related Mortgage is and will be prior to any Lien on, or other
interests relating to, the related Timeshare Property;
(v) to the Seller's Knowledge, there are no delinquent or unpaid taxes,
ground rents (if any), water charges, sewer rents or assessments
outstanding with respect to any of the Timeshare Properties, nor any
other outstanding Liens or charges affecting the Timeshare
Properties that would result in the imposition of a Lien on the
Timeshare Property affecting the Lien of the related Mortgage or
otherwise materially affecting the interests of the Indenture
Trustee on behalf of the Noteholders in the related Timeshare Loan;
(w) other than with respect to delinquent payments of principal or
interest 60 (sixty) or fewer days past due as of the Cut-Off Date,
there is no default, breach, violation or event of acceleration
existing under the Mortgage, the related Mortgage Note or any other
document or instrument evidencing, guaranteeing, insuring or
otherwise securing the related Timeshare Loan, and no event which,
with the lapse of time or with notice and the expiration of any
grace or cure period, would constitute a material default, breach,
violation or event of acceleration thereunder; and the Seller has
not waived any such material default, breach, violation or event of
acceleration under the Finance Agreement, Mortgage, the Mortgage
Note or any such other document or instrument, as applicable;
(x) neither the Obligor nor any other Person has the right, by statute,
contract or otherwise, to seek the partition of the Timeshare
Property;
(y) the Timeshare Loan has not been satisfied, canceled, rescinded or
subordinated, in whole or in part; no portion of the Timeshare
Property has been released from the Lien of the related Mortgage, in
whole or in part; no instrument has been executed that would effect
any such satisfaction, cancellation, rescission, subordination or
release; the terms of the related Mortgage do not provide for a
release of any portion of the Timeshare Property from the Lien of
the related Mortgage except upon the payment of the Timeshare Loan
in full;
(z) the Seller and any of its Affiliates and, to the Seller's Knowledge,
each other party which has had an interest in the Timeshare Loan is
(or, during the period in which such party held and disposed of such
interest, was) in compliance with any and all applicable filing,
licensing and "doing business" requirements of the laws of the state
wherein the Timeshare Property is located to the extent necessary to
permit the Seller to maintain or defend actions or proceedings with
respect to the Timeshare Loan in all appropriate forums in such
state without any further act on the part of any such party;
(aa) there is no current obligation on the part of any other person
(including any buy down arrangement) to make payments on behalf of
the Obligor in respect of the Timeshare Loan;
(bb) the related Association was duly organized and are validly existing;
a manager (the "MANAGER") manages such Resort and performs services
for the Associations, pursuant to an agreement between the Manager
and the respective Associations, such contract being in full force
and effect; to the Seller's Knowledge the Manager and the
Associations have performed in all material respects all obligations
under such agreement and are not in default under such agreement;
(cc) in the case of Bluegreen Owned Resorts (other than La Cabana Resort
and Casa Del Mar Resort) and to the Seller's Knowledge with respect
to the Non-Bluegreen Owned Resorts and La Cabana Resort and Casa Del
Mar Resort, (i) the related Resort is insured in the event of fire,
earthquake, or other casualty for the full replacement value
thereof, and in the event that the Timeshare Property should suffer
any loss covered by casualty or other insurance, upon receipt of any
insurance proceeds, the Associations at the Resorts are required,
during the time such Timeshare Property is covered by such
insurance, under the applicable governing instruments either to
repair or rebuild the portions of the Timeshare Project in which the
Timeshare Property is located or to pay such proceeds to the holders
of any related Mortgage secured by a timeshare estate in the
portions of the Timeshare Project in which the Timeshare Property is
located; (ii) the related Resort, if located in a designated flood
plain, maintains flood insurance in an amount not less than the
maximum level available under the National Flood Insurance Act of
1968, as amended or any applicable laws; (iii) the related Resort
has business interruption insurance and general liability insurance
in such amounts generally acceptable in the industry; and (iv) the
related Resort's insurance policies are in full force and effect
with a generally acceptable insurance carrier;
(dd) the related Mortgage gives the obligee and its successors and
assigns the right to receive and direct the application of insurance
and condemnation proceeds received in respect of the related
Timeshare Property, except where the related condominium
declarations, timeshare declarations or applicable state law provide
that insurance and condemnation proceeds be applied to restoration
of the improvements;
(ee) each rescission period applicable to the related Timeshare Loan has
expired;
(ff) no selection procedures were intentionally utilized by the Seller in
selecting the Timeshare Loan which the Seller knew were materially
adverse to the Depositor, the Indenture Trustee or the Noteholders;
(gg) the Units related to the Timeshare Loan in the related Resort have
been completed in all material respects as required by applicable
state and local laws, free of all defects that could give rise to
any claims by the related Obligors under home warranties or
applicable laws or regulations, whether or not such claims would
create valid offset rights under the law of the State in which the
Resort is located; to the extent required by applicable law, valid
certificates of occupancy for such Units have been issued and are
currently outstanding; the Seller or any of its Affiliates have
complied in all material respects with all obligations and duties
incumbent upon the developers under the related timeshare
declaration (each a "DECLARATION"), as applicable, or similar
applicable documents for the related Resort; no practice, procedure
or policy employed by the related Association in the conduct of its
business violates any law, regulation, judgment or agreement,
including, without limitation, those relating to zoning, building,
use and occupancy, fire, health, sanitation, air pollution,
ecological, environmental and toxic wastes, applicable to such
Association which, if enforced, would reasonably be expected to (a)
have a material adverse impact on such Association or the ability of
such Association to do business, (b) have a material adverse impact
on the financial condition of such Association, or (c) constitute
grounds for the revocation of any license, charter, permit or
registration which is material to the conduct of the business of
such Association; the related Resort and the present use thereof
does not violate any applicable environmental, zoning or building
laws, ordinances, rules or regulations of any governmental
authority, or any covenants or restrictions of record, so as to
materially adversely affect the value or use of such Resort or the
performance by the related Association of its obligations pursuant
to and as contemplated by the terms and provisions of the related
Declaration; there is no condition presently existing, and to the
Seller's Knowledge, no event has occurred or failed to occur prior
to the date hereof, concerning the related Resort relating to any
hazardous or toxic materials or condition, asbestos or other
environmental or similar matters which would reasonably be expected
to materially and adversely affect the present use of such Resort or
the financial condition or business operations of the related
Association, or the value of the Notes;
(hh) except if such Timeshare Loan is listed on Schedule II(hh) hereto,
the original Loan Balance of such Timeshare Loan does not exceed
$25,000;
(ii) payments with respect to the Timeshare Loan are to be in legal
tender of the United States;
(jj) all monthly payments made on the Timeshare Loan have been made by
the Obligor and not by the Seller or any Affiliate of the Seller on
the Obligor's behalf;
(kk) the Timeshare Loan relates to a Resort;
(ll) the Timeshare Loan constitutes either "chattel paper", a "general
intangible" or an "instrument" as defined in the UCC as in effect in
all applicable jurisdictions;
(mm) the sale, transfer and assignment of the Timeshare Loan and the
Related Security does not contravene or conflict with any law, rule
or regulation or any contractual or other restriction, limitation or
encumbrance, and the sale, transfer and assignment of the Timeshare
Loan and Related Security does not require the consent of the
Obligor;
(nn) each of the Timeshare Loan, the Related Security, related Assignment
of Mortgage, related Mortgage, related Mortgage Note, related
Finance Agreement and each other related Timeshare Loan Document are
in full force and effect, constitute the legal, valid and binding
obligation of the Obligor thereof enforceable against such Obligor
in accordance with its terms subject to the effect of bankruptcy,
fraudulent conveyance or transfer, insolvency, reorganization,
assignment, liquidation, conservatorship or moratorium, and is not
subject to any dispute, offset, counterclaim or defense whatsoever;
(oo) the Timeshare Loan relates to a Completed Unit and the Related
Security do not, and the origination of each Timeshare Loan did not,
contravene in any material respect any laws, rules or regulations
applicable thereto (including, without limitation, laws, rules and
regulations relating to usury, retail installment sales, truth in
lending, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy) and with respect to which no party
thereto has been or is in violation of any such law, rule or
regulation in any material respect if such violation would impair
the collectibility of such Timeshare Loan and the Related Security;
no Timeshare Loan was originated in, or is subject to the laws of,
any jurisdiction under which the sale, transfer, conveyance or
assignment of such Timeshare Loan would be unlawful, void or
voidable;
(pp) to the Seller's Knowledge, (i) no bankruptcy is currently existing
with respect to the Obligor, (ii) the Obligor is not insolvent and
(iii) the Obligor is not an Affiliate of the Seller;
(qq) except if such Timeshare Loan is listed on Schedule II(qq) hereto,
the Timeshare Loan shall not have a Timeshare Loan Rate less than 6%
per annum;
(rr) except if such Timeshare Loan is listed on Schedule II(rr) hereto,
the Obligor has made at least two (2) month's aggregate required
payments with respect to the Timeshare Loan (not including any down
payment);
(ss) if a Resort (other than the La Cabana Beach Resort & Racquet Club in
Aruba) is subject to a construction loan, the construction lender
shall have signed and delivered a non-disturbance agreement (which
may be contained in such lender's mortgage) pursuant to which such
construction lender agrees not to foreclose on any Timeshare
Properties relating to a Timeshare Loan which have been sold
pursuant to this Agreement;
(tt) the Timeshare Properties and the related Resorts are free of
material damage and waste and are in good repair and fully
operational; there is no proceeding pending or threatened for the
total or partial condemnation of or affecting any Timeshare Property
or taking of the Timeshare Property by eminent domain; the Timeshare
Properties and the Resorts in which the Timeshare Properties are
located are lawfully used and occupied under applicable law by the
owner thereof;
(uu) the portions of the Resorts in which the Timeshare Properties are
located which represent the common facilities are free of material
damage and waste and are in good repair and condition, ordinary wear
and tear excepted;
(vv) no foreclosure or similar proceedings have been instituted and are
continuing with respect to any Timeshare Loan or the related
Timeshare Property;
(ww) with respect to the Aruba Loans only, Bluegreen shall own, directly
or indirectly, 100% of the economic and voting interests of the
Aruba Originator.;
(xx) the Timeshare Loan does not have an original term to maturity in
excess of 120 months;
(yy) to the Seller's Knowledge, the capital reserves and maintenance fee
levels of the Associations related to the Resorts are adequate in
light of the operating requirements of such Associations;
(zz) except as required by law, the Timeshare Loan may not be assumed
without the consent of the obligee;
(aaa) for each Club Loan, the Obligor under the Timeshare Loan has not had
its rights under the Club Trust Agreement suspended;
(bbb) the payments under the Timeshare Loan are not subject to withholding
taxes imposed by any foreign governments;
(ccc) each entry with respect to the Timeshare Loan as set forth on
Schedule II and Schedule III hereof is true and correct. Each entry
with respect to a Qualified
Substitute Timeshare Loan as set forth on Schedule II and Schedule
III hereof, as revised, is true and correct;
(ddd) If the Timeshare Loan relates to a Timeshare Property located in
Aruba, a notice has been mailed or will be mailed within 30 days of
the related Transfer Date, as applicable, to the related Obligor
indicating that such Timeshare Loan has been transferred to the
Depositor and will ultimately be transferred to the Issuer and
pledged to the Indenture Trustee for the benefit of the Noteholders;
and
(eee) No broker is, or will be, entitled to any commission or compensation
in connection with the transfer of the Timeshare Loans hereunder.
(fff) if the related Obligor is paying its scheduled payments by
pre-authorized debit or charge, such Obligor has executed an ACH
Form substantially in the form attached hereto as Exhibit C.
(ggg) the Timeshare Loan, when aggregated with all Timeshare Loans sold to
the Depositor pursuant to this Agreement, satisfies the criteria for
Subsequent Timeshare Loans specified in Section 4.3 of the
Indenture.
(hhh) if the Timeshare Loan is an Aruba Loan, such Timeshare Loan was
originated prior to January 26, 2004.
