SERVICING SUPPLEMENT to the AMENDED AND RESTATED SERVICING AGREEMENT Dated as of December 1, 2006 among FORD MOTOR CREDIT COMPANY LLC, as Servicer with respect to the Collateral Specified Interests and the 20_-__ Reference Pool and as Lender, CAB EAST...
Exhibit 10.5
SERVICING SUPPLEMENT
to the
AMENDED AND RESTATED SERVICING AGREEMENT
Dated as of December 1, 2006
among
FORD MOTOR CREDIT COMPANY LLC,
as Servicer with respect to the Collateral Specified Interests
and the 20_-__ Reference Pool and as Lender,
as Servicer with respect to the Collateral Specified Interests
and the 20_-__ Reference Pool and as Lender,
CAB EAST HOLDINGS, LLC and
CAB WEST HOLDINGS CORPORATION
as Holders of the Collateral Specified Interest Certificates
CAB WEST HOLDINGS CORPORATION
as Holders of the Collateral Specified Interest Certificates
and
HTD LEASING LLC,
as Collateral Agent
as Collateral Agent
Dated as of _______, 20__
TABLE OF CONTENTS
ARTICLE I USAGE AND DEFINITIONS |
1 | |||
Section 1.1. Usage and Definitions |
1 | |||
ARTICLE II DESIGNATION |
2 | |||
Section 2.1. Designation |
2 | |||
ARTICLE III THE SERVICER |
2 | |||
Section 3.1. Appointment of Servicer |
2 | |||
Section 3.2. Representations of the Servicer |
2 | |||
Section 3.3. Representations and Warranties About the Leases and the Leased Vehicles |
2 | |||
Section 3.4. Liability of the Servicer; Indemnities |
5 | |||
Section 3.5. Purchase Upon Breach |
5 | |||
Section 3.6. Collection of Payments |
6 | |||
Section 3.7. Servicer May Own Exchange Note and Notes |
6 | |||
Section 3.8. Fees and Expenses |
7 | |||
Section 3.9. Termination |
7 | |||
ARTICLE IV ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS |
8 | |||
Section 4.1. Bank Accounts |
8 | |||
Section 4.2. Remittance |
9 | |||
Section 4.3. Advances |
10 | |||
Section 4.4. Repayment of Advances |
11 | |||
Section 4.5. Trust Distribution Account |
11 | |||
ARTICLE V TERMINATION |
12 | |||
Section 5.1. Clean-Up Call |
12 | |||
ARTICLE VI REPORTS AND NOTICES |
12 | |||
Section 6.1. Monthly Investor Reports |
12 | |||
Section 6.2. Notices and Certificates Received by or Delivered by the Servicer Under the Servicing Agreement |
12 | |||
Section 6.3. Annual Statement as to Compliance |
12 | |||
Section 6.4. Compliance with Obligations under Xxxxxxxx-Xxxxx Act |
13 | |||
Section 6.5. Report on Assessment of Compliance with Servicing Criteria and Attestation |
13 | |||
ARTICLE VII MISCELLANEOUS |
14 | |||
Section 7.1. Amendments |
14 | |||
Section 7.2. Third-Party Beneficiaries of the Servicing Agreement and this Servicing Supplement |
14 | |||
Section 7.3. No Petition |
14 | |||
Section 7.4. GOVERNING LAW |
14 | |||
Section 7.5. SUBMISSION TO JURISDICTION |
15 | |||
Section 7.6. WAIVER OF JURY TRIAL |
15 |
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Section 7.7. Severability |
15 | |||
Section 7.8. Counterparts |
15 | |||
Section 7.9. Headings |
15 | |||
Section 7.10. Conflict with Servicing Agreement |
15 | |||
Section 7.11. List of Responsible Persons |
15 | |||
Exhibit A Schedule of Collateral Leases and Collateral Leased Vehicles in 20_-__ Reference Pool |
EA-1 | |||
Exhibit B Form of Monthly Investor Report |
EC-1 |
ii
SERVICING SUPPLEMENT, dated as of _______, 20__ (this “Servicing Supplement”), to the
Amended and Restated Servicing Agreement, dated as of December 1, 2006 (the “Servicing
Agreement”) among (i) FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company
(“Ford Credit”), as servicer with respect to the Collateral Specified Interests and the
20_-__ Reference Pool (in such capacity, the “Servicer”) and as Lender under the Credit and
Security Agreement (in such capacity, the “Lender”), (ii) CAB EAST HOLDINGS, LLC, a
Delaware limited liability company and CAB WEST HOLDINGS CORPORATION, a Delaware corporation
(together the “Holding Companies” and each a “Holding Company”), as Holders of the
Collateral Specified Interest Certificates and (iii) HTD Leasing LLC, as collateral agent (in such
capacity, the “Collateral Agent”).
BACKGROUND
Section 2.3 of the Servicing Agreement provides that in connection with the issuance of an
Exchange Note pursuant to the Credit and Security Agreement (as defined below) and the Exchange
Note Supplement (as defined below), the Servicer, the Lender, the Collateral Agent and each Holding
Company may enter into a supplement to the Servicing Agreement setting forth the specific rights
and duties of the Servicer and the other agreements and undertakings with respect to the
administration and servicing of the 20_-__ Reference Pool and the 20_-__ Exchange Note.
The Series 20_-__ Exchange Note will be issued and the 20_-__ Reference Pool will be
designated, each pursuant to the Credit and Security Agreement and the Exchange Note Supplement.
The parties wish to enter into this Servicing Supplement to set forth the additional duties
required of the Servicer with respect to the 20_-__ Reference Pool and the 20_-__ Exchange Note.
ARTICLE I
USAGE AND DEFINITIONS
USAGE AND DEFINITIONS
Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined in this Servicing Supplement are defined
in Appendix 1 to the Exchange Note Supplement (the “Exchange Note Supplement”) to the
Credit and Security Agreement (as defined below), dated as of _______, 20__, among CAB East LLC
(“CAB East”), as a Borrower and CAB West LLC (“CAB West” and together with CAB
East, the “Titling Companies”), as a Borrower, U.S. Bank National Association (“U.S.
Bank”), as Administrative Agent, the Collateral Agent, and Ford Credit, as Lender and Servicer.
Capitalized terms used but not otherwise defined in this Servicing Supplement or in Appendix 1 to
the Exchange Note Supplement are defined in Appendix A to the Amended and Restated Credit and
Security Agreement (the “Credit and Security Agreement”), dated as of December 1, 2006,
among the Titling Companies and FCALM, LLC, as Borrowers, U.S. Bank, as Administrative Agent, HTD,
as Collateral Agent and Ford Credit, as Lender and Servicer, or, if not defined in Appendix A, are
defined in the related Titling Company Agreement. Appendix 1 and Appendix A also contain rules as
to usage applicable to this Servicing Supplement and are incorporated by reference into this
Servicing Supplement.
ARTICLE II
DESIGNATION
DESIGNATION
Section 2.1. Designation. The parties designate the Collateral Leases and Collateral Leased Vehicles listed on
Exhibit A to be the “20_-__ Reference Pool” and each Collateral Lease and Collateral Leased
Vehicle included in the 20_-__ Reference Pool to be a “Lease” and a “Leased
Vehicle,” respectively.
ARTICLE III
THE SERVICER
THE SERVICER
Section 3.1. Appointment of Servicer. Each party acknowledges and agrees that the Servicer under the Servicing Agreement will
also act as Servicer under this Servicing Supplement with respect to the 20_-__ Reference Pool and
the 20_-__ Exchange Note and will also act as agent of any Holding Company, as Holder of the
related Collateral Specified Interest Certificate in the management and control of the Leases and
Leased Vehicles and for all other purposes set forth in this Servicing Supplement and the Servicing
Agreement. Ford Credit accepts such appointments.
Section 3.2. Representations of the Servicer. The Servicer has made the representations set forth in Section 3.2 of the Servicing
Agreement on which the Lender, the Holding Companies and the Collateral Agent have relied, and the
20_-__ Exchange Noteholder, in acquiring the 20_-__ Exchange Note, will rely. Such representations
are remade as of the Exchange Note Issuance Date and will survive the sale, transfer, assignment
and conveyance of the 20_-__ Exchange Note to the 20_-__ Exchange Noteholder, the Depositor and the
Issuer and the pledge of the 20_-__ Exchange Note to the Indenture Trustee pursuant to the
Indenture.
Section 3.3. Representations and Warranties About the Leases and the Leased Vehicles. The Servicer represents and warrants to the Depositor and the Issuer as of the date of this
Servicing Supplement and the 20_-__ Closing Date (except as otherwise specified), which
representations and warranties (i) the 20_-__ Exchange Noteholder, the Depositor and the Issuer
have relied on in acquiring the 20_-__ Exchange Note and (ii) will survive the sale of the 20_-__
Exchange Note to the 20_-__ Exchange Noteholder, the Depositor and the Issuer and the pledge of the
20_-__ Exchange Note to the Indenture Trustee pursuant to the Indenture:
(a) New Vehicle. Each Leased Vehicle was a new automobile or light truck at the
beginning of the related Lease; provided, that a Leased Vehicle that has never been titled
and has not been driven more than 6,000 miles will be deemed to be a new vehicle for purposes of
this representation and warranty.
(b) Certificate of Title. Each Leased Vehicle was titled in accordance with the
related Titling Company Agreement and in a manner acceptable to the relevant Governmental
Authority.
(c) Security Interest in Lease and Leased Vehicle. The Collateral Agent has a
security interest in each Lease and Leased Vehicle which was validly created and is a perfected,
first priority security interest, and is noted as lienholder on the certificate of title for each
Leased Vehicle.
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(d) Interest in Lease and Leased Vehicle. Each Lease was entered into by a Dealer
located in the United States, as lessor, and a Lessee with a garaging location in an Eligible
State, as lessee, and all of the Dealer’s right, title and interest in such Lease and the related
Leased Vehicle was validly assigned by such Dealer to a Titling Company qualified to hold such
Leased Vehicle.
(e) Origination of Leases. Each Lease was originated by a Dealer in the ordinary
course of its business and has been fully executed by the parties thereto and at the time of its
origination, substantially complied with the Servicer’s Credit and Collection Policy.
(f) Total Payments. Each Lease (other than an Advance Payment Plan Lease) provides
for Total Payments that include Base Payments.
(g) Compliance with Law. Each Lease complied in all material respects at the time it
was originated, and as of the date of this Servicing Supplement will comply in all material
respects, with all requirements of federal, State and local laws.
(h) Consents, Licenses, Approvals and Authorizations. All material consents,
licenses, approvals or authorizations of, or registrations or declarations with, any Governmental
Authority required to be obtained, effected or given by the Dealer that originated a Lease or the
related Titling Company in connection with (i) the origination of such Lease, (ii) the execution,
delivery and performance by such Dealer of such Lease and (iii) the acquisition and ownership by
the related Titling Company of such Lease and the related Leased Vehicle, had been duly obtained,
effected or given and were in full force and effect as of such date of origination or acquisition
and remained in full force and effect.
(i) Binding Obligation. Each Lease is on a form contract that includes rights and
remedies allowing the holder to enforce the obligation and realize on the Leased Vehicle and
represents the legal, valid and binding payment obligation of the related Lessee, enforceable in
all material respects by the holder of the Lease, except as may be limited by bankruptcy,
insolvency, reorganization or other laws relating to the enforcement of creditors’ rights or by
general equitable principles and consumer protection laws.
(j) No Government Lessee. No Lease is an obligation of the United States of America
or any State or local government or from any agency, department, or instrumentality or political
subdivision of the United States of America or any State or local government.
(k) No Commercial Lease. No Lease is a commercial lease contract, master lease
contract or fleet vehicle lease contract; provided that no Lease that is a retail lease
contract will breach this representation solely because the related Lessee is a commercial lessee.
(l) Leases in Force. No Lease (i) is a Terminating Lease or a Closed Lease or (ii)
has been satisfied, subordinated, rescinded, cancelled or terminated, in whole or in part.
(m) No Waiver or Amendments. No material provision of a Lease (other than the
assessment of a security deposit or a Payment Extension Fee or the payment of any other amount
that, upon collection, would constitute an Additional Amount, or a default relating to failure by
the related Lessee to pay any such amount) has been affirmatively waived or amended, except
amendments and modifications that are contained in the Lease Files.
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(n) No Extensions. As of the Cutoff Date, no extensions other than Payment Extensions
not exceeding three months in the aggregate under any Lease have been granted.
(o) No Defenses. To the Servicer’s knowledge, no right of rescission, setoff,
counterclaim or defense has been asserted or threatened with respect to any Lease.
(p) No Delinquency or Default. Except for payments that are not more than 30 days
delinquent as of the Cutoff Date, no payment defaults (determined in accordance with the Credit and
Collection Policy) exist.
(q) Insurance. Each Lease requires the lessee to obtain physical damage and liability
insurance covering the related Leased Vehicle.
(r) Title. The applicable Titling Company has good title to each Lease and each
Leased Vehicle, free and clear of any Liens other than Permitted Liens.
(s) Valid Assignment. No Lease was originated in, or is subject to the laws of, any
jurisdiction under which the sale and assignment of such Lease or the related Leased Vehicle to the
Titling Company would be unlawful, void, or voidable. Each Lease is fully assignable and no Dealer
has entered into any agreement with any Lessee that prohibits, restricts or conditions the
assignment of any portion of a Lease.
(t) Chattel Paper. Each Lease constitutes either “tangible chattel paper” or
“electronic chattel paper” within the meaning of Section 9-102(a) of the UCC and there is only one
original authenticated copy of each.
(u) Maturity of Leases. Each Lease has an original Scheduled Lease End Date of no
greater than 60 months from its Lease Date.
(v) Peace of Mind. No Lease that is an Advance Payment Plan Lease has been identified
by the Servicer as qualifying for the benefits of its “Peace of Mind” program for Lessees who were
at least 62 years of age at Lease inception and who die during the term of the related Lease.
(w) No Bankruptcy Proceeding. As of the Cutoff Date, the Servicer has not received
actual notice that the Lessee on any Lease is a debtor in a bankruptcy proceeding.
(x) No Allocation to Other Specified Interest. No Lease or Leased Vehicle has been
allocated to any Specified Interest other than a Collateral Specified Interest.
(y) Valid Security Interest. The Collateral Agent has a valid security interest in
the Collateral Leases and the Collateral Leased Vehicles and all proceeds thereof.
(z) Information about Leases; Selection Procedures. The information on the schedule
of Collateral Leases and Collateral Leased Vehicles attached as Exhibit A is true and correct in
all material respects as of the Cutoff Date. No selection procedures believed to be adverse to the
20_-__ Exchange Noteholder have been utilized in selecting the Leases and Leased Vehicles
4
included
in the 20_-__ Reference Pool from other leases and leased vehicles that meet the criteria specified
in this Section 3.3.
(aa) Other Data. The numerical data relating to the characteristics of the Leases and
Leased Vehicles contained in Annex A of the Prospectus Supplement is true and correct in all
material respects.
Section 3.4. Liability of the Servicer; Indemnities.
(a) The Servicer will indemnify, defend and hold harmless each Titling Company, the Holders of
the Collateral Specified Interest Certificates, the Administrative Agent, the Collateral Agent, the
Lender, the Indenture Trustee and the 20_-__ Exchange Noteholder (each, with respect to this
Section 3.4(a), an “Indemnified Person”) in accordance with Section 3.3 of the Servicing
Agreement as well as from and against any and all costs, expenses, losses, damages, claims and
liabilities, arising out of the Servicer’s willful misconduct, negligence or bad faith.
(b) The Servicer will indemnify, defend and hold harmless the Issuer, the Collateral Agent,
the Administrative Agent, the Owner Trustee and the Indenture Trustee, as applicable, and their
respective officers, directors, employees and agents (each, with respect to this Section 3.4(b), an
“Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims
and liabilities arising out of, or incurred in connection with, the acceptance of or performance by
the Servicer of the trusts and duties contained in this Servicing Supplement, except to the extent
that such cost, expense, loss, damage, claim or liability: (i) is due to the willful misconduct,
negligence or bad faith of the Indemnified Person, (ii) in the case of the Owner Trustee, arises
from the Owner Trustee’s breach of any of its representations or warranties set forth in the Trust
Agreement or (iii) in the case of the Indenture Trustee, arises from the Indenture Trustee’s breach
of any of its representations and warranties set forth in the Indenture.
(c) In addition to the Indemnified Parties included in the Servicing Agreement, the Servicer
will indemnify the Issuer, the Owner Trustee and the Indenture Trustee as “Indemnified Parties”
pursuant to Sections 3.3(b), (c), and (d) of the Servicing Agreement.
Section 3.5. Purchase Upon Breach.
(a) Deposit of Administrative Reallocation Amount.
(i) If a Responsible Person of the Servicer has actual knowledge, or receives notice
from the 20_-__ Exchange Noteholder or the Indenture Trustee, of a breach of (A) a
representation or warranty set forth in Section 3.3 of this Servicing Supplement, (B) the
covenant set forth in Section 3.8(b) of the Servicing Agreement, (C) the covenant set forth
in Section 3.6 of this Servicing Supplement or (D) the covenant set forth in Section 6.7 of
the Servicing Agreement, in each case, that materially and adversely affects any Lease and
Leased Vehicle, the Servicer will deposit into the Exchange Note Collection Account an
amount equal to the Administrative Reallocation Amount with respect to each such Lease
and Leased Vehicle as of the last day of the second Collection Period following the
Collection Period in which the Servicer obtained actual knowledge, or was notified, of such
breach (or, at the Servicer’s option, the end of the first Collection Period following the
5
Collection Period in which the Servicer obtained actual knowledge, or was notified, of such
breach) unless, by such last day such breach has been cured in all material respects.
(ii) The Servicer may deposit into the Exchange Note Collection Account an amount equal
to the Administrative Reallocation Amount with respect to any Lease and Leased Vehicle if
the Servicer determines, in its sole discretion, that, as a result of a computer systems
error or computer systems limitation or for any other reason, the Servicer is unable to
service such Lease and Leased Vehicle in accordance with the terms of the Servicing
Agreement or this Servicing Supplement. The Servicer will deposit into the Exchange Note
Collection Account an amount equal to the Administrative Reallocation Amount with respect to
any Lease (and with the related Leased Vehicle) that is an Advance Payment Plan Lease if the
Servicer determines that such Lease qualifies for the benefit of its “Peace of Mind”
program.
(iii) So long as Ford Credit remains the Servicer, the Servicer will deposit into the
Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount
with respect to any Lease and Leased Vehicle if the Servicer is notified that the Leased
Vehicle is no longer owned by a Titling Company.
(iv) The Servicer will deposit the Administrative Reallocation Amount with respect to
any Lease and related Leased Vehicle that the Servicer is removing from the 20_-__ Reference
Pool in accordance with this Section 3.5(a) into the Exchange Note Collection Account on the
Business Day preceding the Payment Date (or, with Rating Agency Confirmation, on the Payment
Date) related to the Collection Period during which such purchase occurs.
(b) Purchase Constitutes Sole Remedy for Breach. Except as provided in Section 3.3,
the sole remedy of the Collateral Agent, the 20_-__ Exchange Noteholder, the Indenture Trustee, the
holders of the Notes and any Purchaser Agent with respect to a breach of the representations and
warranties contained in Section 3.3 is as set forth in Section 3.5(a).
(c) Reallocation of Purchased Leases and Leased Vehicles. Upon the deposit of the
Administrative Reallocation Amount for any Lease and Leased Vehicle pursuant to Section 3.5(a),
such Lease and Leased Vehicle will be reallocated to the Revolving Facility Pool at the direction
of the Servicer and will no longer be included in the 20_-__ Reference Pool.
Section 3.6. Collection of Payments. The Servicer may grant extensions, waivers, rebates, modifications or adjustments with
respect to any Collateral Lease, except that if, after the Cutoff Date, the Servicer modifies the
amount of the Base Payment due [or the total number of original scheduled due dates (including in
connection with a Term Extension), in each case] with respect to any Lease, the Servicer will
reallocate such Lease and the related Leased Vehicle to the Revolving Facility Pool in accordance
with Section 3.5 except, in either case, to the extent that any such modification is required
by law or court order.
Section 3.7. Servicer May Own Exchange Note and Notes. The Servicer, and any Affiliate of the Servicer, may, in its individual or any other
capacity, become the owner or pledgee of the 20_-__ Exchange Note and/or the Notes with the same
rights as it would have if it were not
6
the Servicer or an Affiliate thereof, except as otherwise
provided in the Servicing Agreement, this Servicing Supplement, the Credit and Security Agreement
and the Indenture. Except as set forth in the Servicing Agreement, this Servicing Supplement or in
the other 20_-__ Basic Documents, Notes so owned by or pledged to the Servicer or such Affiliate
will have an equal and proportionate benefit under the Servicing Agreement and this Servicing
Supplement.
Section 3.8. Fees and Expenses.
(a) Reference Pool Servicing Fee.
(i) The “Reference Pool Servicing Fee” will, with respect to a Collection
Period, be an amount equal to the sum of (A) the product of: (1) one-twelfth of [1.00%;]
times (2) the Pool Balance as of the last day of the preceding Collection Period (or
the Cutoff Date for the first month) plus (B) the portion of the Reference Pool
Servicing Fee for the immediately preceding Collection Period, if any, that was not paid on
the related Payment Date.
(ii) The Reference Pool Servicing Fee will be payable solely from, and the right of the
Servicer to receive the Reference Pool Servicing Fee will be limited in recourse to, the
Collections and other amounts applied to the payment of such fee pursuant to the Exchange
Note Supplement.
(b) Investment Earnings. As provided in Section 4.2, the Servicer will be entitled to
receive investment earnings on funds on deposit in the Bank Accounts as additional compensation for
the performance of its duties under this Servicing Supplement, and losses, if any, and investment
expenses resulting from the investment of funds on deposit in the Bank Accounts will be charged to
the Servicer.
(c) Additional Amounts. As additional compensation for the performance of its duties
under the Servicing Agreement and this Servicing Supplement and as reimbursement for expenses
incurred in connection with such performance, the Servicer will be entitled to retain for its own
account all Additional Amounts (or to withdraw and retain any Additional Amounts that nevertheless
have been deposited into the Exchange Note Collection Account). All Additional Amounts are the
property of the Servicer.
Section 3.9. Termination. This Servicing Supplement will be terminated in the event that the Servicing Agreement is
terminated in accordance therewith and may also be terminated at the option of the Servicer or the
Holding Companies at any time following the payment in full of the 20_-__ Exchange Note;
provided, that the rights and obligations of the parties to this Servicing Supplement
under Section 3.4 will survive any such termination.
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ARTICLE IV
ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS
ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS
Section 4.1. Bank Accounts
(a) Establishment of Bank Accounts. On or before the Exchange Note Issuance Date, the
Servicer will establish five segregated trust accounts, each in the name of the Indenture Trustee
at a Qualified Institution or a Qualified Trust Institution, to be designated as:
(i) “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford
Credit Auto Lease Trust 20_-__ “ that will be designated as the “Exchange Note
Collection Account;”
(ii) “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford
Credit Auto Lease Trust 20_-__ “ that will be designated as the “Collection
Account;”
(iii) “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford
Credit Auto Lease Trust 20_-__ “ that will be designated as the “Principal Payment
Account;”
(iv) “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford
Credit Auto Lease Trust 20_-__ “ that will be designated as the “Reserve Account;”
and
(v) [“The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford
Credit Auto Lease Trust 2011-WH1” that will be designated as the “Hedge Counterparty
Collateral Account.”]
The Exchange Note Collection Account, Collection Account, the Principal Payment Account, the
Reserve Account, [and the Hedge Counterparty Collateral Account are referred to together as
the“Bank Accounts.”]
Initially, the Exchange Note Collection Account will be account number [_____], the Collection
Account will be account number [____], the Principal Payment Account will be account number [____],
the Reserve Account will be account number [______] [and the Hedge Counterparty Collateral Account
will be account number [_____]] and each such account will include any successor or replacement
accounts thereto.
(b) Control of the Bank Accounts. Each of the Bank Accounts with respect to the
20_-__ Reference Pool will be under the sole dominion and control of the Indenture Trustee, as
secured party for the benefit of the 20_-__ Secured Parties, so long as the Bank Accounts remain
subject to the Lien of the Indenture; provided, that, (i) following the payment in full of
the Notes and the release of the Bank Accounts from the Lien of the Indenture, the Exchange Note
Collection Account will be under the sole dominion and control of the Collateral Agent and (ii)
following the payment in full of the 20_-__ Exchange Note, the Exchange Note Collection Account will be
under the sole dominion and control of the Borrowers. However, the Servicer may make deposits to
or request the Indenture Trustee (or, after the Note Balance of the Notes has been reduced to
8
zero,
the Collateral Agent, and following the payment in full of the 20_-__ Exchange Note, the Borrowers)
to make deposits to or withdrawals from the Exchange Note Collection Account in accordance with the
Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement and this
Servicing Supplement. All monies deposited in the Exchange Note Collection Account pursuant to the
Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement or this
Servicing Supplement will be held (i) until the Note Balance of the Notes has been reduced to zero
and the Bank Accounts have been released from the Lien under the Indenture, by the Indenture
Trustee, (ii) until the payment in full of the 20_-__ Exchange Note, by the Collateral Agent and
(iii) following the payment in full of the 20_-__ Exchange Note, by or on behalf of the Borrowers,
and in each case will be applied only upon the terms and conditions of the 20_-__ Basic Documents,
as applicable. The authority of the Servicer to make deposits to the Bank Accounts is revocable at
any time (i) by the Indenture Trustee until the Note Balance of the Notes has been reduced to zero,
(ii) then, by the Collateral Agent until the payment in full of the 20_-__ Exchange Note, and (iii)
thereafter by the Borrowers.
(c) Reserve Initial Deposit. On the 20_-__ Closing Date, the Depositor will deposit,
or cause to be deposited, the Reserve Initial Deposit into the Reserve Account from the net
proceeds of the sale of the Class A Notes.
(d) Agreement with Depository Institution. The Bank Accounts will only be established
at a Qualified Institution or Qualified Trust Institution that complies with the requirements set
forth in Section 5.2(d) of the Servicing Agreement.
(e) [Amounts on Deposits in the Hedge Counterparty Collateral Account. No deposit
will be made to the Hedge Counterparty Collateral Account on the 20_-_ Closing Date. Amounts will
be deposited into the Hedge Counterparty Collateral Account from time to time by the Hedge
Counterparty pursuant to the posting requirements set forth in the Interest Rate Hedge. The Hedge
Counterparty will be entitled to interest earned on amounts on deposit in the Hedge Counterparty
Collateral Account. Subject to the terms of the Interest Rate Hedge, the Hedge Counterparty
Collateral Account will be under the sole dominion and control of the Indenture Trustee, or its
agent appointed pursuant to the Interest Rate Hedge, as custodian.]
Section 4.2. Remittance.
(a) If Ford Credit’s short term unsecured debt is rated at least [“P-1” by Xxxxx’x] and [“A-1”
by S&P] (this rating requirement, the “Monthly Remittance Required Ratings”), Ford Credit
may remit 20_-__ Collections on the Business Day preceding each Payment Date, or with satisfaction
of the Rating Agency Condition, on each Payment Date.
(b) If Ford Credit’s short term unsecured debt is not rated at least equal to the Monthly
Remittance Required Ratings or a Servicer Event of Default occurs, the Servicer will remit to the
Exchange Note Collection Account:
(i) on the Exchange Note Issuance Date, an amount equal to the sum of (A) the Cutoff
Date Payahead Amount and (B) all Active Lease Proceeds, Terminating Lease Proceeds and
Closed Lease Proceeds (in each case excluding Recoveries) that are Posted
9
during the period
from and including the Cutoff Date to and including the second Business Day preceding the
Closing Date;
(ii) following the Exchange Note Issuance Date, an amount equal to all Active Lease
Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (in each case excluding
Recoveries) within 2 Business Days after the Posting Date for such amounts (including any
such amounts Posted on the Business Day preceding the Exchange Note Issuance Date and on the
Exchange Note Issuance Date); and
(iii) Administrative Reallocation Amounts, Active Lease Advances, Payment Extension
Fees and Recoveries with respect to any Collection Period no later than the Business Day
preceding the following Payment Date or, with Rating Agency Confirmation, the following
Payment Date.
(c) Pending deposit into the Exchange Note Collection Account, the Servicer is not required to
segregate 20_-__ Collections or Payaheads from its own funds.
(d) So long as Ford Credit remains the Servicer, Ford Credit, as Servicer, may make the
remittances required by Section 4.2(a) net of:
(i) Reference Pool Servicing Fees to be distributed pursuant to Section 3.8(a) to the
Servicer with respect to such Collection Period; and
(ii) Advance Reimbursement Amounts that the Servicer is permitted to retain pursuant to
Section 4.3(b).
Section 4.3. Advances.
(a) Advances by the Servicer. The Servicer will make an advance for each Active Lease
other than an Advance Payment Plan Lease and each Collection Period if, for such Lease and such
Collection Period, the scheduled Base Payment exceeds the sum of (A) Active Lease Proceeds (which
may be positive or negative) plus (B) the Payahead Draw, by depositing the amount of such
excess (equal to the Active Lease Advance) into the Exchange Note Collection Account on the
Business Day preceding the Payment Date immediately following such Collection Period or, with
Rating Agency Confirmation, on such Payment Date. However, the Servicer will be required to make
Active Lease Advances only to the extent that the Servicer, in its sole discretion, determines that
such advances will be recoverable from subsequent 20_-__ Collections (whether relating to such
Lease and Leased Vehicle or any other Lease or Leased Vehicle) in the
manner described in Section 4.3(b).
(b) Reimbursement for Outstanding Advances. During each Collection Period, the
Servicer will be reimbursed for any outstanding Advance Balance with respect to a Lease for the
preceding Collection Period (or, with respect to the first Collection Period, as of the Cutoff
Date) by retaining the following amounts in the following order of priority (the amount so due with
respect to any Lease and any Collection Period, the “Advance Reimbursement Amount”):
(i) first, if such Lease is an Active Lease during such Collection Period, an
amount equal to the lesser of (A) the sum of (1) Active Lease Proceeds, plus (2) the
10
Administrative Reallocation Amount (if any), minus (3) the scheduled Base Payment,
in each case with respect to such Lease and such Collection Period and (B) such Advance
Balance;
(ii) second, if such Lease is a Terminating Lease or a Closed Lease during such
Collection Period, an amount equal to the lesser of (A) the sum of (1) the Terminating Lease
Proceeds, plus (2) the Closed Lease Proceeds, plus (3) the Administrative
Reallocation Amount (if any), in each case with respect to such Lease and such Collection
Period and (B) such Advance Balance; and
(iii) third, on and after the Collection Period that includes the Closed Date
with respect to such Lease, an amount equal to the lesser of:
(A) | the sum of all Active Lease Proceeds, Terminating Lease Proceeds, Closed Lease Proceeds and Administrative Reallocation Amounts (in each case not relating to such Lease) for such Collection Period; and | ||
(B) | the excess, if any, of (1) such Advance Balance over (2) the amount retained by the Servicer pursuant to Section 4.3(b)(ii) for the current Collection Period. |
The Servicer may instruct the Indenture Trustee, for so long as the Notes are Outstanding, and
thereafter, the Collateral Agent, to withdraw from the Exchange Note Collection Account and pay to
the Servicer any amounts that the Servicer is entitled to retain pursuant to this Section 4.3(b) to
the extent such amounts have been deposited in the Exchange Note Collection Account. The Indenture
Trustee or the Collateral Agent, as applicable, may, but is not required to, request from the
Servicer reasonable documentation (which may be provided by reference to the Servicer’s books and
records) in connection with any such withdrawal instruction.
Section 4.4. Repayment of Advances. If a successor Servicer is appointed pursuant to the Servicing Agreement, the predecessor
Servicer will be entitled to receive reimbursement for the Advance Balances outstanding on the date
of termination of such predecessor Servicer in the manner specified in Section 4.3(b). Any Advance
Reimbursement Amount for any Lease will be applied (a) first to the Advance Balances outstanding on
the date of termination of such predecessor Servicer and (b) second, to the remaining portion, if
any, of the Advance Balances.
Section 4.5. Trust Distribution Account. The Depositor may cause the Owner Trustee to establish and maintain a segregated trust
account in the name “U.S. Bank Trust National Association as Owner Trustee,” that is designated as
the “Trust Distribution Account” and will promptly notify the Owner Trustee and the
Indenture Trustee after the establishment of the Trust Distribution Account. The Trust
Distribution Account will be under the sole dominion and control of the Owner Trustee, except that
the Indenture
Trustee may make deposits to the Trust Distribution Account in accordance with the 20_-__
Basic Documents. All deposits to and withdrawals from the Trust Distribution Account will be made
in accordance with the Indenture and the Trust Agreement.
11
ARTICLE V
TERMINATION
TERMINATION
Section 5.1. Clean-Up Call.
(a) On the last day of any Collection Period as of which the Note Balance is equal to or less
than 5% of the initial aggregate Note Balance, the Servicer has the option to purchase the 20_-__
Exchange Note in whole but not in part. To exercise such option, the Servicer will (i) notify the
Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee
and the Rating Agencies of such election not later than 10 days prior to the Exchange Note Purchase
Date and (ii) irrevocably deposit, by 10:00 a.m. (New York City time) on the Exchange Note Purchase
Date, in the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price,
which amount will be applied on such Payment Date in accordance with Section 8.2 of the Indenture
and will under all circumstances be sufficient to pay the Note Redemption Price on the Notes.
(b) The Servicer will purchase the 20_-__ Exchange Note following notice of purchase as
required by Section 5.1(a) on the Exchange Note Purchase Date for the Exchange Note Purchase Price.
(c) For so long as the Servicer and the Lender under the Credit and Security Agreement are the
same entity, upon purchase of the 20_-__ Exchange Note by the Servicer pursuant to Section 5.1(a),
the Servicer may, by notice to the Borrowers, the Lender, the Collateral Agent and the
Administrative Agent, request that the 20_-__ Exchange Note be cancelled and the Leases and related
Leased Vehicles be reallocated to the Revolving Facility Pool.
ARTICLE VI
REPORTS AND NOTICES
REPORTS AND NOTICES
Section 6.1. Monthly Investor Reports. At least two Business Days before each Payment Date, the Servicer will deliver to the Owner
Trustee, the Indenture Trustee, the Depositor and, if requested, the Rating Agencies, a servicing
report substantially in the form of Exhibit B covering 20_-__ Collections and the 20_-__ Reference
Pool for the Collection Period preceding such Payment Date and the payments due on such Payment
Date with respect to the 20_-__ Exchange Note and the Notes, (the “Monthly Investor
Report”). A Responsible Person of the Servicer will certify as to the accuracy of the
information in the Monthly Investor Report.
Section 6.2. Notices and Certificates Received by or Delivered by the Servicer Under the
Servicing Agreement. Any notice or certificate received by the Servicer or delivered by the Servicer under the
Servicing Agreement will be forwarded by the Servicer to the Owner Trustee and the Indenture
Trustee within 5 Business Days of delivery or receipt thereof by the Servicer.
Section 6.3. Annual Statement as to Compliance. To the extent required by Regulation AB, the Servicer will deliver to the Depositor, the
Owner Trustee, the Indenture Trustee and each Rating Agency within 90 days after the end of each
calendar year beginning with the year after the Closing Date, an Officer’s Certificate, dated as of
December 31 of the preceding calendar year, signed by a Responsible Person of the Servicer to the
effect that (i) a review of the Servicer’s activities during the preceding calendar year (or, in
the case of the first certificate, the portion of
12
the preceding calendar year since the Closing
Date) and of its performance under this Agreement has been made under such Responsible Person’s
supervision and (ii) to such Responsible Person’s knowledge, based on such review, the Servicer has
fulfilled in all material respects all of its obligations under this Agreement throughout such
calendar year (or applicable portion of such calendar year), or, if there has been a failure to
fulfill any such obligation in any material respect, specifically identifying each such failure
known to such Responsible Person and the nature and status of such failure. If the Issuer is not
required to file periodic reports under the Exchange Act or otherwise required by law to file an
Officer’s Certificate of the Servicer as to compliance, the Servicer may deliver such Officer’s
Certificate on or before April 30 of each calendar year. A copy of the Officer’s Certificate
referred to in this Section 3.4(b) may be obtained by any Noteholder or Person certifying it is a
Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.
Section 6.4. Compliance with Obligations under Xxxxxxxx-Xxxxx Act. If directed by the Indenture Administrator, the Servicer will prepare, execute and deliver
all certificates or other documents required to be delivered by the Issuer pursuant to the
Xxxxxxxx-Xxxxx Act of 2002.
Section 6.5. Report on Assessment of Compliance with Servicing Criteria and
Attestation. The Servicer will:
(i) deliver to the Depositor, the Owner Trustee, the Indenture Trustee and each Rating
Agency, a report, dated as of December 31 of the preceding calendar year, on its assessment
of compliance with the minimum servicing criteria during the preceding calendar year,
including disclosure of any identified material instance of non-compliance identified by the
Servicer, as specified by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of
Regulation AB under the Securities Act; and
(ii) cause a firm of registered public accountants that is qualified and independent
within the meaning of Rule 2-01 of Regulation S-X under the Securities Act to deliver an
attestation report that satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the
Exchange Act and Item 1122 of Regulation AB, as applicable, on the assessment of compliance
with servicing criteria with respect to the prior calendar year. Such attestation report
will be addressed to the board of directors of the Servicer and the Servicer
will deliver copies to the Issuer, the Owner Trustee, the Depositor and the Indenture
Trustee. Such attestation will be in accordance with Rules 1-02(a)(3) and 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act. The firm may render other
services to the Servicer, the Depositor or Ford Credit, but the firm must indicate in each
attestation report that it is qualified and independent within the meaning of Rule 2-01 of
Regulation S-X under the Securities Act.
The reports referred to in this Section 6.5 will be delivered within 90 days after the end of
each calendar year unless the Issuer is not required to file periodic reports under the Exchange
Act or any other law, in which case the reports may be delivered on or before April 30 of each
calendar year, beginning in the year after the Closing Date. A copy of the reports referred to in
this Section 6.5 may be obtained by any Noteholder or Person certifying it is a Note Owner by a
request in writing to the Indenture Trustee at its Corporate Trust Office.
13
ARTICLE VII
MISCELLANEOUS
MISCELLANEOUS
Section 7.1. Amendments.
(a) This Servicing Supplement may be amended in accordance with Section 10.1 of the Servicing
Agreement; provided, however, that the Indenture Trustee will provide or withhold
consent with respect to any proposed amendment to this Servicing Supplement or the Servicing
Agreement that materially affects the rights or obligations of the Servicer with respect to the
Collateral Specified Interests and the 20_-__ Reference Pool, only as directed by the Noteholders
of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.
(b) Promptly upon the execution of any such amendment, (i) the Servicer will send a copy of
such amendment to the Indenture Trustee, each Hedge Counterparty and each of the Rating Agencies
and (ii) the Indenture Trustee will notify each holder of a Note of the substance of such
amendment.
Section 7.2. Third-Party Beneficiaries of the Servicing Agreement and this Servicing
Supplement. The Servicing Agreement and this Servicing Supplement will inure to the benefit of and be
binding upon the parties to this Servicing Supplement and their assigns (including the Holders of
the Collateral Specified Interest Certificates as assignees of the Holding Companies) as well as
any 20_-__ Exchange Noteholder, the Owner Trustee and the Indenture Trustee.
Section 7.3. No Petition. Each party to this Servicing Supplement covenants that for a period of one year and one day
(or, if longer, any applicable preference period) after payment in full of the Notes, all Exchange
Notes, and all distributions to all Holders of Certificates and all holders of any other Securities
(as defined in the related Titling Company Agreement) the payments on which are derived in any
material part from amounts received with respect to any Titling Company Assets (as
defined in the applicable Titling Company Agreements), it will not institute against, or join
any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling
Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
United States federal or state bankruptcy or similar law in connection with any obligations
relating to the 20_-__ Exchange Note, the Notes, this Servicing Supplement or any of the other
20_-__ Basic Documents and agrees it will not cooperate with or encourage others to file a
bankruptcy petition against the Issuer, the Depositor, any Holding Company, any Titling Company or
the Holders of the Collateral Specified Interest Certificates during the same period.
Section 7.4. GOVERNING LAW. THIS SERVICING SUPPLEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATION LAWS OF THE STATE OF NEW YORK,
BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.
14
Section 7.5. SUBMISSION TO JURISDICTION. Each party to this Servicing Supplement submits to the nonexclusive jurisdiction of the
United States District Court for the Southern District of New York and of any New York State Court
sitting in New York, New York for purposes of all legal proceedings arising out of or relating to
this Servicing Supplement or the transactions contemplated by this Servicing Supplement or by the
other 20_-__ Basic Documents. Each party to this Servicing Supplement irrevocably waives, to the
fullest extent it may do so, any objection that it may now or hereafter have to the laying of the
venue of any such proceeding brought in such a court and any claim that any such proceeding brought
in such a court has been brought in an inconvenient forum.
Section 7.6. WAIVER OF JURY TRIAL. EACH PARTY TO THIS SERVICING SUPPLEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY OTHER 20_-__ BASIC DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY SUCH OTHER 20_-__
BASIC DOCUMENT.
Section 7.7. Severability. If any one or more of the covenants, agreements, provisions or terms of this Servicing
Supplement is held invalid, illegal or unenforceable, then such covenants, agreements, provisions
or terms will be deemed severable from the remaining covenants, agreements, provisions or terms of
this Servicing Supplement and will in no way affect the validity, legality or enforceability of the
other provisions of this Servicing Supplement.
Section 7.8. Counterparts. This Servicing Supplement may be executed in any number of counterparts, each of which will
be an original, and all of which will together constitute one and the same instrument.
Section 7.9. Headings. The various headings in this Servicing Supplement are included for convenience only and
will not affect the meaning or interpretation of any provision of this Servicing Supplement.
Section 7.10. Conflict with Servicing Agreement. In the event of any conflict between this Servicing Supplement (or any portion thereof) and
the Servicing Agreement, the terms of this Servicing Supplement will prevail.
Section 7.11. List of Responsible Persons. The Servicer may from time to time designate the individuals who are authorized to act as a
“Responsible Person” with respect to the Servicer pursuant to an Officer’s Certificate distributed
to the Owner Trustee, the Indenture Trustee, the Titling Companies, the Titling Company
Administrator, the Holding Companies and the Depositor.
[Remainder of Page Intentionally Left Blank]
15
EXECUTED BY:
FORD MOTOR CREDIT COMPANY LLC, | ||||
as Servicer with respect to the Collateral Specified Interests and the 20_-__ Reference Pool and as Lender |
||||
By: | ||||
Name: | Xxxxx X. Xxxxx | |||
Title: | Assistant Treasurer | |||
CAB EAST HOLDINGS, LLC, | ||||
acting with respect to its Series of limited
liability company interests designated as the
“Collateral Series,” as Holder of a Collateral
Specified Interest Certificate |
||||
By: | ||||
Name: | Xxxxx X. Xxxxx | |||
Title: | President and Assistant Treasurer | |||
CAB WEST HOLDINGS CORPORATION, | ||||
acting with respect to its Series of limited
liability company interests designated as the
“Collateral Series,” as Holder of a Collateral
Specified Interest Certificate |
||||
By: | ||||
Name: | Xxxxx X. Xxxxxx | |||
Title: | Assistant Secretary | |||
[Signature Page to the Servicing Supplement]
HTD LEASING LLC, as Collateral Agent |
||||
By: | ||||
Name: | ||||
Title: | ||||
AGREED AND ACCEPTED BY:
U.S. BANK NATIONAL ASSOCIATION, | ||||
as Titling Company Registrar with Respect to each of the Titling Companies, on behalf of the Titling Companies | ||||
By: |
||||
Title: |
[Signature Page to the Servicing Supplement]
AGREED AND ACCEPTED FOR | ||||
PURPOSES OF SECTION 7.1(a) BY: | ||||
FORD CREDIT AUTO LEASE TRUST 20_-__ | ||||
By:
|
U.S. Bank Trust National Association, not in its individual capacity but solely as Owner Trustee of Ford Credit Auto Lease Trust 20_-__ | |||
By: |
||||
Title: | ||||
THE BANK OF NEW YORK MELLON, | ||||
not in its individual capacity but solely as Indenture Trustee | ||||
By: |
||||
Title: |
[Signature Page to the Servicing Supplement]
Exhibit A
Schedule of Collateral Leases and Collateral Leased Vehicles in 20_-__ Reference Pool
(On File with Collateral Agent)
EA-1
Exhibit B
Form Of Monthly Investor Report
EB-1