FORM OF INDENTURE between VERIZON MASTER TRUST, as Trust and [_____], as Indenture Trustee and Note Paying Agent Dated as of [____], 20[_]
Exhibit 4.2
FORM OF INDENTURE
between
VERIZON MASTER TRUST,
as Trust
as Trust
and
[_____],
as Indenture Trustee and Note Paying Agent
as Indenture Trustee and Note Paying Agent
Dated as of [____], 20[_]
ARTICLE I
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||
Section 1.1
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Usage and Definitions
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1
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Section 1.2
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Incorporation by Reference of Trust Indenture Act
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17
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ARTICLE II
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THE NOTES
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18
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Section 2.1
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Form of Notes
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18
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Section 2.2
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Execution, Authentication and Delivery
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18
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Section 2.3
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Tax Treatment
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19
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Section 2.4
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Note Register
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19
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Section 2.5
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Registration of Transfer and Exchange
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20
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Section 2.6
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[Reserved]
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21
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Section 2.7
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Mutilated, Destroyed, Lost or Stolen Notes
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21
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Section 2.8
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Persons Deemed Owners
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22
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Section 2.9
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Payments on Notes
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22
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Section 2.10
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Cancellation of Notes
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23
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Section 2.11
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Release of Series [_]-[_] Collateral
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23
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Section 2.12
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Book-Entry Notes
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24
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Section 2.13
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Definitive Notes
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24
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Section 2.14
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Authenticating Agents
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25
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Section 2.15
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Note Paying Agents
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25
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Section 2.16
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[Effect of Benchmark Transition Event
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25
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ARTICLE III
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COVENANTS, REPRESENTATIONS AND WARRANTIES
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27
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Section 3.1
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Payment of Principal, Interest and Other Amounts
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27
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Section 3.2
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Maintenance of Office or Agency
|
27
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Section 3.3
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Money for Payments To Be Held in Trust
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27
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Section 3.4
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Existence
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29
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Section 3.5
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Protection of Collateral
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29
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Section 3.6
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Performance of Obligations
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30
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Section 3.7
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Negative Covenants
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30
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Section 3.8
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Opinions on Collateral
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31
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Section 3.9
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Annual Certificate of Compliance
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31
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Section 3.10
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Successor or Transferee
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32
|
Section 3.11
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Further Acts and Documents
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32
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Section 3.12
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Review of Trust’s Records
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32
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ii
Section 3.13
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Trust’s Representations and Warranties
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32
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Section 3.14
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Trust’s Representations and Warranties About Security Interest
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33
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ARTICLE IV
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SATISFACTION AND DISCHARGE
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35
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Section 4.1
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Satisfaction and Discharge of Indenture
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35
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ARTICLE V
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EVENTS OF DEFAULT; REMEDIES
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36
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Section 5.1
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Events of Default
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36
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Section 5.2
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Acceleration of Maturity; Rescission
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36
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Section 5.3
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Collection of Indebtedness by Indenture Trustee
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37
|
Section 5.4
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Trustee May File Proofs of Claim
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37
|
Section 5.5
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Enforcement of Claims Without Possession of Notes
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38
|
Section 5.6
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Remedies; Priorities
|
38
|
Section 5.7
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[Reserved]
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39
|
Section 5.8
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Limitation on Suits
|
39
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Section 5.9
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Unconditional Rights to Receive Principal and Interest
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39
|
Section 5.10
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Restoration of Rights and Remedies
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40
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Section 5.11
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Rights and Remedies Cumulative
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40
|
Section 5.12
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Delay or Omission Not a Waiver
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40
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Section 5.13
|
Control by Noteholders
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40
|
Section 5.14
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Waiver of Potential Defaults and Events of Default
|
41
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Section 5.15
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Agreement to Pay Costs
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41
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Section 5.16
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Waiver of Stay or Extension Laws
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41
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Section 5.17
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Performance and Enforcement of Obligations
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41
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ARTICLE VI
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INDENTURE TRUSTEE
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42
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Section 6.1
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Indenture Trustee’s Obligations
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42
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Section 6.2
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Indenture Trustee’s Rights
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46
|
Section 6.3
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Indenture Trustee’s Individual Rights
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47
|
Section 6.4
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Indenture Trustee’s Disclaimer
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47
|
Section 6.5
|
Notice of Potential Defaults and Notice of Payment Defaults
|
47
|
Section 6.6
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Reports by Indenture Trustee
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47
|
Section 6.7
|
Compensation and Indemnity
|
48
|
Section 6.8
|
Resignation or Removal of Indenture Trustee
|
49
|
Section 6.9
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Merger or Consolidation; Transfer of Assets
|
50
|
Section 6.10
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Appointment of Separate Trustee or Co-Trustee
|
51
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iii
Section 6.11
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Eligibility
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52
|
Section 6.12
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Inspections of Indenture Trustee
|
52
|
Section 6.13
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Indenture Trustee’s Representations and Warranties
|
52
|
Section 6.14
|
Reporting of Receivables Reacquisition and Acquisition Demands
|
53
|
Section 6.15
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Preferential Collection of Claims Against the Trust
|
53
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ARTICLE VII
|
NOTEHOLDER COMMUNICATIONS AND REPORTS
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54
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Section 7.1
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Noteholder Communications
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54
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Section 7.2
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Reports by Trust
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55
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Section 7.3
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Reports by Indenture Trustee
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55
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ARTICLE VIII
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ACCOUNTS, DISTRIBUTIONS AND RELEASES
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55
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Section 8.1
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Collection of Funds
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55
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Section 8.2
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Series [_]-[_] Accounts; Distributions
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56
|
Section 8.3
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Series [_]-[_] Accounts
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64
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Section 8.4
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Release of Series [_]-[_] Collateral
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66
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ARTICLE IX
|
AMENDMENTS
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66
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Section 9.1
|
Amendments Without Consent of Noteholders
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66
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Section 9.2
|
Amendments with Consent of Controlling Class
|
67
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Section 9.3
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Execution of Amendments
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68
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Section 9.4
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Effect of Amendment
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69
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Section 9.5
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Reference in Notes to Supplemental Indentures
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69
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Section 9.6
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[Consent of Cap Counterparty
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69
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Section 9.7
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Conformity with TIA
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69
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ARTICLE X
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REDEMPTION OF NOTES
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69
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Section 10.1
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Redemption
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69
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ARTICLE XI
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OTHER AGREEMENTS
|
70
|
Section 11.1
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No Petition
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70
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Section 11.2
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[Reserved]
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71
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Section 11.3
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Trust Orders; Certificates and Opinions
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71
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Section 11.4
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Acts of Noteholders
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72
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Section 11.5
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Trust Obligation
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72
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Section 11.6
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Conflict with Trust Indenture Act
|
73
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Section 11.7
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Regulation RR Risk Retention
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73
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ARTICLE XII
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MISCELLANEOUS
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73
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iv
Section 12.1
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Benefits of Indenture; Third-Party Beneficiaries
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73
|
Section 12.2
|
Notices
|
74
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Section 12.3
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GOVERNING LAW
|
74
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Section 12.4
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Submission to Jurisdiction
|
75
|
Section 12.5
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WAIVER OF JURY TRIAL
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75
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Section 12.6
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No Waiver; Remedies
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75
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Section 12.7
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Severability
|
75
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Section 12.8
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Headings
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75
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Section 12.9
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Counterparts
|
75
|
Section 12.10
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Customer Identification Program
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75
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Section 12.11
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[Limitation of Rights of the Cap Counterparty
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75
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Section 12.12
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Intent of the Parties; Reasonableness
|
76
|
Section 12.13
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Electronic Signatures
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76
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ARTICLE XIII
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[THE CAP AGREEMENT]
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77
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Section 13.1
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[Duties With Respect to the Cap Agreement
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77
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Section 13.2
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Enforcement of Cap Agreement; Replacement Cap Agreement
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77
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Exhibit A
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Form of Notes
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A-1
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Exhibit B
|
Servicing Criteria to be Addressed in Assessment of Compliance
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B-1
|
v
INDENTURE, dated as of [___], 20[_] (this “Indenture”), between VERIZON MASTER TRUST, a Delaware statutory trust, as issuer (the “Trust”), and [_____], a [national banking
association], as indenture trustee for the benefit of the Series [_]-[_] Secured Parties (in such capacity, the “Indenture Trustee”), and as note paying agent (in such capacity, the “Note Paying Agent”).
The Trust, [___], as master collateral agent (the “Master Collateral Agent”), Cellco Partnership d/b/a Verizon Wireless, as servicer (the “Servicer”), and the Creditor
Representatives from time to time party thereto entered into the Master Collateral Agency and Intercreditor Agreement, dated as of [____], 20[_], pursuant to which the Trust granted a security interest in the Receivables and its other assets to the
Master Collateral Agent to secure the obligations of the Trust under this Indenture and other Trust Financings.
Pursuant to the terms of the Master Collateral Agreement, this Indenture constitutes a Trust Financing Agreement and the Notes issued under this Indenture constitute Credit Extensions and
a Trust Financing that is an Indenture Series. The Indenture Trustee is hereby appointed as Creditor Representative for Series [_]-[_], and the Indenture Trustee hereby accepts such appointment. On or prior to the date hereof, the Indenture Trustee
has executed a Creditor Representative Joinder Agreement as required by Section 3.1 of the Master Collateral Agreement.
The parties agree as follows:
The Trust Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Series [_]-[_] Secured Parties, all of the Trust’s right, title and interest in,
to and under, whether now owned or later acquired, the Series [_]-[_] Collateral.
This Grant is made in trust to secure (a) the payment of principal of, interest on and other amounts owing on the Notes as stated in this Indenture and (b) compliance by the Trust with
this Indenture for the benefit of the Series [_]-[_] Secured Parties.
The Indenture Trustee acknowledges the Grant, accepts the trusts under this Indenture according to this Indenture and agrees to perform its duties as stated in this Indenture so that the
interests of the Series [_]-[_] Secured Parties may be adequately and effectively protected.
Section 1.1 Usage and Definitions. Capitalized terms used but not defined in this Indenture are defined
in Appendix A to the Master Collateral Agency and Intercreditor Agreement, dated as of [____], 20[_], among the Trust, the Master Collateral Agent, Cellco Partnership d/b/a Verizon Wireless, as servicer (the “Servicer”), and
the Creditor Representatives from time to time party thereto. Appendix A also contains usage rules that apply to this Indenture. Appendix A is incorporated by reference into this Indenture. As used in this Indenture, the following terms shall
have the following meanings
with respect to Series [_]-[_] (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
“Accrued Note Interest” means, for a Class and a Payment Date, the sum of the Note Monthly Interest and the Note Interest Shortfall.
“Act” is defined, with respect to Creditor Representatives, in Section 11.3(a) of the Master Collateral Agreement, and, with respect to Noteholders, in Section 11.4(a).
“Additional Interest Amount” means, with respect to any class of Notes, interest accrued on such class of Notes during the related Interest Period at the related Additional Interest
Rate.
“Additional Interest Rate” means, with respect to (i) the Class A Notes, [_]%, (ii) the Class B Notes, [_]%, (iii) the Class C Notes, [_]%, (iv) the Class D Notes, [_]% and (v) the
Class E Notes, [_]%.
“Additional Series Successor Servicer Fee” means, for any Payment Date, the product of (i) the Series [_]-[_] Group Allocated Percentage and (ii) the excess, if any, of (x) $[___]
over (y) the Servicing Fee.
“Amortization Period” means the period beginning on the Payment Date on or immediately following the occurrence of a Series [_]-[_] Amortization Event and ending on the Final
Maturity Date or an earlier date on which the Notes are paid in full.
“Anticipated Redemption Date” means [___], 20[_].
“Authenticating Agent” has the meaning stated in Section 2.14(a) of the Indenture.
[“Benchmark” means, initially, One-Month LIBOR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to One-Month
LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.]
[“Benchmark Administrator” means, (1) with respect to One-Month LIBOR, the ICE Benchmark Administration Limited, (2) with respect to SOFR, the Federal Reserve Bank of New York and
(3) with respect to any other Benchmark, the entity responsible for administration of such Benchmark (or in each case, any successor administrator).]
[“Benchmark Replacement” means the first alternative set forth in the order below that can be determined by the Administrator as of the Benchmark Replacement Date:
(1) |
the sum of (a) Term SOFR and (b) the Benchmark Replacement Adjustment, provided that there has been no official public statement or publication of information by the Benchmark Administrator or the
regulatory supervisor for the Benchmark Administrator announcing that Term SOFR is not yet representative that has not been either withdrawn or superseded by a similar official public statement or publication that Term SOFR has become
representative,
|
2
(2) |
the sum of (a) Compounded SOFR and (b) the Benchmark Replacement Adjustment,
|
(3) |
the sum of (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment,
|
(4) |
the sum of (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable
Corresponding Tenor and (b) the Benchmark Replacement Adjustment, and
|
(5) |
the sum of (a) the alternate rate of interest that has been selected by the Administrator in its reasonable discretion as the replacement for the then-current Benchmark for the applicable
Corresponding Tenor and (b) the Benchmark Replacement Adjustment.]
|
[“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Administrator as of the Benchmark Replacement
Date:
(1) |
the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been selected or recommended by the Relevant
Governmental Body for the applicable Unadjusted Benchmark Replacement,
|
(2) |
if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment, and
|
(3) |
the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Administrator in its reasonable discretion for the replacement of the then-current Benchmark
with the applicable Unadjusted Benchmark Replacement.]
|
[“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the timing
and frequency of determining rates and making payments of interest, and other administrative matters) that the Administrator decides in its reasonable discretion may be appropriate to reflect the adoption of such Benchmark Replacement in a manner
substantially consistent with market practice (or, if the Administrator decides that adoption of any portion of such market practice is not administratively feasible or if the Administrator determines that no market practice for use of the Benchmark
Replacement exists, in such other manner as the Administrator determines in its reasonable discretion is reasonably necessary).]
[“Benchmark Replacement Date” means, with respect to any Benchmark Replacement:
(1) |
in the case of clause (1) or (2) of the definition of “Benchmark Transition Event”, the later of (a) the date of the related official public statement or publication of information referenced therein
and (b) the date on which the applicable
|
3
Benchmark Administrator permanently or indefinitely ceases to provide the Benchmark, or
|
(2) |
in the case of clause (3) of the definition of “Benchmark Transition Event”, the date of the official public statement or publication of information.
|
For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the
Benchmark Replacement Date shall be deemed to have occurred prior to the Reference Time for such determination.]
[“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:
(1) |
an official public statement or publication of information by or on behalf of the Benchmark Administrator announcing that such Benchmark Administrator has ceased or will cease to provide the
Benchmark, permanently or indefinitely; provided, that, at the time of such statement or publication, there is no successor Benchmark Administrator that will continue to provide the Benchmark,
|
(2) an official public statement or publication of information by the regulatory supervisor for the Benchmark Administrator, the central bank for the currency
of the Benchmark, an insolvency official with jurisdiction over the Benchmark Administrator, a resolution authority with jurisdiction over the Benchmark Administrator or a court or an entity with similar insolvency or resolution authority over the
Benchmark Administrator, which states that the Benchmark Administrator has ceased or will cease to provide the Benchmark permanently or indefinitely; provided, that, at the time of such statement or publication, there is no successor Benchmark
Administrator that will continue to provide the Benchmark, or
(3) an official public statement or publication of information by the regulatory supervisor for the Benchmark Administrator announcing that the Benchmark is no
longer representative.]
[“Cap Agreement” means the interest rate cap agreement relating to the Class A-1b Notes consisting of the 2002 ISDA Master Agreement (Multicurrency Cross-Border), schedule and
credit support annex, each dated as of [___], 20[_], and the confirmation, dated on or about [___], 20[_], in each case, between the Trust and the Cap Counterparty, as such agreement may be amended and supplemented from time to time in accordance
with its terms.]
[“Cap Collateral Account” means the account or accounts, if any, established under Section 8.2(h) as required by the terms of the Cap Agreement.]
[“Cap Counterparty” means [___], or any Eligible Replacement Cap Counterparty, to the extent such Eligible Replacement Cap Counterparty replaces the existing Cap Counterparty under
the Cap Agreement or any replacement interest rate cap agreement.]
4
[“Cap Custodian” has the meaning stated in Section 8.2(h).]
[“Cap Payment” means, for any Interest Period in which One-Month LIBOR (calculated in accordance with the Cap Agreement) exceeds [_]%, an amount equal to the product of (x) the
excess, if any, of One-Month LIBOR (calculated in accordance with the Cap Agreement) for the related Payment Date over [_]%, (y) the notional amount of the cap for such Payment Date, as set forth in the Cap Agreement, and (z) a fraction, the
numerator of which is the actual number of days elapsed in such Interest Period and the denominator of which is 360, which payment shall be deposited into the Distribution Account by the Cap Counterparty on or before the second Business Day preceding
the related Payment Date.]
“Class” means the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes, the Class A-3 Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E
Notes, as applicable.
“Class A Notes” means, collectively, the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes and the Class A-3 Notes.
“Class A-1[a] Notes” means the $[___] Class A-1[a] [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
[“Class A-1b Notes” means the $[___] Class A-1b One-Month LIBOR (or, upon the occurrence of a Benchmark Transition Event, the appropriate Benchmark Replacement) + [_]% Asset Backed
Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.]
“Class A-2 Notes” means the $[___] Class A-2 [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
“Class A-3 Notes” means the $[___] Class A-3 [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
“Class B Notes” means the $[___] Class B [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
“Class C Notes” means the $[___] Class C [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
“Class D Notes” means the $[___] Class D [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
“Class E Notes” means the $[___] Class E [_]% Asset Backed Notes issued by the Trust, substantially in the form of Exhibit A to this Indenture.
[“Class R Interest” means Class R interests issued by the Trust as part of Series [_]-[_].]
“Closing Date” means [___], 20[_].
5
[“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology of this rate, and conventions of this rate (which, for
example, may be compounded in arrears with a lookback and/or suspension period as a mechanism to determine the interest amount payable prior to the end of each Collection Period or compounded in advance) being established by the Administrator in
accordance with:
(1) the rate, or methodology of this rate, and conventions of this rate selected or recommended by the Relevant
Governmental Body for determining Compounded SOFR; provided that
(2) if, and to the extent that, the Administrator determines that Compounded SOFR cannot be determined in
accordance with clause (1) above, then the rate, or methodology of this rate, and conventions of this rate that have been selected by the Administrator in its reasonable discretion.]
[“Control Agreement” has the meaning stated in Section 8.2(h).]
“Controlling Class” means (a) the Outstanding Class A Notes, voting together as a single class, (b) if no Class A Notes are Outstanding, the Outstanding Class B Notes, (c) if no
Class B Notes are Outstanding, the Outstanding Class C Notes, (d) if no Class C Notes are Outstanding, the Outstanding Class D Notes and (e) if no Class D Notes are Outstanding, the Outstanding Class E Notes.
“Corporate Trust Office” means, for the Indenture Trustee, the office of the Indenture Trustee at which at any particular time its corporate trust business shall be administered
which office on the date of the execution of the Indenture is located at:
(1) solely for the purposes of transfer, surrender, exchange or presentation for final payment:
[___]
[___]
[___]
Attn: [___]
and (2) for all other purposes:
[___]
[___]
[___]
Attn: [___]
Fax: [___]
or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders, the Servicer, the Master Collateral Agent and the Owner Trustee, or the
principal corporate trust office of any successor Indenture Trustee (the address of which the successor Indenture Trustee will notify the Noteholders, the Servicer, the Master Collateral Agent and the Owner Trustee).
6
[“Corresponding Tenor” means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current
Benchmark.]
“Creditor Representative” means, with respect to Series [_]-[_], the Indenture Trustee.
“Delinquency Trigger Percentage” means [_]%.
“Depository Agreement” means the letter of representations for the Notes, dated [___], 20[_], by the Trust in favor of The Depository Trust Company.
“Discount Rate” means [_]%.
“Distribution Account” means the account established with the Indenture Trustee for the purpose of holding and making distributions of Series [_]-[_] Available Funds.
“Earliest Redemption Date” means the Payment Date occurring in [____], 20[_].
[“Eligible Replacement Cap Counterparty” means a counterparty that meets the eligibility requirements set forth in the Cap Agreement.]
“FATCA Information” has the meaning stated in Section 3.3(e).
“FATCA Withholding Tax” has the meaning stated in Section 3.3(e).
“Fifth Priority Principal Payment” means, with respect to any Payment Date, an amount equal to the excess, if any, of (x) the aggregate Note Balance of the Class A Notes, Class B
Notes, Class C Notes, Class D Notes and Class E Notes as of the immediately preceding Payment Date (or, for the initial Payment Date, as of the Closing Date) over (y) the sum of the Series [_]-[_] Allocated Pool Balance, any First Priority Principal
Payment, any Second Priority Principal Payment, any Third Priority Principal Payment and any Fourth Priority Principal Payment for such Payment Date.
“Final Maturity Date” means, for (i) the Class A-1[a] Notes, the Payment Date in [___], 20[_], [(ii) the Class A-1b Notes, the Payment Date in [___], 20[_],] (iii) the Class A-2
Notes, the Payment Date in [___], 20[_], (iv) the Class A-3 Notes, the Payment Date in [___], 20[_], (v) the Class B Notes, the Payment Date in [___], 20[_], (vi) the Class C Notes, the Payment Date in [___], 20[_], (vii) the Class D Notes, the
Payment Date in [___], 20[_], and (viii) the Class E Notes, the Payment Date in [___], 20[_].
“First Priority Principal Payment” means, with respect to any Payment Date, an amount equal to the excess, if any, of (x) the aggregate Note Balance of the Class A Notes as of the
immediately preceding Payment Date (or, for the initial Payment Date, as of the Closing Date) over (y) the Series [_]-[_] Allocated Pool Balance.
“Fourth Priority Principal Payment” means, with respect to any Payment Date, an amount equal to the excess, if any, of (x) the aggregate Note Balance of the Class A Notes, Class B
Notes, Class C Notes and Class D Notes as of the immediately preceding Payment Date (or, for
7
the initial Payment Date, as of the Closing Date) over (y) the sum of the Series [_]-[_] Allocated Pool Balance, any First Priority Principal Payment, any Second Priority Principal Payment and any Third
Priority Principal Payment for such Payment Date.
“Group [_]” or “Group [_] Receivables” means the pool of Receivables designated to Group [_].
“Group [_] Assets” means the assets of the Trust designated to Group [_] under Section 3.2 of the Master Collateral Agreement.
“Group [_] Pool Balance” means the Pool Balance of the Group [_] Receivables.
“Group [_] Series” means each Series related to Group [_].
“Indenture” means this Indenture, dated as of the Closing Date, between the Trust and the Indenture Trustee.
“Indenture Trustee” means [___], a [___], not in its individual capacity but solely as Indenture Trustee under this Indenture.
“Indenture Trustee Fee” means a monthly fee equal to 1/12th of $[_], payable on each Payment Date.
“Interest Period” means for any Payment Date and [(a)] the Class A-1[a] Notes, the Class A-2 Notes, the Class A-3 Notes, the Class B Notes, the Class C Notes, the Class D Notes and
the Class E Notes, the period from and including the [_] day of the calendar month immediately preceding the Payment Date to but excluding the [_] day of the month in which the Payment Date occurs (or from and including the Closing Date to but
excluding [___], 20[_] for the first Payment Date) [or (b) the Class A-1b Notes, the period from and including the Payment Date immediately preceding the current Payment Date to but excluding the current Payment Date (or from and including the
Closing Date to but excluding [___], 20[_] for the first Payment Date)].
[“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from
time to time, or any successor definitional booklet for interest rate derivatives published from time to time.]
[“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA
Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.]
[“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date
with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.]
[“Letter of Credit” means any letter of credit entered into for the benefit of the Notes.]
8
[“Letter of Credit Provider” means [___], a [___], as letter of credit provider.]
[“LIBOR Determination Date” means, (i) with respect to the first Payment Date, the second London Business Day prior to the Closing Date and (ii) with respect to each subsequent
Payment Date, the second London Business Day prior to the immediately preceding Payment Date.]
[“London Business Day” means any day other than a Saturday, Sunday or day on which banking institutions in London, England are authorized or obligated by law or government decree to
be closed.]
[“Make-Whole Payment” means, with respect to any Payment Date, an amount equal to:
• |
for each class of Notes [other than the Class A-1b Notes], the present value of (i) the amount of all future interest payments that would otherwise accrue on the Note Balance of such class of Notes
from the Optional Redemption date until [_], 20[_], discounted from the Payment Date on which such payment of interest would be made to the Optional Redemption date, monthly on a 30/360 day basis at [_]% plus [the then-current maturity
matched Treasury rate to such payment] [; or
|
• |
for the Class A-1b Notes, the present value of (i) the amount of all future interest payments that would otherwise accrue on the Note Balance of such class of Notes at an interest rate of [One-Month
LIBOR] applicable to such Payment Date plus the spread applicable to the Class A-1b Notes from the Optional Redemption date until [_], 20[_], discounted from the Payment Date on which such payment of interest would be made to the Optional
Redemption date, monthly on an actual/360 day basis at One-Month LIBOR applicable to such Payment Date;
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provided that, the Make-Whole Payment for the Class A-1b Notes may change if One-Month LIBOR is replaced by another Benchmark following a Benchmark Transition Event.]
“Note Balance” means, for a Note or Class, the initial aggregate principal balance of the Note or Class minus all amounts distributed on the Note or Class that is applied to
principal.
“Note Interest Rate” means a per annum rate equal to, for: (i) the Class A-1[a] Notes, [_]% (computed on the basis of a 360 day year consisting of twelve 30 day months), [(ii) the
Class A-1b Notes, One-Month LIBOR (or, upon the occurrence of a Benchmark Transition Event, the appropriate Benchmark Replacement) + [_]% (computed on the basis of the actual number of days elapsed during the relevant Interest Period and a 360 day
year),] (iii) the Class A-2 Notes, [_]% (computed on the basis of a 360 day year consisting of twelve 30 day months), (iv) the Class A-3 Notes, [_]% (computed on the basis of a 360 day year consisting of twelve 30 day months), (v) the Class B Notes,
[_]% (computed on the basis of a 360 day year consisting of twelve 30 day months), (vi) the Class C Notes, [_]% (computed on the basis of a 360 day year consisting of twelve 30 day months), (vii) the Class D Notes, [_]% (computed on the basis of a
360 day year consisting of twelve 30 day months) and (viii) the Class E Notes, [_]% (computed on the basis of a 360 day year consisting of twelve 30 day months).
9
“Note Interest Shortfall” means, for a Class and a Payment Date, an amount equal to the excess, if any, of the Accrued Note Interest for the Payment Date immediately preceding such
Payment Date for the Class over the amount of interest that was paid to the Noteholders of that Class on the Payment Date immediately preceding such Payment Date, together with interest on the excess amount, to the extent lawful, at the Note Interest
Rate for the Class for that Interest Period.
“Note Monthly Interest” means, for a Class and a Payment Date, the aggregate amount of interest accrued on the Note Balance of the Class at the Note Interest Rate for the Class for
the related Interest Period.
“Note Paying Agent” means initially the Indenture Trustee and any other Person appointed as Note Paying Agent under Section 2.15 of the Indenture.
“Note Register” and “Note Registrar” have the meanings stated in Section 2.4.
“Noteholder” means the Person in whose name a Note is registered on the Note Register.
“Noteholder Tax Identification Information” means properly completed and signed tax certifications (generally with respect to U.S. Federal Income Tax, IRS Form W-9 (or applicable
successor form) in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person that is not a “United States Person”
within the meaning of Section 7701(a)(30) of the Code).
“Notes” or “Note” means, collectively or individually, as the context may require, the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes, the Class A-3 Notes,
the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes.
[“One-Month LIBOR” means, with respect to any Interest Period for which One-Month LIBOR is the Benchmark, the London interbank offered rate for deposits in U.S. Dollars having a
maturity of one (1) month commencing on the related LIBOR Determination Date which appears on the Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such LIBOR Determination Date; provided, however,
that for the first Interest Period, One-Month LIBOR shall mean an interpolated rate for deposits based on London interbank offered rates for deposits in U.S. Dollars for a period that corresponds to the actual number of days in the first Interest
Period. If the rates used to determine One-Month LIBOR do not appear on the Reuters Screen LIBOR01 Page, the rates for that day will be determined on the basis of the rates at which deposits in U.S. Dollars, having a maturity of one month and in a
principal balance of not less than U.S. $1,000,000 are offered at approximately 11:00 a.m., London time, on such LIBOR Determination Date to prime banks in the London interbank market by the Reference Banks. The Administrator will request the
principal London office of each Reference Bank to provide a quotation of its rate to the Administrator and the Indenture Trustee. If at least two (2) such quotations are provided, the Indenture Trustee will
calculate the rate for that day as the
10
arithmetic mean of such quoted rates to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of all such quotations. If fewer than two (2) such
quotations are provided, the Indenture Trustee will calculate the rate for that day as the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward, of the offered per annum rates
that one or more major banks in New York City, selected by the Administrator, are quoting as of approximately 11:00 a.m., New York City time, on such LIBOR Determination Date to leading European banks for United States Dollar deposits for that
maturity; provided that if the Administrator is not able to identify any major banks in New York City that are quoting as described in this sentence and for the avoidance of doubt, regardless of whether
others in similar transactions are using a different index, it shall direct the Indenture Trustee to use One-Month LIBOR in effect for the applicable Interest Period which will be One-Month LIBOR in effect for the previous Interest Period, and any
such direction will be deemed to apply to all subsequent LIBOR Determination Dates unless otherwise directed by the Administrator. In no event shall the Indenture Trustee be responsible for determining One-Month LIBOR or any substitute for One-Month
LIBOR if such rate does not appear on Reuters Screen LIBOR01 Page.]
“Optional Redemption” has the meaning stated in Section 10.1.
“Principal Funding Account” means the account established with the Indenture Trustee for the benefit of the Noteholders under Section 8.2(a).
“Principal Funding Account Limit” means, with respect to any date, an amount equal to [_]% of the Note Balance as of such date.
“Priority Principal Payments” means, collectively, the First Priority Principal Payment, the Second Priority Principal Payment, the Third Priority Principal Payment, the Fourth
Priority Principal Payment, the Fifth Priority Principal Payment and the Regular Priority Principal Payment.
“Prospectus” means the prospectus dated as of [___], 20[_], relating to the offering of the Notes.
“Rating Agency” means each of [___], [___] and [___].
“Redemption Date” has the meaning stated in Section 10.1.
[“Reference Banks” means, with respect to any LIBOR Determination Date, the four major banks in the London interbank market selected by the Administrator.]
[“Reference Time” with respect to any determination of the Benchmark means (1) if the Benchmark is One-Month LIBOR, 11:00 a.m. (London time) on the day that is two (2) London
banking days preceding the date of such determination, and (2) if the Benchmark is not One-Month LIBOR, the time determined by the Administrator in accordance with the Benchmark Replacement Conforming Changes.]
“Regular Priority Principal Payment” means, with respect to any Payment Date, an amount equal to (a) prior to the Amortization Period, the excess, if any, of (x) the product of the
11
Series [_]-[_] Allocation Percentage and any Pool Balance Deficit for such Payment Date over (y) the sum of any First Priority Principal Payment, Second Priority Principal Payment, Third Priority Principal
Payment, Fourth Priority Principal Payment and Fifth Priority Principal Payment for such Payment Date and (b) during the Amortization Period, the aggregate Note Balance of the Class A Notes, Class B Notes, Class C Notes, Class D Notes and Class E
Notes as of the immediately preceding Payment Date (or, for the initial Payment Date, as of the Closing Date) minus the sum of any First Priority Principal Payment, any Second Priority Principal Payment, any Third Priority Principal Payment, any
Fourth Priority Principal Payment and any Fifth Priority Principal Payment for such Payment Date.
“Required Reserve Amount” means [$[_] (which is approximately [_]% of the Series Invested Amount as of the Closing Date)] [(i) during the Revolving Period, an amount equal to $[_]
(which is approximately [_]% of the Series Invested Amount as of the Closing Date), and (ii) during the Amortization Period, an amount equal to the greater of (A) $[_] (which is approximately [_]% of the Series Invested Amount as of the Closing Date)
and (B) [_]% of the Series Invested Amount as of the end of the calendar month immediately preceding the related Payment Date] [(i) during the Revolving Period, an amount equal to [_]% of the Series Invested Amount as of the end of the calendar month
immediately preceding the related Payment Date, and (ii) during the Amortization Period, an amount equal to [_]% of the Series Invested Amount as of the end of the calendar month immediately preceding the related Payment Date] [; provided, that the
Required Reserve Amount on any Payment Date will not be less than [_]% of the Series Invested Amount as of the Closing Date][; provided that the Required Reserve Amount on any Payment Date during the Amortization Period will be equal to zero].
“Reserve Account” means the account established with the Indenture Trustee for the benefit of the Noteholders under Section 8.2(a).
“Reserve Account Draw Amount” means:
(1) on each Payment Date during the Revolving Period, an amount equal to the excess of (i) the amount on deposit
in the Reserve Account on such Payment Date (before giving effect to distributions on such Payment Date) over (ii) the Required Reserve Amount; and
(2) on the first Payment Date occurring in the Amortization Period, an amount equal to the amount on deposit in
the Reserve Account, if that amount together with Series [_]-[_] Available Funds for that Payment Date is sufficient to pay the entire Note Balance of the Notes, all accrued and unpaid interest and any unpaid Make-Whole Payments, unpaid Additional
Interest Amounts and all other amounts to be distributed to the Series [_]-[_] Secured Parties under this Indenture in full.
“Reserve Deposit Amount” means, with respect to any Payment Date, an amount equal to (a) the Required Reserve Amount minus (b) [(i)] the amount in the Reserve Account on the Payment
Date (before payments under Section 8.2(c) on that Payment Date) [and (ii) the amount available under the Letter of Credit on such Payment Date].
“Revolving Period” means the period beginning on the Closing Date and ending on the date when the Amortization Period begins.
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“Second Priority Principal Payment” means, with respect to any Payment Date, an amount equal to the excess, if any, of (x) the aggregate Note Balance of the Class A Notes and Class
B Notes as of the immediately preceding Payment Date (or, for the initial Payment Date, as of the Closing Date) over (y) the sum of the Series [_]-[_] Allocated Pool Balance and any First Priority Principal Payment for such Payment Date.
“Securities Intermediary” means, with respect to the Series [_]-[_] Accounts, [___].
“Series [_]-[_]” means the Group [_] Series of Group [_] Credit Extensions designated as “Series [_]-[_]”.
“Series [_]-[_] Account” means each of the Distribution Account, the Principal Funding Account and the Reserve Account.
“Series [_]-[_] Account Control Agreement” means the Series [_]-[_] Account Control Agreement, dated as of the Closing Date, among the Trust, as grantor, the Indenture Trustee, as
secured party, and [___], in its capacity as both a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC, as amended, restated, supplemented or modified from time to time.
“Series [_]-[_] Allocated Pool Balance” means, an amount equal to the product of (i) the Series [_]-[_] Allocation Percentage and (ii) the Group Pool Balance for Group [_],
discounted at the Series [_]-[_] Discount Rate.
“Series [_]-[_] Allocation Percentage” means the Series Allocation Percentage for Series [_]-[_].
“Series [_]-[_] Amortization Event” means, with respect to Series [_]-[_], the occurrence of any of the following:
(a) |
on any Payment Date interest due is not paid on any class of Notes,
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(b) |
[on any Payment Date during the Revolving Period, the Required Reserve Amount is not [on deposit in the Reserve Account][available under the Letter of Credit],]
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(c) |
as of the Anticipated Redemption Date, the Trust has not redeemed the Notes,
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(d) |
as of any Payment Date, a Pool Balance Deficit exists with respect to Group [_] after giving effect to distributions on such Payment Date (including deposits to the Principal Funding Account on such
Payment Date),
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(e) |
for any Payment Date, the sum of the fractions, expressed as percentages for each of the three (3) Collection Periods immediately preceding that Payment Date, calculated by dividing the aggregate
Principal Balance of all Group [_] Receivables which became Written-Off Receivables during each of the three (3) prior Collection Periods by the Group [_] Pool Balance as of the first day of each of those Collection Periods, multiplied by
four (4), exceeds [_]%,
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13
(f) |
for any Payment Date, the sum of the fractions, expressed as percentages for each of the three (3) Collection Periods immediately preceding that Payment Date, calculated by dividing the aggregate
Principal Balance of all Group [_] Receivables that are [ninety-one (91)] days or more delinquent at the end of each of the three (3) prior Collection Periods by the Group [_] Pool Balance as of the last day of each of those Collection
Periods, divided by three (3), exceeds [_]%,
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(g) |
with respect to any Payment Date, the Series [_]-[_] Allocated Pool Balance is less than [_]% of (x) the aggregate Note Balance minus (y) the amount on deposit in the Principal Funding Account, in
each case as of such Payment Date,
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(h) |
a Servicer Termination Event has occurred and is continuing, or
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(i) |
an Event of Default for Group [_] has occurred and is continuing.
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“Series [_]-[_] ARR Series Allocation Percentage” means the ARR Series Allocation Percentage for Series [_]-[_].
“Series [_]-[_] Available Funds” means, with respect to any Payment Date, an amount equal to [the sum of (i)] the product of the Series [_]-[_] Allocation Percentage and the Group
[_] Available Funds for the related Collection Period, [(ii) any amounts paid by the Cap Counterparty to the Trust under the Cap Agreement with respect to that Payment Date] and (iii) any amounts released from the Principal Funding Account with
respect to such Payment Date.
“Series [_]-[_] Collateral” means (a) all security entitlements relating to the Series [_]-[_] Accounts and the property deposited in or credited to any of the Series [_]-[_]
Accounts, [(b) the Trust’s rights under the Cap Agreement,] [(c) the Trust’s rights under the Letter of Credit,] (d) all present and future claims, demands, causes of action and choses in action for any of the foregoing and (e) all payments on or
under and all proceeds for any of the foregoing.
“Series [_]-[_] Concentration Limit” means each test used to calculate the Series [_]-[_] Excess Concentration Amount.
“Series [_]-[_] Discount Rate” means [_]%.
“Series [_]-[_] Eligible Receivable” means a Group [_] Receivable that satisfies all of the following criteria:
• |
[as of the related Cutoff Date, the [original][remaining] term of the Receivable [was][is] less than or equal to [_] months;]
|
• |
[the Receivable did not contain a contractual right to an upgrade of the Device related to the device payment plan agreement at the time the Receivable was originated;]
|
• |
[as of the related Cutoff Date, as indicated on the records of the related Originator, one of its affiliates or the Servicer, the Obligor on the account for the Receivable maintains service with
Verizon Wireless;]
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14
• |
[as of the related Cutoff Date, the Receivable is not associated with the account of a government customer;]
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• |
[under the Receivable, there is no prepayment penalty;]
|
• |
[as of the related Cutoff Date, the Obligor on the account for the Receivable is not indicated to be subject to a current bankruptcy proceeding on the records of the related Originator (or, with
respect to Receivables [transferred from the Additional Transferor] designated to Group [_] on a Re-Designation Date, the Servicer) or one of its affiliates, acting as its agent;]
|
• |
[as of the related Cutoff Date, it is not a Receivable that is part of an account (i) on which any amount is [_] days or more delinquent by the Obligor, or (ii) that is in “suspend” or “disconnect”
status (including as a result of the application of the Servicemembers Civil Relief Act) in accordance with the Servicing Procedures;]
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• |
[the Receivable is denominated and payable only in U.S. dollars;]
|
• |
[the Receivable is a legal and binding obligation of the related Obligor enforceable against the Obligor in accordance with its terms;]
|
• |
[as of the related Cutoff Date, the Obligor on the account for the Receivable had a billing address in the United States or in a territory of the United States;]
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• |
[installment payments with respect to the Receivable are scheduled no less frequently than monthly under the related device payment plan agreement;]
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• |
[as of the related Cutoff Date, the outstanding Principal Balance of the Receivable does not exceed $[_]; and]
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• |
[as of the related Cutoff Date, either (i) at least [_] payment made by the Obligor under the related device payment plan agreement has been received with respect to the related Receivable, or (ii)
the related Obligor has at least [_] year(s) of Customer Tenure with Verizon Wireless];
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• |
[for any Business Receivable for which the related Obligor is a Business Obligor:]
|
• |
[it is identified in the systems of the Servicer by such Person’s U.S. federal employer identification number or taxpayer identification number;]
|
• |
[the Business Obligor on the account for such Business Receivable is not a natural person, unless such natural person has entered into such Business Receivable in connection with his or her business;
and]
|
• |
[the Business Obligor on the account for such Business Receivable is not any of Cellco, the Trust, the Depositor, Verizon Communications, any Originator, the True-Up Trust or an affiliate thereof.]
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15
“Series [_]-[_] Excess Concentration Amount” means, with respect to Group [_] and the Group [_] Receivables, the sum of the following amounts, without duplication:
(1) for all Group [_] Receivables:
• |
[the amount by which the aggregate Principal Balance of Group [_] Receivables with Obligors that have less than twelve (12) months of Customer Tenure with Verizon Wireless exceeds [_]% of the Group
Pool Balance,]
|
• |
[the amount by which the aggregate Principal Balance of Group [_] Receivables with Obligors that have less than sixty (60) months of Customer Tenure with Verizon Wireless exceeds [_]% of the Group
Pool Balance,] and
|
• |
[the amount by which the aggregate Principal Balance of Group [_] Receivables that are part of an account (x) on which any amount is [thirty-one (31)] days or more delinquent by the Obligor or (y)
that is in “suspend” or “disconnect” status (including as a result of the application of the Servicemembers Civil Relief Act), in each case, in accordance with Servicing Procedures, exceeds [_]% of the Group Pool Balance,]
|
(2) for Group [_] Receivables that Consumer Receivables only:
• |
[the aggregate Principal Balance of all Group [_] Receivables that are Consumer Receivables with the lowest FICO®
Scores that would need to be excluded from the calculation of the Pool Balance of all Group [_] Receivables that are Consumer Receivables in order to cause the weighted average FICO® Score of the Consumer Obligors with respect to all Group [_] Receivables that are Consumer Receivables (weighted based on Principal Balances) included in such calculation of the Pool Balance of all Group [_]
Receivables that are Consumer Receivables to be at least [_] (excluding any Group [_] Receivables that are Consumer Receivables with Consumer Obligors for whom FICO®
Scores are not available),] and
|
• |
[the amount by which the aggregate Principal Balance of Group [_] Receivables that are Consumer Receivables with Consumer Obligors for whom FICO® Scores are not available exceeds [_]% of the Pool Balance of all Group [_] Receivables that are Consumer Receivables,]
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(3) for Group [_] Receivables that are Business Receivables only:
• |
[the amount by which the aggregate Principal Balance of Group [_] Receivables that are Business Receivables exceeds [10]% of the Group Pool Balance].
|
“Series [_]-[_] Group Allocated Percentage” means the Group Allocated Percentage for Series [_]-[_].
“Series [_]-[_] Required Overcollateralization Amount” means, with respect to any date of determination, an amount equal to (a) the product of (i) the Series [_]-[_] Required
Overcollateralization Percentage, expressed as a fraction, and (ii) (x) during the Revolving
16
Period, the Note Balance of the Notes as of such date and (y) during the Amortization Period, the Note Balance of the Notes as of the last day of the Revolving Period, divided by (b) the percentage,
expressed as a fraction, equal to 100% minus the Series [_]-[_] Required Overcollateralization Percentage.
“Series [_]-[_] Required Overcollateralization Percentage” means [_]%.
“Series [_]-[_]Secured Parties” means, with respect to Series [_]-[_], the Indenture Trustee, for the benefit of the Noteholders.
“Series [_]-[_] Securities Account” means each Series [_]-[_] Account subject to the terms of the Series [_]-[_] Account Control Agreement.
“Series [_]-[_] Series Related Documents” means, collectively, means this Indenture, the Cap Agreement, the Depository Agreement, the Series [_]-[_] Account Control Agreement, [the
Letter of Credit,] and any other Series Related Documents with respect to Series 20[_]-[_].
[“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the Benchmark Administrator for SOFR
(or a successor Benchmark Administrator).]
“Sponsor” means Cellco.
[“Term SOFR” means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body.]
“Third Priority Principal Payment” means, with respect to any Payment Date, an amount equal to the excess, if any, of (x) the aggregate Note Balance of the Class A Notes, Class B
Notes and Class C Notes as of the immediately preceding Payment Date (or, for the initial Payment Date, as of the Closing Date) over (y) the sum of the Series [_]-[_] Allocated Pool Balance, any First Priority Principal Payment and any Second
Priority Principal Payment for such Payment Date.
“Trust Order” has the meaning stated in Section 11.3(a).
“Trust Request” has the meaning stated in Section 11.3(a).
[“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.]
“Underwriting Agreement” means the Underwriting Agreement, dated as of [___], 20[_], by and among the Depositor, Cellco and each of [___], [___], [___] and [___], each on its own
behalf and as a representative of the several underwriters identified therein.
Section 1.2 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made
17
a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:
“indenture securities” means the Notes
“indenture security holder” means a Noteholder
“indenture to be qualified” means this Indenture
“indenture trustee” or “institutional trustee” means the Indenture Trustee
“obligor” on the indenture securities means the Trust and any other obligor on the indenture securities
All other TIA terms used in this Indenture that are (i) defined in the TIA, (ii) defined in the TIA by reference to another statute or (iii) defined by a Commission rule have the meanings
so assigned to them.
Section 2.1 Form of Notes.
(a) Form. Each Class of Notes will be in substantially the form of Exhibit A with variations required or
permitted by this Indenture. The Notes may have marks of identification and legends or endorsements as determined by the Responsible Person of the Trust executing the Notes. The physical Notes will be produced by a method determined by the
Responsible Person of the Trust executing the Notes.
(b) Incorporation by Reference. Each Note will be dated the date of its authentication. The terms of
the Notes in Exhibit A are part of this Indenture and are incorporated into this Indenture by reference.
Section 2.2 Execution, Authentication and Delivery.
(a) Execution. The Owner Trustee, on behalf of the Trust, will execute the Notes for the Trust. The
signature of the Responsible Person on the Notes may be manual or facsimile. Notes having the manual or facsimile signature of an individual who was a Responsible Person of the Trust will bind the Trust, even if the individual has ceased to be a
Responsible Person before the authentication and delivery of the Notes or was not a Responsible Person on the issuance date of the Notes.
(b) Authentication and Delivery. The Indenture Trustee will, on Trust Order, authenticate and deliver
the Notes for original issue in the Classes, Note Interest Rates and initial Note Balances as stated below.
18
Note Interest Rate
|
||
Class A-1[a] Notes
|
[_]%
|
$[_]
|
[Class A-1b Notes]
|
[One-Month LIBOR* + [_]%]
|
[$[_]]
|
Class A-2 Notes
|
[_]%
|
$[_]
|
Class A-3 Notes
|
[_]%
|
$[_]
|
Class B Notes
|
[_]%
|
$[_]
|
Class C Notes
|
[_]%
|
$[_]
|
Class D Notes
|
[_]%
|
$[_]
|
Class E Notes
|
[_]%
|
$[_]
|
_______________
* Upon the occurrence of a Benchmark Transition Event, One-Month LIBOR will be replaced by the appropriate Benchmark Replacement as set forth in Section 2.16 of the
Indenture.
(c) Denomination. The Notes will initially be issued as Book-Entry Notes. The Notes will be issued in
minimum denominations of $1,000 and in multiples of $1,000. However, one Note of each Class may be issued in a different amount if it exceeds the minimum denomination for the Class.
(d) Certificate of Authentication. No Note will have the benefit of this Indenture or be valid unless it
has a certificate of authentication substantially in the form included in Exhibit A manually executed by an authorized signatory of the Indenture Trustee. The certificate of authentication on a Note will be conclusive evidence that the Note has
been duly authenticated and delivered under this Indenture. Each Note will be dated the date of its authentication.
Section 2.3 Tax Treatment. The Trust intends that Notes be treated as indebtedness for purposes of U.S.
federal, State and local income tax, franchise tax, and any other tax imposed on or measured in whole or in part by income. The Trust, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its
acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes as indebtedness for purposes of U.S. federal, State and local income tax, franchise tax, and any other tax imposed on or measured in whole or in part by income,
and the Trust as a mere security device formed to hold the Receivables and issue Notes and Certificates.
Section 2.4 Note Register. The Trust appoints the Indenture Trustee to be the “Note Registrar”
and to keep a register (the “Note Register”) for the purpose of registering Notes and transfers and exchanges of Notes, subject to such reasonable regulations as it may prescribe. On resignation of the Note Registrar, the Trust will
promptly appoint a successor or, if it elects not to make the appointment, assume the obligations of Note Registrar. If the Trust appoints a Person other than the Indenture Trustee as Note Registrar, (i) the Trust will notify the Indenture Trustee
of the appointment and (ii) the Indenture Trustee will have the right to rely on a certificate executed by an officer of the Note Registrar listing the names and addresses of the Noteholders and the principal amounts and number of the Notes. Each
of the Indenture Trustee (if it is not the Note Registrar), the Trust and the Administrator will have the right to inspect the Note Register at reasonable times and to receive copies of the Note Register.
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Section 2.5 Registration of Transfer and Exchange.
(a) Transfer of Notes. A Noteholder may transfer a Note by surrendering the Note for registration of
transfer at the office or agency of the Trust maintained under Section 3.2. If the requirements of Section 8-401(a) of the UCC are met, the Trust will execute and the Indenture Trustee will authenticate and deliver to the Noteholder, in the name
of the transferee or transferees, new Notes of the same Class, in the same aggregate principal amount.
(b) Exchange of Notes. A Noteholder may exchange Notes for other Notes of the same Class by surrendering
the Notes to be exchanged at the office or agency of the Trust maintained under Section 3.2. If the requirements of Section 8-401(a) of the UCC are met, the Trust will execute, the Indenture Trustee will authenticate and the Noteholder will
receive from the Indenture Trustee new Notes of the same Class, in the same aggregate principal amount.
(c) Valid Obligation. Notes issued on the registration of transfer or exchange of Notes will be the
valid obligations of the Trust, evidencing the same debt, and have the same benefits under this Indenture as the Notes surrendered for registration of transfer or exchange.
(d) Surrendered Notes. Every Note surrendered for registration of transfer or exchange will be (i) duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Noteholder of the Note or the Noteholder’s authorized attorney, with the signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Note Registrar including membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program”, according to the Exchange Act and (ii) accompanied by
other documents the Note Registrar may require.
(e) No Service Charge. None of the Trust, the Note Registrar or the Indenture Trustee will impose a
service charge on a Noteholder for the registration of transfer or exchange of Notes. The Trust, the Note Registrar or the Indenture Trustee may require the Noteholder to pay an amount to cover taxes or other governmental charges that may be
imposed for the registration of transfer or exchange of the Notes.
(i) The Note Register will register transfers and exchanges of Notes in the Note Register.
However, neither the Trust nor the Note Registrar will be required to register transfers or exchanges of Notes for which the next Payment Date is not more than fifteen (15) days after the requested date of transfer or exchange or which have been
called for redemption.
(ii) Neither the Indenture Trustee nor the Note Registrar shall have any obligation or duty
to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Clearing
Agency participants or beneficial owners of interests in any Book-Entry Note) other than to require delivery of such certificates and other documentation or evidence as are
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expressly required by this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.
(g) ERISA Representations. Each Note Owner that is subject to Title I of ERISA, Section 4975 of the Code
or Similar Law and any fiduciary acting on behalf of the Note Owner, by accepting an interest or participation in a Note, is deemed to represent that its purchase, holding and disposition of that interest or participation does not and will not
result in a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the applicability of a statutory or administrative exemption from the prohibited transaction rules (or, if the Note Owner is subject to Similar
Law, the purchase, holding and disposition does not and will not result in a non-exempt violation of that Similar Law).
Section 2.6 [Reserved].
Section 2.7 Mutilated, Destroyed, Lost or Stolen Notes.
(a) Replacement Notes. If a mutilated Note is surrendered to the Indenture Trustee or the Indenture
Trustee receives evidence of the destruction, loss or theft of a Note, the Trust will execute and, on Trust Request, the Indenture Trustee will authenticate and deliver a replacement Note of the same Class and principal amount in exchange for or in
place of the Note if the following conditions are met: (i) the Indenture Trustee receives security or indemnity to hold the Trust and the Indenture Trustee harmless, (ii) none of the Trust, the Note Registrar or the Indenture Trustee have received
notice that the Note has been acquired by a protected purchaser, as defined in Section 8-303 of the UCC and (iii) the requirements of Section 8-405 of the UCC are met. However, if a destroyed, lost or stolen Note (but not a mutilated Note) is due
and payable within fifteen (15) days or has been called for redemption, instead of issuing a replacement Note, the Trust may pay the destroyed, lost or stolen Note when so due or payable or on the Redemption Date without surrender of the Note. If
a protected purchaser of the original Note in place of which the replacement Note was issued (or the payment made) presents for payment the original Note, the Trust and the Indenture Trustee may recover the replacement Note (or the payment) from
the Person to whom it was delivered or a Person taking the replacement Note (or the payment) from the Person to whom the replacement Note (or the payment) was delivered or an assignee of that Person, except a protected purchaser, and may recover on
the security or indemnity provided for the replacement Note (or the payment) for any fee, expense, loss, damage or liability incurred by the Trust or the Indenture Trustee for the replacement Note (or the payment).
(b) Taxes, Charges and Expenses. On the issuance of a replacement Note under Section 2.7(a), (i) the
Trust may require the Noteholder of the Note to pay an amount to cover any taxes or other governmental charges imposed and any other reasonable expenses incurred for the replacement Note, (ii) the Indenture Trustee will, for a mutilated Note,
cancel the Note and (iii) the Note Registrar will record in the Note Register that the destroyed, lost or stolen Note no longer has the benefits of this Indenture.
(c) Additional Obligation. Each replacement Note issued under Section 2.7(a) will be an original
additional contractual obligation of the Trust and will have the benefits of this
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Indenture equally and proportionately with other Notes of the same Class duly issued under this Indenture.
(d) Sole Remedy. This Section 2.7 states the sole remedy available to Noteholders for the replacement or
payment of mutilated, destroyed, lost or stolen Notes.
Section 2.8 Persons Deemed Owners. On any date, the Trust, the Indenture Trustee, the Note Registrar and
any agent of the Trust or the Indenture Trustee may treat the Person in whose name a Note is registered as of that date as the owner of the Note for all purposes, including receiving payments of principal of and interest on the Note, without regard
to any notice or other information to the contrary.
Section 2.9 Payments on Notes.
(a) Interest Accrual. Each Class of Notes will accrue interest on its Note Balance for each Interest
Period until the Note Balance has been paid in full at a rate per annum equal to its Note Interest Rate for that Interest Period. Interest on the Notes for each Interest Period will be calculated on the basis of [(i)] in the case of the Class
A-1[a] Notes, the Class A-2 Notes, the Class A-3 Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes, a 360-day year consisting of twelve 30-day months [and (ii) in the case of the Class A-1b Notes, a 360-day year
and the actual number of days elapsed in the related Interest Period]. Interest on each Note for each Interest Period will be due and payable on the related Payment Date.
(b) Principal. Prior to the beginning of the Amortization Period, principal payments will not be made on
the Notes, other than in connection with an Optional Redemption. If Priority Principal Payments are required to be made on any Payment Date prior to the beginning of the Amortization Period in accordance with the provisions of Article VIII, such
amounts will be deposited into the Principal Funding Account on such Payment Date in accordance with the provisions of Article VIII, to the extent of Series [_]-[_] Available Funds, in lieu of such amounts being applied to pay principal on the
Notes on such Payment Date. Amounts on deposit in the Principal Funding Account will be applied in accordance with the provisions of Article VIII. On each Payment Date during the Amortization Period, the principal of each Class of Notes will be
payable in installments on each Payment Date in accordance with the provisions of Article VIII. The Note Balance of each Class of Notes will be due and payable on the earlier of the Redemption Date or the applicable Final Maturity Date. In
addition, the Note Balance of each Class of Notes will be due and payable on the date the Notes are declared to be, or have automatically become, immediately due and payable according to [[Section 5.2(a)]].
(c) Make-Whole Payments. A Make-Whole Payment will be due in connection with the Optional Redemption of
the Notes on any date on or after the Earliest Redemption Date but prior to [[____], 20[_]][the Payment Date occurring [three (3) months] prior to the Anticipated Redemption Date], as described in Section [_], solely to the extent funds are
available therefor. Any Make-Whole Payments on a Class of Notes not previously paid will be due and payable on the earlier of the Redemption Date or the applicable Final Maturity Date. In addition, any Make-Whole Payments on a Class of Notes not
previously paid will be due and payable on the date the Notes are declared to be, or have automatically become, immediately due and payable according to [[Section 5.2(a)]]. For the avoidance of doubt, no Make-Whole Payment
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will be payable in connection with an Optional Redemption of the Notes on or after [[___], 20[_]][the Payment Date occurring [three (3) months] prior to the Anticipated Redemption Date].
(d) Additional Interest Amounts. If the Notes have not been redeemed as of the Anticipated Redemption
Date, beginning on such Payment Date, in addition to interest at the stated interest rate, each class of Notes will accrue additional interest at the Additional Interest Rate applicable to that class of Notes, which accrued Additional Interest
Amounts will be distributed to Noteholders in accordance with the provisions of Article VIII, to the extent of Series [_]-[_] Available Funds.
(e) Monthly Payment of Interest, Principal and Other Amounts. Payments of interest, principal and other
amounts on each Class of Notes will be made pro rata to the Noteholders of that Class on each Payment Date. For Book-Entry Notes, payments will be made by wire transfer to the account designated by the nominee of the Clearing Agency according to
Section 2.12. For Definitive Notes, payments will be made (i) if the Noteholder has given to the Note Registrar instructions at least five (5) Business Days before that Payment Date and the aggregate original principal amount of the Noteholder’s
Notes is at least $1,000,000, by wire transfer to the account of the Noteholder or (ii) by check mailed first class mail, postage prepaid, to the Noteholder’s address as it appears on the Note Register on the related Record Date. Amounts paid by
wire transfers or checks that are returned undelivered will be held according to Section 3.3.
(f) Payment of Final Installment. The final installment of principal (whether payable by wire transfer
or check) of each Note on a Payment Date, the Redemption Date or the applicable Final Maturity Date will be payable only on presentation and surrender of the Note, subject to Section 2.7(a). Upon receipt of written notice thereof from the Servicer
(which may be in the form of the Monthly Investor Report), the Indenture Trustee will notify each Noteholder of the date the Trust expects to pay the final installment on any of the Notes, which notice will be delivered no later than five (5) days
before that date (solely to the extent the Indenture Trustee has received notice prior to such date), and the place where the Notes may be presented and surrendered for payment.
Section 2.10 Cancellation of Notes. Any Person that receives a Note surrendered for payment,
registration of transfer, exchange or redemption will deliver the Note to the Indenture Trustee, and the Indenture Trustee will promptly cancel it. The Trust may surrender to the Indenture Trustee for cancellation Notes previously authenticated
and delivered under this Indenture which the Trust may have acquired, and the Indenture Trustee will promptly cancel them. No Notes will be authenticated in place of or in exchange for Notes cancelled as stated in this Section 2.10. The Indenture
Trustee may hold or dispose of cancelled Notes according to its standard retention or disposal policy unless the Trust directs, by Trust Order, that they be destroyed or returned to it.
Section 2.11 Release of Series [_]-[_] Collateral. The Indenture Trustee will release property from the
Lien of this Indenture only according to Sections 8.4 and 10.1.
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Section 2.12 Book-Entry Notes.
(a) Issuance and Registration. The Notes will be issued as Book-Entry Notes on the Closing Date. The
Book-Entry Notes, on original issuance, will be issued in the form of printed Notes representing the Book-Entry Notes and delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Trust. The Book-Entry Notes
will be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency.
(b) Sole Noteholder. The Note Registrar and the Indenture Trustee may deal with the Clearing Agency as
the sole Noteholder of the Book-Entry Notes for all purposes of this Indenture and will not be obligated to the Note Owners[[, except as stated in Section 7.1]].
(c) Rights. The rights of Note Owners may be exercised only through the Clearing Agency and will be
limited to those established by law and agreements between the Note Owners and the Clearing Agency and/or its participants under the Depository Agreement.
(d) Clearing Agency Obligations. The Clearing Agency will make book-entry transfers among its
participants and receive and transmit payments of principal of and interest on the Book-Entry Notes to the participants. The Indenture Trustee, the Note Registrar and the Note Paying Agent shall have no responsibility or liability for any actions
taken or not taken by the Clearing Agency.
(e) Representation of Noteholders. If this Indenture requires or permits actions to be taken based on
instructions or directions of the Noteholders of a stated percentage of the Note Balance of the Notes (or the Controlling Class), the Clearing Agency will be deemed to represent those Noteholders only if it has received instructions to that effect
from Note Owners and/or the Clearing Agency’s participants owning or representing, the required percentage of the beneficial interest of the Notes (or the Controlling Class) and has delivered the instructions to the Indenture Trustee.
(f) Conflicts. If this Section 2.12 conflicts with other terms of this Indenture, this Section 2.12 will
control.
(g) CUSIP Numbers. The Trust in issuing the Notes may use “CUSIP” numbers (if then generally in use),
and, if so, the Indenture Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on
the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The
Trust will promptly notify the Indenture Trustee in writing of any change in the “CUSIP” numbers.
Section 2.13 Definitive Notes. No Note Owner will receive a definitive, fully registered Note (a “Definitive
Note”) representing the Note Owner’s interest in the Note unless and until (a) the Administrator notifies the Indenture Trustee that the Clearing Agency is no longer willing or able to properly discharge its responsibilities as depository for
the Book-Entry Notes and the Administrator is unable to reach an agreement on satisfactory terms with a
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qualified successor, (b) the Administrator notifies the Indenture Trustee that it elects to terminate the book-entry system through the Clearing Agency or (c) after the occurrence and during the continuation
of an Event of Default with respect to Group [_] or a Servicer Termination Event, Note Owners of a majority of the Note Balance of the Controlling Class notify the Indenture Trustee and the Clearing Agency that they elect to terminate the book-entry
system through the Clearing Agency. In these cases, the Clearing Agency will notify Note Owners and the Indenture Trustee of the availability of Definitive Notes. After the Clearing Agency has surrendered the printed Notes representing the
Book-Entry Notes and delivered the registration instructions to the Indenture Trustee, the Trust will execute and the Indenture Trustee, on Trust Request, will authenticate the Definitive Notes according to the instructions of the Clearing Agency.
None of the Trust, the Note Registrar or the Indenture Trustee will be liable for delay in delivery of the instructions and may conclusively rely, and will be protected in relying, on the instructions. On the issuance of Definitive Notes to Note
Owners, the Indenture Trustee will recognize the holders of the Definitive Notes as Noteholders.
Section 2.14 Authenticating Agents.
(a) Appointment. The Indenture Trustee may appoint one or more Persons as authenticating agents for the
Notes (each, an “Authenticating Agent”) with the power to act on its behalf and subject to its direction in the authentication of Notes for issuances, transfers, exchanges and replacements. The authentication of Notes by an Authenticating
Agent under this Section 2.14 is deemed to be the authentication of Notes “by the Indenture Trustee.” If no Authenticating Agent is appointed, the Indenture Trustee will be the Authenticating Agent for the Notes.
(b) Resignation and Termination. An Authenticating Agent may resign by notifying the Indenture Trustee,
the Master Collateral Agent and the Owner Trustee. The Indenture Trustee may terminate the agency of an Authenticating Agent by notifying the Authenticating Agent, the Master Collateral Agent and the Owner Trustee.
Section 2.15 Note Paying Agents.
(a) Appointment. The Indenture Trustee may appoint one or more Note Paying Agents that meet the
eligibility standards for the Indenture Trustee in Section 6.11. If no Note Paying Agent is appointed, then the Indenture Trustee will be the Note Paying Agent for the Notes. Each Note Paying Agent will have the power to make distributions from
the Series [_]-[_] Accounts.
(b) Resignation and Termination. A Note Paying Agent may resign by notifying the Indenture Trustee, the
Administrator, the Master Collateral Agent and the Trust. The Indenture Trustee may terminate the agency of a Note Paying Agent by notifying the Note Paying Agent, the Administrator, the Master Collateral Agent and the Trust.
Section 2.16 [Effect of Benchmark Transition Event.
(a) Benchmark Replacement. If the Administrator determines that a Benchmark Transition Event and its
related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any determination of the Benchmark on any date, the Benchmark
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Replacement will replace the then-current Benchmark with respect to Series [_]-[_] for all purposes under the Transaction Documents, the Series [_]-[_] Series Related Documents and the Notes in respect of
such determination on such date and all determinations on all subsequent dates. As set forth in Section 3.5(a)(iii) of the Transfer and Servicing Agreement, the Servicer will include in the Monthly Investor Report notice of the occurrence of (i) any
Benchmark Transition Event and its related Benchmark Replacement Date, (ii) the determination of any Benchmark Replacement, and (iii) the making of any Benchmark Replacement Conforming Changes.
(b) Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark
Replacement, the Administrator shall have the right to make Benchmark Replacement Conforming Changes from time to time. Notice of the occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, the determination of a
Benchmark Replacement and the making of any Benchmark Replacement Conforming Changes will be delivered in writing by the Administrator to the Trust, the Owner Trustee, the Master Collateral Agent, a Responsible Person of the Indenture Trustee, the
Parent Support Provider, the Sponsor, the Depositor and the Servicer and included in the Monthly Investor Report. Notwithstanding anything in the Transaction Documents or the Series [_]-[_] Series Related Documents to the contrary, upon the
delivery of notice to a Responsible Person of the Indenture Trustee and the inclusion of such information in the Monthly Investor Report, the relevant Transaction Documents (with respect to Series [_]-[_]), the Series [_]-[_] Series Related
Documents and the Notes will be deemed to have been amended to reflect the new Unadjusted Benchmark Replacement, Benchmark Replacement Adjustment and/or Benchmark Replacement Conforming Changes without further compliance with the amendment
provisions of the relevant Transaction Documents or the Series [_]-[_] Series Related Documents.
(c) Decisions and Determinations. Any determination, decision or election that may be made by the
Administrator pursuant to this Section 2.16, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action
or any selection, shall be conclusive and binding absent manifest error, may be made in the Administrator’s sole discretion, and, notwithstanding anything to the contrary in the Transaction Documents or the Series [_]-[_] Series Related Documents,
shall become effective without consent from any other party or Noteholder and shall not be subject to any of the amendment provisions of the Transaction Documents or the Series [_]-[_] Series Related Documents (including, without limitation, the
provisions under Article IX). None of the Trust, the Owner Trustee, the Indenture Trustee, the Note Paying Agent, the Note Registrar, the Master Collateral Agent, the Administrator, the Sponsor, the Depositor or the Servicer shall have any
liability for any determination made by or on behalf of the Administrator in connection with a Benchmark Transition Event or a Benchmark Replacement as set forth above, and each Noteholder, by its acceptance of a Note or a beneficial interest in a
Note, shall be deemed to waive and release any and all claims against the Trust, the Owner Trustee, the Indenture Trustee, the Note Paying Agent, the Note Registrar, the Master Collateral Agent, the Administrator, the Sponsor, the Depositor or the
Servicer relating to any such determinations. Notwithstanding anything in the Transaction Documents or any Series [_]-[_] Series Related Document to the contrary, upon the delivery of notice to a Responsible Person of the Indenture Trustee and
inclusion in a Monthly Investor Report of the information set forth in Section 3.5(a)(iii) in the Transfer and Servicing
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Agreement, the relevant Transaction Documents (with respect to Series [_]-[_]) and the Series [_]-[_] Series Related Documents shall be deemed to have been amended to reflect the new Unadjusted Benchmark
Replacement, Benchmark Replacement Adjustment and/or Benchmark Replacement Conforming Changes without further compliance with the amendment provisions of the relevant Transaction Documents or the Series [_]-[_] Series Related Documents. None of the
Indenture Trustee, the Note Paying Agent, the Note Registrar, the Master Collateral Agent or the Owner Trustee will have any liability or obligation with respect to any determination by the Administrator that a Benchmark Transition Event has occurred
or the selection of any replacement index.]
Section 3.1 Payment of Principal, Interest and Other Amounts. The Trust will duly and punctually pay the
principal of and interest, Additional Interest Amounts and Make-Whole Payments, if any, on the Notes according to the terms of the Notes and this Indenture. Amounts withheld under the Code or State or local tax law by any Person from a payment to
a Noteholder will be considered as having been paid by the Trust to the Noteholder.
Section 3.2 Maintenance of Office or Agency. The Trust will maintain an office or agency at the
Corporate Trust Office of the Indenture Trustee designated for such purpose, where Notes may be surrendered for registration of transfer or exchange, and where notices to and demands on the Trust for the Notes and this Indenture may be served. The
Trust initially appoints the Indenture Trustee to serve as its agent for those purposes. The Trust will promptly notify the Indenture Trustee of a change in the location of the office or agency. If the Trust fails to maintain the office or agency
or fails to furnish the Indenture Trustee with the address of the office or agency, any surrender, notices or demands may be made or served at the Corporate Trust Office, and the Trust appoints the Indenture Trustee as its agent to receive them.
Section 3.3 Money for Payments To Be Held in Trust.
(a) Payments on the Notes. Payments on the Notes that are to be made from amounts withdrawn from the
Series [_]-[_] Accounts will be made on behalf of the Trust by the Note Paying Agent. No amounts withdrawn for payments on the Notes may be paid over to the Trust, except as stated in this Section 3.3.
(b) Agreement by Note Paying Agent. The Indenture Trustee will, and will cause each Note Paying Agent
(other than the Indenture Trustee) to, execute and deliver to the Indenture Trustee, an instrument in which the Note Paying Agent agrees with the Indenture Trustee (and if the Indenture Trustee acts as the Note Paying Agent, it hereby so agrees)
to:
(i) hold funds held by it for the payment of amounts due on the Notes in trust for the
benefit of the Persons entitled to that money and pay it to those Persons under this Indenture;
(ii) notify the Indenture Trustee of a default by the Trust of which it has actual knowledge
in the making of a required payment on the Notes;
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(iii) during the continuance of a default, on the request of the Indenture Trustee,
immediately pay to the Indenture Trustee money held by it in trust;
(iv) immediately resign as a Note Paying Agent and immediately pay to the Indenture Trustee
amounts held by it in trust if it ceases to meet the eligibility standards set forth in Section 6.11 for the Indenture Trustee; and
(v) comply with all requirements of the Code for withholding and reporting requirements for
payments on the Notes.
(c) Payment Direction. The Trust may by Trust Order, direct a Note Paying Agent to pay to the Indenture
Trustee money held in trust by the Note Paying Agent, which money will be held by the Indenture Trustee on the same terms as the Note Paying Agent. On a Note Paying Agent’s payment of money held in trust to the Indenture Trustee, the Note Paying
Agent will be released from liability for such amounts.
(d) Unclaimed Money. Subject to applicable law, money held by the Indenture Trustee or a Note Paying
Agent in trust under this Section 3.3 which remains unclaimed for two (2) years after it became due and payable will be discharged from the trust and paid to the Trust on Trust Request. After discharge and payment, the Noteholder of the Note will,
as an unsecured general creditor, look only to the Trust for payment of the amount due and unclaimed, and the Indenture Trustee or the Note Paying Agent will be released from liability for such amounts. However, the Indenture Trustee or the Note
Paying Agent, before making the payment, will publish once, at the expense and direction of the Trust, in a newspaper customarily published on each Business Day in the English language and of general circulation in The City of New York, notice that
the money remains unclaimed and that after a date stated in the notice, which must be at least thirty (30) days from the date of publication, any unclaimed balance of the money then remaining will be paid to the Trust. The Indenture Trustee will
also use other reasonable means to notify Noteholders of unclaimed payments.
(e) FATCA Withholding. The Trust represents, warrants and covenants to the Indenture Trustee and the
Note Paying Agent that, (i) to the best of the Trust’s knowledge, the Indenture Trustee, Note Registrar and Note Paying Agent are not obligated in respect of any payments to be made by the Trust pursuant to this Indenture, to make any withholding
or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements thereunder or official interpretations thereof (“FATCA
Withholding Tax”), provided such parties have obtained the requisite information about the Noteholders; (ii) the Noteholders are required to provide information sufficient to eliminate the imposition of, or determine the amount of, FATCA
Withholding Tax (the “FATCA Information”) to the Trust and the Indenture Trustee, (iii) the Trust shall comply with all requirements of the Code with respect to the withholding from any payment made by it on any Note of any applicable FATCA
Withholding Tax imposed thereon and with respect to any applicable reporting requirement in connection therewith; and (iv) to the extent the Trust determines that FATCA Withholding Tax is applicable, it will promptly notify the Note Paying Agent of
such fact. To the extent the Trust has the Noteholders’ information, the Trust will provide the FATCA Information to the Indenture Trustee, the Note Registrar and the Note Paying Agent upon request. Each holder of a Note or an interest therein,
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by acceptance of such Note or such interest in such Note, will be deemed to have agreed to provide the Trust, the Indenture Trustee, the Note Registrar and the Note Paying Agent with the Noteholder Tax
Identification Information and, to the extent FATCA Withholding Tax is applicable, the FATCA Information. In addition, each holder of a Note will be deemed to understand that the Note Paying Agent has the right to withhold interest payable with
respect to the Note (without any corresponding gross-up) on any beneficial owner of an interest in a Note that fails to comply with the foregoing requirements.
Section 3.4 Existence. The Trust will obtain and maintain its qualification in each jurisdiction in
which the qualification is or will be necessary to protect the validity and enforceability of this Indenture, the Notes and the Series [_]-[_] Collateral.
Section 3.5 Protection of Collateral.
(a) Amendments and Financing Statements. The Trust will (i) execute and deliver amendments to this
Indenture and other documents, (ii) file or authorize and cause to be filed financing statements and amendments and continuations of those financing statements and (iii) take other action, in each case, necessary or advisable to:
(A) Grant more effectively any portion of the Series [_]-[_] Collateral pursuant to this
Indenture;
(B) maintain or preserve the Lien and security interest (and the priority of the security
interest) of this Indenture;
(C) perfect, maintain perfection, publish notice of or protect the validity of a Grant made
or to be made by this Indenture;
(D) enforce the Series [_]-[_] Collateral; or
(E) maintain and defend title to the Series [_]-[_] Collateral and the rights of the
Indenture Trustee and the Series [_]-[_] Secured Parties in the Series [_]-[_] Collateral against the claims of all Persons, subject to Permitted Liens and the Transaction Documents.
(b) Authorization to File. The Trust authorizes the Administrator and the Indenture Trustee (but the
Indenture Trustee shall not be required to do so) to file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices as the Administrator or the Indenture Trustee may determine
necessary or advisable to perfect the Indenture Trustee’s interest in the Series [_]-[_] Collateral. The Administrator (or the Indenture Trustee solely to the extent it has elected to so prepare and file) shall timely prepare and file the
foregoing and will promptly deliver to the Trust and the Indenture Trustee file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.
(c) Indenture Trustee Not Obligated. The Indenture Trustee is not obligated to (i) make a determination
of whether filing financing or continuation statements, or amendments
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to the statements, is required or (ii) file any financing or continuation statements, or amendments to the statements, and will not be liable for failure to do so.
(d) Description of Series [_]-[_] Collateral in Financing Statement. Financing statements filed pursuant
to this Indenture may describe the Series [_]-[_] Collateral in the same manner as described herein or may describe the Series [_]-[_] Collateral subject thereto as “[All of the debtor’s right, title and interest now or hereafter existing in, to
and under all assets of the debtor pledged solely to Series [_]-[_], whether now owned or existing or hereafter acquired or arising].”
Section 3.6 Performance of Obligations.
(a) Performance of Obligations. The Trust will perform all of its obligations under the Transaction
Documents, the Series [_]-[_] Series Related Documents and documents included in the Series [_]-[_] Collateral in all material respects. The Trust will not take any action and will use its best efforts not to permit any action to be taken by
others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Series [_]-[_] Collateral or that would result in the amendment, hypothecation, subordination,
termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in or permitted under this Indenture, the other Series [_]-[_] Series Related Documents, the Transaction
Documents, the Servicing Procedures or such other instrument or agreement.
(b) Subcontracting. The Trust may contract with other Persons to assist it in performing its obligations
under this Indenture. Initially, the Trust has contracted with the Servicer and the Administrator to assist the Trust in performing its obligations under this Indenture.
(c) [Reserved].
(d) [Cap Agreement. Promptly following the termination of the Cap Agreement due to an “Event of Default”
or “Termination Event” (as each such term is defined in the Cap Agreement), the Trust will use reasonable efforts to enter into a replacement cap agreement on terms similar to those of the terminated Cap Agreement with an Eligible Replacement Cap
Counterparty unless the Master Collateral Agent sells the Group [_] Assets and, to the extent required, a portion of the Group Assets of any other Group pursuant to Sections 6.1(a)(iii) and 6.10 of the Master Collateral Agreement.]
Section 3.7 Negative Covenants. So long as Notes are Outstanding, the Trust will not, except as
permitted in the Transaction Documents:
(a) Dispose of Series [_]-[_] Collateral. Sell, transfer, exchange or dispose of the Series [_]-[_]
Collateral unless directed to do so by the Indenture Trustee;
(b) No Release of Material Obligations. Take action, and will use its commercially reasonable efforts to
prevent any action from being taken by others, that would release any Person from any material obligation under a document included in the Series [_]-[_] Collateral or
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that would impair the validity or enforceability of the Series [_]-[_] Collateral or a document included in the Series [_]-[_] Collateral;
(c) Set-off. Claim a credit on, or make a deduction from the payments of principal or interest on, the
Notes (other than amounts withheld from payments under applicable Law) or assert a claim against a Noteholder by reason of the payment of the taxes levied or assessed on the Trust, the Group [_] Assets or the Series [_]-[_] Collateral;
(d) Liens. Permit (i) the validity or effectiveness of this Indenture to be impaired, or permit the Lien
of this Indenture to be amended, subordinated, terminated or discharged, or permit a Person to be released from obligations under this Indenture except in each case as permitted by this Indenture, (ii) any Lien, other than Permitted Liens, to be
created on or extend to the Series [_]-[_] Collateral or (iii) the Lien of this Indenture not to be a valid first priority security interest in the Series [_]-[_] Collateral, other than with respect to Permitted Liens;
(e) Modification of Collateral. Subject to Article IX and the terms and conditions of the Series [_]-[_]
Collateral or any Transaction Documents, amend, modify, waive, terminate or surrender any Series [_]-[_] Collateral without the consent of the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Notes and notifying the
Rating Agencies;
(f) Engage in Non-Permissible Activities. Engage in any activity other than as permitted by the Trust
Agreement.
Section 3.8 Opinions on Collateral.
(a) Opinion on Recording. If this Indenture is subject to recording, the Trust, at its expense, will
record it and deliver an Opinion of Counsel to the Indenture Trustee stating that the recording is necessary either for the protection of the Series [_]-[_] Secured Parties or for the enforcement of a right or remedy Granted to the Indenture
Trustee under this Indenture.
(b) Opinion on Perfection. On the Closing Date, the Trust will furnish to the Indenture Trustee an
Opinion of Counsel stating that this Indenture creates an enforceable security interest in favor of the Indenture Trustee in the Indenture Trustee’s right, title and interest in and to the Series [_]-[_] Collateral transferred by the Trust to the
Indenture Trustee pursuant to this Indenture and in any identifiable cash proceeds thereof.
(c) [Annual Opinion. On or before April 30 of each year, beginning in the year after the Closing Date,
the Trust will furnish to the Indenture Trustee an Opinion of Counsel either (i) stating that, in the opinion of that counsel, all action has been taken for the recording, filing, re-recording and refiling of this Indenture and all financing
statements and continuation statements to maintain the Lien of this Indenture or (ii) stating that in the opinion of that counsel no action is necessary to maintain the Lien.]
Section 3.9 Annual Certificate of Compliance. The Trust will deliver to the Indenture Trustee within
ninety (90) days after the end of each calendar year, beginning in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Trust, stating that (a) a review of the Trust’s activities and of its performance
under this Indenture during the prior year has been made under a Responsible Person’s supervision and (b) to the Responsible
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Person’s knowledge, based on the review, the Trust has fulfilled in all material respects its obligations under this Indenture throughout the prior year or, if there has been a failure to fulfill an
obligation in any material respect, stating each failure known to the Responsible Person and the nature and status of the failure. A copy of the Officer’s Certificate may be obtained by any Noteholder or Person certifying it is a Note Owner by a
request to the Indenture Trustee at its Corporate Trust Office. The Trust’s obligation to deliver an Officer’s Certificate under this Section 3.9 will terminate on the payment in full of the Notes.
Section 3.10 Successor or Transferee. (a) On a merger or consolidation of the Trust or a transfer under
Section 5.5(d) of the Master Collateral Agreement, the Person formed by or surviving the merger or consolidation (if other than the Trust) will succeed to, and be substituted for, and may exercise the rights and powers of, the Trust under this
Indenture with the same effect as if that Person had been named as the Trust in this Indenture and (b) for a transfer of the assets of the Trust under Section 5.5(d) of the Master Collateral Agreement, the predecessor Trust will be released from
its obligations under this Indenture to be performed by the successor Trust for the Notes immediately on receipt of notice by the Indenture Trustee stating that the Trust is to be released.
Section 3.11 Further Acts and Documents. On request of the Indenture Trustee, the Trust will take action
and execute and deliver additional documents reasonably required to perform and carry out the purposes of this Indenture.
Section 3.12 Review of Trust’s Records. The Trust will maintain records and documents relating to its
performance under this Indenture according to its customary business practices. Upon reasonable request not more than once during any calendar year, and with reasonable notice, the Trust will give the Indenture Trustee (or its representatives)
access to the records and documents to conduct a review of the Trust’s performance under this Indenture. Any access or review will be conducted at the Trust’s offices during its normal business hours at a time reasonably convenient to the Trust
and in a manner that will minimize disruption to its business operations. Any access or review will be subject to the Trust’s security, confidentiality and privacy policies and any legal, regulatory and data protection policies. Notwithstanding
the foregoing, the permissive right of the Indenture Trustee to access and review the Trust’s records shall not constitute an obligation of the Indenture Trustee to do so.
Section 3.13 Trust’s Representations and Warranties. The Trust represents and warrants to the Indenture
Trustee as of the Closing Date:
(a) Organization and Qualification. The Trust is duly formed and validly existing as a statutory trust
in good standing under the laws of the State of Delaware.
(b) Power, Authority and Enforceability. The Trust has the power and authority to execute, deliver and
perform its obligations under the Transaction Documents and the Series [_]-[_] Series Related Documents to which it is a party. The Trust has authorized the execution, delivery and performance of the Transaction Documents and the Series [_]-[_]
Series Related Documents to which it is a party. The Transaction Documents and the Series [_]-[_] Series Related Documents to which it is a party are the legal, valid and binding obligation of the Trust enforceable against the Trust, except as may
be limited by insolvency, bankruptcy,
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reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.
(c) No Conflicts and No Violation. The completion of the transactions contemplated by the Transaction
Documents and the Series [_]-[_] Series Related Documents to which it is a party and the performance of its obligations under such documents will not (i) conflict with, or be a material breach or material default under any indenture, mortgage, deed
of trust, loan agreement, guarantee or similar document under which the Trust is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Trust’s properties or assets under the terms of any indenture, mortgage, deed of
trust, loan agreement, guarantee or similar document (other than this Indenture and the Transaction Documents), (iii) violate the Trust Agreement or (iv) violate a Law or, to the Trust’s knowledge, an order, rule or regulation of a federal or State
court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Trust or its properties that applies to the Trust, which, in each case of clauses (i) through (iv), would reasonably be expected to
have a Material Adverse Effect.
(d) No Proceedings. To the Trust’s knowledge, there are no proceedings or investigations pending or
threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Trust or its properties (i) asserting the invalidity of the Transaction Documents, the
Series [_]-[_] Series Related Documents or the Notes, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents or the Series [_]-[_] Series Related Documents, (iii) seeking
any determination or ruling that would reasonably be expected to have a Material Adverse Effect or would materially adversely impact the validity or enforceability of the Notes or (iv) relating to the Trust that would reasonably be expected to (A)
affect the treatment of the Notes as indebtedness for purposes of U.S. federal and State income tax, franchise tax, and any other tax imposed on or measured in whole or in part by income, (B) be deemed to cause a taxable exchange of the Notes for
U.S. federal income tax purposes or (C) cause the Trust to be treated as an association or publicly traded partnership, in either case taxable as a corporation for U.S. federal income tax purposes, in each case, other than any proceedings that, to
the Trust’s knowledge, would not reasonably be expected to have a material adverse effect on the Trust, the performance by the Trust of its obligations under, or the validity and enforceability of, the Transaction Documents, the Series [_]-[_]
Series Related Documents or the Notes or the tax treatment of the Trust or the Notes.
(e) No Investment Company. The Trust is not an “investment company” as defined in the Investment Company
Act. In making this determination, the Trust is relying on the definition in Section 3(c)(5) of the Investment Company Act, although other exclusions or exemptions may also be available to the Trust.
(f) Xxxxxxx Rule. The Trust is structured not to be a “covered fund” under the regulations adopted to
implement Section 619 of the Xxxx-Xxxxx Xxxx Street Reform and Consumer Protection Act, commonly known as the “Xxxxxxx Rule.”
Section 3.14 Trust’s Representations and Warranties About Security Interest. The Trust represents and
warrants to the Indenture Trustee as of the Closing Date, which
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representations and warranties will survive the termination of this Indenture and may not be waived by the Indenture Trustee:
(a) Valid Security Interest. This Indenture creates a valid and continuing security interest (as defined
in the applicable UCC) in the Series [_]-[_] Collateral in favor of the Indenture Trustee which is prior to all other Liens, other than Permitted Liens, and is enforceable against creditors of, purchasers from and transferees and absolute assignees
of the Trust.
(b) Good Title. The Trust owns and has good title to the Series [_]-[_] Collateral free and clear of any
Lien, other than Permitted Liens. The Trust has received all consents and approvals required by the terms of the Series [_]-[_] Collateral to Grant to the Indenture Trustee all of its right, title and interest in the Series [_]-[_] Collateral,
except if a requirement for consent or approval is extinguished under the applicable UCC.
(c) Filing Financing Statements. The Trust has caused, or will cause within ten (10) days after the
Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law to perfect the security interest Granted in the Series [_]-[_] Collateral to the Indenture Trustee
under this Indenture. All financing statements filed or to be filed against the Trust in favor of the Indenture Trustee under this Indenture describing the Series [_]-[_] Collateral will contain a statement to the following effect: “A purchase,
absolute assignment or transfer of or grant of a security interest in any collateral described in this financing statement will violate the rights of the Series [_]-[_] Secured Parties.”
(d) No Other Sale, Grant or Financing Statements. Other than the security interest Granted to the
Indenture Trustee under this Indenture, the Trust has not sold or Granted a security interest in any of the Series [_]-[_] Collateral. The Trust has not authorized the filing of and is not aware of any financing statements against the Trust that
include a description of collateral covering any of the Series [_]-[_] Collateral, other than financing statements relating to the security interest Granted to the Indenture Trustee under this Indenture. The Trust is not aware of any judgment or
tax Lien filings against it.
(e) Series [_]-[_] Securities Account. All Permitted Investments have been and will be credited to a
Series [_]-[_] Securities Account. The Securities Intermediary for each Series [_]-[_] Securities Account has agreed to treat all assets credited to the Series [_]-[_] Securities Accounts as “financial assets” within the meaning of the applicable
UCC.
(f) Securities Intermediary Agreement. The Trust has delivered to the Indenture Trustee a fully executed
Series [_]-[_] Account Control Agreement (1) that provides that the agreement is governed solely by the law of the State of New York and that the law of the State of New York shall govern all issues specified in Article 2(1) of the Hague Securities
Convention, (2) pursuant to which the Securities Intermediary has agreed to comply with all instructions originated by the Indenture Trustee relating to the Series [_]-[_] Securities Accounts without further consent by the Trust, and (3) with a
Securities Intermediary that at the time of this Indenture has one or more offices (within the meaning of the Hague Securities Convention) in the United States of America which satisfies the “qualifying office” condition provided in the second
sentence of Article 4(1) of the Hague Securities Convention.
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(g) Name of Series [_]-[_] Securities Accounts. The Series [_]-[_] Securities Accounts are not in the
name of a Person other than the Trust or the Note Paying Agent. The Trust has not consented to the Securities Intermediary of a Series [_]-[_] Securities Account complying with entitlement orders of a Person other than the Indenture Trustee.
Section 4.1 Satisfaction and Discharge of Indenture.
(a) Conditions to Satisfaction and Discharge. Except as stated in Section 4.1(c), this Indenture will
cease to be of further effect for the Notes if:
(i) either (A) the Notes that have been authenticated and delivered (other than (1) Notes
that have been destroyed, lost or stolen and that have been replaced or paid under Section 2.7 and (2) Notes for which payment money has been deposited in trust or segregated and held in trust by the Trust and later paid to the Trust or discharged
from the trust under Section 3.3) have been delivered to the Indenture Trustee for cancellation or (B) the Notes not delivered to the Indenture Trustee for cancellation have become due and payable and the Trust has deposited or caused to be
deposited with the Indenture Trustee money in trust in an amount sufficient to pay and discharge the outstanding Note Balance of the Notes and interest accrued on the Notes on the Redemption Date; and
(ii) the Trust has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion
of Counsel meeting the requirements of Section 11.3.
(b) Acknowledgement of Satisfaction and Discharge. After the satisfaction and discharge of the Indenture
under Section 4.1(a), the Indenture Trustee will (i) upon receipt of a Trust Order and at the expense of the Trust, execute documents acknowledging satisfaction and discharge of this Indenture and (ii) at the request of the Owner Trustee, the
Indenture Trustee will deliver to the Owner Trustee a certificate stating that all Noteholders have been paid in full.
(c) Continuing Rights and Obligations. After the satisfaction and discharge of this Indenture, this
Indenture will continue for (i) rights of registration of transfer and exchange, (ii) replacement of mutilated, destroyed, lost or stolen Notes, (iii) the rights of Noteholders to receive payments of principal of and interest on the Notes, (iv) the
obligations of the Indenture Trustee and any Note Paying Agent under Section 3.3, (v) the rights, obligations and immunities of the Indenture Trustee under this Indenture and (vi) the rights of the Series [_]-[_] Secured Parties as beneficiaries of
this Indenture in the property deposited with the Indenture Trustee payable to them for a period of two years after the satisfaction and discharge.
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Section 5.1 Events of Default.
(a) Indenture Trustee to Notify. In addition to the notice obligations of the Indenture Trustee under
Section 6.5(a), the Indenture Trustee will notify the Noteholders within five (5) Business Days after a Responsible Person of the Indenture Trustee has actual knowledge of the occurrence of an Event of Default with respect to Group [_].
Section 5.2 Acceleration of Maturity; Rescission.
(a) Acceleration. If a Primary Event of Default with respect to Group [_] or a Secondary Event of
Default with respect to Group [_], other than a Secondary Event of Default with respect to Group [_] set forth under [clause (iv)] of the
definition thereof, in each case, as set forth in the Group Supplement for Group [_] occurs and is continuing, the Indenture Trustee may, or the Noteholders of a majority of the Note Balance of the Controlling Class may, declare the Notes to be
accelerated by notifying the Trust (and the Indenture Trustee if declared by the Noteholders). If a Secondary Event of Default with respect to Group [_] set forth under [clause (iv)] of the definition thereof as set forth in the Group Supplement
for Group [_] occurs, the Notes will be accelerated and will automatically become immediately due and payable without a declaration or other act of the Indenture Trustee or a Noteholder. On acceleration, the unpaid Note Balance of the Notes,
together with accrued and unpaid interest and unpaid Additional Interest Amounts and Make-Whole Payments, if any, will become immediately due and payable. On the declaration of acceleration or upon actual knowledge of a Responsible Person of the
Indenture Trustee of an automatic acceleration, the Indenture Trustee will promptly notify the Trust, the Master Collateral Agent, each Noteholder and each Qualified Institution (if not the Indenture Trustee) maintaining a Series [_]-[_] Account.
(b) Rescission of Acceleration. The Noteholders of a majority of the Note Balance of the Controlling
Class, by notifying the Trust and the Indenture Trustee (who will notify the Master Collateral Agent), may rescind any declaration of acceleration of the Notes if:
(i) notice of the rescission is given before a judgment or decree for payment of the amount
due has been obtained by the Indenture Trustee or the Master Collateral Agent as stated in this Article V;
(ii) the Trust has deposited with the Indenture Trustee an amount sufficient to (A) pay the
due and unpaid principal of and interest on the Notes and all other amounts that would then be due under this Indenture or on the Notes if the Event of Default with respect to Group [_] giving rise to the acceleration had not occurred, (B) pay all amounts owed to the Indenture
Trustee under Section 6.7 and (C) pay all other outstanding fees and expenses of the Trust in respect of Series [_]-[_]; and
(iii) all Events of Default with respect to Group [_], other than the non-payment of amounts
due solely because of acceleration, have been cured or waived by
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Noteholders of the majority of the Note Balance of the Controlling Class, pursuant to and subject to the terms of Section 5.14.
Section 5.3 Collection of Indebtedness by Indenture Trustee.
(a) Overdue Amounts. If a Primary Event of Default with respect to Series [_]-[_] as set forth in the
Group Supplement for Group [_] occurs and is continuing, the Trust, on demand of the Indenture Trustee, will pay to the Note Paying Agent for the benefit of the Noteholders, the overdue amount with interest at the rate of interest then applicable
to the Notes.
(b) Collection Costs. In addition, the Trust will pay the costs of collection, including the expenses of
the Indenture Trustee and its agents, counsel, accountants and experts due to the Indenture Trustee under Section 6.7.
(c) Proceedings. If the Trust fails to pay those amounts and the collection costs set forth in Section
5.3(b) on demand, the Indenture Trustee, in its own name and as trustee of an express trust, may start a Proceeding to collect the money due and unpaid, and may pursue the Proceeding to final judgment, and may enforce the judgment against the Trust
and collect the money due and unpaid in the manner provided by law out of the Group [_] Assets and, to the extent required, a portion of the Group Assets of any other Group, as set forth in Section 6.1 of the Master Collateral Agreement.
Section 5.4 Trustee May File Proofs of Claim.
(a) Proofs of Claim. If there is a Proceeding involving the Trust under the Bankruptcy Code or another
bankruptcy, insolvency or other similar law, or in case a trustee, liquidator, receiver or similar official has been appointed for or taken possession of the Trust or its property, the Indenture Trustee may:
(i) file a proof of claim for the due and unpaid principal of and interest on the Notes and
file other proofs of claim (including any claims for compensation or indemnification under Section 6.7) or documents necessary or advisable to have the claims of the Indenture Trustee on behalf of the Series [_]-[_] Secured Parties allowed in the
Proceedings or in other judicial proceedings involving the Trust, its creditors and its property;
(ii) unless prohibited by applicable Law, vote on behalf of the Series [_]-[_] Secured
Parties in the election of a trustee, a standby trustee or a Person performing similar functions in the Proceedings; and
(iii) collect and receive any money or other property payable or deliverable on the claims
and pay all amounts received on the claims of the Series [_]-[_] Secured Parties, including the claims asserted by the Indenture Trustee on their behalf.
(b) Authorization by Noteholders. Each Noteholder authorizes a trustee, liquidator, receiver or similar
official in a Proceeding to make payments to the Indenture Trustee and, if the Indenture Trustee consents to make payments directly to the Noteholders, to pay to the Indenture Trustee the amounts owed to the Indenture Trustee under Section 6.7.
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(c) No Right to Consent or Vote. Except as permitted under Section 5.4(a)(ii), this Indenture (i) does
not authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of a Noteholder a plan of reorganization, arrangement, adjustment or composition affecting the Notes and (ii) does not limit the rights of a
Noteholder to authorize the Indenture Trustee to vote on the claim of a Noteholder in the Proceeding.
Section 5.5 Enforcement of Claims Without Possession of Notes.
(a) Notes not Required. The Indenture Trustee may enforce its rights and make claims under this
Indenture, or under the Notes, without the possession of the Notes or the production of the Notes in a Proceeding. A Proceeding started by the Indenture Trustee will be brought in its own name as trustee of an express trust, and any recovery of
judgment, subject to the payment of the expenses and indemnity of the Indenture Trustee and its agents, counsel, accountants and experts due to the Indenture Trustee under Section 6.7, will be for the benefit of the Series [_]-[_] Secured Parties
for which the judgment has been recovered.
(b) Proceeding. In any Proceeding brought by the Indenture Trustee (and any Proceeding involving the
interpretation of this Indenture to which the Indenture Trustee is a party), the Indenture Trustee will be held to represent all the Series [_]-[_] Secured Parties, and it will not be necessary to make any Series [_]-[_] Secured Party, including a
Noteholder, a party to the Proceeding.
Section 5.6 Remedies; Priorities.
(a) Remedies. If the Notes have been accelerated under Section 5.2(a) and the declaration of
acceleration has not been rescinded according to Section 5.2(b), the Indenture Trustee may, and at the direction of the Noteholders of a majority of the Note Balance of the Controlling Class must, do one or more of the following (subject to Section
5.7):
(i) start a Proceeding in its own name and as trustee of an express trust for the collection
of all amounts then payable on the Notes or under this Indenture on the Notes, enforce any judgment obtained and collect from the Trust money adjudged due;
(ii) take any other action to protect and enforce the rights and remedies of the Indenture
Trustee and the Noteholders; or
(iii) vote as a Group Creditor Representative for Group [_] to cause the Trust to sell the
Group [_] Assets and, to the extent required, a portion of the Group Assets of any other Group, as set forth in Section 6.1 of the Master Collateral Agreement.
(b) Notice of Sale of Collateral. The Indenture Trustee will notify each Noteholder and the Depositor of
a sale under Section 5.6(a)(iii) above and Section 6.1 of the Master Collateral Agreement at least fifteen (15) days before the sale. A Noteholder, the Depositor or the Servicer may submit a bid during the sale.
(c) [Reserved].
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(d) Payments Following Acceleration and any Sale of Collateral. Any money or property deposited with the
Indenture Trustee as Series [_]-[_] Available Funds after the occurrence of an Event of Default with respect to Group [_] that has not been waived or cured and an acceleration of the Notes, including after the sale of Group [_] Assets and, to the
extent required, a portion of the Group Assets of any other Group, as set forth in Section 6.1 of the Master Collateral Agreement, will be deposited in the Distribution Account for distribution according to Section 8.2(e) on the Payment Date after
the Collection Period during which those amounts are collected. In all other circumstances, Section 8.2(c) will continue to apply after an Event of Default with respect to Group [_].
Section 5.7 [Reserved].
Section 5.8 Limitation on Suits.
(a) Proceedings. No Noteholder has the right to start a Proceeding under this Indenture or for the
appointment of a receiver or trustee, or for any other remedy under this Indenture, unless all of the following have occurred:
(i) the Noteholder has notified the Indenture Trustee of a continuing Event of Default with respect to Group [_];
(ii) the Noteholders of at least 25% of the Note Balance of the Controlling Class have
requested the Indenture Trustee to start the Proceeding for the Event of Default with respect to Group
[_] in its own name as Indenture Trustee under this Indenture;
(iii) the Noteholders have offered reasonable indemnity satisfactory to the Indenture Trustee
against any liabilities that may be incurred by the Indenture Trustee, or its agents, counsel, accountants and experts, in complying with the request;
(iv) the Indenture Trustee has failed to start the Proceedings for sixty (60) days after it
receives the notice, request and offer of indemnity; and
(v) the Noteholders of a majority of the Note Balance of the Controlling Class have not given
the Indenture Trustee a direction inconsistent with the request during that sixty (day) period.
(b) No Right to Impair. No Noteholder has the right to impair the rights of another Noteholder or to
seek or obtain priority or preference over another Noteholder or to enforce any right under this Indenture, except in the manner stated in this Indenture.
(c) Conflicting Requests. If the Indenture Trustee receives conflicting requests under Section
5.8(a)(ii) from two or more groups of Noteholders, each evidencing less than a majority of the Note Balance of the Controlling Class, the Indenture Trustee will take the action requested by the Noteholders representing the greatest percentage of
the Note Balance of the Controlling Class, notwithstanding any other provision of this Indenture.
Section 5.9 Unconditional Rights to Receive Principal and Interest. Each Noteholder has an absolute and
unconditional right to receive payment of the principal of and interest on its
39
Note on or after the due dates stated in the Note or in this Indenture (or, for redemption, on or after the Redemption Date) and to start a Proceeding for the enforcement of the payment according to Section
5.8. Those rights may not be impaired or affected without the consent of the Noteholder.
Section 5.10 Restoration of Rights and Remedies. If the Indenture Trustee or a Noteholder has started a
Proceeding to enforce a right or remedy under this Indenture and the Proceeding has been discontinued or abandoned or has been determined adversely to the Indenture Trustee or to the Noteholder, then the Trust, the Indenture Trustee and the
Noteholders, subject to a determination in the Proceeding, will be restored to their former positions under this Indenture, and all rights and remedies of the Indenture Trustee and the Noteholders will continue as though no Proceeding had been
started.
Section 5.11 Rights and Remedies Cumulative. No right or remedy of the Indenture Trustee or the
Noteholders under this Indenture is intended to be exclusive of any other right or remedy, and every right and remedy, if permitted by law, will be cumulative and in addition to every other right and remedy under this Indenture. The exercise of a
right or remedy will not prevent the exercise of another right or remedy at the same time. The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture will not be affected by the seeking, obtaining or use of
other relief under this Indenture. The rights or remedies of the Indenture Trustee or the Noteholders will not be impaired by the recovery of a judgment by the Indenture Trustee against the Trust or by the execution of a judgment on the Group [_]
Assets.
Section 5.12 Delay or Omission Not a Waiver. No delay or omission of the Indenture Trustee or a
Noteholder to exercise a right or remedy after a Potential Default with respect to Group [_] or Event of Default with respect to Group [_] will impair the right or remedy or be a waiver of the
Potential Default with respect to Group [_] or Event of Default with respect
to Group [_]. Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may
be exercised as often as deemed advisable by the Indenture Trustee or by the Noteholders.
Section 5.13 Control by Noteholders. The Noteholders of a majority of the Note Balance of the
Controlling Class have the right to direct the time, method and place of conducting a Proceeding for a remedy available to the Indenture Trustee for the Notes or exercising a trust or power of the Indenture Trustee, subject to the following terms:
(a) No Conflict. The direction does not conflict with Law or with this Indenture.
(b) Direction to Sell or Liquidate. Except under Section 5.6(a)(iii), a direction to the Indenture
Trustee to vote pursuant to Section 6.1(a)a.(A) or Section 6.1(a)b.(A) of the Master Collateral Agreement as a Group Creditor Representative for Group [_] to cause the Trust to sell the Group [_] Assets and, to the extent required, a portion of the
Group Assets of any other Group, as set forth in Section 6.1 of the Master Collateral Agreement, must have been made by the Noteholders of 100% of the Note Balance [of the Controlling Class].
(c) [Reserved].
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(d) Other Action. The Indenture Trustee may take other action considered advisable by the Indenture
Trustee that is not inconsistent with the direction from the Noteholders of a majority of the Note Balance of the Controlling Class.
(e) Adverse Action. The Indenture Trustee need not take an action for which it will not be adequately
indemnified or that it determines might have a material adverse effect on the rights of Noteholders not consenting to the action.
Section 5.14 Waiver of Potential Defaults and Events of Default.
(a) Waiver by Controlling Class. The Noteholders of a majority of the Note Balance of the Controlling
Class may waive a Potential Default with respect to Group [_] or Event of Default
with respect to Group [_] except an Event of Default with respect to Group [_] (i) in the
payment of principal of or interest, Additional Interest Amounts or Make-Whole Payments on the Notes (other than an Event of Default with respect to Group [_] relating to failure to pay principal due only by reason of acceleration) or (ii) for a
covenant or term of this Indenture that cannot be amended, supplemented or modified without the consent of all Noteholders.
(b) Effect of Waiver. On any waiver, the Potential Default with respect to Group [_]
or Event of Default with respect to Group [_] will be considered not to have occurred with respect to Series [_]-[_] for all purposes of this Indenture. No waiver will extend to any other Potential Default with respect to Group [_] or Event of Default with respect to Group [_] or impair any right relating to any other Potential Default with respect to Group [_] or Event of
Default with respect to Group [_].
Section 5.15 Agreement to Pay Costs. The parties to this Indenture agree, and each Noteholder by its
acceptance of a Note will be deemed to have agreed, that a court may in its discretion require, in a Proceeding for the enforcement of a right or remedy under this Indenture, or in a Proceeding against the Indenture Trustee for an action taken or
not taken by it as Indenture Trustee, the filing by a party litigant in the Proceeding of an agreement to pay the costs of the Proceeding, and that the court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against a party litigant in the Proceeding. This Section 5.15 will not apply to (a) a Proceeding started by the Indenture Trustee, (b) a Proceeding started by a Noteholder or group of Noteholders holding more than 10% of the Note Balance of the
Notes (or for a Proceeding for the enforcement of a right or remedy under this Indenture that is started by the Controlling Class, holding more than 10% of the Note Balance of the Controlling Class) or (c) a Proceeding started by a Noteholder for
the enforcement of the payment of principal of or interest on a Note on or after the respective due dates expressed in the Note and in this Indenture (or, for redemption, on or after the Redemption Date).
Section 5.16 Waiver of Stay or Extension Laws. The Trust agrees that it will not plead or in any manner
claim or take the benefit of, a stay or extension that may affect the performance of its obligations under this Indenture, and the Trust waives the benefit of such law.
Section 5.17 Performance and Enforcement of Obligations.
(a) Actions Requested by Indenture Trustee. At the Administrator’s expense, until the date on which all
Notes are paid in full and this Indenture is discharged, the Trust will promptly take any lawful action the Indenture Trustee requests to (i) compel the performance by (A) the Depositor and the Servicer of their obligations to the Trust under the
Transfer and
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Servicing Agreement [and the Additional Transferor Receivables Transfer Agreement] or (B) the Depositor and the Originators of their obligations under the Originator Receivables Transfer Agreement and (ii)
exercise any rights, remedies, powers, privileges and claims available to the Trust under those agreements as directed by the Indenture Trustee.
(b) Exercise by Indenture Trustee. If an Event of Default with respect to Group [_] has occurred and is
continuing, until the date on which all Notes are paid in full and this Indenture is discharged, (i) the Indenture Trustee may, and at the written direction of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class will,
exercise all rights, remedies, powers, privileges and claims of the Trust against (A) the Depositor or the Servicer under the Transfer and Servicing Agreement [and the Additional Transferor Receivables Transfer Agreement], (B) the Depositor and the
Originators under the Originator Receivables Transfer Agreement, [(C) the Cap Counterparty under the Cap Agreement], including the right or power to take any action to compel or secure performance or observance by those Persons of their obligations
to the Trust under those agreements, and to give a consent, request, notice, direction, approval, extension or waiver under those agreements and (ii) the right and power of the Trust to take any such action will be suspended.
Section 6.1 Indenture Trustee’s Obligations.
(a) Standard of Care. If an Event of Default with respect to Group [_] has occurred
and is continuing, the Indenture Trustee will exercise the rights and powers vested in it under this Indenture using the same degree of care and skill as a prudent person would use under the circumstances in the conduct of that person’s own
affairs.
(b) Obligations; Reliance. Except during the continuance of an Event of Default with respect to Group [_]:
(i) the Indenture Trustee agrees to perform the duties and only such duties as specifically
stated in this Indenture and no implied covenants, duties (including fiduciary duties) or obligations are to be read into this Indenture against the Indenture Trustee; and
(ii) in the absence of willful misconduct, bad faith or negligence on its part, the Indenture
Trustee may conclusively rely, for the truth of the statements and the correctness of the opinions furnished to it, on certificates or opinions furnished to it and, if required by this Indenture, conforming to the requirements of this Indenture.
The Indenture Trustee will examine the certificates and opinions to determine whether or not they conform as to form to the requirements (but need not confirm or investigate the accuracy of mathematical calculations or other facts therein), if any,
of this Indenture.
(c) Indenture Trustee Liable. The Indenture Trustee will not be relieved from liability for its own
willful misconduct, bad faith or negligence, except that:
(i) this Section 6.1(c) does not limit the effect of Section 6.1(b);
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(ii) the Indenture Trustee will not be liable for an error of judgment made in good faith
unless it is proved that the Indenture Trustee was negligent in determining the relevant facts; and
(iii) the Indenture Trustee will not be liable for any action taken or not taken in good
faith according to this Indenture or the Transfer and Servicing Agreement or a direction received by it from the Noteholders in accordance with the provisions of this Indenture or the Transfer and Servicing Agreement.
(d) Not Liable for Interest. The Indenture Trustee will not be liable for interest on money received by
it, except as the Indenture Trustee may agree in writing with the Trust.
(e) Not Required to Segregate. The Indenture Trustee need not segregate any funds held by it in trust
under this Indenture from other funds unless required by Law, this Indenture or the Transfer and Servicing Agreement.
(f) Section Governs. Whether or not expressly so provided, every provision of this Indenture relating to
the conduct of the Indenture Trustee, the liability of the Indenture Trustee or giving protection to the Indenture Trustee is subject to this Section 6.1 and to the TIA.
(g) No Deemed Knowledge. The Indenture Trustee will not be deemed to have knowledge of a breach of the
Group Eligibility Representation, Potential Default with respect to Group [_] or any Event of Default with respect to Group [_] or any other fact (including whether any reacquisition or acquisition request
remains unresolved for one-hundred eighty (180) days) or event unless (i) a Responsible Person of the Indenture Trustee has actual knowledge of the breach, Potential Default with respect to Group [_], Event of
Default with respect to Group [_] or other fact or event or (ii) where written notice is required, a Responsible Person of the Indenture Trustee has actually received written notice of the specific breach, Potential Default with respect to Group [_], Event of Default with respect to Group [_] or other fact or event at its Corporate Trust Office, and such notice specifically identifies the Trust, this Indenture and such breach, Potential Default with respect to Group [_], Event of Default with respect to Group [_], or other fact or event. Any notice of an occurrence of a breach of the Group Eligibility Representation under a Receivables Transfer Agreement or the Transfer and
Servicing Agreement delivered to the Indenture Trustee shall specifically identify the Group [_] Receivables in breach. Knowledge or information acquired by [___] in its capacity as Indenture Trustee, Note Paying Agent or Note Registrar, as
applicable, shall not be imputed to [___] in any other capacity in which it may act under the Transaction Documents or any Series [_]-[_] Series Related Document or to any affiliate of [___] and vice versa. For the avoidance of doubt, receipt by
the Indenture Trustee of a Review Report under the Asset Representations Review Agreement shall not constitute knowledge of any such event or breach.
(h) [Reserved].
(i) No Duty to Monitor or Administer. Except as expressly provided in this Indenture and the other
Series [_]-[_] Series Related Documents, the Indenture Trustee shall have no obligation to administer, service or collect the Group [_] Receivables or to maintain, monitor or otherwise supervise the administration, servicing or collection of the
Group [_] Receivables.
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(j) Enforceable in all Capacities. The rights, privileges, protections, immunities and benefits given to
the Indenture Trustee in this Article VI, including its right to be indemnified, are extended to, and will be enforceable by, the Indenture Trustee in each of its capacities under this Indenture and the other Series [_]-[_] Series Related
Documents, including as Authenticating Agent, Note Registrar and Note Paying Agent under this Indenture and as a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC under the Series
[_]-[_] Account Control Agreement.
(k) Not Required to Pay or Risk Funds. The Indenture Trustee is not obligated to (i) exercise the rights
or powers under this Indenture or the other Series [_]-[_] Series Related Documents, expend or risk its own funds or incur any financial liability in the performance of its obligations under this Indenture or the other Series [_]-[_] Series Related
Documents, including after an Event of Default with respect to Group [_], if it has reasonable grounds to believe that payment of such funds or adequate indemnity satisfactory to it against that risk or liability is not reasonably assured or given
to it by the Trust or (ii) start, pursue or defend litigation, investigate any matter or honor the request or direction of the Noteholders under this Indenture, unless the Noteholders have offered to the Indenture Trustee reasonable security or
indemnity satisfactory to it for the reasonable expenses that might be incurred by the Indenture Trustee in complying with the request or direction. Notwithstanding anything to the contrary in this Indenture, the Indenture Trustee will not be
required to take any action if the Indenture Trustee reasonably determines that such action (x) will not be in the best interests of the Noteholders or (y) will be contrary to applicable Law. The permissive right of the Indenture Trustee to take
any action under the Series [_]-[_] Series Related Documents shall not be construed as a duty to take such action.
(l) Force Majeure. The Indenture Trustee will not be responsible or liable for a failure or delay in the
performance of its obligations under this Indenture from or caused by, directly or indirectly, forces beyond its control, including, but not limited to, strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear
catastrophes, fires, floods, earthquakes, storms, hurricanes or other natural catastrophes, interruptions, loss or failures of mechanical, electronic or communication systems, epidemics, a material adverse change in the COVID-19 pandemic or a new
pandemic. The Indenture Trustee will use reasonable efforts consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.
(m) Consequential Damages. The Indenture Trustee will not be responsible or liable for special,
punitive, indirect or consequential losses or damages (including lost profit), even if the Indenture Trustee has been advised of the likelihood of the loss or damage and regardless of the form of action.
(n) No Duty with Respect to Series [_]-[_] Collateral. The Indenture Trustee shall be under no duty or
obligation in connection with the acquisition or Grant by the Trust to the Indenture Trustee of any item constituting the Series [_]-[_] Collateral, or to evaluate the sufficiency of the documents or instruments delivered to it by or on behalf of
the Trust in connection with its Grant or otherwise, in each case, in order to determine compliance with applicable requirements of and restrictions on transfer in respect of such Series [_]-[_] Collateral.
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(o) No Duty with Respect to Risk Retention. The Indenture Trustee will not have any obligation or
responsibility to monitor or enforce the Sponsor’s compliance with any risk retention requirements under the U.S. Credit Risk Retention Rules or other rules or regulations relating to risk retention. The Indenture Trustee shall not be charged with
knowledge of such rules, nor shall it be liable to any Noteholder or other party for violation of such rules now or hereafter in effect, except as otherwise may be explicitly required by law, rule or regulation.
(p) [Determination of One-Month LIBOR. For as long as One-Month LIBOR is the Benchmark, the Indenture
Trustee shall calculate One-Month LIBOR as of each LIBOR Determination Date for so long as the Class A-1b Notes are Outstanding; provided that if One-Month LIBOR does not appear on the Reuters Screen LIBOR01 Page on any LIBOR Determination Date the
Indenture Trustee shall calculate One-Month LIBOR using the rates solicited or as otherwise directed by the Administrator[; provided further that, if the Administrator does not provide a rate or any such direction to the Indenture Trustee prior to
the related Payment Date, the Indenture Trustee shall use One-Month LIBOR in effect for the immediately preceding Interest Period until otherwise directed by the Administrator. All calculations of One-Month LIBOR by the Indenture Trustee, in
absence of manifest error, shall be conclusive for all purposes and binding on the Noteholders. None of the Indenture Trustee, the Note Paying Agent or the Note Registrar shall be responsible for determining the reference banks, rates or method
used to calculate One-Month LIBOR or be liable for any error resulting from its calculation of One-Month LIBOR made in good faith. In no event will the Indenture Trustee, Note Paying Agent, or Note Registrar be responsible for determining the
unavailability of or cessation of One-Month LIBOR and any substitute or successor for One-Month LIBOR. The Indenture Trustee, Note Paying Agent, and Note Registrar will not have any liability or obligation with respect to any determination of
One-Month LIBOR by the Administrator or the selection of any replacement index, or whether any conditions to the designation of such a rate have been satisfied, and shall have no obligation to monitor, give notice of, or make any determination,
decision or election in connection with a Benchmark Replacement Date, Benchmark Transition Event, Benchmark Replacement, Benchmark Replacement Adjustment and/or any Benchmark Replacement Conforming Changes (all of which shall be the sole obligation
of the Administrator), even if the Administrator does not act. None of the Indenture Trustee, Note Paying Agent, or Note Registrar shall be liable for any inability, failure or delay on its part to perform any of its duties set forth in this
Indenture as a result of the unavailability of One-Month LIBOR (or other applicable Benchmark) and absence of a designated Benchmark Replacement, including as a result of any inability, delay, error or inaccuracy on the part of any other
transaction party, including without limitation the Administrator, in providing any direction, instruction, notice or information required or contemplated by the terms of this Indenture and reasonably required for the performance of such duties.]
(q) Liability for Dissemination of Information. Except as required by the Series [_]-[_] Series Related
Documents, the Indenture Trustee shall not be liable for the dissemination of any information contained in any Review Report or summary thereof, any 10-D or other filing, or any other dissemination of information required or made in accordance with
the Series [_]-[_] Series Related Documents and shall have no responsibility, or liability for the failure of any party to redact or remove any Personally Identifiable Information or other confidential information in any document.
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Section 6.2 Indenture Trustee’s Rights.
(a) Reliance on Documents. The Indenture Trustee may conclusively rely on any document believed by it to
be genuine and which appears on its face to be properly executed and signed or presented by the proper Person. The Indenture Trustee is not required to investigate any facts or matters or to verify any calculations or amounts stated in any
document (including the Monthly Investor Report). The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on a document believed by it to be genuine.
(b) Reliance on Opinions. Before the Indenture Trustee acts or does not act, it may require and rely on
an Officer’s Certificate or an Opinion of Counsel, at the expense of the Trust. The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.
(c) Use of Agents. The Indenture Trustee may exercise its rights or powers under this Indenture or
perform its obligations under this Indenture either directly or by or through agents or attorneys or a custodian or nominee. The Indenture Trustee will not be responsible for misconduct or negligence on the part of, or for the supervision of, the
agent, counsel, custodian or nominee appointed with due care by it under this Indenture.
(d) Good Faith. The Indenture Trustee will not be liable for any action taken or not taken in good faith
which it believes to be authorized or within its rights or powers under this Indenture so long as the action taken or not taken does not amount to negligence.
(e) Advice from Counsel. The Indenture Trustee may consult with counsel, accountants, appraisers or
other experts or advisors, and the advice or opinion of counsel, accountants, appraisers or other experts or advisors on any matters relating to this Indenture and the Notes will be full and complete authorization and protection from liability for
any action taken or not taken by it under this Indenture in good faith and according to the advice or opinion of that counsel, accountant, appraiser or expert or advisor.
(f) No Determination of Materiality. The Indenture Trustee shall not be required to determine the
materiality or adverse effect of breaches of representations or warranties or other events for purposes of notice or enforcement hereunder or under any other Series [_]-[_] Series Related Documents or any Transaction Document.
(g) Incumbency. The Indenture Trustee may request that the Trust and any other Person deliver a
certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.
(h) No Duty with Respect to Regulatory Requirements. The Indenture Trustee shall have no responsibility
to prepare or file or make any determination with respect to any tax or securities law filing or report, or to monitor, enforce, make any determination or take any action with respect to any risk retention requirements or other regulatory
requirements and shall have no liability for the failure of the Trust, the Notes or the Noteholders or any other Person to satisfy any such requirements.
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Section 6.3 Indenture Trustee’s Individual Rights. The Indenture Trustee and any Note Paying Agent, Note
Registrar or Authenticating Agent under this Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may deal with the Trust or its Affiliates with the same rights it would have if it were not Indenture
Trustee or Note Paying Agent, Note Registrar or Authenticating Agent.
Section 6.4 Indenture Trustee’s Disclaimer. The Indenture Trustee will not be liable for (a) the
validity or adequacy of this Indenture or the Notes, (b) the Trust’s use of the proceeds from the Notes, (c) any statement of the Trust in this Indenture or in the Notes, other than the Indenture Trustee’s certificate of authentication, or (d) any
statement of the Trust, the Depositor or the Servicer in any prospectus or offering document used for the offering or sale of the Notes.
Section 6.5 Notice of Potential Defaults and Notice of Payment Defaults. Within ninety (90) days after a
Responsible Person of the Indenture Trustee has actual knowledge of, or actually receives written notice of, a Potential Default with respect to Group [_], the Indenture Trustee will mail, as described in Section 313(c) of the TIA, to each
Noteholder, notice of the Potential Default, unless the Potential Default has been corrected or waived. However, except for a Potential Default in the payment of principal of or interest on a Note, the Indenture Trustee may withhold the notice if
and so long as a committee of its Responsible Persons in good faith determines that the withholding of the notice is in the interests of the Noteholders.
Section 6.6 Reports by Indenture Trustee.
(a) Tax Information. Starting in the year after the Closing Date, the Indenture Trustee will deliver or
make available to each Person who at any time during the prior calendar year was a Noteholder of record, a statement containing the information required to be given to a noteholder by a Trust of indebtedness, in the form and at the time required
under the Code.
(b) Monthly Investor Report. On each Payment Date, the Indenture Trustee will deliver the Monthly
Investor Report to each Noteholder of record as of the most recent Record Date (which delivery may be made by e-mail to the e-mail addresses in the Note Register without need for confirmation of receipt or by making the report available to the
Noteholders through the Indenture Trustee’s website, which initially is located at [___] (or via such other internet website as may be designated by the Indenture Trustee for such purpose)). Noteholders with questions may direct them to the
Indenture Trustee’s bondholder services group at [___].
(c) [Reserved].
(d) Annual Assessment of Compliance. On or before March 1 of each year, beginning in the year after the
Closing Date, the Indenture Trustee will:
(i) deliver to the Trust, the Depositor, the Administrator and the Servicer, a report
regarding the Indenture Trustee’s assessment of compliance with the Servicing Criteria specified on Exhibit B during the immediately preceding calendar year, including disclosure of any material instance of non-compliance identified by the
Indenture Trustee, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such report shall be addressed to the Trust and signed by an authorized officer of the Indenture Trustee; and,
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(ii) deliver to the Trust, the Depositor, the Administrator and the Servicer a report of a
registered public accounting firm reasonably acceptable to the Trust and the Administrator that attests to, and reports on, the assessment of compliance made by the Indenture Trustee and delivered pursuant to the preceding paragraph. This
attestation shall be delivered 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 reports will be delivered in a format suitable for filing with the Commission on XXXXX.
(e) Obligation to Update Disclosure. The Indenture Trustee will notify and provide information, and
certify that information in an Officer’s Certificate, to the Trust, the Administrator and the Depositor on the occurrence of any event or condition relating to the Indenture Trustee or actions taken by the Indenture Trustee that (i) may be required
to be disclosed by the Trust under Item 2 (the institution of, material developments in, or termination of legal proceedings against the Indenture Trustee that are material to the Noteholders) of Form 10-D under the Exchange Act within five (5)
Business Days of a Responsible Person of the Indenture Trustee having actual knowledge of such proceeding, (ii) the Trust, or the Administrator on behalf of the Trust, reasonably requests of the Indenture Trustee that the Administrator believes is
necessary to comply with the Trust’s reporting obligations under the Exchange Act within two (2) Business Days of request, (iii) is required to be disclosed under Item 5 (submission of matters to a vote of the Noteholders) of Form 10-D under the
Exchange Act within five (5) Business Days of a Responsible Person of the Indenture Trustee having actual knowledge of the submission, or (iv) is required to be disclosed under Item 6.04 (failure to make a distribution when required) of Form 8-K
under the Exchange Act within two (2) Business Days of the failure to make a distribution when required, as applicable.
Section 6.7 Compensation and Indemnity.
(a) Fees. The Trust will pay the Indenture Trustee as compensation for performing its obligations under
this Indenture the Indenture Trustee Fee. The Indenture Trustee’s compensation will not be limited by law on compensation of a trustee of an express trust. The Trust will reimburse the Indenture Trustee for its reasonable expenses in performing
its obligations under this Indenture and the other Series [_]-[_] Series Related Documents, including costs of collection and the reasonable compensation and expenses of the Indenture Trustee’s agents, counsel, accountants and experts, but
excluding expenses resulting from the Indenture Trustee’s willful misconduct, bad faith or negligence.
(b) Indemnification. The Trust agrees to indemnify [___] in each of its capacities under this Indenture
and the other Series [_]-[_] Series Related Documents and its officers, directors, employees and agents (each, an “Indemnified Person”) against any and all loss, liability, claim, suit, action, expense (including reasonable attorney’s fees
and expenses), damages, costs and disbursements incurred in connection with, arising out of or resulting from the administration of the trusts created hereunder and the performance of its obligations under this Indenture and the other Series
[_]-[_] Series Related Documents (including any such amount incurred by the Indemnified Person in connection with (x) defending itself against any claim, legal action or proceeding or (y) the enforcement of any indemnification or other obligation
of the Trust, the Servicer or any other transaction party) not resulting from (i) the Indenture
48
Trustee’s own willful misconduct, negligence or bad faith or (ii) the Indenture Trustee’s breach of its representations or warranties in this Indenture.
(c) Proceedings. If an Indemnified Person receives notice of the start of a Proceeding against it, the
Indemnified Person will, if a claim under the Proceeding will be made under this Section 6.7, promptly notify the Trust of the Proceeding; provided, that the failure to give such notice shall not affect the right of an Indemnified Person to
indemnification hereunder to the extent that such failure does not prejudice the rights of the Trust or the Indemnified Person in such Proceeding. The Trust may participate in and assume the defense and settlement of the Proceeding at its
expense. If the Trust notifies the Indemnified Person of its intention to assume the defense of the Proceeding, the Trust will assume such defense with counsel reasonably satisfactory to the Indemnified Person and in
a manner reasonably satisfactory to the Indemnified Person. The Trust will not be liable for legal expenses of separate counsel to the Indemnified Person unless there is a conflict between the interests of the Trust and the Indemnified Person. If
there is a conflict or if the parties cannot reasonably agree as to the selection of counsel, the Trust will pay for the separate counsel to the Indemnified Person. No settlement of the Proceeding in which a claim is brought against the Trust may
be settled in the name of, on behalf of or in any manner in which the Trust is understood to acknowledge the validity of any claim without the approval of the Trust and the Indemnified Person, which approvals will not be unreasonably withheld.
(d) Survival of Obligations. The Trust’s obligations to the Indenture Trustee under this Section 6.7
will survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture. Expenses incurred by the Indenture Trustee after the occurrence of a Potential Default with respect to Group [_] stated in clause (iv) of the
definition thereof are intended to be expenses of administration under the Bankruptcy Code or another applicable federal or State bankruptcy, insolvency or similar law.
(e) Repayment. If the Trust makes a payment from Series [_]-[_] Available Funds to an Indemnified Person
under Section 6.7(b) and the Indemnified Person later collects from others any amounts for which the payment was made, the Indemnified Person will promptly repay those amounts to the Trust.
(f) Available Funds. Payments required to be made by the Trust under this Section 6.7 will be made
solely from Series [_]-[_] Available Funds used to make payments under this Indenture.
Section 6.8 Resignation or Removal of Indenture Trustee.
(a) Resignation. The Indenture Trustee may resign by notifying the Trust and the Administrator in
writing at least thirty (30) days in advance.
(b) Removal by Controlling Class. The Noteholders of a majority of the Note Balance of the Controlling
Class may, without cause, remove the Indenture Trustee and terminate its rights and obligations under this Indenture by notifying the Indenture Trustee and the Trust, in writing, at least thirty (30) days prior to such removal.
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(c) Removal by Trust. The Trust must remove the Indenture Trustee and terminate its rights and
obligations under this Indenture if:
(i) the Indenture Trustee fails to comply with the eligibility requirements in Section 6.11;
(ii) the Indenture Trustee becomes legally unable to act or incapable of acting as Indenture
Trustee; or
(iii) an Insolvency Event for the Indenture Trustee occurs.
(d) Appointment of Successor. If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the Indenture Trustee, the Trust or the Noteholders of a majority of the Note Balance of the Controlling Class must appoint a successor Indenture Trustee promptly. If a successor Indenture Trustee does not take office within sixty
(60) days after the Indenture Trustee resigns or is removed, the Indenture Trustee, the Trust or the Noteholders of a majority of the Note Balance of the Controlling Class may petition a court of competent jurisdiction (at the expense of the Trust)
to appoint a successor Indenture Trustee.
(e) Acceptance of Appointment. No resignation or removal of the Indenture Trustee will become effective
until the acceptance of appointment by the successor Indenture Trustee under this Section 6.8. Any successor Indenture Trustee will deliver a written acceptance of its appointment to the outgoing Indenture Trustee, the Trust and the
Administrator. The Trust will continue to pay amounts owed to the predecessor Indenture Trustee for the period it was Indenture Trustee according to Sections 6.7 and 8.2. The successor Indenture Trustee will notify the Series [_]-[_] Secured
Parties of its succession and the Trust or Administrator will deliver a copy of the notice to the Rating Agencies.
(f) Transition of Indenture Trustee Obligations. On the resignation or removal of the Indenture Trustee
becoming effective under Section 6.8(e), all rights, powers and obligations of the Indenture Trustee under this Indenture will become the rights, powers and obligations of the successor Indenture Trustee. The predecessor Indenture Trustee will
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. The Depositor will reimburse the Indenture Trustee and any successor Indenture Trustee for expenses related to the replacement of the Indenture
Trustee, if those amounts have not been paid under Section 8.2.
Section 6.9 Merger or Consolidation; Transfer of Assets.
(a) Merger or Consolidation. If the Indenture Trustee merges or consolidates with, or transfers all or
substantially all of its corporate trust business or assets to, any Person, the resulting, surviving or transferee Person will be the successor Indenture Trustee so long as that Person is qualified and eligible under Section 6.11. The Indenture
Trustee will promptly notify the Servicer and the Trust of the succession, and the Trust will notify the Rating Agencies.
(b) Authentication of Notes. If, at the time the successor by merger or consolidation to the Indenture
Trustee succeeds to the trusts created by this Indenture, Notes have been authenticated but not delivered, the successor Indenture Trustee may adopt the certificate of authentication of a predecessor Indenture Trustee and deliver the Notes so
authenticated. If at
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that time any Notes have not been authenticated, the successor Indenture Trustee may authenticate the Notes. In each of those cases, the certificates will have the same force and effect given in the Notes
or in this Indenture as the certificate of the predecessor Indenture Trustee.
Section 6.10 Appointment of Separate Trustee or Co-Trustee.
(a) Appointment. For the purpose of meeting the legal requirement of a jurisdiction in which part of the
Series [_]-[_] Collateral may be located or for such other reasons as may be necessary or desirable (including to resolve any conflict of interest issues), after notifying the Trust and the Servicer, the Indenture Trustee may appoint one or more
Persons to act as a separate trustee or separate trustees, or co-trustee or co-trustees, of all or part of the Series [_]-[_] Collateral, and to vest in those Persons, in this capacity and for the benefit of the Series [_]-[_] Secured Parties,
title to all or part of the Series [_]-[_] Collateral, and, subject to this Section 6.10, rights, powers and obligations the Indenture Trustee may consider necessary or desirable. No separate trustee or co-trustee will be required to be eligible
as a successor trustee under Section 6.11 and no notice to the Series [_]-[_] Secured Parties of the appointment of a separate trustee or co-trustee will be required under Section 6.8.
(b) Terms of Appointment. Every separate trustee and co-trustee will be appointed and act subject to the
following:
(i) all rights, powers and obligations of the Indenture Trustee set forth in the instrument
of appointment will be exercised or performed by the separate trustee or the Indenture Trustee or co-trustee jointly (it being understood that a co-trustee will not be authorized to act separately without the Indenture Trustee joining in the act,
except if under the law of a jurisdiction in which a particular act or acts are to be performed the Indenture Trustee will be incompetent or unqualified to perform those act or acts, in which event those acts will be exercised and performed singly
by the co-trustee, but solely at the direction of the requisite Noteholders);
(ii) no trustee will be personally liable by reason of an act or omission of another trustee
under this Indenture; and
(iii) the Indenture Trustee may accept the resignation of or remove a separate trustee or
co-trustee.
(c) Notices. Any notice, request or other writing given to the Indenture Trustee will be deemed to have
been given to each appointed separate trustee and co-trustee, as effectively as if given to each of them.
(d) Rights of Appointee. Every document appointing a separate trustee or co-trustee will refer to this
Indenture and the conditions of this Section 6.10. Each separate trustee and co-trustee, on its acceptance of its appointment will have the rights, powers and obligations stated in its appointment, subject to this Indenture. The document will be
filed with the Indenture Trustee, and the Indenture Trustee will provide the Trust with a copy of each document.
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(e) Indenture Trustee as Agent. A separate trustee or co-trustee, with the consent of the Indenture
Trustee, may appoint the Indenture Trustee as its agent or attorney-in-fact with power and authority, if permitted by law, to do each lawful act under or for this Indenture on its behalf and in its name. If a separate trustee or co-trustee becomes
incapable of acting, resigns or is removed, all of its rights, powers and obligations will be exercised by the Indenture Trustee, if permitted by law, without the appointment of a new or successor trustee.
Section 6.11 Eligibility. The Indenture Trustee must satisfy the requirements of Section 310(a) of the
TIA and must comply with Section 310(b) of the TIA. The Indenture Trustee or its parent must have a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition and must have a long-term
debt rating of at least investment grade by each of the Rating Agencies or must be acceptable to each of the Rating Agencies or satisfy the Rating Agency Condition. Promptly after the Indenture Trustee fails to satisfy the requirements in this
Section 6.11 or ceases to be a Qualified Institution, the Indenture Trustee will notify the Trust and the Servicer of the failure.
Section 6.12 Inspections of Indenture Trustee. The Indenture Trustee agrees that, with reasonable prior
notice, it will permit authorized representatives of the Trust, the Servicer or the Administrator, during the Indenture Trustee’s normal business hours, to have access to and review the facilities, processes, books of account, records, reports and
other documents and materials of the Indenture Trustee relating to (a) the performance of the Indenture Trustee’s obligations under this Indenture, (b) the payments of fees and expenses of the Indenture Trustee for its performance and (c) any claim
made by the Indenture Trustee under this Indenture. In addition, the Indenture Trustee will permit those representatives to make copies and extracts of the books and records and to discuss them with the Indenture Trustee’s officers and employees.
Any access and review will be subject to the Indenture Trustee’s confidentiality and privacy policies. The Indenture Trustee will maintain all relevant books, records, reports and other documents and materials for a period of two years after the
termination of its obligations under this Indenture.
Section 6.13 Indenture Trustee’s Representations and Warranties. The Indenture Trustee represents and
warrants to the Trust as of the Closing Date:
(a) Organization. The Indenture Trustee is duly organized, validly existing and qualified as a [___]
under the laws of the United States.
(b) Power and Authority. The Indenture Trustee has the corporate power and authority to execute, deliver
and perform its obligations under this Indenture. The Indenture Trustee has taken all action necessary to authorize the execution, delivery and performance by it of this Indenture.
(c) Enforceability. This Indenture has been duly executed by an authorized officer of the Indenture
Trustee and constitutes the legal, valid and binding obligation of the Indenture Trustee enforceable against the Indenture Trustee in accordance with its terms, except as may be limited by (i) insolvency, bankruptcy, reorganization, moratorium or
other laws now or hereafter in effect relating to the enforcement of creditors’ rights generally, (ii) general equitable principles (regardless of whether such enforceability is considered in a proceeding at law or in
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equity) and (iii) with respect to rights of indemnity hereunder, limitations of public policy under applicable securities laws.
(d) No Defaults. To the best knowledge of the Responsible Persons of the Indenture Trustee, the
Indenture Trustee is not in breach of or default under any law or regulation of the United States of America, or any department, division, agency or instrumentality thereof having jurisdiction over the trust powers of the Indenture Trustee which
would materially impair the ability of the Indenture Trustee to perform its obligations under this Indenture.
(e) No Consents. To the best knowledge of the Responsible Persons of the Indenture Trustee, no
authorization, consent or other order of any federal government authority or agency having jurisdiction over the trust powers of the Indenture Trustee are required to be obtained by the Indenture Trustee for the valid authorization, execution and
delivery by the Indenture Trustee of the Indenture or the authentication of the Notes.
(f) Eligibility. The Indenture Trustee satisfies the requirements of Section 310(a) of the TIA and is a
Qualified Institution. The Indenture Trustee or its parent has a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition.
Section 6.14 Reporting of Receivables Reacquisition and Acquisition Demands. The Indenture Trustee will
(a) notify the Sponsor, the Administrator, the Depositor and the Servicer, as soon as practicable and within five (5) Business Days, of demands or requests actually received by a Responsible Person of the Indenture Trustee for the reacquisition or
acquisition, as applicable, of any Receivable under Section 3.4 of the Originator Receivables Transfer Agreement[, Section 3.4 of the Additional Transferor Receivables Transfer Agreement] or Sections 2.5 or 2.7 of the Transfer and Servicing
Agreement, (b) promptly on request by the Sponsor, the Depositor, the Administrator or the Servicer, provide to them other information reasonably requested and within its possession to facilitate compliance by them with Rule 15Ga-1 under the
Exchange Act and (c) if requested by the Sponsor, the Depositor, the Administrator or the Servicer, provide a written certification no later than fifteen (15) days following the end of any quarter or year that the Indenture Trustee has not received
any reacquisition demands or requests for that period, or if reacquisition or acquisition, as applicable, demands or requests have been received during that period, that the Indenture Trustee has provided all the information reasonably requested
under clause (b) above. The Indenture Trustee and the Trust will not have responsibility or liability for a filing required to be made by a securitizer under the Exchange Act.
Section 6.15 Preferential Collection of Claims Against the Trust. The Indenture Trustee will comply with
Section 311(a) of the TIA, excluding each creditor relationship listed in Section 311(b) of the TIA. An Indenture Trustee who has resigned or been removed will be subject to Section 311(c) of the TIA.
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Section 7.1 Noteholder Communications.
(a) Noteholder List. If the Indenture Trustee is not the Note Registrar, the Trust will furnish a list
of the names and addresses of the Noteholders to the Indenture Trustee (a) not more than five (5) days after each Record Date, as of that Record Date and (b) not more than thirty (30) days after receipt by the Trust of a request from the Indenture
Trustee, as of a date not more than ten (10) days before the time the list is furnished. If the Indenture Trustee is the Note Registrar, the Indenture Trustee, on the request of the Owner Trustee or the Master Collateral Agent, will furnish within
ten (10) days to the Owner Trustee or the Master Collateral Agent, as applicable, a list of Noteholders as of the date stated by the Owner Trustee or the Master Collateral Agent, as applicable.
(b) Noteholder List Retention. The Indenture Trustee will maintain a current list of the names and
addresses of the Noteholders based on the most recent list furnished to the Indenture Trustee under Section 7.1(a) and the names and addresses of Noteholders received by the Indenture Trustee in its capacity as Note Registrar.
(c) Noteholder Communications. Noteholders may communicate with other Noteholders about their rights
under this Indenture or under the Notes. Within ten (10) days following receipt by the Indenture Trustee of a request by three (3) or more Noteholders to receive a copy of the current list of Noteholders, the Indenture Trustee will (i) provide a
current list of Noteholders to the Noteholders making the request and (ii) notify the Administrator of the request by giving to the Administrator a copy of the request and a copy of the list of Noteholders produced in response to the request.
(d) Noteholder Communications with Indenture Trustee. A Noteholder (if the Notes are represented by
Definitive Notes) or a Verified Note Owner (if the Notes are represented by Book-Entry Notes) may communicate with the Indenture Trustee and give notices and make requests and demands and give directions to the Indenture Trustee through the
procedures of the Clearing Agency and by notifying the Indenture Trustee and providing to the Indenture Trustee a copy of the communication such Noteholder or Verified Note Owner, as applicable, proposes to send. The Indenture Trustee will not be
required to take action in response to requests, demands or directions of a Noteholder or a Verified Note Owner unless the Noteholder or Verified Note Owner has offered reasonable security or indemnity reasonably satisfactory to the Indenture
Trustee to protect it against the fees and expenses that it may incur in complying with the request, demand or direction.
(e) Fiscal Year. The fiscal year of the Trust will be the calendar year.
(f) TIA Communication. Noteholders may communicate under Section 312(b) of the TIA with other
Noteholders about their rights under this Indenture or under the Notes. The Trust, the Indenture Trustee and the Note Registrar will have the protection of Section 312(c) of the TIA.
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Section 7.2 Reports by Trust.
(a) Securities and Exchange Commission Filings. The Trust will, or will cause the Administrator or the
Servicer to:
(i) file with the Commission (A) the annual reports and the information, documents and other
reports (or copies or parts the Commission may prescribe) that the Trust is required to file with the Commission under Section 13 or 15(d) of the Exchange Act, including annual reports on Form 10-K and monthly distribution reports on Form 10-D, and
(B) additional information, documents and reports about compliance by the Trust with this Indenture required by the Commission;
(ii) make available to the Indenture Trustee, within fifteen (15) days after the Trust is
required to file the same with the Commission, the annual reports and the information, documents or other reports filed with the Commission under Section 7.2(a)(i); and
(iii) make available to the Indenture Trustee the information, documents and reports (or
summaries of such items) required to be filed by the Trust under Section 7.2(a)(i) and (ii) as may be required by rules and regulations prescribed by the Commission.
(b) Documents and Reports to Noteholders. The Indenture Trustee will transmit to all Noteholders, as
described in Section 313(c) of the TIA, the information, documents and reports (or summaries of such items) supplied to the Indenture Trustee under Section 7.2(a).
Section 7.3 Reports by Indenture Trustee.
(a) Annual Report. Within ninety (90) days after each April 15, beginning in the year after the Closing
Date, the Indenture Trustee will prepare and transmit to each Noteholder a report dated as of April 15 of the applicable year that complies with Section 313(a) of the TIA, but only if the report is required under Section 313(a) of the TIA. The
Indenture Trustee will also prepare and transmit to Noteholders any report required under Section 313(b) of the TIA. A report transmitted to the Noteholders under this Section 7.3(a) will be transmitted in compliance with Section 313(c) of the
TIA.
(b) Filing. The Indenture Trustee will file with the Commission and any stock exchange on which the
Notes are listed a copy of each report delivered under Section 7.3(a) at the time of its mailing to the Noteholders. The Trust will notify the Indenture Trustee if and when the Notes are listed on a stock exchange.
Section 8.1 Collection of Funds. Except as permitted under this Indenture, the Indenture Trustee may
demand payment or delivery of, and will receive and collect, directly the funds and other property payable to or to be received by the Note Paying Agent under this
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Indenture, the Master Collateral Agreement and the Transfer and Servicing Agreement. The Note Paying Agent will apply the funds and other property received by it, and will make deposits into, and
distributions from, the Series [_]-[_] Accounts, under this Indenture, the Master Collateral Agreement and the Transfer and Servicing Agreement. The Trust, or the Administrator on its behalf, will direct the Cap Counterparty to remit any Cap
Payments into the Distribution Account on or before the second Business Day preceding each Payment Date.
Section 8.2 Series [_]-[_] Accounts; Distributions.
(a) Establishment. On or prior to the Closing Date, the Trust, or the Servicer on behalf of the Trust,
caused the following segregated trust accounts or subaccounts to be established as Trust Financing Accounts solely for Series [_]-[_] in accordance with Section 9.2 of the Master Collateral Agreement at a Qualified Institution (which will initially
be the corporate trust department of [___]), in the name “[___], as Note Paying Agent, for the benefit of the Indenture Trustee, as secured party for Verizon Master Trust, Series [_]-[_],” designated as follows:
(i) “Distribution Account” with account number [___];
(ii) “Reserve Account” with account number [___]; and
(iii) “Principal Funding Account” with account number [___].
The Distribution Account set forth in clause (i) above shall constitute the Distribution Account for Series [_]-[_]. The Reserve Account set forth in clause (ii) above shall constitute
the Reserve Account for Series [_]-[_]. The Principal Funding Account set forth in clause (iii) above shall constitute the Principal Funding Account for Series [_]-[_]. Each of the Series [_]-[_] Accounts (x) shall constitute a Trust Financing
Account for Series [_]-[_] and (y) has been (or will be) pledged by the Trust to the Indenture Trustee for the sole benefit of the Series [_]-[_] Secured Parties of Series [_]-[_]. No Credit Extensions of any Trust Financing (other than Series
[_]-[_]) shall be secured by any interest in any Series [_]-[_] Account.
On and after the Closing Date, the Note Paying Agent will maintain the Series [_]-[_] Accounts established by the Servicer under this Section 8.2. If an institution maintaining the Series
[_]-[_] Accounts ceases to be a Qualified Institution, the Indenture Trustee will, with the Servicer’s assistance as necessary, move the Series [_]-[_] Accounts to a Qualified Institution within thirty (30) days. Deposits to, and distributions from,
the Distribution Account, the Reserve Account and the Principal Funding Account shall be made solely as set forth in this Agreement and, to the extent not inconsistent with this Agreement, in the other Series [_]-[_] Series Related Documents.
(b) Series [_]-[_] Account Withdrawals. On or before each Payment Date, the Note Paying Agent will
withdraw the amounts required to be withdrawn from the Reserve Account and deposit them into the Distribution Account or pay them to the Depositor, as applicable, according to Section 8.3(e).
(c) Distributions from Distribution Account. Subject to Section 8.2(e), on each Payment Date, the Note
Paying Agent will (based on the information in the most recent Monthly
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Investor Report) withdraw from the Distribution Account and make deposits and payments, to the extent of Series [_]-[_] Available Funds in the Distribution Account for that Payment Date, in the following
order of priority (pro rata within each priority level based on the amounts due except as otherwise stated):
(i) first, pro rata, (A) to the Master
Collateral Agent and the Owner Trustee, the Series [_]-[_] Group Allocated Percentage of all amounts due, including (x) fees due to such parties and (y) expenses and indemnities due to such parties, up to a maximum aggregate amount, in the case of
clause (y), of $[_] per year, (B) to the Asset Representations Reviewer, the Series [_]-[_] ARR Series Allocation Percentage of all amounts due including (x) fees due to the Asset Representations Reviewer (including fees due in connection with any
Asset Representations Review of Group [_] Receivables) and (y) expenses and indemnities due to the Asset Representations Reviewer, up to a maximum aggregate amount, in the case of clause (y), of $[_] per year and (C) to the Indenture Trustee [and
the Letter of Credit Provider] all amounts due, including (x) fees due to such parties and (y) expenses and indemnities due to such parties, up to a maximum aggregate amount, in the case of clause (y), of $[_] per year; provided, that after the
occurrence of an Event of Default with respect to Group [_] (other than a [Secondary] Event of Default
with respect to Group [_] described in clause [(iii)] of the definition thereof), the caps on expenses and indemnities in
this clause (i) will not apply;
(ii) second, (A) to the Servicer, the Series [_]-[_] Allocation Percentage of the
Servicing Fee and (B) to any Successor Servicer, the Series [_]-[_] Group Allocated Percentage of a one-time Successor Servicer engagement fee of $[_], payable on the first Payment Date following its assumption of duties as Successor Servicer;
(iii) third, [pro rata, based on the aggregate Note Balance of the Class A Notes and
the amount of any payment due and payable by the Trust to the Swap Counterparty under this clause (iii): (A)] to the Noteholders of the Class A-1[a] Notes, [Class A-1b Notes,] Class A-2 Notes and Class A-3 Notes, the aggregate amount of interest
due on the Class A Notes, distributed pro rata based on the amount of interest due to the Class A-1[a] Notes, [Class A-1b Notes,] Class A-2 Notes and Class A-3 Notes[, (B) to the Swap Counterparty, the
amount of any swap termination payment due under the Swap Agreement due to a swap termination resulting from a payment default by the Trust or the insolvency of the Trust; provided, that if any amounts allocable to the Class A Notes are not needed
to pay the Noteholders of the Class A Notes any interest as of that Payment Date, those amounts will be applied to pay the portion, if any, of any swap termination payment under this clause (B) remaining unpaid, and (C) to the Swap Counterparty,
the amount of interest at [_]% under the Swap Agreement];
(iv) fourth, (A) during the Revolving Period, for deposit to the Principal Funding
Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the First Priority Principal Payment;
(v) fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the
Class B Notes;
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(vi) sixth, (A) during the Revolving Period, for deposit to the Principal Funding
Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the Second Priority Principal Payment;
(vii) seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the
Class C Notes;
(viii) eighth, (A) during the Revolving Period, for deposit to the Principal Funding
Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the Third Priority Principal Payment;
(ix) ninth, to the Noteholders of Class D Notes, the Accrued Note Interest for the
Class D Notes;
(x) tenth, (A) during the Revolving Period, for deposit to the Principal Funding
Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the Fourth Priority Principal Payment;
(xi) eleventh, to the Noteholders of Class E Notes, the Accrued Note Interest for the
Class E Notes;
(xii) twelfth, (A) during the Revolving Period, for deposit to the Principal Funding
Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the Fifth Priority Principal Payment;
(xiii) thirteenth, [(A) first, to the Letter of Credit Provider, the amount, if any,
necessary to cause the amount available under the Letter of Credit to equal the amount available under the Letter of Credit on the date of issuance together with interest accrued on the amount drawn on the Letter of Credit] and (B) second,] to the
Reserve Account, the amount, if any, necessary to cause the amount in the Reserve Account to equal the Required Reserve Amount [less the amount available under the Letter of Credit];
(xiv) fourteenth, (A) during the Revolving Period, for deposit to the Principal
Funding Account, for allocation as set forth under Section 8.2(d)(i), and (B) during the Amortization Period, for allocation as principal under Section 8.2(d)(ii), the Regular Priority Principal Payment;
(xv) fifteenth, to any Successor Servicer, the Additional Series Successor Servicer
Fee, if any;
(xvi) sixteenth, to the Noteholders, any accrued and unpaid Additional Interest Amounts due on the Notes, payable sequentially by
Class [(with any Additional Interest Amounts applied to the Class A Notes allocated to the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes and the Class A-3 Notes, pro rata, based on the
58
Additional Interest Amount due to each of the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes and the Class A-3 Notes)];
(xvii) seventeenth, to the Noteholders, any Make-Whole Payments due on the Notes,
payable sequentially by Class, based on the amount due [(with any such Make-Whole Payments applied to the Class A-1a Notes and the Class A-1b Notes allocated to each such class of Notes, pro rata based on
the Make-Whole Payment due to each such Class)];
(xviii) eighteenth, (A) to the Indenture Trustee[, the Letter of Credit Provider]
[and][,] [and the Swap Counterparty], all remaining amounts due but not paid under priority (i) [or (iii) including, in the case of the Swap Counterparty, any unpaid amounts due to a swap termination resulting from a payment default by the Trust or
the insolvency of the Trust], (B) to the Master Collateral Agent and the Owner Trustee, the Series [_]-[_] Group Allocated Percentage of all remaining amounts due to the extent not paid under priority (i) above, (C) to the Asset Representations
Reviewer, the Series [_]-[_] ARR Series Allocation Percentage of all remaining amounts due to the extent not paid under priority (i) above and (D) to the Administrator, reimbursement of fees and expenses of the Master Collateral Agent, the
Indenture Trustee, the Owner Trustee[, the Letter of Credit Provider] and the Asset Representations Reviewer paid by the Administrator on behalf of the Trust pursuant to the Administration Agreement;
(xix) nineteenth, to any other parties as the Administrator has identified, any
remaining expenses of the Trust, up to the Series [_]-[_] Group Allocated Percentage of such amounts; and
(xx) twentieth, to the [Certificate Distribution Account for distribution sequentially
to the Class B Certificateholders and the Class A Certificateholders, in that order][Class R Interest], any remaining amounts.
For the avoidance of doubt, all amounts due to the Owner Trustee, the Master Collateral Agent, the Asset Representations Reviewer[, the Letter of Credit Provider] or the Indenture Trustee
in excess of the amounts paid to such party pursuant to priorities (i) and (xviii) during any calendar year will become due and payable in each succeeding calendar year, subject to the applicable limitations set forth therein, until paid in full.
(d) Distributions of Principal.
(i) In the event that any First Priority Principal Payment, Second Priority Principal
Payment, Third Priority Principal Payment, Fourth Priority Principal Payment, Fifth Priority Principal Payment or Regular Priority Principal Payment is required to be made on any Payment Date prior to the beginning of the Amortization Period
pursuant to Section 8.2(c), such amounts will be deposited pursuant to such applicable clauses on such Payment Date into the Principal Funding Account, to the extent of Series [_]-[_] Available Funds. Amounts, if any, on deposit in the Principal
Funding Account shall remain on deposit therein, except to be applied as follows:
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(A) |
in the event that, immediately following distributions on any Payment Date (a) the Revolving Period is in effect and (b) the Series [_]-[_] Allocated Pool Balance exceeds the Adjusted Series Invested
Amount for Series [_]-[_], the amount of such excess (to the extent on deposit in the Principal Funding Account) will be withdrawn from the Principal Funding Account and remitted to the Distribution Account on the immediately succeeding
Payment Date to be included as Series [_]-[_] Available Funds on such immediately succeeding Payment Date;
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(B) |
in connection with any Optional Redemption, amounts on deposit in the Principal Funding Account may be withdrawn and applied to pay any amounts due in connection therewith; or
|
(C) |
in the event that the Amortization Period is in effect immediately following distributions made on any Payment Date, amounts on deposit in the Principal Funding Account will be paid to the
Noteholders on such Payment Date, sequentially by class, in the order set forth under Section 8.2(d)(ii), until the aggregate Note Balance of the Class A Notes, Class B Notes, Class C Notes, Class D Notes and Class E Notes is reduced to zero.
|
(ii) On each Payment Date during the Amortization Period, the Note Paying Agent will (based
on the information in the most recent Monthly Investor Report) pay any amounts allocated to principal under Section 8.2(c) in the following order of priority, in each case, applied pro rata according to the Note Balance of the Notes of that Class:
(A) |
first, to the Noteholders of Class A-1[a] Notes [and Class A-1b Notes, pro rata based on the Note Balance of each such Class of Notes,] in payment of
principal until the aggregate Note Balance of the Class A Notes has been reduced to zero;
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(B) |
second, to the Noteholders of Class A-2 Notes in payment of principal until the Note Balance of the Class A-2 Notes has been reduced to zero;
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(C) |
third, to the Noteholders of Class A-3 Notes in payment of principal until the Note Balance of the Class A-3 Notes has been reduced to zero;
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(D) |
fourth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes has been reduced to zero;
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(E) |
fifth, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes has been reduced to zero;
|
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(F) |
sixth, to the Noteholders of Class D Notes in payment of principal until the Note Balance of the Class D Notes has been reduced to zero;
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(G) |
seventh, to the Noteholders of Class E Notes in payment of principal until the Note Balance of the Class E Notes has been reduced to zero; and
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(H) |
eighth, to the [Certificate Distribution Account for distribution sequentially to the Class B Certificateholders and the Class A Certificateholders, in that order][Class R Interest], any
remaining amounts.
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(e) Distributions Following Acceleration. If the Notes are accelerated after an Event of Default with
respect to Group [_], on each Payment Date starting with the Payment Date relating to the Collection Period in which the Notes are accelerated, the Note Paying Agent will (based on the information in the most recent Monthly Investor Report)
withdraw from the Series [_]-[_] Accounts and make deposits and payments, to the extent of Series [_]-[_] Available Funds and funds in the Series [_]-[_] Accounts for the related Collection Period, in the following order of priority (pro rata to
the Persons within each priority level based on the amounts due except as stated):
(i) first, pro rata, (A) to the Indenture
Trustee [and the Letter of Credit Provider], all amounts due to such parties, including fees, expenses and indemnities, (B) to the Master Collateral Agent and the Owner Trustee, the Series [_]-[_] Group Allocated Percentage of all amounts due to
such parties, including fees, expenses and indemnities and (C) to the Asset Representations Reviewer, the Series [_]-[_] ARR Series Allocation Percentage of all amounts due to the Asset Representations Reviewer, including fees (including fees due
in connection with any Asset Representations Review of Group [_] Receivables), expenses and indemnities;
(ii) second, (A) to the Servicer, the Series [_]-[_] Allocation Percentage of the
Servicing Fee and (B) to any Successor Servicer, the Series [_]-[_] Group Allocated Percentage of a one-time Successor Servicer engagement fee of $[_], payable on the first Payment Date following its assumption of duties as Successor Servicer;
(iii) third, [pro rata, based on the
aggregate Note Balance of the Class A Notes and the amount of any payment due and payable by the Trust to the Swap Counterparty under this clause (iii): (A)] to the Noteholders of the Class A-1[a] Notes, [Class A-1b Notes,] Class A-2 Notes and
Class A-3 Notes, [the aggregate amount of] interest due on the Class A Notes[, distributed pro rata based on the amount of interest due to the Class A-1[a] Notes, [Class A-1b Notes,] Class A-2 Notes and
Class A-3 Notes][, (B) to the Swap Counterparty, the amount of any payment due under the Swap Agreement due to a swap termination resulting from a payment default by the Trust or the insolvency of the Trust; provided, that if any amounts allocable
to the Class A Notes are not needed to pay the Noteholders of the Class A Notes any interest as of that Payment Date, those amounts will be applied to pay the portion, if any, of any payment under this clause (B) remaining
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unpaid, and (C) to the Swap Counterparty, the amount of interest at [____]% under the Swap Agreement];
(iv) fourth, to the Noteholders of Class A-1a Notes and Class A-1b Notes, pro rata based on the Note Balance of each such Class of Notes, in payment of principal until the aggregate Note Balance of the Class A-1a Notes and Class A-1b Notes has been reduced to zero;
(v) fifth, to the Noteholders of Class A-2 Notes and Class A-3 Notes, pro rata based on the Note Balance of each such Class of Notes, in payment of principal until the aggregate Note Balance of the Class A-2 Notes and Class A-3 Notes has been reduced to zero;
(vi) sixth, to the Noteholders of Class B Notes, the Accrued Note Interest for the
Class B Notes;
(vii) seventh, to the Noteholders of Class B Notes in payment of principal until the
Note Balance of the Class B Notes is reduced to zero;
(viii) eighth, to the Noteholders of Class C Notes, the Accrued Note Interest for the
Class C Notes;
(ix) ninth, to the Noteholders of Class C Notes in payment of principal until the Note
Balance of the Class C Notes is reduced to zero;
(x) tenth, to the Noteholders of Class D Notes, the Accrued Note Interest for the
Class D Notes;
(xi) eleventh, to the Noteholders of Class D Notes in payment of principal until the
Note Balance of the Class D Notes is reduced to zero;
(xii) twelfth, to the Noteholders of Class E Notes, the Accrued Note Interest for the
Class E Notes;
(xiii) thirteenth, to the Noteholders of Class E Notes in payment of principal until
the Note Balance of the Class E Notes is reduced to zero;
(xiv) fourteenth, to any Successor Servicer, the Additional Series Successor Servicer
Fee, if any;
(xv) fifteenth, to the Noteholders, any accrued and unpaid Additional Interest Amounts
due on the Notes, payable sequentially by Class [(with any Additional Interest Amounts applied to the Class A Notes allocated to the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes and the Class A-3 Notes, pro rata, based on the
Additional Interest Amount due to each of the Class A-1[a] Notes, [the Class A-1b Notes,] the Class A-2 Notes and the Class A-3 Notes)];
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(xvi) sixteenth, to the Noteholders, any Make-Whole Payments due on the Notes, payable
sequentially by Class, based on the amount due [(with any such Make-Whole Payments applied to the Class A-1a Notes and the Class A-1b Notes allocated to each such class of Notes, pro rata based on the
Make-Whole Payment due to each such Class)];
(xvii) [seventeenth, to the Swap Counterparty, the amount of any payment due under the
Swap Agreement due to a swap termination due to it and not paid under clause (iii) above;
(xviii) eighteenth, to any other parties as the Administrator has identified, any
remaining expenses of the Trust, up to the Series [_]-[_] Group Allocated Percentage of such amounts; and
(xix) nineteenth, to the [Certificate Distribution Account for distribution
sequentially to the Class B Certificateholders and the Class A Certificateholders, in that order][Class R Interest], any remaining amounts.
(f) [Reserved].
(g) Subordination Agreement. Each of (i) the subordination of interest payments to the Noteholders of
the Class B Notes to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes, (ii) the subordination of interest payments to the Noteholders of the Class C Notes to the payment of any Second Priority Principal
Payment to the Noteholders of the Class A Notes and the Class B Notes, (iii) the subordination of interest payments to the Noteholders of the Class D Notes to the payment of any Third Priority Principal Payment to the Noteholders of the Class A
Notes, the Class B Notes and the Class C Notes and (iv) the subordination of interest payments to the Noteholders of the Class E Notes to the payment of any Fourth Priority Principal Payment to the Noteholders of the Class A Notes, the Class B
Notes, the Class C Notes and the Class D Notes under Section 8.2(c) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.
(h) [Cap Collateral Account. If the Cap Counterparty is required to post collateral under the terms of
the Cap Agreement, upon written direction and notification of such requirement, the Trust, or the Servicer on behalf of the Trust, shall establish a segregated account (the “Cap Collateral Account”) at a Qualified Institution that (i) is not
affiliated with the Cap Counterparty and (ii) has total assets of at least $10,000,000,000 (the “Cap Custodian”), titled as an account of the Cap Counterparty as depositor and entitlement holder. In the event that the Cap Custodian no
longer satisfies the requirements set forth in the immediately preceding sentence, the Issuer, the Servicer and the Cap Counterparty shall use their reasonable best efforts to move the Cap Collateral Account and any collateral posted therein to
another financial institution satisfying the requirements set forth in the immediately preceding sentence within sixty (60) calendar days. The Cap Collateral Account shall be subject to a tri-party account control agreement to be entered into
among the Cap Counterparty, the Issuer and the Cap Custodian (the “Control Agreement”). The Control Agreement shall provide, among other customary matters, that (x) the Cap Counterparty shall be entitled to originate entitlement orders and
instructions, and receive interest and distributions, with respect to the Cap Collateral
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Account so long as the Issuer has not delivered a notice to the Cap Custodian and the Cap Counterparty to the effect that the Issuer shall have exclusive control over the Cap Collateral Account, (y)
following delivery of such notice of exclusive control the Cap Custodian shall comply with instructions and entitlement orders originated by the Issuer without further consent by the Cap Counterparty, and (z) the Control Agreement shall terminate on
the fifth Business Day following delivery of a notice from the Cap Counterparty to the Cap Custodian and the Issuer that the Cap Counterparty has designated an “Early Termination Date” (as defined in the Cap Agreement) in respect of all
“Transactions” (as defined in the Cap Agreement) for the reason that the Issuer is the “Defaulting Party” (as defined in the Cap Agreement) or the sole “Affected Party” (as defined in the Cap Agreement) with respect to a “Termination Event” (as
defined in the Cap Agreement), unless such notice is contested by the Issuer within such period of five (5) Business Days. The Issuer agrees that it shall not assert exclusive control over, or originate entitlement orders or instructions for the
disposition of funds with respect to, the Cap Collateral Account unless the conditions for the exercise of its rights and remedies pursuant to the Cap Agreement are met and such assertion of exclusive control or origination of instructions or
entitlement orders is for the purpose of exercising such rights and remedies. The only permitted withdrawal from or application of funds on deposit in, or otherwise to the credit of, the Cap Collateral Account shall be (i) for application to
obligations of the Cap Counterparty to the Issuer under the Cap Agreement in accordance with the terms of the Cap Agreement or (ii) to return collateral to the Cap Counterparty when and as required by the Cap Agreement or applicable law. Investment
earnings on the Cap Collateral Account, if any, will be distributed to the Cap Counterparty.]
Section 8.3 Series [_]-[_] Accounts.
(a) Investment of Funds in Series [_]-[_] Accounts. If (i) no Potential Default or Event of Default with
respect to Group [_] has occurred and is continuing and (ii) Cellco is the Servicer, the Servicer may instruct the Indenture Trustee to invest any funds in the Series [_]-[_] Accounts in Permitted Investments and, if investment instructions are
received, the Indenture Trustee will direct the Qualified Institution maintaining the Series [_]-[_] Accounts to invest the funds in the Distribution Account, the Reserve Account or the Principal Funding Account, as applicable, in those Permitted
Investments. If (i) the Servicer fails to give investment instructions for any funds in the Distribution Account, the Reserve Account or the Principal Funding to the Indenture Trustee by 11:00 a.m. New York time (or other time as may be agreed by
the Indenture Trustee) on the Business Day before a Payment Date or (ii) the Qualified Institution receives notice from the Indenture Trustee that a Potential Default with respect to Group [_] or Event of Default with respect
to Group [_] has occurred and is continuing, the Qualified Institution will invest and reinvest funds in such Series [_]-[_] Account according to the last investment instructions received, if any. If no prior investment instructions have been
received or if the instructed investments are no longer available or permitted, the Indenture Trustee will notify the Servicer and request new investment instructions, and the funds will remain uninvested until new investment instructions are
received. The Servicer may direct the Indenture Trustee to consent, vote, waive or take any other action, or not to take any action, on any matters available to the holder of the Permitted Investments. If Cellco is not the Servicer, funds on
deposit in the Distribution Account, the Reserve Account and the Principal Funding Account will remain uninvested. For so long as Cellco is the Servicer, any Permitted Investments of funds in the Series [_]-[_] Accounts (or any reinvestments of
the Permitted Investments) for a Collection
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Period must mature, if applicable, and be available no later than the second Business Day before the related Payment Date. Any Permitted Investments with a maturity date will be held to their maturity,
except that such Permitted Investments may be sold or disposed of before their maturity in connection with the sale of the Series [_]-[_] Collateral under Section 5.6.
(b) Limited Liability for Permitted Investments. Subject to Section 6.1(c), neither the Indenture
Trustee nor the Note Paying Agent will be liable for any insufficiency in Series [_]-[_] Accounts resulting from a loss on a Permitted Investment, except for losses attributable to [___]’s failure to make payments on the Permitted Investments
issued by [___], in its commercial capacity as principal obligor and not as trustee.
(c) Notice to Qualified Institution. A Responsible Person of the Indenture Trustee will notify the
Qualified Institution maintaining the Series [_]-[_] Accounts (if not the Indenture Trustee) if an Event of Default with respect to Group [_] has occurred and is continuing.
(d) Control of Series [_]-[_] Accounts. Each of the Series [_]-[_] Accounts will be under the control of
the Indenture Trustee so long as the Series [_]-[_] Accounts remain subject to the Lien of the Indenture, except that the Servicer and the Master Collateral Agent may make deposits into the Series [_]-[_] Accounts and the Servicer may direct the
Note Paying Agent to make deposits into or withdrawals from the Series [_]-[_] Accounts according to this Indenture and the Transaction Documents. Following the payment in full of the Notes and the release of the Series [_]-[_] Accounts from the
Lien of the Indenture, the Series [_]-[_] Accounts will be under the control of the Trust.
(e) Release of Funds. The Indenture Trustee shall, at such time as there are no Notes outstanding,
release any remaining portion of the Distribution Account and the Principal Funding Account from the Lien of the Indenture and release to or to the order of the Trust or, in the case of the Reserve Account, to the Depositor.
(f) Investment Earnings. Investment earnings (net of losses and investment expenses) on the Distribution
Account, the Reserve Account and the Principal Funding Account will be deposited into the Certificate Distribution Account [per the direction of the Servicer] for distribution to the Certificateholders in the priority set forth in Section 4.1(b) of
the Trust Agreement.
(g) Reserve Account.
(i) Initial Reserve Account Deposit. On the Closing Date, the Required Reserve Amount
into the Reserve Account [from the net proceeds of the sale of the Notes].
(ii) Reserve Account Draw Amount. On or before two (2) Business Days before a Payment
Date, the Servicer will calculate the Reserve Account Draw Amount for the Payment Date and will direct the Note Paying Agent to withdraw from the Reserve Account and deposit into the Distribution Account on or before the Payment Date (x) the
Reserve Account Draw Amount and (y) any amount in excess of the Required Reserve Amount for such Payment Date, after giving effect to the withdrawal of the Reserve Account Draw Amount with respect to such Payment Date.
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Section 8.4 Release of Series [_]-[_] Collateral.
(a) Release of Property. The Indenture Trustee may, and when required by this Indenture will, release
Series [_]-[_] Collateral from the Lien of this Indenture, in each case, according to this Indenture. Except under Sections 8.4(c) and 10.1 for which the Series [_]-[_] Collateral will automatically be released, the Indenture Trustee will release
Series [_]-[_] Collateral from the Lien of this Indenture only on receipt of a Trust Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3 and (if required by the TIA) Independent Certificates
according to Sections 314(c) and 314(d)(1) of the TIA.
(b) [Reserved].
(c) Release of Funds. When there are no Notes Outstanding and all amounts due from the Trust to the
Indenture Trustee have been paid in full under Section 6.7 or 10.1, the Indenture Trustee will release the Series [_]-[_] Collateral from the Lien of this Indenture and release to the Trust or any other Person entitled to those funds under this
Indenture, the other Series [_]-[_] Series Related Documents or the Transaction Documents, the funds then in the Series [_]-[_] Accounts under this Indenture. The Indenture Trustee will release Series [_]-[_] Collateral from the Lien of this
Indenture under this Section 8.4(c) only on receipt of a Trust Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3.
(d) Termination Statements. On receipt of a Trust Request accompanied by an Officer’s Certificate and an
Opinion of Counsel meeting the requirements of Section 11.3, the Indenture Trustee will execute termination statements and other documents to release Series [_]-[_] Collateral as permitted by this Section 8.4 and Section 10.1. No party relying on
a document or authorization executed by the Indenture Trustee under this Article VIII is required to determine the Indenture Trustee’s authority, inquire into the satisfaction of conditions precedent or require evidence of the application of funds.
Section 9.1 Amendments Without Consent of Noteholders.
(a) General Amendments. The Trust and the Indenture Trustee may, and the Indenture Trustee, when
directed by Trust Order will, amend this Indenture, without the consent of any Noteholders, for any of the following purposes:
(i) to correct or expand the description of any property at any time subject to the Lien of
this Indenture, or better to assure, convey and confirm to the Indenture Trustee a Lien on any property subject or required to be subjected to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;
(ii) to evidence the succession of any other Person to the Trust, and the assumption by the
successor of the obligations of the Trust in this Indenture and in the Notes;
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(iii) to add to the covenants of the Trust, for the benefit of the Noteholders, or to
surrender a right or power given to the Trust in this Indenture;
(iv) to convey, transfer, assign, mortgage or pledge property to or with the Indenture
Trustee for the benefit of the Noteholders;
(v) to cure any ambiguity, to correct an error or to correct or supplement any provision of
this Indenture that may be defective or inconsistent with the other terms of this Indenture;
(vi) to evidence the acceptance of the appointment under this Indenture of a successor
trustee and to add to or change this Indenture as necessary to facilitate the administration of the trusts under this Indenture by more than one trustee;
(vii) to correct any manifest error in the terms of this Indenture as compared to the terms
expressly set forth in the Prospectus; or
(viii) to modify, eliminate or add to the terms of this Indenture to effect the qualification
of this Indenture under the TIA and to add to this Indenture any other terms required by the TIA.
[In addition, the Administrator may amend this Indenture for the purpose of making Benchmark Replacement Conforming Changes, without the consent of Noteholders, any party to this Indenture
or any other Person.]
(b) Amendments without Material Adverse Effect. Other than as set forth in Section 9.2, the Trust and
the Indenture Trustee may, and the Indenture Trustee when directed by Trust Order will, amend this Indenture, also without the consent of the Noteholders, for the purpose of adding any provisions to, or changing in any manner or eliminating any of
the provisions of, this Indenture or modifying in any manner the rights of the Noteholders under this Indenture, if:
(i) the Administrator delivers to the Indenture Trustee an Officer’s Certificate stating that
the Administrator reasonably believes that the amendment will not have a material adverse effect on the Notes; or
(ii) the Rating Agency Condition has been satisfied with respect to the Notes.
Section 9.2 Amendments with Consent of Controlling Class.
(a) Amendments. The Trust and the Indenture Trustee may, and the Indenture Trustee when directed by
Trust Order will, amend this Indenture, with the consent of the Noteholders of a majority of the Note Balance of the Controlling Class and with prior written notice to the Rating Agencies, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Noteholders under this Indenture. No amendment to this Indenture, without the consent of each Noteholder of each Outstanding Note
adversely affected by the amendment, shall:
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(A) |
change (1) the applicable Final Maturity Date on a Note or (2) the principal amount of or interest rate, Additional Interest Amount or Make-Whole Payment on a Note;
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(B) |
modify the percentage of the Note Balance of the Notes or the Controlling Class that is required for any action;
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(C) |
modify or alter the definition of “Controlling Class;”
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(D) |
permit the creation of any Lien ranking prior or equal to the Lien of this Indenture on the Series [_]-[_] Collateral, other than Permitted Liens, or, except as permitted by this Indenture, the other
Series [_]-[_] Series Related Documents or the Transaction Documents, release the Lien of this Indenture on the Series [_]-[_] Collateral; or
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(E) |
impair the right to institute suit for the enforcement of this Indenture, as provided in Section 5.8.
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In addition, unless (i) the Rating Agency Condition has been satisfied for all Credit Extensions of Group [_] then rated by a Rating Agency or (ii) each Group Creditor of each Credit
Extension of Group [_] adversely affected thereby consents, no amendment to this Indenture may result (solely by virtue of such amendment) in an increase in the Series Allocation Percentage for Series [_]-[_].
(b) Noteholder Consent. For any amendment to this Indenture or any Transaction Document requiring the
consent of the Noteholders, the Indenture Trustee will, when directed by Trust Order, notify the Noteholders to request consent and follow its reasonable procedures to obtain consent. For the avoidance of doubt, any Noteholder consenting to any
amendment shall be deemed to agree that such amendment does not have a material adverse effect on such Noteholder.
Section 9.3 Execution of Amendments.
(a) Form; Authorization; Reliance. It shall not be necessary for the consent of the Noteholders to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. Each amendment will be in form reasonably satisfactory to the Indenture Trustee. The Indenture
Trustee is authorized to execute the amendment and any other agreements required by the amendment. For any amendment, the Trust will deliver to the Indenture Trustee and the Owner Trustee an Opinion of Counsel stating that the amendment is
permitted by this Indenture and that all conditions to the amendment have been satisfied.
(b) Indenture Trustee Not Obligated. Notwithstanding anything to the contrary herein, the Indenture
Trustee is not obligated to enter into an amendment that adversely affects the Indenture Trustee’s rights, powers, duties, obligations, liabilities, indemnities or immunities under this Indenture.
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Section 9.4 Effect of Amendment. On the execution of an amendment under this Article IX, this Indenture
will be amended by the amendment, and the amendment will be part of this Indenture for all purposes. Every Noteholder of Notes authenticated and delivered before or after the amendment will be bound by the amendment.
Section 9.5 Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the
execution of an amendment under this Article IX may, and if required by the Indenture Trustee will, bear a notation about the amendment. New Notes modified to conform to an amendment may be prepared and executed by the Trust and authenticated and
delivered by the Indenture Trustee in exchange for the Outstanding Notes.
Section 9.6 [Consent of Cap Counterparty. Notwithstanding anything to the contrary herein, no amendment
under Sections 9.1 or 9.2 shall materially adversely affect (i) the Cap Counterparty’s ability to enforce or protect its rights or remedies under the Cap Agreement, (ii) the ability of the Trust to timely and fully perform its obligations under the
Cap Agreement or (iii) any of the Trust’s obligations under the Cap Agreement that relates to the Cap Counterparty unless the Cap Counterparty shall have consented in writing to such action.]
Section 9.7 Conformity with TIA. Each amendment of this Indenture executed under this Article IX will
conform to the requirements of the TIA as then in effect so long as this Indenture is qualified under the TIA.
Section 10.1 Redemption.
(a) Optional Redemption.
(i) On any date on or after the Earliest Redemption Date, the Class A Certificateholder (for
as long as the Class A Certificateholder is an Originator or an Affiliate of the Originators), with the consent of the Administrator, on behalf of the Trust, shall have the option to direct the Trust to redeem the Notes, in whole but not in part
(the “Optional Redemption”). The Class A Certificateholder may exercise this Optional Redemption by notifying the Trust, the Servicer, the Master Collateral Agent, the Indenture Trustee, the Owner Trustee and the Rating Agencies, in
writing, at least ten (10) days before the date of the redemption of the Notes (the “Redemption Date”). [If the Trust effects an Optional Redemption on any date prior to [[____], 20[_]][the Payment Date occurring [three (3) months] prior to
the Anticipated Redemption Date], the Trust will be required to pay a Make-Whole Payment in connection with such redemption.]
(ii) After the Indenture Trustee receives the notice set forth in clause (i) above, the
Indenture Trustee will promptly notify the Noteholders (and any related expenses incurred by the Indenture Trustee shall be payable by the Trust):
(A) |
of the Redemption Date;
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(B) |
of the outstanding Note Balance of each Class of the Notes to be redeemed;
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(C) |
of the place to surrender the Notes for final payment (which will be the office or agency of the Trust maintained under Section 3.2); and
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(D) |
that on the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest, any unpaid Additional Interest Amounts and any unpaid Make-Whole Payments on the Notes will
become due and payable in full and that interest on the Notes will cease to accrue from and after the Redemption Date, unless the Trust fails to pay the Notes on the Redemption Date.
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Failure to give notice of redemption to a Noteholder, or any defect therein, shall not impair or affect the validity of the redemption of any other Note.
(b) Deposit of Note Redemption Price. The Trust may not exercise an Optional Redemption unless the Note
Balance of the Notes, any accrued but unpaid interest, any unpaid Additional Interest Amounts and any unpaid Make-Whole Payments [and all other amounts payable by the Trust with respect to Series [_]-[_], including such amounts due and payable to
the Indenture Trustee, the Owner Trustee, the Master Collateral Agent and the Asset Representations Reviewer as of such Redemption Date] are paid in full in connection therewith. On the Redemption Date, the Indenture Trustee shall transfer any
amounts on deposit in the Reserve Account and the Principal Funding Account into the Distribution Account. Upon the exercise of the Optional Redemption, the Notes will be redeemed and paid in full.
(c) Release of Funds. On the Redemption Date, the outstanding Note Balance of the Notes plus accrued and
unpaid interest, any unpaid Additional Interest Amounts and any unpaid Make-Whole Payments on the Notes will become due and payable and interest on the Notes will cease to accrue from and after the Redemption Date, unless the Trust fails to pay the
Notes on the Redemption Date. On redemption, the Indenture Trustee will release the Series [_]-[_] Collateral from the Lien of this Indenture and release to the Trust or any other Person entitled to funds then in the Series [_]-[_] Accounts under
this Indenture according to Section 8.4(c).
Section 11.1 No Petition. The Indenture Trustee and each Noteholder or Note Owner, by accepting a Note
or an interest or participation in a Note, agrees that, before the date that is two (2) years and one (1) day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust
for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) the Depositor or (ii) the Trust, respectively, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law; provided that the foregoing shall not be deemed to prevent the
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Indenture Trustee from filing a proof of claim in any such proceeding. This Section 11.1 will survive the resignation or removal of the Indenture Trustee under this Indenture and the termination of this
Indenture.
Section 11.2 [Reserved].
Section 11.3 Trust Orders; Certificates and Opinions.
(a) Trust Order or Trust Request. For an order or request by the Trust to the Indenture Trustee to take
an action under this Indenture, any other Series [_]-[_] Series Related Document or any Transaction Document, the Trust will deliver the following documents to the Indenture Trustee: (i) a written order (an “Trust Order”) or a written
request (an “Trust Request”), signed in the name of the Trust by a Responsible Person and delivered to the Indenture Trustee, (ii) an Officer’s Certificate of the Trust stating that all conditions in this Indenture, any other Series [_]-[_]
Series Related Document or any Transaction Document, as applicable, for the proposed action have been satisfied, (iii) an Opinion of Counsel stating that such action is authorized or permitted by this Indenture, any other Series [_]-[_] Series
Related Document or any Transaction Document, as applicable, and all conditions precedent have been satisfied and (iv) if required by the TIA, an Independent Certificate. However, if this Indenture requires the furnishing of specific documents for
the action to be taken, no additional certificate or opinion is required to be delivered.
(i) Each certificate or opinion on compliance with a condition or covenant in this Indenture
will include:
(A) |
a statement that each signatory of the certificate or opinion has read the covenant or condition and the definitions in this Indenture, any other Series [_]-[_] Series Related Document or any
Transaction Document relating to the covenant or condition;
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(B) |
a brief statement about the nature and scope of the examination or investigation on which the statements or opinions in the certificate or opinion are based;
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(C) |
a statement that, in the opinion of the signatory, the signatory has made an examination or investigation, if necessary, to enable the signatory to express an informed opinion on whether or not the
covenant or condition has been complied with; and
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(D) |
a statement about whether, in the opinion of the signatory, the condition or covenant has been complied with.
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(ii) Any Officer’s Certificate of a Responsible Person of the Trust may be based, for legal
matters, on an opinion of counsel, unless that Responsible Person knows, or in the exercise of reasonable care should know, that the opinion is erroneous. Any Officer’s Certificate of a Responsible Person of the Trust or opinion of counsel may be
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based, for factual matters, on an Officer’s Certificate of a Responsible Person of the Servicer, the Depositor or the Trust (including by the Administrator on behalf of the Trust), stating
that the information about those factual matters is in the possession of the Servicer, the Depositor, the Trust or the Administrator, unless the Responsible Person of the Trust or counsel knows, or in the exercise of reasonable care should know, that
the Officer’s Certificate is erroneous.
(c) Ordinary Course of Business. The Trust may, without furnishing any Officer’s Certificates under this
Section 11.3, (i) collect, sell or dispose of Group [_] Receivables in the ordinary course of its business, so long as Collections and other proceeds of the dispositions are applied according to the Master Collateral Agreement and this Indenture to
the extent of Series [_]-[_] Available Funds and (ii) make cash payments out of the Series [_]-[_] Accounts, in each case, as and if permitted or required by this Indenture, any other Series [_]-[_] Series Related Document or any Transaction
Document.
(d) Exemptive Orders. If the Commission issues an exemptive order under Section 304(d) of the TIA
modifying the Indenture Trustee’s obligations under Sections 314(c) and 314(d)(1) of the TIA, the Indenture Trustee will release property from the Lien of this Indenture only according to this Indenture, any other Series [_]-[_] Series Related
Document or any Transaction Document and the conditions and procedures stated in the exemptive order.
Section 11.4 Acts of Noteholders.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by the Noteholders or a stated percentage of Noteholders may be embodied in and evidenced by one or more instruments or documents signed by the Noteholders or Note Owners in person or by agents duly appointed in
writing. Except as otherwise expressly stated in this Indenture, the action will become effective when the instruments or documents are delivered to the Indenture Trustee and, if required, to the Trust. Such instruments or documents (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or document. Proof of execution of such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and conclusive in favor of the Indenture Trustee if made in the manner provided in this Section 11.4. Any such acts will bind the Noteholder of every Note issued upon the registration of the Note or in
exchange for the Note or in place of the Note, for all purposes including in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Trust in reliance thereon, whether or not notation of the action is made on the
Note.
(b) The fact and date of the execution by any Person of any such instrument or document may be proved in any
manner that the Indenture Trustee deems sufficient.
(c) The ownership of Notes shall be proved by the Note Register.
Section 11.5 Trust Obligation. No recourse may be taken, directly or indirectly, for the obligations of
the Trust, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or a certificate or other writing delivered under this Indenture or the Notes, against (a)
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the Indenture Trustee or the Owner Trustee each in its individual capacity, (b) each holder of a beneficial interest in the Trust, (c) each partner, owner, beneficiary, agent, officer, director, employee or
agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (d) each holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity. The Indenture Trustee and the Owner
Trustee have none of these obligations in their individual capacities. For all purposes of this Indenture, the Owner Trustee will be subject to, and have the benefits of, Articles V, VI and VII of the Trust Agreement.
Section 11.6 Conflict with Trust Indenture Act. If any part of this Indenture limits, qualifies or
conflicts with any other part of this Indenture that is required or deemed to be included in this Indenture by the TIA, the required or deemed part will control. Sections 310 through 317 of the TIA that impose obligations on a Person (including
those automatically deemed included in this Indenture unless expressly excluded by this Indenture) are a part of and govern this Indenture.
Section 11.7 Regulation RR Risk Retention. Cellco, as Sponsor, has complied, and on the Closing Date
will comply, either directly or (to the extent permitted by the U.S. Credit Risk Retention Rules through a “wholly-owned affiliate” (as defined in the U.S. Credit Risk Retention Rules), with all requirements imposed on the “sponsor” of a
“securitization transaction” (as each such term is defined in the U.S. Credit Risk Retention Rules) in accordance with the provisions of Regulation RR in connection with the securitization transaction contemplated by this Indenture and the other
Series [_]-[_] Series Related Documents and in the manner described in the Prospectus under the heading “Credit Risk Retention.” Cellco, as Sponsor, will cause the True-up Trust, as nominee of the Originators to, and the True-up Trust will, retain
the required economic interest in the credit risk of the Group [_] Receivables in satisfaction of the Sponsor’s obligations under the U.S. Credit Risk Retention Rules in the form of the Transferor’s Interest [, as [partially] [wholly] offset by an
“eligible horizontal residual interest” in Series [_]-[_] consisting of the Class R Interest]. [Cellco determined the fair value of the Class R Interest, and will determine the fair value of such Class R Interest, on the Closing Date as required
by Rule 5(i)(2) of the U.S. Credit Risk Retention Rules. Cellco determined the fair value of the Class R Interest based on its own valuation methodology, inputs and assumptions and is solely responsible for the valuation methodology, inputs and
assumptions.]
Section 12.1 Benefits of Indenture; Third-Party Beneficiaries. This Indenture and the Notes are for the
benefit of and will be binding on the parties and their permitted successors and assigns. The Series [_]-[_] Secured Parties, each Person with rights to payments or distributions under this Indenture and the Certificateholders will be third-party
beneficiaries of this Indenture and may enforce this Indenture according to its terms. No other Person will have any right or obligation under this Indenture or the Notes.
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Section 12.2 Notices.
(a) Notices to Parties. Notices, requests, directions, consents, waivers or other communications to or
from the parties to this Indenture must be in writing and will be considered received by the recipient:
(i) for overnight mail, on delivery or, for registered first class mail, postage prepaid,
three (3) days after deposit in the mail properly addressed to the recipient;
(ii) for a fax, when receipt is confirmed by telephone, reply email or reply fax from the
recipient;
(iii) for an email, when receipt is confirmed by telephone or reply email from the recipient;
and
(iv) for an electronic posting to a password-protected website to which the recipient has
access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.
(b) Notice Addresses. A notice, request, direction, consent, waiver or other communication will be
addressed to the recipient stated in Schedule A to the Transfer and Servicing Agreement, which address the party may change by notifying the other party.
(c) Notice to Noteholders. Notices to a Noteholder will be considered received by the Noteholder:
(i) for Definitive Notes, for overnight mail, on delivery or, for registered first class
mail, postage prepaid, three (3) days after deposit in the mail properly addressed to the Noteholder at its address in the Note Register; or
(ii) for Book-Entry Notes, when delivered under the procedures of the Clearing Agency,
whether or not the Noteholder actually receives the notice.
(d) Notices to Rating Agencies. Where this Indenture requires for notice to the Rating Agencies, failure
to give the notice will not affect other rights or obligations under this Indenture and will not be a Potential Default with respect to Group [_] or Event of Default with respect to Group [_].
(e) Waiver of Notices. Where this Indenture provides for notice in any manner, such notice may be waived
in writing by the Person entitled to receive such notice, either before or after the event and such waiver shall be the equivalent of such notice. Waivers of notice by the Noteholders shall be filed with the Indenture Trustee but such filing shall
not be a condition precedent to the validity of any action taken in reliance upon such waiver.
Section 12.3 GOVERNING LAW. THIS INDENTURE, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO
74
ANY OTHERWISE APPLICABLE CONFLICTS OF LAW PRINCIPLES), AND THE LAW OF THE STATE OF NEW YORK SHALL GOVERN ALL ISSUES SPECIFIED IN ARTICLE 2(1) OF THE HAGUE SECURITIES CONVENTION.
Section 12.4 Submission to Jurisdiction. Each party 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 legal proceedings relating to this Indenture. Each party irrevocably waives, to the fullest extent permitted by
law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.
Section 12.5 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN CONNECTION WITH, THIS INDENTURE ANY MATTER ARISING THEREUNDER WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
Section 12.6 No Waiver; Remedies. No party’s failure or delay in exercising a power, right or remedy
under this Indenture will operate as a waiver. No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy. The powers,
rights and remedies under this Indenture are in addition to any powers, rights and remedies under law.
Section 12.7 Severability. If a part of this Indenture is held invalid, illegal or unenforceable, then
it will be deemed severable from the remaining Indenture and will not affect the validity, legality or enforceability of the remaining Indenture.
Section 12.8 Headings. The headings in this Indenture are included for convenience and will not affect
the meaning or interpretation of this Indenture.
Section 12.9 Counterparts. This Indenture may be executed in multiple counterparts. Each counterpart
will be an original and all counterparts will together be one document.
Section 12.10 Customer Identification Program. To help the government fight the funding of terrorism and
money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each Person who opens an account. For a non-individual person such as a business entity, charity, a trust or
other legal entity, the Indenture Trustee and any Qualified Institution may ask for documentation to verify its formation and existence as a legal entity. They may also ask to see financial statements, licenses, identification and authorization
from individuals claiming authority to represent the entity or other relevant documentation.
Section 12.11 [Limitation of Rights of the Cap Counterparty. All of the rights of the Cap Counterparty
in, to and under this Indenture, any other Series [_]-[_] Series Related Documents or any Transaction Document, other than the Cap Agreement (including, but not limited to, the Cap Counterparty’s rights to receive notice of any action hereunder or
under any other Series [_]-[_] Series Related Documents or any Transaction Document and to give or withhold consent to any action hereunder or under any other Series [_]-[_] Series Related Documents or any
75
Transaction Document), shall terminate upon the termination of the Cap Agreement in accordance with the terms thereof.]
Section 12.12 Intent of the Parties; Reasonableness. The Trust and the Indenture Trustee acknowledge and
agree that the purpose of Sections 3.9 and 6.6 of this Indenture is to facilitate compliance by the Trust and the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission. Neither the Trust nor the
Administrator (acting on behalf of the Trust) shall exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the
Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act). The Indenture Trustee acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to
comply with reasonable requests made by the Trust (or the Administrator, acting on behalf of the Trust) in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB. In connection with
this transaction, the Indenture Trustee shall cooperate fully with the Trust (or the Administrator, acting on behalf of the Trust) to deliver to the Trust (or the Administrator, acting on behalf of the Trust), any and all statements, reports,
certifications, records and any other information necessary in the good faith determination of the Trust (or the Administrator, acting on behalf of the Trust) to permit the Trust to comply with the provisions of Regulation AB, together with such
disclosures relating to the Indenture Trustee reasonably believed by the Trust (or the Administrator, acting in good faith on behalf of the Trust) to be necessary in order to effect such compliance. The Trust (or the Administrator, acting on
behalf of the Trust) shall cooperate with the Indenture Trustee by providing timely notice of requests for information under these provisions and by reasonably limiting such requests to information required, in the reasonable judgment or the Trust
to comply with Regulation AB.
Section 12.13 Electronic Signatures. Each party agrees that this Indenture and any other documents to be
delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Indenture or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and
admissibility; provided that any documentation with respect to transfer of the Notes or other securities presented to the Note Registrar, Indenture Trustee or any transfer agent after the Closing Date must contain original documents with manual,
wet ink signatures to the extent required by the Note Registrar, Indenture Trustee or transfer agent. The Indenture Trustee, the Note Paying Agent and the Note Registrar shall be fully justified, indemnified and protected in relying and acting
upon any electronic signature believed by the Indenture Trustee, the Note Paying Agent or the Note Registrar, as applicable, to have been signed by the Trust, the Administrator, the Servicer or an other such Person as is required to deliver such
document, as applicable, and shall not otherwise have any duty or obligation to verify such electronic signature independently.
76
ARTICLE XIII
[THE CAP AGREEMENT]
[THE CAP AGREEMENT]
Section 13.1 [Duties With Respect to the Cap Agreement. With respect to the Cap Agreement, the Trust
will, or will cause the Administrator to:
(a) prepare for execution all documents that are the duty of the Trust to prepare or deliver pursuant to the Cap
Agreement;
(b) direct the Cap Counterparty to remit any Cap Payments into the Distribution Account no later than the second
Business Day preceding the related Payment Date;
(c) if the Cap Counterparty is required to post collateral under the Cap Agreement, coordinate with the Servicer
and the Indenture Trustee to establish a Cap Collateral Account (as set forth in the Cap Agreement and in Section 8.2(h)), and coordinate the holding of securities deposited therein and the investment of any cash deposited therein;
(d) provide to the Rating Agencies a copy of any proposed amendment or supplement to the Cap Agreement at least
five (5) days prior to the effective date of such amendment or supplement. Such proposed amendment or supplement will be effective only after the Rating Agency Condition is satisfied, unless such amendment or supplement solely clarifies any term
or provision, corrects any inconsistency, cures any ambiguity or corrects any typographical error in the Cap Agreement;
(e) obtain from the Cap Counterparty the determination of One-Month LIBOR under the Cap Agreement and the amount
of any Cap Payments payable on each Payment Date; and
(f) use reasonable efforts to enforce the rights of the Trust under the Cap Agreement.
Section 13.2 Enforcement of Cap Agreement; Replacement Cap Agreement.
(a) If at any time the Cap Agreement becomes subject to early termination due to the occurrence of any
“Termination Event” or “Event of Default” (as each such term is defined in the Cap Agreement), the Administrator or the Trust shall deliver written notice of the occurrence of such “Termination Event” or “Event of Default” (as each such term is
defined in the Cap Agreement) to the Owner Trustee, the Master Collateral Agent and the Indenture Trustee and the Trust, or the Administrator on behalf of the Trust, and, if applicable, the Indenture Trustee (at the written direction of the
Noteholders of a majority of the Note Balance of the Controlling Class) shall use reasonable efforts (following the expiration of any applicable grace period) to enforce the rights of the Trust thereunder as may be permitted by the terms of the Cap
Agreement and consistent with the terms hereof.
(b) Promptly following the early termination of the Cap Agreement due to a “Termination Event” or “Event of
Default” (as each such term is defined in the Cap Agreement) (unless the Indenture Trustee is selling or liquidating the Series [_]-[_] Collateral pursuant to this Indenture), the Trust shall, or shall cause the Administrator to, use reasonable
efforts to enter into
77
a replacement interest rate cap agreement on terms similar to those of the Cap Agreement with an Eligible Replacement Cap Counterparty.]
[Remainder of Page Left Blank]
78
as Trust
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By:
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[___], not in its individual capacity but solely as Owner Trustee of Verizon Master Trust
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By:
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Name:
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Title:
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[___],
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not in its individual capacity but solely as Indenture Trustee and as Note Paying Agent
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By:
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Name:
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Title:
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Solely with respect to Section 11.7:
CELLCO PARTNERSHIP d/b/a VERIZON WIRELESS,
as Sponsor
By:
Name:
Title:
as Sponsor
By:
Name:
Title:
Exhibit A
Form of Notes
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN ANOTHER NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND PAYMENT IS MADE TO CEDE & CO. OR TO ANOTHER ENTITY REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.
THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR VERIZON ABS II LLC, CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS, VERIZON
COMMUNICATIONS INC., THE ORIGINATORS, THE ADDITIONAL TRANSFEROR, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE MASTER COLLATERAL AGENT OR ANY OF THEIR RESPECTIVE AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE IS PAYABLE SOLELY FROM PAYMENTS ON
THE GROUP [_] RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE SERIES [_]-[_] ACCOUNTS.
EACH HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION
4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR A FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (A “SIMILAR LAW”) AND ANY FIDUCIARY ACTING ON
BEHALF OF THE HOLDER, BY ACCEPTING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), IS DEEMED TO REPRESENT THAT ITS PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) DOES NOT AND WILL NOT RESULT IN
A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM THE PROHIBITED TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY SIMILAR LAW, ITS
PURCHASE, HOLDING AND DISPOSITION DOES NOT AND WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF THE SIMILAR LAW).
THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS STATED IN THIS NOTE. ACCORDINGLY, THE OUTSTANDING NOTE BALANCE OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF
THIS NOTE.
A-1
REGISTERED $[___________]
No. R-1
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CUSIP NO. [_______]
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VERIZON MASTER TRUST, SERIES [_]-[_]
CLASS [A-1[a]][A-1b][A-2][A-3][B][C][D][E] [One-Month LIBOR1 +] [___]% ASSET BACKED NOTES
Verizon Master Trust, a statutory trust organized under the laws of the State of Delaware (the “Trust”), for value received, promises to pay to CEDE & CO.,
or registered assigns, the principal sum of [____________] DOLLARS payable as set forth in Section 8.2 of the Indenture, dated as of [___], 20[_] (the “Indenture”), between the Trust and [___], as Indenture Trustee (the “Indenture Trustee”)
on the [_] day of each month, or, if that day is not a Business Day, the next succeeding Business Day, starting in [___] 20[_] (each, a “Payment Date”) in an amount equal to the aggregate amount payable to Noteholders of Class
[A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes on that Payment Date from the amounts payable as principal on the Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes under Section 3.1 of the Indenture. However, the entire unpaid Note Balance of this Note
will be due and payable on the earlier of (a) the [______] Payment Date (the “Final Maturity Date”), or (b) the Redemption Date under Section 10.1 of the Indenture. The entire unpaid Note Balance of the Notes will be due and payable on the
date on which the Notes are declared to be, or have automatically become, immediately due and payable under Section 5.2(a) of the Indenture. Principal payments on the Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes will be made pro rata to the
Noteholders entitled to those principal payments. Capitalized terms used but not defined in this Note are defined in Article I of the Indenture, which also contains usage rules that apply to this Note, including by reference to other documents.
The Trust will pay interest on this Note at the rate per annum shown above on each Payment Date until the principal of this Note is paid or made available for payment,
on the Note Balance of this Note outstanding on the Payment Date immediately preceding such Payment Date (in each case, after giving effect to payments of principal made on the Payment Date immediately preceding such Payment Date), subject to
limitations in Section 3.1 of the Indenture[Class A-1b only:, and provided that, if the sum of One-Month LIBOR plus [__]% is less than 0.00% for any Interest Period, then the per annum rate at which interest
will accrue on this Class A-1b Note for such Interest Period will be 0.00%]. [Class A-1[a], Class X-0, Xxxxx X-0, Class B, Class C, Class D and Class E only:][Interest on this Note will accrue for each
Payment Date from and including the [_] day of the calendar month immediately preceding such Payment Date to but excluding the [_] day of the calendar month in which such Payment Date occurs (or, for the initial Payment Date, from and including the
Closing Date to but excluding [___], 20[_]). Interest will be computed on the basis of a 360-day year of twelve 30 day months.][Class A-1b only:][Interest on this Note will accrue for each Payment Date from
and including the Payment Date immediately preceding the current Payment Date to but excluding the current Payment Date (or, for the initial Payment Date, from and including the Closing Date to but excluding [___], 20[_]). Interest will be computed
on the basis of a 360-day year and the actual number of days elapsed in the related Interest Period.]
1 [ONLY FOR THE CLASS A-1B NOTES: Upon the occurrence of a Benchmark Transition Event, One-Month LIBOR will be
replaced by the appropriate Benchmark Replacement as set forth in Section 2.16 of the Indenture.
A-2
The principal of and interest, any Additional Interest Amounts and any Make-Whole Payments on this Note are payable in the coin or currency of the United States of
America that at the time of payment is legal tender for payment of public and private debts. Payments made by the Trust on this Note will be applied first to interest due and payable on this Note as stated above and then to the unpaid principal of
this Note.
This Note is one of a duly authorized issue of Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] [One-Month LIBOR +] [___%] Asset Backed Notes (the “Class
[A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes”) of the Trust. Also authorized under the Indenture are the Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes. The Indenture and indentures supplemental to the Indenture state the respective rights
and obligations of the Trust, the Indenture Trustee and the Noteholders. The Notes are subject to the Indenture.
The Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes are and will be equally and ratably secured by the collateral pledged as security therefor under the Master
Collateral Agreement and the Indenture. Interest on and principal of the Notes will be payable according to the priority of payments stated in Section 8.2 of the Indenture. [Class B only:][The Class B Notes
are subordinated in right of payment to the Class A Notes.] [Class C only:][The Class C Notes are subordinated in right of payment to the Class A Notes and the Class B Notes.] [Class
D only:][The Class D Notes are subordinated in right of payment to the Class A Notes, the Class B Notes and the Class C Notes.] [Class E only:][The Class E Notes are subordinated in right of payment to
the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes.]
Payments of interest on this Note on each Payment Date, together with each installment of principal if not in full payment of this Note, any Additional Interest
Amounts and any Make-Whole Payments will be made to the Noteholder of this Note either by wire transfer, to the account of the Noteholder at a bank or other entity having proper facilities for the wire transfer, if the Noteholder has given to the
Note Registrar proper written instructions at least five (5) Business Days before that Payment Date and the Noteholder’s Notes in the aggregate evidence a denomination of not less than $1,000, or, if not, by check mailed first class mail, postage
prepaid, to the Noteholder’s address as it appears on the Note Register on each Record Date. However, unless Definitive Notes have been issued to Note Owners, payment will be made by wire transfer to the account designated by Cede & Co., as
nominee of the Clearing Agency or a successor nominee. The payments will be made without requiring that this Note be submitted for notation of payment. Any reduction in the Note Balance of this Note effected by payments made on a Payment Date will
bind future Noteholders of this Note and of a Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this Note, whether or not noted on this Note. If money is expected to be available for payment in full
of the then remaining unpaid Note Balance of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Trust, will notify the Noteholder of this Note as of the Record Date immediately preceding such Payment Date by
notice mailed or transmitted by fax before that Payment Date, and the amount then due and payable will be payable only on presentation and surrender of this Note at the Indenture Trustee’s Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for those purposes located in [___].
A-3
The Trust will pay interest on overdue installments of interest at the Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Note Interest Rate if lawful.
The Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture.
The transfer of this Note is subject to the restrictions on transfer stated on the face of this Note and to the other limitations in the Indenture. Subject to the
satisfaction of those restrictions and limitations, the transfer of this Note may be registered on the Note Register on surrender of this Note for registration of transfer at the office or agency designated by the Trust under the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Noteholder of this Note or its attorney-in-fact, with the signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, and then one or more new Notes of the same Class in authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge
will be charged for the registration of transfer or exchange of this Note, but the transferor may be required to pay an amount to cover any tax or other governmental charge that may be imposed under any registration of transfer or exchange.
Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that no recourse may be taken, directly or
indirectly, for the obligations of the Trust, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or a certificate or other writing delivered for the Notes and the Indenture, against (i) the Indenture Trustee or the Owner
Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Trust, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual
capacity or (iv) any holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.
The obligations of the Trust under the Indenture are solely the obligations of the Trust and do not represent an obligation or interest in any assets of the Depositor
other than the Depositor Transferred Property conveyed to the Trust under the Transfer and Servicing Agreement. Each Noteholder and Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges and agrees that it
has no right, title or interest in or to any Other Assets of the Depositor. If the Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Assets or (ii) is deemed to have any interest, claim to or benefit in or
from Other Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Noteholder or Note Owner further acknowledges and agrees that any interest,
claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those
Other Assets, are entitled to be paid from, entitled to the benefits of, or secured by those Other Assets (whether or not any entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application
under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on the other obligations and liabilities. THIS PARAGRAPH IS
A-4
A SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(a) OF THE BANKRUPTCY CODE.
Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that, before the date that is two (2) years and
one (1) day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against (i) the
Depositor or (ii) the Trust, respectively, or join any other Person in starting or pursuing against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any
bankruptcy or similar law.
The Trust has entered into the Indenture, and this Note is issued with the intention that, for purposes of U.S. federal, State and local income tax, franchise tax, and
any other tax imposed on or measured in whole or in party by income, Notes will qualify as indebtedness and the Trust as a mere security device formed to hold the Group [_] Receivables and issues Notes and Certificate. Each Noteholder or Note Owner,
by its acceptance of a Note or an interest or participation in a Note, will be deemed to agree to treat the Notes as indebtedness for purposes of U.S. federal, State and local income tax, franchise tax and any other tax imposed on or measured in
whole or in part by income and the Trust as a mere security device formed to hold the Group [_] Receivables and issue Notes and Certificates.
For any date, the Trust, the Indenture Trustee and any agent of the Trust or the Indenture Trustee may treat the Person in whose name this Note is registered as of
that date as the owner of this Note for the purpose of receiving payments of principal of and any interest on the Note and for all other purposes, without regard to any notice or other information to the contrary.
The Indenture permits, with some exceptions requiring the consent of all adversely affected Noteholders under the Indenture, the amendment of the Indenture and the
modification of the rights and obligations of the Trust and the rights of the Noteholders under the Indenture by the Trust with the consent of the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.
The Indenture also permits the Indenture Trustee to amend or waive some terms and conditions in the Indenture without the consent of the Noteholders if some conditions are satisfied. In addition, the Indenture contains terms permitting the
Noteholders of Notes evidencing stated percentages of the Note Balance of the Notes or of the Controlling Class, on behalf of all Noteholders, to waive compliance by the Trust with some terms of the Indenture and some defaults under the Indenture and
their consequences. Any consent or waiver by the Noteholder of this Note will be conclusive and bind the Noteholder and all future Noteholders of this Note and of any Note issued on the registration of transfer of this Note or in exchange of this
Note or in place of this Note whether or not notation of the consent or waiver is made on this Note.
The term “Trust,” as used in this Note, includes any successor to the Trust under the Indenture.
A-5
The Trust is permitted by the Indenture, under some circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee and the Noteholders under
the Indenture.
The Notes are issuable only in registered form in denominations as stated in the Indenture, subject to some limitations in the Indenture.
THIS NOTE AND THE INDENTURE, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).
No reference in this Note to the Indenture, and no terms of this Note or of the Indenture, will alter or impair the obligation of the Trust, which is absolute and
unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency prescribed in this Note.
Except as permitted under the Series [_]-[_] Series Related Documents and the Transaction Documents, none of [___], in its individual capacity, [___], in its
individual capacity, any owner of a beneficial interest in the Trust, or their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns will be personally liable for, nor will recourse be had to any of them
for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications in the Indenture. The Noteholder of this Note, by its acceptance of this Note, agrees that,
except as permitted in the Series [_]-[_] Series Related Documents and the Transaction Documents, for an Event of Default with respect to Group [_] under the Master Collateral Agreement, the Noteholder has no claim against those Persons for any
deficiency, loss or claim from this Note. However, nothing in this Note will be taken to prevent recourse to, and enforcement against, the assets of the Trust for liabilities, obligations and undertakings in the Indenture or in this Note.
Unless the certificate of authentication on this Note has been executed by the Indenture Trustee whose name appears below by manual signature, this Note will not have
the benefit of the Indenture or be valid or obligatory for any purpose.
[Remainder of Page Left Blank]
A-6
The Trust has caused this instrument to be signed, manually or in facsimile, by its Responsible Person, as of the date below.
Date: [__________]
BY:
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[___], not in its individual capacity but solely as Owner Trustee of Verizon Master Trust
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By:
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Name:
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Title:
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CERTIFICATE OF AUTHENTICATION
This is one of the Class [A-1[a]][A-1b][A-2][A-3][B][C][D][E] Notes designated above and referred to in the Indenture.
Date: [__________]
[___],
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not in its individual capacity but
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solely as Indenture Trustee
|
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By:
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Name:
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Title:
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A-7
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of assignee:
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:
___________________________________
(name and address of assignee)
(name and address of assignee)
the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints _________________, attorney, to transfer said Note on the books kept for registration of said Note, with full
power of substitution in the premises.
Dated:
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*/
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Signature Guaranteed
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*/
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NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any
change whatever. The signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion
Program or another “signature guarantee program” selected by the Note Registrar in addition to, or in substitution for, the Securities Transfer Agents Medallion Program, all in accordance with the Exchange Act.
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A-8
Exhibit B
SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
The assessment of compliance to be delivered by the Indenture Trustee, shall address, at a minimum, the criteria specified below:
Reference
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Criteria
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Cash Collection and Administration
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1122(d)(2)(ii)
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Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.
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1122(d)(2)(iv)
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The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of
cash) as set forth in the transaction agreements.
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1122(d)(2)(v)
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Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository
institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of § 240.13k-1(b)(1) of the Securities Exchange Act of 1934, as amended.
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Investor Remittances and Reporting
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1122(d)(3)(ii)
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Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.
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1122(d)(3)(iii)
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Disbursements made to an investor are posted within two business days to the servicer’s investor records, or such other number of days specified in the transaction agreements.
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1122(d)(3)(iv)
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Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.
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B-1