1
EXHIBIT 1.1
$______________________
FLEETWOOD CREDIT 1997-A GRANTOR TRUST
____% ASSET BACKED CERTIFICATES, CLASS A
____% ASSET BACKED CERTIFICATES, CLASS B
UNDERWRITING AGREEMENT
March ___, 1997
XXXXXX BROTHERS INC.
Three World Financial Center
New York, New York 10285
Dear Sirs:
1. Introductory. Fleetwood Credit Receivables Corp., a
California corporation (the "Seller") and a wholly owned subsidiary of
Fleetwood Credit Corp., a California corporation ("Fleetwood Credit"), proposes
to sell to Xxxxxx Brothers Inc. and Salomon Brothers Inc (the "Underwriters"),
acting severally and not jointly, for whom Xxxxxx Brothers Inc. is acting as
representative (in such capacity, the "Representative"), $___________________
aggregate principal amount of ____% Asset Backed Certificates, Class A (the
"Class A Certificates") and $__________________ aggregate principal amount of
____% Asset Backed Certificates, Class B (the "Class B Certificates" and,
together with the Class A Certificates, the "Certificates") of the Fleetwood
Credit 1997-A Grantor Trust (the "Trust"). The Certificates will be issued
pursuant to a pooling and servicing agreement, dated as of March 1, 1997 (the
"Pooling and Servicing Agreement"), among the Seller, Fleetwood Credit, as
servicer (in such capacity, the "Servicer"), and The First National Bank of
Chicago, as trustee (the "Trustee"). The Class B Certificates will be
subordinated to the Class A Certificates to the limited extent described in the
Pooling and Servicing Agreement.
Each Certificate will represent a fractional undivided interest in the
Trust. The assets of the Trust will include, among other things, a pool (the
"Receivables Pool") of simple interest retail installment sale contracts (the
"Receivables") secured by the new and used recreational vehicles financed
thereby (the "Financed Vehicles") and certain monies due under the Receivables
on and after March 1, 1997 (the "Cutoff Date"), in each case as more fully
described in the Prospectus, as defined below. The Receivables will be sold by
2
Fleetwood Credit to the Seller pursuant to a receivables purchase agreement,
dated as of March 1, 1997 (the "Receivables Purchase Agreement"), between
Fleetwood Credit and the Seller, and the Seller in turn will sell the
Receivables to the Trust pursuant to the Pooling and Servicing Agreement.
This Underwriting Agreement shall hereinafter be referred to as "this
Agreement." Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed thereto in the Pooling and Servicing Agreement.
2. Representations and Warranties of the Seller and Fleetwood
Credit.
(a) The Seller represents and warrants to, and agrees with, each
Underwriter that:
(i) A registration statement on Form S-1 (No. 333-21135),
including a form of prospectus, relating to the Certificates has been
filed with the Securities and Exchange Commission (the "Commission")
and either (1) has been declared effective under the Securities Act of
1933, as amended (the "Act"), and is not proposed to be amended or (2)
is proposed to be amended by amendment or post-effective amendment.
If the Seller does not propose to amend the registration statement and
if any post-effective amendment to such registration statement has
been filed with the Commission prior to the execution and delivery of
this Agreement, the most recent post-effective amendment has been
declared effective by the Commission. For purposes of this Agreement,
"Effective Time" means (1) if the Seller has advised the Underwriters
that it does not propose to amend the registration statement, the date
and time as of which such registration statement, or the most recent
post-effective amendment thereto (if any) filed prior to the execution
and delivery of this Agreement, was declared effective by the
Commission or (2) if the Seller has advised the Underwriters that it
proposes to file an amendment or post-effective amendment to the
registration statement, the date and time as of which such
registration statement, as amended by such amendment or post-effective
amendment, as the case may be, is declared effective by the
Commission. "Effective Date" means the date of the Effective Time.
The registration statement, as amended at the Effective Time,
including all information (if any) deemed to be a part of such
registration statement as of the Effective Time pursuant to Rule
430A(b) under the Act, and including the exhibits thereto, is
hereinafter referred to as the "Registration Statement," and the form
of prospectus relating to the Certificates, as first filed with the
Commission pursuant to and in accordance with Rule 424(b) under the
Act ("Rule 424(b)"), or (if no such filing is required) as included in
the Registration Statement, is hereinafter referred to as the
"Prospectus."
(ii) If the Effective Time is prior to the execution and
delivery of this Agreement: (1) on the Effective Date, the
Registration Statement conformed, and on the date of this Agreement
the Registration Statement will conform, in all material respects with
the requirements of the Act and the rules and regulations of the
Commission promulgated under the Act (the "Rules and Regulations"),
and at such times did not include any untrue statement of a material
fact or omit to state any
2
3
material fact required to be stated therein or necessary to make the
statements therein not misleading, and (2) on the date of this
Agreement, at the time of filing of the Prospectus pursuant to Rule
424(b) and at the Closing Date, the Prospectus will conform in all
material respects to the requirements of the Act and the Rules and
Regulations, and does not include and will not include any untrue
statement of a material fact and does not omit and will not omit to
state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made,
not misleading. If the Effective Time is subsequent to the execution
and delivery of this Agreement: (1) on the Effective Date, the
Registration Statement and the Prospectus will conform in all material
respects to the requirements of the Act and the Rules and Regulations
and the Registration Statement will not include any untrue statement
of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading, (2) at the Effective Date and at the Closing Date the
Prospectus will not include any untrue statement of a material fact or
omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, and (3) the Prospectus delivered to the
Underwriters for use in connection with this offering was identical to
the electronically transmitted copy thereof filed with the Commission
pursuant to its Electronic Data Gathering, Analysis and Retrieval
system, except to the extent permitted by Regulation S-T. The two
immediately preceding sentences do not apply to statements in or
omissions from the Registration Statement or Prospectus based upon
written information furnished to the Seller by the Underwriters
specifically for use therein.
(iii) As of the Closing Date, the representations and
warranties of the Seller in the Pooling and Servicing Agreement will
be true and correct.
(b) Fleetwood Credit represents and warrants to, and agrees with,
each Underwriter that as of the Closing Date, the representations and
warranties of the Servicer in the Pooling and Servicing Agreement will be true
and correct.
3. Purchase, Sale and Delivery of Certificates. On the basis of
the representations, warranties and agreements herein contained, but subject to
the terms and conditions herein set forth, the Seller agrees to sell to the
Underwriters, and the Underwriters, acting severally and not jointly, agree to
purchase from the Seller, the respective principal amounts of Class A
Certificates and Class B Certificates set forth opposite the names of the
Underwriters in Schedule A hereto. The Certificates are to be purchased at a
purchase price equal to, in the case of (i) the Class A Certificates,
______________% of the aggregate principal amount thereof plus accrued interest
at the Class A Pass-Through Rate from (and including) the Cutoff Date to (but
excluding) the Closing Date and (ii) the Class B Certificates, _____________%
of the aggregate principal amount thereof plus accrued interest at the Class B
Pass-Through Rate from (and including) the Cutoff Date to (but excluding) the
Closing Date.
The Seller will deliver the Certificates to the Underwriters against
payment of the respective purchase price therefor in immediately available
funds to the order of the Seller at
3
4
the office of Brown & Wood LLP, 000 Xxxxxxxxxx Xxxxxx, Xxx Xxxxxxxxx,
Xxxxxxxxxx, at 10:00 A.M., New York City time, on March ___, 1997, or at such
other time not later than seven full Business Days thereafter as the
Underwriters and the Seller determine, such time being herein referred to as
the "Closing Date." Each Class of Certificates will be initially represented
by one certificate registered in the name of Cede & Co., the nominee of The
Depository Trust Company ("DTC") (the "DTC Certificates"). The interests of
beneficial owners of the DTC Certificates will be represented by book entries
on the records of DTC and participating members thereof. Definitive
certificates evidencing the Class A Certificates or the Class B Certificates
will be available only under the limited circumstances specified in the Pooling
and Servicing Agreement.
Pursuant to Rule 15c6-1(d) under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), the Trust, the Seller and the Underwriters
have agreed that the Closing Date will be not less than five business days
following the date hereof.
4. Offering by the Underwriters. It is understood that the
Underwriters propose to offer the Certificates for sale to the public as set
forth in the Prospectus and will offer and sell the Certificates only as
permitted by the applicable securities laws or regulations of any jurisdiction.
The Underwriters agree that the Underwriters will not offer or sell any of the
Certificates in any jurisdiction outside the United States, except under
circumstances that will result in compliance with the applicable laws thereof,
and that the Underwriters will take at their own expense whatever action is
required to permit the Underwriters' purchase and resale of the Certificates in
each such jurisdiction. The Underwriters understand that no action has been
taken to permit a public offering in any jurisdiction outside the United States
where action would be required for such purpose. The Underwriters agree not to
cause any advertisement of the Certificates to be published in any newspaper or
periodical or posted in any public place and not to issue any circular relating
to the Certificates, except in any such case with the Company's express consent
and then only at the Underwriters' own risk and expense.
5. Certain Agreements of the Seller and Fleetwood Credit. Each
of the Seller and Fleetwood Credit, as the case may be, covenants and agrees
with each Underwriter that:
(a) If the Effective Time is prior to the execution and
delivery of this Agreement, the Seller will file the Prospectus with
the Commission pursuant to and in accordance with subparagraph (1)
(or, if applicable and if consented to by the Underwriters,
subparagraph (4)) of Rule 424(b) not later than the earlier of (i) the
second business day following the execution and delivery of this
Agreement or (ii) the fifth business day after the Effective Date.
The Seller will advise the Underwriters promptly of any such filing
pursuant to Rule 424(b).
(b) The Seller will advise the Underwriters promptly of
any proposal to amend or supplement the registration statement as
filed or the related prospectus or the Registration Statement or the
Prospectus and will not effect any such amendment or supplement
without the consent of the Underwriters, which consent will not
unreasonably be withheld; and the Seller will also advise the
Underwriters promptly
4
5
of the effectiveness of the Registration Statement (if the Effective
Time is subsequent to the execution and delivery of this Agreement)
and of any amendment or supplement of the Registration Statement or
the Prospectus and of the institution by the Commission of any stop
order proceedings in respect of the Registration Statement and will
use its best efforts to prevent the issuance of any such stop order
and to obtain as soon as possible its lifting, if issued.
(c) If, at any time when a prospectus relating to the
Certificates is required to be delivered under the Act, any event
occurs as a result of which the Prospectus as then amended or
supplemented would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, or if it is necessary at any time to amend
or supplement the Prospectus to comply with the Act, the Seller
promptly will prepare and file, or cause to be prepared and filed,
with the Commission an amendment or supplement which will correct such
statement or omission, or an amendment or supplement which will effect
such compliance. Neither the consent of the Underwriters to, nor the
delivery by the Underwriters of, any such amendment or supplement
shall constitute a waiver of any of the conditions set forth in
Section 6 hereof.
(d) As soon as practicable, but not later than 16 months
after the effective date of the Registration Statement, the Seller
will cause the Trustee to make generally available to holders of the
Certificates an earnings statement with respect to the Trust covering
a period of at least 12 months beginning after the Effective Date
which will satisfy the provisions of Section 11(a) of the Act
(including, at the option of the Seller, Rule 158 promulgated
thereunder).
(e) The Seller will furnish to the Underwriters copies of
the Registration Statement (at least two of which will be signed and
will include all exhibits), each related preliminary prospectus, the
Prospectus and all amendments and supplements to such documents, in
each case as soon as available and in such quantities as the
Underwriters may reasonably request.
(f) The Seller will arrange for the qualification of the
Certificates for sale under the laws of such jurisdictions in the
United States as the Underwriters may reasonably designate and will
continue such qualifications in effect so long as required for the
distribution of the Certificates, provided that the Seller shall not
be obligated to qualify to do business nor become subject to service
of process generally, but only to the extent required for such
qualification, in any jurisdiction in which it is not currently so
qualified.
(g) For a period from the date of this Agreement until
the retirement of all of the Certificates, or until such time as the
Underwriters shall cease to maintain a secondary market in either
Class of Certificates, whichever occurs first, the Seller will deliver
to the Underwriters the annual statements of compliance and the annual
independent certified public accountants' reports furnished to the
Trustee pursuant to
5
6
Article Thirteen of the Pooling and Servicing Agreement, as soon as
such statements and reports are furnished to the Trustee.
(h) So long as any of the Certificates are outstanding,
the Seller or Fleetwood Credit, as the case may be, shall furnish to
the Underwriters, as soon as practicable, (i) all documents required
to be distributed to holders of either Class of Certificates (or
available at such holders' request) or filed with the Commission
pursuant to the Exchange Act, or any order of the Commission
thereunder and (ii) from time to time, any other information
concerning the Seller or Fleetwood Credit filed with any government or
regulatory authority which is otherwise publicly available, as the
Underwriters may reasonably request.
(i) Whether or not the transactions contemplated by this
Agreement are consummated, the Seller and Fleetwood Credit will,
subject to the provisions of Section 8 hereof, pay all expenses
incident to the performance of their respective obligations under this
Agreement, including without limitation, expenses incident to the
printing, reproduction and distribution of the registration statement
as originally filed with the Commission and all amendments thereto,
any fees charged by Xxxxx'x Investors Service, Inc. ("Moody's") and
Standard & Poor's Ratings Services ("Standard & Poor's" and, together
with Moody's, the "Rating Agencies") for the rating of the Class A
Certificates and the Class B Certificates, the fees of DTC in
connection with the book-entry registration of the Class A
Certificates and the Class B Certificates and reasonable expenses
incurred in distributing preliminary prospectuses and the Prospectus
(including any amendments and supplements thereto) and will reimburse
the Underwriters for all reasonable expenses, including fees of
counsel and disbursements incurred by such counsel, incurred in
connection with the initial qualification of the Certificates for sale
under the laws of such jurisdictions in the United States as the
Underwriters may designate.
(j) On or before the Closing Date, the Seller and
Fleetwood Credit shall cause their respective computer records to be
marked relating to the Receivables to show the Trust's absolute
ownership of the Receivables, and from and after the Closing Date,
Fleetwood Credit Receivables Corp., as Seller, and Fleetwood Credit,
as Servicer, shall not take any action inconsistent with the Trust's
ownership of the Receivables, other than as permitted by the Pooling
and Servicing Agreement.
(k) To the extent, if any, that the rating provided with
respect to the Class A Certificates or the Class B Certificates by
either Rating Agency is conditional upon the furnishing of documents
or the taking of any other actions by the Seller or Fleetwood Credit,
the Seller or Fleetwood Credit, as the case may be, shall furnish such
documents and take any such other actions.
(l) In the event the Servicer obtains a Servicer Letter
of Credit pursuant to the Pooling and Servicing Agreement, the Seller
and the Servicer shall cause the Underwriters to receive:
6
7
(i) A copy of the Servicer Letter of Credit.
(ii) An original of the servicer letter of credit
reimbursement agreement (the "Reimbursement Agreement")
between the Servicer and the letter of credit bank named
therein (the "Letter of Credit Bank") pursuant to which the
Servicer Letter of Credit was issued.
(iii) An original of any amendment to the Pooling
and Servicing Agreement relating to the obtaining of the
Servicer Letter of Credit.
(iv) An opinion of Xxxxxxx X. Xxxxx, Esq., Senior
Vice President and Assistant General Counsel to Fleetwood
Credit, dated the date of issuance of the Servicer Letter of
Credit (the "Issuance Date") and satisfactory in form and
substance to the Underwriters and counsel for the
Underwriters, and substantially to the effect of clauses (i),
(v), (viii), (ix) and (x) of Section 6(e) hereof,
appropriately modified to relate to the Reimbursement
Agreement.
(v) An opinion of counsel to the Letter of Credit
Bank, satisfactory in form and substance to the Underwriters
and counsel for the Underwriters, dated the Issuance Date and
substantially to the effect that:
(A) The Letter of Credit Bank is duly
organized as a corporation and is validly existing
under the laws of the country of its organization,
and has the full power and authority (corporate and
other) to issue, and to take all action required of
it under, the Servicer Letter of Credit.
(B) The execution, delivery and
performance by the Letter of Credit Bank of the
Servicer Letter of Credit and the Reimbursement
Agreement have been duly authorized by all necessary
corporate action on the part of the Letter of Credit
Bank.
(C) The execution, delivery and
performance by the Letter of Credit Bank of the
Servicer Letter of Credit and the Reimbursement
Agreement do not require the consent or approval of,
the giving of notice to, the registration with, or
the taking of any other action in respect of any
state or other governmental agency or authority which
has not previously been effected.
(D) The Servicer Letter of Credit and
the Reimbursement Agreement have been duly
authorized, executed and delivered by the Letter of
Credit Bank and constitute legal, valid and binding
obligations of the Letter of Credit Bank, enforceable
against the Letter of Credit Bank in accordance with
their respective terms (subject, as to enforcement,
to bankruptcy, reorganization, insolvency, moratorium
7
8
and other laws affecting creditors' rights generally
and to general equity principles).
(E) The Servicer Letter of Credit is not
required to be registered under the Act in connection
with the offer and sale of the Certificates in the
manner contemplated by the Prospectus.
In rendering such opinion, such counsel may rely as to all
matters of the law of the country of organization of the
Letter of Credit Bank upon counsel satisfactory to the
Underwriters and counsel for the Underwriters.
(vi) A certificate, dated the Issuance Date, of
the President or any Vice President of the Letter of Credit
Bank to the effect that, among other things, since the date of
this Agreement, there has been no material adverse change in
the condition, financial or otherwise, or in the earnings,
business affairs or business prospects, of the Letter of
Credit Bank.
(vii) A letter from each Rating Agency, to the
extent required by the Pooling and Servicing Agreement, to the
effect that the obtaining of the Servicer Letter of Credit, in
and of itself, would not cause its rating of either Class of
Certificates to be reduced, withdrawn or modified.
6. Conditions of the Obligations of the Underwriters. The
obligation of the Underwriters to purchase and pay for the Certificates will be
subject to the accuracy of the respective representations and warranties on the
part of the Seller and Fleetwood Credit herein, to the accuracy of the
statements of the respective officers of the Seller and Xxxxxxxxx Credit made
pursuant to the provisions hereof, to the performance by the Seller and
Xxxxxxxxx Credit of their respective obligations hereunder and to the following
additional conditions precedent:
(a) The Underwriters and the Seller shall have received
from Xxxxxxx & Xxxxxxx L.L.P., independent public accountants
("Coopers & Xxxxxxx") (i) on the date of this Agreement, a letter,
dated as of such date, substantially in the form of the draft to which
the Underwriters have previously agreed, and (ii) on the Closing Date,
a letter, dated as of the Closing Date, updating the letter referred
to in clause (i) above, which letters shall in each case be in form
and substance satisfactory to the Underwriters and counsel for the
Underwriters.
(b) If the Effective Time is not prior to the execution
and delivery of this Agreement, the Effective Time shall have occurred
not later than 10:00 P.M., New York City time, on the date of this
Agreement or such later date as shall have been consented to by the
Underwriters. If the Effective Time is prior to the execution and
delivery of this Agreement, the Prospectus shall have been filed with
the Commission in accordance with the Rules and Regulations and
Section 5(a) hereof. Prior to the Closing Date, no stop order
suspending the effectiveness of the Registration Statement shall have
been issued and no proceedings for that purpose shall have been
instituted
8
9
or, to the knowledge of the Seller or the Underwriters, shall be
contemplated by the Commission.
(c) The Underwriters shall have received an officer's
certificate dated the Closing Date by the President, any Vice
President, the Treasurer or the Secretary of (i) the Seller
representing and warranting to the Underwriters that, as of the
Closing Date, the representations and warranties of the Seller in the
Pooling and Servicing Agreement are true and correct and (ii)
Fleetwood Credit representing and warranting that, as of the Closing
Date, the representations and warranties of Fleetwood Credit in the
Pooling and Servicing Agreement are true and correct.
(d) The Underwriters shall have received an opinion of
Xxxxxxx X. Xxxxx, Esq., Senior Vice President and Assistant General
Counsel to the Seller, addressed to the Underwriters, dated the
Closing Date and satisfactory in form and substance to the
Underwriters and counsel for the Underwriters, substantially to the
effect that:
(i) The Seller has been duly incorporated and is
validly existing as a corporation in good standing under the
laws of the State of California with full power and authority
(corporate and other), and has obtained all necessary licenses
and approvals, to own its properties and conduct its business
as presently conducted by it, and to enter into and perform
its obligations under the Pooling and Servicing Agreement and
the Receivables Purchase Agreement (collectively, the "Basic
Documents"), this Agreement and the Certificates, and had at
all relevant times, and now has, the power, authority and
legal right to acquire, own and sell the Receivables.
(ii) The Seller has obtained all necessary
licenses and approvals to conduct its business as presently
conducted in California and does not currently conduct
business in any other state in which a Receivable was
originated and does not need any licenses or approvals from
any of such other states for purposes of the transactions
contemplated by the Basic Documents and this Agreement.
(iii) This Agreement has been duly authorized,
executed and delivered by the Seller and constitutes the
legal, valid and binding agreement of the Seller, enforceable
in accordance with its terms, except that (A) the
enforceability hereof may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors' rights, (B)
the remedies of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses
and to the discretion of the court before which any proceeding
therefor may be brought and (C) rights to indemnity and
contribution hereunder may be limited by federal or state
securities laws or the public policies underlying such laws.
(iv) Each Basic Document has been duly authorized,
executed and delivered by the Seller and constitutes the
legal, valid and binding obligation
9
10
of the Seller, enforceable in accordance with its terms,
except that (A) the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors'
rights and (B) the remedies of specific performance and
injunctive and other forms of equitable relief may be subject
to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.
(v) At the time of execution and delivery of the
Pooling and Servicing Agreement, the Seller had the power and
authority to transfer the Receivables and such other property
being transferred to the Trustee pursuant to the Pooling and
Servicing Agreement and to cause the Certificates to be sold
and transferred to the Underwriters.
(vi) The Registration Statement has become
effective under the Act, and, to the best knowledge of such
counsel, no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for
that purpose have been instituted or are pending or
contemplated under the Act, and the Registration Statement and
the Prospectus, and each amendment or supplement thereto, as
of their respective effective or issue dates, complied as to
form in all material respects with the requirements of the Act
and the Rules and Regulations; such counsel has no reason to
believe that either the Registration Statement, at the
Effective Time, or any such amendment or supplement, as of its
effective date, contained any untrue statement of a material
fact or omitted to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading, or that the Prospectus, at the date of this
Agreement, or any such amendment or supplement, as of its
respective date, or at the Closing Date, included or includes
an untrue statement of a material fact or omitted or omits to
state a material fact necessary in order to make the
statements therein, in the light of the circumstances under
which they were made, not misleading; it being understood that
such counsel need express no opinion as to the financial
statements or other financial or statistical data contained in
the Registration Statement or the Prospectus.
(vii) Neither the transfer of the Receivables to
the Trustee acting on behalf of the Trust, nor the assignment
of the security interest of the Seller in the Financed
Vehicles, nor the issuance and delivery of the Certificates,
nor the sale of the Certificates, nor the execution and
delivery of the Basic Documents or this Agreement, nor the
consummation of any other of the transactions contemplated
herein or in the Basic Documents nor the fulfillment of the
terms of the Certificates, the Basic Documents or this
Agreement by the Seller will conflict with, or result in a
breach, violation or acceleration of, or constitute a default
under, any term or provision of the articles of incorporation
or bylaws of the Seller or, to the best knowledge of such
counsel, of any indenture or other agreement or instrument to
which the Seller
10
11
is a party or by which it is bound or any of its properties
may be subject, or result in a violation of or contravene the
terms of any statute, order or regulation applicable to the
Seller of any court, regulatory body, administrative agency or
governmental body having jurisdiction over the Seller or its
properties.
(viii) The Certificates have been duly and validly
authorized and, when executed, authenticated and delivered to
the Underwriters as specified in the Pooling and Servicing
Agreement against payment of the consideration therefor
determined in accordance with this Agreement, will be duly and
validly issued and outstanding and will be entitled to the
benefits of the Pooling and Servicing Agreement.
(ix) The Seller has, and pursuant to the Pooling
and Servicing Agreement is transferring to the Trustee acting
on behalf of the Trust, ownership of the Receivables, in each
case free and clear of any and all other assignments,
encumbrances, options, rights, claims, liens or security
interests that may affect the rights of the Seller or the
Trustee in and to such Receivables; provided, however, that
(A) such counsel need express no opinion with respect to the
enforceability of any individual Receivable or the existence
of any claims, rights or other matters that are not of record
in favor of the related Obligor or the owner of the related
Financed Vehicle, (B) such opinion may be limited to the
extent that any one or more of the Receivables could be
subject to claims of creditors of the dealers that may have
originated certain of the Receivables to the extent such
creditors can claim the benefits of a security interest in
such Receivables either by reason of the filing of a financing
statement with respect to chattel paper of such dealer or as
proceeds from the sale of inventory in which such creditor had
a security interest, (C) such opinion may be further limited
to the extent that any such transfer may be subject to the
rights of other persons who take, or have taken, possession of
any of the Receivables without knowledge of the transfer to
the Trustee and (D) such counsel need express no opinion as to
the existence of tax liens, mechanics' liens or other security
interests and liens that are not of record.
(x) The Certificates, each Basic Document and
this Agreement each conform in all material respects with the
description thereof contained in the Registration Statement
and the Prospectus.
(xi) The statements in the Registration Statement
and Prospectus under the heading "Certain Legal Aspects of the
Receivables," to the extent that they constitute matters of
law or legal conclusions with respect thereto, have been
prepared or reviewed by such counsel and are correct in all
material respects.
(xii) The Pooling and Servicing Agreement is not
required to be qualified under the Trust Indenture Act of
1939, as amended, and the Trust
11
12
created by the Pooling and Servicing Agreement is not required
to be registered under the Investment Company Act of 1940, as
amended.
(xiii) No consent, approval, authorization or order
of any court or governmental agency or body is required for
the consummation by the Seller of the transactions
contemplated in this Agreement or the Basic Documents except
such as may be required under federal or state securities laws
in connection with the purchase by the Underwriters of the
Certificates, filings with respect to the transfer of the
Receivables to Fleetwood Credit, filings with respect to the
transfer of the Receivables by Fleetwood Credit to the Seller
pursuant to the Receivables Purchase Agreement and by the
Seller to the Trustee pursuant to the Pooling and Servicing
Agreement and such other approvals as have been obtained.
(xiv) There are no actions, proceedings or
investigations pending or, to the best knowledge of such
counsel after due inquiry, threatened before any court,
administrative agency or other tribunal (A) asserting the
invalidity of this Agreement, any Basic Document or the
Certificates, (B) seeking to prevent the issuance of the
Certificates or the consummation of any of the transactions
contemplated by this Agreement or the Basic Documents, (C)
that might materially and adversely affect the performance by
the Seller of its obligations under, or the validity or
enforceability of, this Agreement, any Basic Document or the
Certificates or (D) seeking to adversely affect the federal
income tax attributes of the Certificates as described in the
Prospectus under the heading "Certain Federal Income Tax
Consequences."
(e) The Underwriters and the Trustee shall have received
the opinion of Xxxxxxx X. Xxxxx, Esq., Senior Vice President and
Assistant General Counsel to Fleetwood Credit Corp., addressed to the
Underwriters and the Trustee, dated the Closing Date and satisfactory
in form and substance to the Underwriters and counsel for the
Underwriters to the effect that:
(i) As to each security interest in a Financed
Vehicle created by a Receivable, notwithstanding that each
such Receivable may not be stamped to reflect its transfer to
the Trustee, nor will the certificate of ownership be so
stamped or re-registered to reflect the transfer of the
Receivable to the Trustee, the Trustee will have a perfected
security interest in each such Financed Vehicle which will be
prior in right to any other security interest in a Financed
Vehicle that is or would be perfected solely by notation of
such security interest on the certificate of ownership for the
Financed Vehicle, and no filing or other action is necessary
to perfect or continue the priority status of such security
interest as against creditors of or transferees from the
Obligor under such Receivable or the Trustee, so long as such
Financed Vehicle is not removed from the State of Texas for a
period longer than four months or before the end of such
four-month period, such security interest is duly perfected
under applicable law.
12
13
(ii) The Receivables constitute "chattel paper" as
such term is defined in the Texas Uniform Commercial Code.
(iii) The Receivables, assuming each is full and
correctly completed as required by applicable law, constitutes
the valid, legal and binding obligation of the Obligor as to
each such Receivable enforceable against each such Obligor in
accordance with its term, to the extent the enforcement of
remedies is reasonably necessary to protect the interests of
the parties.
(iv) Assuming the validity, binding effect and
enforceability in all other respects, the preprinted parts of
the Receivables are in sufficient compliance with federal and
Texas consumer protection laws so as not to be rendered void
or voidable at the election of the related Obligor.
(f) The Underwriters shall have received an opinion of
Xxxxxxx X. Xxxxx, Esq., Senior Vice President and Assistant General
Counsel to Fleetwood Credit, addressed to the Underwriters, dated the
Closing Date and satisfactory in form and substance to the
Underwriters and counsel for the Underwriters, and substantially to
the effect that:
(i) Fleetwood Credit has been duly incorporated
and is validly existing as a corporation in good standing
under the laws of the State of California with full power and
authority (corporate and other), and has obtained all
necessary licenses and approvals, to own its properties and
conduct its business as presently conducted by it, and to
enter into and perform its obligations under the Basic
Documents, this Agreement and the Certificates and had at all
relevant times, and now has, the power, authority and legal
right to acquire, own, sell and service the Receivables.
(ii) Fleetwood Credit is duly qualified to do
business and in good standing, and has obtained all necessary
licenses and approvals to conduct its business as presently
conducted in California and each other state in which a
Receivable was originated.
(iii) Such counsel is familiar with the standard
operating procedures of Fleetwood Credit relating to the
acquisition by Fleetwood Credit of a first perfected security
interest in the recreational vehicles financed by the retail
installment sale contracts purchased by Fleetwood Credit in
the ordinary course of its business and relating to the sale
to Fleetwood Credit of such contracts and such security
interests in the recreational vehicles financed thereby in the
ordinary course of its business. Assuming that such standard
procedures have been and are followed with respect to the
perfection of security interests in the Financed Vehicles (and
such counsel has no reason to believe that Fleetwood Credit
has not or will not continue to follow its standard procedures
in connection with the perfection of first perfected security
interests in the Financed Vehicles), Fleetwood Credit has
acquired a first
13
14
perfected security interest in the Financed Vehicles. With
respect to Financed Vehicles in the State of California, no
filing or other action other than the filing of a UCC
financing statement naming Fleetwood Credit as transferor and
the Trustee as transferee, which filing has been completed, is
necessary to perfect the transfer and assignment of Fleetwood
Credit's security interest in such Financed Vehicles to the
Trustee, and as a result of such transfer and assignment and
filing of such financing statement, the Trustee has a first
perfected security interest in such Financed Vehicles, except
that so long as Fleetwood Credit is named as the legal owner
and lien holder on a certificate of title, Fleetwood Credit
has the ability to release the security interest in the
related Financed Vehicle or to assign it to another party.
(iv) At the time of the execution and delivery of
the Receivables Purchase Agreement, Fleetwood Credit had the
power and authority to transfer to the Seller the Receivables
and other property of the Trust being transferred to the
Seller.
(v) Neither the transfer of the Receivables to
the Seller, nor the assignment of the security interest of
Fleetwood Credit in the Financed Vehicles, nor the issuance
and delivery of the Certificates, nor the sale of the
Certificates to the Underwriters, nor the execution and
delivery of the Basic Documents or this Agreement, nor the
consummation of any other of the transactions contemplated
herein or in the Basic Documents, nor the fulfillment of the
terms of the Certificates, the Basic Documents or this
Agreement by Fleetwood Credit will conflict with, or result in
a breach, violation or acceleration of, or constitute a
default under, any term or provision of the articles of
incorporation or bylaws of Fleetwood Credit or, to the best
knowledge of such counsel, of any indenture or other agreement
or instrument to which Fleetwood Credit is a party or by which
it is bound or any of its properties may be subject, or result
in a violation of, or contravene the terms of any statute,
order or regulation, applicable to Fleetwood Credit of any
court, regulatory body, administrative agency or governmental
body having jurisdiction over it or its properties.
(vi) Fleetwood Credit has, and is transferring to
the Seller, ownership of the Receivables free and clear of any
and all other assignments, encumbrances, options, rights,
claims, liens or security interests that may affect the rights
of Fleetwood Credit or the Seller in and to such Receivables;
provided, however, that (A) such counsel need express no
opinion with respect to the enforceability of any individual
Receivable or the existence of any claims, rights or other
matters that are not of record in favor of the related Obligor
or the owner of the related Financed Vehicle, (B) such opinion
may be limited to the extent that any one or more of the
Receivables could be subject to claims of creditors of the
dealers that may have originated certain of the Receivables to
the extent such creditors can claim the benefits of a security
interest in such Receivables either by reason of the filing of
a financing
14
15
statement with respect to chattel paper of such dealer or as
proceeds from the sale of inventory in which such creditor had
a security interest, (C) such opinion may be further limited
to the extent that any such transfer may be subject to the
rights of other persons who take, or have taken, possession of
any of the Receivables without knowledge of the transfer to
the Seller and (D) such counsel need express no opinion as to
the existence of tax liens, mechanics' liens or other security
interests and liens that are not of record.
(vii) This Agreement has been duly authorized,
executed and delivered by Fleetwood Credit and constitutes the
legal, valid and binding agreement of Fleetwood Credit,
enforceable in accordance with its terms, except that (A) the
enforceability thereof may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors' rights, (B)
the remedies of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses
and to the discretion of the court before which any proceeding
therefor may be brought and (C) rights to indemnity and
contribution thereunder may be limited by federal or state
securities laws or the public policies underlying such laws.
(viii) Each Basic Document has been duly authorized,
executed and delivered by Fleetwood Credit and constitutes the
legal, valid and binding obligation of Fleetwood Credit,
enforceable in accordance with its terms, except that (A) the
enforceability thereof may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors' rights and
(B) the remedies of specific performance and injunctive and
other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any
proceeding therefor may be brought.
(ix) No consent, approval, authorization or order
of any court or governmental agency or body is required for
the consummation by Fleetwood Credit of the transactions
contemplated in this Agreement or the Basic Documents except
filings with respect to the transfer of the Receivables by
Fleetwood Credit to the Seller pursuant to the Receivables
Purchase Agreement, and such other approvals as have been
obtained.
(x) There are no actions, proceedings or
investigations pending or, to the best of such counsel's
knowledge after due inquiry, threatened before any court,
administrative agency or other tribunal (A) asserting the
invalidity of this Agreement, any Basic Document or the
Certificates, (B) seeking to prevent the issuance of the
Certificates or the consummation of any of the transactions
contemplated by this Agreement or the Basic Documents, (C)
that might materially and adversely affect the performance by
Fleetwood Credit of its obligations under, or the validity or
enforceability of, this Agreement, any Basic Document or the
Certificates or (D) seeking to affect adversely the
15
16
federal income tax attributes of the Certificates as described
in the Prospectus under the heading "Certain Federal Income
Tax Consequences."
(xi) Assuming the due authorization, execution and
delivery thereof by the parties thereto, each of the
Receivables in the form attached to such opinion constitutes
the valid, binding and enforceable agreement of the parties
thereto; such Receivables comply as to content and form with
all applicable state and federal laws, including without
limitation, consumer protection laws.
(g) The Underwriters shall have received an opinion of
Xxxx, Gotshal & Xxxxxx LLP, special tax counsel to the Seller, dated
the Closing Date and satisfactory in form and substance to the
Underwriters, to the effect that the statements in the Registration
Statement and Prospectus under the headings "Certain Federal Income
Tax Considerations" and "ERISA Considerations," to the extent that
they constitute matters of law or legal conclusions with respect
thereto, have been prepared or reviewed by such counsel and are
correct in all material respects.
(h) Xxxx, Gotshal & Xxxxxx LLP, special counsel to the
Seller, shall also deliver to the Underwriters (i) an opinion with
respect to the characterization of the transfer of the Receivables as
a sale and an opinion that such transfer is not a fraudulent
conveyance in substantially the forms previously discussed with the
Underwriters and in any event satisfactory in form and in substance to
the Underwriters, (ii) reliance letters relating to each opinion
rendered to each Rating Agency in connection with the rating of the
Class A Certificates and the Class B Certificates and (iii) an opinion
to the effect that the Trust will not be classified as an association
taxable as a corporation for federal or California income tax purposes
and, instead, under subpart E, part I of subchapter J of the Internal
Revenue Code of 1986, as amended, the Trust will be treated as a
grantor trust.
(i) The Underwriters shall have received an opinion of
Xxxxx & Wood LLP, addressed to the Underwriters and dated the Closing
Date, with respect to the validity of the Certificates and such other
related matters as the Underwriters shall request, and the Seller and
Fleetwood Credit shall have furnished or caused to be furnished to
such counsel such documents as they may reasonably request for the
purpose of enabling them to pass upon such matters.
(j) The Underwriters, the Seller and Fleetwood Credit
shall have received an opinion, addressed to the Underwriters, the
Seller and Fleetwood Credit, of counsel to the Trustee, dated the
Closing Date and satisfactory in form and substance to the
Underwriters and counsel for the Underwriters to the effect that:
(i) The Trustee has been duly incorporated and is
validly existing as a national banking association in good
standing under the laws of the United States with full power
and authority (corporate and other) to own its properties and
conduct its business, as presently conducted by it, and to
enter into and perform its obligations under the Pooling and
Servicing Agreement.
16
17
(ii) The Pooling and Servicing Agreement has been
duly authorized, executed and delivered by the Trustee, and
constitutes a legal, valid and binding obligation of the
Trustee, enforceable in accordance with its terms, except that
(A) the enforceability thereof may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors' rights and
(B) the remedy of specific performance and injunctive and
other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any
proceeding therefor may be brought.
(iii) The Certificates have been duly executed,
authenticated and delivered by the Trustee.
(iv) Neither the execution or delivery by the
Trustee of the Pooling and Servicing Agreement, nor the
consummation of any of the transactions by the Trustee
contemplated thereby, require the consent or approval of, the
giving of notice to, the registration with or the taking of
any other action with respect to, any governmental authority
or agency under any existing federal or state law governing
the banking or trust powers of the Trustee.
(k) The Underwriters and the Trustee shall have received
the opinion of Xxxxxxxx, Xxxxxxxxxx & Xxxxx LLP, special counsel to
the Seller and Fleetwood Credit, addressed to the Underwriters and the
Trustee, dated the Closing Date and satisfactory in form and substance
to the Underwriters and counsel for the Underwriters to the effect
that:
(i) As to each security interest in a Financed
Vehicle created by a Receivable, notwithstanding that each
such Receivable may not be stamped to reflect its transfer to
the Trustee, nor will the certificate of ownership be so
stamped or re-registered to reflect the transfer of the
Receivable to the Trustee, the Trustee will have a perfected
security interest in each such Financed Vehicle which will be
prior in right to any other security interest in a Financed
Vehicle that is or would be perfected solely by notation of
such security interest on the certificate of ownership for the
Financed Vehicle, and no filing or other action is necessary
to perfect or continue the priority status of such security
interest as against creditors of or transferees from the
Obligor under such Receivable or the Trustee, so long as such
Financed Vehicle is not removed from the State of California
for a period longer than four months or before the end of such
four-month period, such security interest is duly perfected
under applicable law.
(ii) The Receivables constitute "chattel paper" as
such term is defined in the California Uniform Commercial
Code.
(iii) The Receivables, assuming each is full and
correctly completed as required by applicable law, constitutes
the valid, legal and binding
17
18
obligation of the Obligor as to each such Receivable
enforceable against each such Obligor in accordance with its
term, to the extent the enforcement of remedies is reasonably
necessary to protect the interests of the parties.
(iv) Assuming the validity, binding effect and
enforceability in all other respects, the preprinted parts of
the Receivables are in sufficient compliance with federal and
California consumer protection laws so as not to be rendered
void or voidable at the election of the related Obligor.
(l) The Underwriters shall have received a certificate
dated the Closing Date of the President, any Vice President, the
Treasurer or the Secretary of (i) the Seller, in which such officer
shall state that, to the best of his knowledge after reasonable
investigation, the representations and warranties of the Seller in
this Agreement are true and correct, the Seller has complied with all
agreements and satisfied all conditions on its part to be performed or
satisfied hereunder at or prior to the Closing Date and that no stop
order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose have been instituted
or are contemplated by the Commission, and (ii) Fleetwood Credit, in
which such officer shall state that, to the best of his knowledge
after reasonable investigation, the representations and warranties of
Fleetwood Credit in this Agreement are true and correct and that
Fleetwood Credit has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied hereunder.
(m) The Class A Certificates shall be rated "Aaa" by
Xxxxx'x and "AAA" by Standard & Poor's.
(n) The Class B Certificates shall be rated "A3" by
Xxxxx'x and "A+" by Standard & Poor's.
The Seller will provide or cause to be provided to the Underwriters
such conformed copies of such opinions, certificates, letters and documents as
the Underwriters may reasonably request.
7. Indemnification and Contribution.
(a) The Seller and Fleetwood Credit will, jointly and severally,
indemnify and hold harmless each Underwriter and each person, if any, who
controls each Underwriter within the meaning of Section 15 of the 1933 Act as
follows:
(i) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred (A) arising out of any untrue
statement or alleged untrue statement of a material fact contained in
the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading or
(B) arising out of any untrue statement or alleged untrue statement of
a material fact contained in the
18
19
Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to
make the statements therein, in light of the circumstances under which
they were made, not misleading, unless such untrue statement or
omission or alleged untrue statement or omission was made in reliance
upon and in conformity with written information furnished to the
Seller or Fleetwood Credit by the Representative expressly for use in
the Registration Statement (or any amendment thereto) or the
Prospectus (or any amendment or supplement thereto);
(ii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or investigation or proceeding
by any governmental agency or body, commenced or threatened, or of any
claim whatsoever based upon any such untrue statement or omission, if
such settlement is effected with the written consent of the Seller and
Fleetwood Credit; and
(iii) against any and all expense whatsoever (including the
fees and disbursements of counsel chosen by the Representative,
reasonably incurred in investigating, preparing or defending against
any litigation, or investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based
upon any such untrue statement or omission, to the extent that any
such expense is not paid under (i) or (ii) above).
This indemnity agreement will be in addition to any liability which
the Seller or Fleetwood Credit may otherwise have. Insofar as this indemnity
may permit indemnification for liabilities under the 1933 Act of any person who
is a partner of the Underwriter entitled to indemnity hereby or who controls
the Underwriter within the meaning of Section 15 of the 1933 Act and who, at
the date of this Agreement, is a director, officer or controlling person of the
Seller or Fleetwood Credit, such indemnity agreement is subject to the
undertaking of the Seller and Fleetwood Credit in the Registration Statement.
(b) The Underwriters agree to indemnify and hold harmless the Seller
and Fleetwood Credit, each of their respective directors, each of their
respective officers who signed the Registration Statement, and each person, if
any, who controls the Seller or Fleetwood Credit within the meaning of Section
15 of the 1933 Act as follows:
(i) against any and all loss, liability, claim, damage and
expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto) or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in
conformity with written information furnished to the Seller or
Fleetwood Credit by the Representative expressly for use in the
Registration Statement (or any amendment thereto) or the Prospectus
(or any amendment or supplement thereto); and
19
20
This indemnity agreement will be in addition to any liability which
the Underwriters may otherwise have.
(c) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in this section is
for any reason held to be unenforceable by the indemnified parties although
applicable in accordance with its terms, the Seller and Fleetwood Credit on the
one hand, and the Underwriters, on the other, shall contribute to the aggregate
losses, liabilities, claims, damages and expenses of the nature contemplated by
said indemnity agreement incurred by the Seller and Fleetwood Credit and the
Underwriters in such proportions that the Underwriters are responsible for that
portion represented by the percentage that the underwriting discount or
discounts on the cover of the Prospectus bears to the initial public offering
price or prices as set forth thereon and the Seller and Fleetwood Credit shall
be responsible for the balance; provided, however, that no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation and, provided further, no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price of the Certificates purchased by such Underwriter pursuant to this
Agreement exceeds the amount of any damages which the Underwriter has otherwise
paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. For purposes of this Section, each
person, if any, who controls an Underwriter within the meaning of Section 15 of
the 1933 Act shall have the same rights to contribution as such Underwriter and
each director of the Seller and Fleetwood Credit, each officer of the Seller
and Fleetwood Credit who signed the Registration Statement, and each person, if
any, who controls the Seller or Fleetwood Credit within the meaning of Section
15 of the 1933 Act shall have the same rights to contribution as the Seller and
Fleetwood Credit.
8. Survival of Certain Representations and Obligations. The
respective indemnities, agreements, representations, warranties and other
statements of the Seller and Fleetwood Credit or their respective officers and
of the Underwriters set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation or statement as to
the results thereof, made by or on behalf of any Underwriter, the Seller,
Fleetwood Credit or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment
for the Certificates. If for any reason the purchase of the Certificates by
the Underwriters is not consummated, the Seller and Fleetwood Credit shall
remain responsible for the expenses to be paid or reimbursed by the Seller and
Fleetwood Credit pursuant to Section 5(i) hereof and the respective obligations
of the Seller, Fleetwood Credit and the Underwriters pursuant to Section 7
hereof shall remain in effect. The indemnification and contribution agreements
contained in Section 7 hereof shall survive the termination and cancellation of
this Agreement. If for any reason (other than solely by reason of the
termination of this Agreement because of a failure to satisfy the conditions
set forth in items (iii), (iv) or (v) of Section 9 hereof), the purchase of the
Certificates by the Underwriters is not consummated, the Seller and Fleetwood
Credit will reimburse the Underwriters for all out-of-pocket expenses
(including fees and disbursements of counsel) reasonably incurred by them in
connection with the offering of the Certificates.
20
21
9. Termination of Agreement. The Underwriters may terminate
this Agreement, by notice to the Seller and Fleetwood Credit, at any time prior
to or at the Closing Date (i) if there has been, since the date of this
Agreement or since the respective dates as of which information is given in the
Registration Statement, any material adverse change in the condition, financial
or otherwise, or in the earnings, business affairs or business prospects of the
Seller or Fleetwood Credit, whether or not arising in the ordinary course of
business; (ii) if there has occurred any downgrading in the rating of the debt
securities of the Seller or Fleetwood Credit by any "nationally recognized
statistical rating organization" (as such term is defined for purposes of Rule
436(g) under the Act), or any public announcement that any such organization
has under surveillance or review its rating of any debt securities of the
Seller or Fleetwood Credit (other than an announcement with positive
implications of a possible upgrading, and no implication of a possible
downgrading, of such rating); (iii) if there has occurred any material adverse
change in the financial markets in the United States or any outbreak of
hostilities or other calamity or crisis, the effect of which is such as to make
it, in the judgment of the Underwriters, impracticable to market the
Certificates or to enforce contracts for the sale of the Certificates; (iv) if
trading generally on either the American Stock Exchange or the New York Stock
Exchange has been suspended, or minimum or maximum prices for trading have been
fixed, or maximum ranges for prices for securities have been required, by
either of said Exchanges or by order of the Commission or any other
governmental authority; or (v) if a banking moratorium has been declared by
federal, New York or California authorities.
10. Default By an Underwriter. If one of the Underwriters shall
fail at the Closing Date to purchase the Certificates which it is obligated to
purchase under this Agreement (the "Defaulted Securities"), the Representative
shall have the right, but not the obligation, within 24 hours thereafter, to
make arrangements for the non-defaulting Underwriter, or any other underwriter,
to purchase all, but not less than all, of the Defaulted Securities in such
amounts as may be agreed upon and upon the terms herein set forth; if, however,
the Representative shall not have completed such arrangements within such
24-hour period, then:
(a) if the aggregate principal amount of Defaulted
Securities does not exceed 10% of the total aggregate principal amount
of the Certificates, the non-defaulting Underwriter shall be obligated
to purchase the full amount thereof, or
(b) if the aggregate principal amount of Defaulted
Securities exceeds 10% of the total aggregate principal amount of the
Certificates, this Agreement shall terminate without liability on the
part of the non-defaulting Underwriter.
No action pursuant to this Section shall relieve any defaulting
Underwriter from liability in respect of its default.
In the event of any such default which does not result in a
termination of this Agreement, either the Representative or the Seller shall
have the right to postpone the Closing Date for a period not exceeding seven
days in order to effect any required changes in the Registration Statement or
Prospectus or in any other documents or arrangement.
21
22
11. Notices. All communications hereunder will be in writing and,
if sent to (i) the Underwriters, will be mailed, delivered or sent by facsimile
and confirmed to them at Xxxxxx Brothers Inc., Three World Financial Center,
New York, New York 10285 (facsimile number (000) 000-0000); (ii) the Seller,
will be mailed, delivered or sent by facsimile and confirmed to it at Fleetwood
Credit Receivables Corp., 00000 Xxxx Xxxxx Xxxxxxx, Xxxxx Xxxxx, Xxxxxxxxxx
00000, Attention: Senior Vice President (facsimile number (000) 000-0000); or
(iii) Fleetwood Credit, will be mailed, delivered or sent by facsimile and
confirmed to it at Fleetwood Credit Corp., 00000 Xxxx Xxxxx Xxxxxxx, Xxxxx
Xxxxx, Xxxxxxxxxx 00000, Attention: Senior Vice President (facsimile number
(000) 000-0000).
12. Successors. This Agreement will inure to the benefit of and
be binding upon the parties hereto and their respective successors and the
officers and directors and controlling persons referred to in Section 7 hereof,
and no other person will have any right or obligation hereunder.
13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.
14. Applicable Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California.
22
23
If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us one of the counterparts duplicate
hereof, whereupon it will become a binding agreement between the Seller and
Fleetwood Credit and the Underwriters in accordance with its terms.
Very truly yours,
FLEETWOOD CREDIT CORP.
By:
-------------------------------------
Xxxxxx X. Xxxxxx, III
Senior Vice President
FLEETWOOD CREDIT RECEIVABLES CORP.
By:
-------------------------------------
Xxxxxx X. Xxxxxx, III
Senior Vice President
CONFIRMED AND ACCEPTED,
as of the date first above written:
XXXXXX BROTHERS INC.
SALOMON BROTHERS INC
By: XXXXXX BROTHERS INC.
By:
------------------------------------
Name:
Title:
For itself and as Representative of the Underwriters
24
SCHEDULE A
Principal Principal
Amount of Amount of
Class A Class B
Underwriter Certificates Certificates
----------- ------------ ------------
Xxxxxx Brothers Inc. . . . . . . . . . . . . . . . . $ $
Salomon Brothers Inc. . . . . . . . . . . . . . . . .
----------- --------
Total
=========== ========
A-1
