EXHIBIT 4.1
--------------------------------------------------------------------------------
SERIES 2003-1
SUPPLEMENTAL INDENTURE OF TRUST
by and between
GMAC EDUCATION LOAN FUNDING TRUST-I
and
ZIONS FIRST NATIONAL BANK,
as Indenture Trustee
Authorizing the Issuance of:
$220,000,000
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Series 2003-1
Dated as of March 1, 2003
--------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS AND USE OF PHRASES...................................................................................1
ARTICLE II
SERIES 2003-1 NOTE DETAILS, FORM OF SERIES 2003-1 NOTES, REDEMPTION OF SERIES 2003-1 NOTES AND USE OF
PROCEEDS OF SERIES 2003-1 NOTES
Section 2.01. Series 2003-1 Note Details.......................................................................3
Section 2.02. Redemption of the Series 2003-1 Notes............................................................5
Section 2.03. Delivery of Series 2003-1 Notes..................................................................7
Section 2.04. Trustee's Authentication Certificate.............................................................7
Section 2.05. Deposit of Series 2003-1 Note Proceeds...........................................................8
Section 2.06. Forms of Series 2003-1 Notes.....................................................................8
ARTICLE III
ACCOUNTS
Section 3.01. 2003-1 Acquisition Account.......................................................................8
Section 3.02. 2003-1 Capitalized Interest Account..............................................................8
ARTICLE IV
GENERAL PROVISIONS
Section 4.01. Date of Execution................................................................................9
Section 4.02. Laws Governing...................................................................................9
Section 4.03. Severability.....................................................................................9
Section 4.04. Exhibits and Appendices..........................................................................9
Section 4.05. Limitation of Liability of the Delaware Trustee..................................................9
ARTICLE V
APPLICABILITY OF INDENTURE.......................................................................................9
APPENDIX A CERTAIN TERMS AND PROVISIONS OF THE AUCTION RATE SECURITIES...........................................1
EXHIBIT A-1 FORM OF SENIOR AUCTION RATE SECURITIES...............................................................1
EXHIBIT A-2 FORM OF SUBORDINATE AUCTION RATE SECURITIES..........................................................1
EXHIBIT B SERIES 2003-1 CLOSING CASH FLOW PROJECTIONS............................................................8
EXHIBIT C NOTICE OF PAYMENT DEFAULT..............................................................................9
EXHIBIT D NOTICE OF CURE OF PAYMENT DEFAULT.....................................................................10
EXHIBIT E NOTICE OF PROPOSED CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS.....................................1
EXHIBIT F NOTICE ESTABLISHING CHANGE IN LENGTH OF ONE OR MORE AUCTION PERIODS....................................1
EXHIBIT G NOTICE OF CHANGE IN AUCTION DATE......................................................................1
ii
SERIES 2003-1
SUPPLEMENTAL INDENTURE OF TRUST
THIS SERIES 2003-1
SUPPLEMENTAL INDENTURE OF TRUST (this "Supplemental
Indenture"), dated as of March 1, 2003, is by and between GMAC EDUCATION LOAN
FUNDING TRUST-I, a Delaware statutory trust (the "Issuer"), and ZIONS FIRST
NATIONAL BANK, a national banking association (together with its successors, the
"Indenture Trustee"), as Indenture Trustee hereunder (all capitalized terms used
in these preambles, recitals and granting clauses shall have the same meanings
assigned thereto in Article I hereof);
W I T N E S S E T H :
WHEREAS, the Issuer has previously entered into an Indenture of Trust,
dated as of March 1, 2003 (the "Indenture"), among the Issuer, the Indenture
Trustee and Zions First National Bank, as Eligible Lender Trustee; and
WHEREAS, the Issuer desires to enter into this Supplemental Indenture in
order to issue Notes pursuant to the terms of the Indenture, including Section
2.09 thereof; and
WHEREAS, the Issuer represents that it is duly created as a statutory trust
under the laws of the State of Delaware and that by proper action it has duly
authorized the issuance of $220,000,000 of its GMAC ELF Student Loan
Asset-Backed Notes, Series 2003-1, consisting of three classes designated as
Senior Class 2003-1 (the "Class A Notes") and one class designated as
Subordinate Class 2003-1 (the "Class B Notes" and together with the Class A
Notes, the "Series 2003-1 Notes"), and it has by proper action authorized the
execution and delivery of this Supplemental Indenture; and
WHEREAS, the Series 2003-1 Notes constitute Notes as defined in the
Indenture; and
WHEREAS, the Indenture Trustee has agreed to accept the trusts herein
created upon the terms herein set forth;
NOW, THEREFORE, it is mutually covenanted and agreed as follows:
ARTICLE I
DEFINITIONS AND USE OF PHRASES
All words and phrases defined in the Indenture shall have the same meaning
in this Supplemental Indenture, except as otherwise appears in this Article. In
addition, the following terms have the following meanings in this Supplemental
Indenture unless the context clearly requires otherwise:
"AUCTION RATE SECURITIES" means, collectively, the Class A Notes and the
Class B Notes.
"CLASS A NOTES" means, collectively, the Class A-1AR Notes, the Class A-2AR
Notes and the Class A-3AR Notes.
"CLASS A-1AR NOTES" means the $78,000,000 GMAC Education Loan Funding
Trust-I, GMAC ELF Student Loan Asset-Backed Notes, Series 2003-1, Senior Class
A-1AR Auction Rate Securities.
"CLASS A-2AR NOTES" means the $78,000,000 GMAC Education Loan Funding
Trust-I, GMAC ELF Student Loan Asset-Backed Notes, Series 2003-1, Senior Class
A-2AR Auction Rate Securities.
"CLASS A-3AR NOTES" means the $50,000,000 GMAC Education Loan Funding
Trust-I, GMAC ELF Student Loan Asset-Backed Notes, Series 2003-1, Senior Class
A-3AR Auction Rate Securities.
"CLASS B NOTES" means the $14,000,000 GMAC Education Loan Funding Trust-I,
GMAC ELF Student Loan Asset-Backed Notes, Series 2003-1, Subordinate Class B-1AR
Auction Rate Securities.
"CLOSING DATE" means, with respect to the Series 2003-1 Notes, March 21,
2003.
"RATING AGENCY" means, collectively, Fitch Ratings, ▇▇▇▇▇'▇ Investors
Service and Standard & Poor's Ratings Services.
"RECORD DATE" means, with respect to each Payment Date, the Business Day
immediately preceding such Payment Date.
"RESERVE FUND REQUIREMENT" means 1.00% of the Class A Notes and Class B
Notes Outstanding; provided, however, that so long as any Class A Notes or Class
B Notes remain Outstanding there shall be at least $500,000 on deposit in the
Reserve Fund. Further, such percentages and amounts may be changed upon
satisfaction of the Rating Agency Condition and receipt of a Rating
Confirmation.
"SERIES 2003-1COUNTERPARTY" shall mean Citibank, N.A.
"SERIES 2003-1 DERIVATIVE PRODUCT AGREEMENTS" shall mean, collectively, the
ISDA Master Agreement (including the schedule thereto), between the Issuer and
the Series 2003-1 Counterparty and the Assignment and Acceptance Agreement dated
March 21, 2003, among the Issuer, the Series 2003-1 Counterparty and GMAC
Commercial Holding Corporation Mortgage Corp., assigning Confirmation Nos.
M031150 and M030506 to the Issuer.
"SERIES 2003-1 NOTES" means the GMAC Education Loan Funding Trust-I, GMAC
ELF Student Loan Asset-Backed Notes, Series 2003-1 issued pursuant to this
Supplemental Indenture in the aggregate principal amount of $220,000,000
consisting of the Class A Notes and the Class B Notes.
Words importing the masculine gender include the feminine gender. Words
importing persons include firms, associations and corporations. Words importing
the singular number include the plural number and vice versa. Additional terms
are defined in the body of this Supplemental Indenture and the Appendices
hereto.
2
In the event that any term or provision contained herein with respect to
the Series 2003-1 Notes shall conflict with or be inconsistent with any term or
provision contained in the Indenture, the terms and provisions of this
Supplemental Indenture shall govern.
ARTICLE II
SERIES 2003-1 NOTE DETAILS,
FORM OF SERIES 2003-1 NOTES,
REDEMPTION OF SERIES 2003-1 NOTES
AND USE OF PROCEEDS OF SERIES 2003-1 NOTES
SECTION 2.01. SERIES 2003-1 NOTE DETAILS. The aggregate principal amount of
the Series 2003-1 Notes which may be initially authenticated and delivered under
this Supplemental Indenture is limited to, and shall be individually issued in
five separate classes consisting of $78,000,000 of Class A-1AR Notes,
$78,000,000 of Class A-2AR Notes, $50,000,000 of Class A-3AR Notes and
$14,000,000 of Class B Notes, except for Series 2003-1 Notes authenticated and
delivered upon transfer of, or in exchange for, or in lieu of Notes pursuant to
Sections 2.03 and 2.04 of the Indenture. The Series 2003-1 Notes shall be
issuable only as fully registered notes in the Authorized Denominations. The
Series 2003-1 Notes of each class shall each be lettered "R" and shall be
numbered separately from 1 upwards, respectively. The Class A-1AR Notes, the
Class A-2AR Notes and the Class A-3AR Notes constitute Senior Notes. The Class B
Notes constitute Subordinate Notes. The Series 2003-1 Derivative Product
Agreements constitute Senior Obligations.
The Class A Notes and Class B Notes (collectively, the "Auction Rate
Securities") shall be dated their Closing Date and shall bear interest from
their Closing Date, payable on each Payment Date (as defined in Appendix A to
this Supplemental Indenture), except that Auction Rate Securities which are
reissued upon transfer, exchange or other replacement shall bear interest from
the most recent Payment Date to which interest has been paid, or if no interest
has been paid, from the Closing Date. The Auction Rate Securities shall mature
on June 1, 2040 (a "Stated Maturity"). The terms of and definitions related to
the Auction Rate Securities are found in Article I hereof and Appendix A to this
Supplemental Indenture.
The principal of the Series 2003-1 Notes due at Stated Maturity or
redemption in whole shall be payable at the Corporate Trust Office of the
Indenture Trustee, or such other location as directed by the Indenture Trustee,
or at the principal office of its successor in trust upon presentation and
surrender of the Series 2003-1 Notes. Payment of interest and principal paid
subject to a redemption on any Series 2003-1 Note shall be made to the
Noteholder thereof by check or draft mailed on the Payment Date by the Indenture
Trustee to the Noteholder at his address as it last appears on the registration
books kept by the Indenture Trustee at the close of business on the Record Date
for such Payment Date, but any such interest not so timely paid or duly provided
for shall cease to be payable to the Noteholder thereof at the close of business
on the Record Date and shall be payable to the Noteholder thereof at the close
of business on a special record date (a "Special Record Date") for the payment
of any such defaulted interest. Such Special Record Date shall be fixed by the
Indenture Trustee whenever moneys become available for payment of the defaulted
interest, and notice of such Special Record Date shall be given to the
Noteholders of the Series 2003-1 Notes not less than 10 days prior thereto by
3
first-class mail to each such Noteholder as shown on the Indenture Trustee's
registration books on the date selected by the Indenture Trustee, stating the
date of the Special Record Date and the date fixed for the payment of such
defaulted interest. Payment of interest to the Securities Depository or its
nominee shall, and at the written request addressed to the Indenture Trustee of
any other Noteholder owning at least $1,000,000 principal amount of the Series
2003-1 Notes, payments of interest shall, be paid by wire transfer within the
United States to the bank account number filed no later than the Record Date or
Special Record Date with the Indenture Trustee for such purpose. All payments on
the Series 2003-1 Notes shall be made in lawful money of the United States of
America.
(a) Except as otherwise provided in this Section, the Series 2003-1
Notes in the form of one global note for each Stated Maturity date shall be
registered in the name of the Securities Depository or its nominee and
ownership thereof shall be maintained in book-entry form by the Securities
Depository for the account of the Agent Members. Initially, each Series
2003-1 Note shall be registered in the name of CEDE & CO., as the nominee
of The Depository Trust Company. Except as provided in subsection (d) of
this Section, the Series 2003-1 Notes may be transferred, in whole but not
in part, only to the Securities Depository or a nominee of the Securities
Depository or to a successor Securities Depository selected or approved by
the Issuer or to a nominee of such successor Securities Depository. Each
global note shall bear a legend substantially to the following effect:
"Except as otherwise provided in the Indenture, this global note may be
transferred, in whole but not in part, only to another nominee of the
Securities Depository, as defined in the Indenture, or to a successor
Securities Depository or to a nominee of a successor Securities
Depository."
(b) Except as otherwise provided herein, the Issuer and the Indenture
Trustee shall have no responsibility or obligation with respect to (i) the
accuracy of the records of the Securities Depository or any Agent Member
with respect to any beneficial ownership interest in the Series 2003-1
Notes; (ii) the delivery to any Agent Member, beneficial owner of the
Series 2003-1 Notes or other Person, other than the Securities Depository,
of any notice with respect to the Series 2003-1 Notes; or (iii) the payment
to any Agent Member, beneficial owner of the Series 2003-1 Notes or other
Person, other than the Securities Depository, of any amount with respect to
the principal of or interest on the Series 2003-1 Notes. So long as the
certificates for the Series 2003-1 Notes issued under this Supplemental
Indenture are not issued pursuant to paragraph (c) of this Section the
Issuer and the Indenture Trustee may treat the Securities Depository as,
and deem the Securities Depository to be, the absolute owner of the Series
2003-1 Notes for all purposes whatsoever, including, without limitation,
(A) the payment of principal of and interest on such Series 2003-1 Notes,
(B) giving notices of redemption and other matters with respect to such
Series 2003-1 Notes, and (C) registering transfers with respect to such
Series 2003-1 Notes. In connection with any notice or other communication
to be provided to the Noteholders pursuant to this Supplemental Indenture
by the Issuer or the Indenture Trustee with respect to any consent or other
action to be taken by the Noteholders, the Issuer or the Indenture Trustee,
as the case may be, shall establish a record date for such consent or other
action and, if the Securities Depository shall hold all of the Series
2003-1 Notes, give the Securities Depository notice of such record date not
less than 15 calendar days in advance of such record date to the extent
possible. Such
4
notice to the Securities Depository shall be given only when the Securities
Depository is the sole Noteholder.
(c) If at any time the Securities Depository notifies the Issuer and
the Indenture Trustee that it is unwilling or unable to continue as
Securities Depository with respect to any or all of the Series 2003-1 Notes
or if at any time the Securities Depository shall no longer be registered
or in good standing under the Securities Exchange Act or other applicable
statute or regulation and a successor Securities Depository is not
appointed by the Issuer within 90 days after the Issuer receives notice or
becomes aware of such condition, as the case may be, paragraphs (a) and (b)
of this Section shall no longer be applicable and the Issuer shall execute
and the Indenture Trustee shall authenticate and deliver certificates
representing the Series 2003-1 Notes as provided below. In addition, the
Issuer may determine at any time that the Series 2003-1 Notes shall no
longer be represented by global certificates and that the provisions of
paragraphs (a) and (b) of this Section shall no longer apply to the Series
2003-1 Notes. In such event, the Issuer shall execute and the Indenture
Trustee shall authenticate and deliver certificates representing the Series
2003-1 Notes as provided below. Certificates for the Series 2003-1 Notes
issued in exchange for a global certificate pursuant to this subsection
shall be registered in such names and authorized denominations as the
Securities Depository, pursuant to instructions from the Agent Members or
otherwise, shall instruct in writing to the Issuer and the Indenture
Trustee, and upon which written instructions the Indenture Trustee may rely
without investigation. The Indenture Trustee shall promptly deliver such
certificates representing the Series 2003-1 Notes to the Persons in whose
names such Notes are so registered.
SECTION 2.02. REDEMPTION OF THE SERIES 2003-1 NOTES.
(a) MANDATORY REDEMPTION. Subject to the provisions of Section
2.02(c), the Series 2003-1 Notes are subject to mandatory redemption, in
whole or in part, at a redemption price equal to the principal balance
being redeemed plus accrued interest to the date fixed for redemption (i)
on the first Interest Payment Date after October 15, 2003 from amounts
remaining on deposit in the 2003-1 Acquisition Account on October 1, 2003
representing proceeds of the Series 2003-1 Notes not used to acquire
Student Loans, (ii) unless otherwise directed in a Supplemental Indenture,
on the first Payment Date occurring each month for the Senior Notes
(subject to Section 2.02(c)(ii)) from amounts remaining on deposit in the
2003-1 Acquisition Account representing Recoveries of Principal and (iii)
on the first Payment Date occurring each month for the Senior Notes
(subject to Section 2.02(c)(ii))that the Value of the Trust Estate is less
than 101.5% of the Value of the Senior Notes and Subordinate Notes then
Outstanding and 104% of the Value of the Senior Notes then Outstanding as
certified to the Indenture Trustee in an Issuer Order upon which Issuer
Order the Indenture Trustee may conclusively rely (or such other ratio as
specified by the Issuer in a notice to the Indenture Trustee accompanied by
a Rating Agency Confirmation), from moneys on deposit in the Revenue Fund
after all other required payments have been made and amounts transferred
pursuant to Section 3.02 until such percentages are reached.
5
(b) OPTIONAL REDEMPTION OR PURCHASE.
(i) OPTIONAL REDEMPTION OR PURCHASE OF SERIES 2003-1 NOTES.
Subject to the provisions of Section 2.02(c), the Series 2003-1 Notes
are subject to redemption or purchase at the option of the Issuer
exercised by an Issuer Order, in whole only, on any Payment Date on
which the aggregate current principal balance of all the Notes issued
under the Indenture is less than or equal to 10% of the initial
aggregate principal balance of all the Notes issued under the
Indenture on their respective Closing Date, at a redemption price
equal to (A) the principal balance plus accrued interest to the date
fixed for redemption and (B) any Carry-over Amount and any interest
accrued on any Carry-over Amount to the date fixed for redemption,
from the proceeds of funds received by the Indenture Trustee and
deposited in the Revenue Fund, the Acquisition Fund and the Reserve
Fund. On the Payment Date fixed for redemption or purchase in such
Issuer Order (which Issuer Order shall be received by the Indenture
Trustee not less then 16 days prior to such redemption), the Issuer
shall deposit or cause to be deposited in or transferred to the
Acquisition Fund (from the Revenue Fund) an amount sufficient to
redeem all of the Notes, less amounts on deposit in the Reserve Fund.
On such redemption date the Indenture Trustee shall transfer amounts
in the Reserve Fund to the Acquisition Fund and effect the redemption
of all the Notes.
(ii) NOTICE OF REDEMPTION AND PURCHASE. The Indenture Trustee
shall cause notice of any redemption or purchase pursuant to Section
2.02(b)(i) to be given by mailing a copy of the notice by first-class
mail to the Noteholder of any Series 2003-1 Notes, the Administrator,
the Calculation Agent and the Auction Agent, designated for redemption
or purchase in whole or in part, at their address as the same shall
last appear upon the registration books, in each case not less than 15
days prior to the redemption or purchase date; provided, however, that
failure to give such notice, or any defect therein, shall not affect
the validity of any proceedings for the redemption or purchase date of
such Series 2003-1 Notes for which no such failure or defect occurs.
(c) PARTIAL REDEMPTION.
(i) If less than all of the Series 2003-1 Notes are to be
redeemed or purchased pursuant to Section 2.02(a), the Class of Series
2003-1 Notes to be redeemed or purchased shall be redeemed or
purchased on a monthly basis in ascending order of Stated Maturity
and, within same Stated Maturities, from the Series 2003-1 Note with
the earliest Payment Date during the month, subject to Section
2.02(c)(ii).
(ii) All of the Class A Notes shall be redeemed prior to
redemption of any Class B Notes; provided, however, upon the Indenture
Trustee's receipt of an Issuer Order certifying that the ratio of the
Value of the Trust Estate to the Value of the Notes then Outstanding
exceeds 101.5% and the ratio of the Value of the Trust Estate to the
Value of the Senior Notes then Outstanding exceeds 104%, or
6
such other percentages that satisfy the Rating Agency Condition, the
Indenture Trustee shall redeem Class B Notes while Class A Notes
remain Outstanding until the Value of the Trust Estate to the Value of
the Notes equals the percentages described in this sentence after
giving effect to the redemption of Class B Notes. The Indenture
Trustee may conclusively rely upon such certification without duty to
know, determine or further examine such Issuer Order.
(iii) If less than all of the Notes of any class of the Series
2003-1 Notes are to be redeemed, the Series 2003-1 Notes to be
redeemed shall be selected by lot in such manner as the Indenture
Trustee shall determine. In the event of a redemption pursuant to
Section 2.02(a) hereof whereby funds remain in an amount below the
Authorized Denomination, such remaining funds shall be transferred to
the Revenue Fund.
(iv) In case a Series 2003-1 Note is of a denomination larger
than an Authorized Denomination, a portion of such Note (in an
Authorized Denomination) may be redeemed. Upon surrender of any Series
2003-1 Note for redemption in part only, the Issuer shall execute and
the Indenture Trustee shall authenticate and deliver to the Noteholder
thereof, the cost of which shall be paid by the Issuer, a new Series
2003-1 Note or Series 2003-1 Notes of the same series, maturity and of
authorized denominations, in an aggregate principal amount equal to
the unredeemed portion of the Series 2003-1 Note surrendered.
SECTION 2.03. DELIVERY OF SERIES 2003-1 NOTES. Upon the execution and
delivery of this Supplemental Indenture, the Issuer shall execute and deliver to
the Indenture Trustee and the Indenture Trustee shall authenticate the Series
2003-1 Notes and deliver the Class A Notes and the Class B Notes to The
Depository Trust Company; provided, however, prior to the delivery by the
Indenture Trustee of any of the Series 2003-1 Notes, there shall have been filed
with or delivered to the Indenture Trustee the following:
(a) an Issuer Order authorizing the execution and delivery of this
Supplemental Indenture and the issuance of the Series 2003-1 Notes;
(b) duly executed copies of this Supplemental Indenture and a copy of
the Indenture; and
(c) rating letters from each Rating Agency stating (i) that the Class
A Notes have been rated "AAA" by Fitch and S&P and "Aaa" by Moody's; and
(ii) that the Class B Notes have been rated "A" by Fitch and S&P and "A2"
by Moody's.
SECTION 2.04. TRUSTEE'S AUTHENTICATION CERTIFICATE. The Indenture Trustee's
authentication certificate upon the Series 2003-1 Notes shall be substantially
in the forms provided in Exhibits A-1 and A-2. No Series 2003-1 Note shall be
secured hereby or entitled to the benefit hereof, or shall be valid or
obligatory for any purpose, unless a certificate of authentication,
substantially in such form, has been duly executed by the Indenture Trustee; and
such certificate of the Indenture Trustee upon any Series 2003-1 Note shall be
conclusive evidence and the only competent evidence that such Note has been
authenticated and delivered
7
hereunder. The Indenture Trustee's certificate of authentication shall be deemed
to have been duly executed by it if manually signed by an authorized officer of
the Indenture Trustee, but it shall not be necessary that the same person sign
the certificate of authentication on all of the Series 2003-1 Notes issued
hereunder.
SECTION 2.05. DEPOSIT OF SERIES 2003-1 NOTE PROCEEDS. Upon the issuance and
delivery of the Series 2003-1 Notes, the Indenture Trustee shall deposit the net
proceeds thereof (i.e., net of Underwriters' discount of $770,000):
(a) an amount equal to $214,737,474 shall be deposited to the 2003-1
Acquisition Account;
(b) an amount equal to $2,292,526 shall be deposited to the 2003-1
Capitalized Interest Account; and
(c) an amount equal to $2,200,000 shall be deposited to the Reserve
Fund.
SECTION 2.06. FORMS OF SERIES 2003-1 NOTES. The Series 2003-1 Notes shall
be in substantially the form set forth in Exhibits A-1 and A-2 hereto, each with
such variations, omissions and insertions as may be necessary.
ARTICLE III
ACCOUNTS
SECTION 3.01. 2003-1 ACQUISITION ACCOUNT. The Indenture Trustee is hereby
directed to establish an Account within the Acquisition Fund to be known as the
"2003-1 Acquisition Account." The Indenture Trustee shall deposit the proceeds
described in Section 2.05(a) to the 2003-1 Acquisition Account on the Closing
Date. All Recoveries of Principal from the Financed Student Loans acquired with
the proceeds of the Series 2003-1 Notes shall be deposited in the 2003-1
Acquisition Account. Moneys in the 2003-1 Acquisition Account shall be used as
described in Section 5.02 of the Indenture and (i) to mandatorily redeem the
Series 2003-1 Notes pursuant to Section 2.02(a)(i) and (ii) hereof or (ii) as
otherwise directed in a Supplemental Indenture.
SECTION 3.02. 2003-1 CAPITALIZED INTEREST ACCOUNT. The Indenture Trustee is
hereby directed to establish an Account within the Revenue Fund to be known as
the "2003-1 Capitalized Interest Account." The Indenture Trustee shall deposit
the proceeds described in Section 2.05(b) to the 2003-1 Capitalized Interest
Account on the Closing Date. On any date prior to January 1, 2007 moneys on
deposit in the 2003-1 Capitalized Interest Account shall be transferred to the
Revenue Fund by the Indenture Trustee as needed to make the transfers described
in Sections 5.03(b)(i), (iii) and (v) of the Indenture. On January 1, 2007, any
moneys remaining in the 2003-1 Capitalized Interest Account shall be transferred
to the 2003-1 Acquisition Account and used to mandatorily redeem Notes pursuant
to Section 2.02(a)(ii) hereof and the 2003-1 Capitalized Interest Account shall
be closed.
8
ARTICLE IV
GENERAL PROVISIONS
SECTION 4.01. DATE OF EXECUTION. This Supplemental Indenture for
convenience and for the purpose of reference is dated as of March 1, 2003.
SECTION 4.02. LAWS GOVERNING. It is the intent of the parties hereto that
this Supplemental Indenture shall in all respects be governed by the laws of the
State of Colorado.
SECTION 4.03. SEVERABILITY. If any covenant, agreement, waiver or part
thereof in this Supplemental Indenture contained be forbidden by any pertinent
law or under any pertinent law be effective to render this Supplemental
Indenture invalid or unenforceable or to impair the lien hereof, then each such
covenant, agreement, waiver, or part thereof shall itself be and is hereby
declared to be wholly ineffective, and this Supplemental Indenture shall be
construed as if the same were not included herein.
SECTION 4.04. EXHIBITS AND APPENDICES. The terms of each Exhibit and
Appendix attached to this Supplemental Indenture are incorporated herein in all
particulars.
SECTION 4.05. LIMITATION OF LIABILITY OF THE DELAWARE TRUSTEE. It is
expressly understood and agreed by the parties hereto that (a) this Supplemental
Indenture is executed and delivered by the Delaware Trustee, not individually or
personally but solely as Delaware Trustee of the Issuer, in the exercise of the
powers and authority conferred and vested in it under the Trust Agreement; (b)
each of the representations, undertakings and agreements herein made on the part
of the Issuer is made and intended not as personal representations, undertakings
and agreements by the Delaware Trustee but is made and intended for the purpose
of binding only the Issuer; and (c) under no circumstances shall the Delaware
Trustee be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this
Supplemental Indenture.
ARTICLE V
APPLICABILITY OF INDENTURE
The provisions of the Indenture are hereby ratified, approved and
confirmed, except as otherwise expressly modified by this Supplemental
Indenture. The representations, warranties and covenants contained in the
Indenture (except as expressly modified herein) are hereby reaffirmed with the
same force and effect as if fully set forth herein and made again as of the date
hereof.
9
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this
Supplemental Indenture to be executed by their respective Authorized Officers,
to evidence its acceptance of the trusts hereby created, has caused this
Supplemental Indenture to be executed in its name and behalf, all in multiple
counterparts, each of which shall be deemed an original, and the Issuer and the
Indenture Trustee have caused this Supplemental Indenture to be dated as of the
date herein above first shown, although actually executed on the dates shown in
the acknowledgments hereafter appearing.
GMAC EDUCATION LOAN FUNDING TRUST-I
By: WILMINGTON TRUST COMPANY, not
in its individual capacity but solely as
Delaware Trustee
By /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------------------
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Assistant Vice President
ZIONS FIRST NATIONAL BANK, not in its
individual capacity but solely as Indenture
Trustee
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇
-------------------------------------------
▇▇▇▇▇ ▇. ▇▇▇▇, Vice President
10
APPENDIX A
CERTAIN TERMS AND PROVISIONS OF
THE AUCTION RATE SECURITIES
ARTICLE I
DEFINITIONS
Except as provided below in this Section, all terms which are defined in
the Indenture and Article I of this Supplemental Indenture shall have the same
meanings, respectively, in this Appendix A as such terms are given in the
Indenture and Article I of this Supplemental Indenture. In addition, the
following terms shall have the following respective meanings:
"ALL HOLD RATE" means the Applicable LIBOR Rate less .20%; provided, that
in no event shall the applicable All Hold Rate be greater than the applicable
Maximum Rate.
"APPLICABLE LIBOR RATE" means, (a) for Auction Periods of 35 days or less,
One-Month LIBOR, (b) for Auction Periods of more than 35 days but less than 91
days, Three-Month LIBOR, (c) for Auction Periods of more than 90 days but less
than 181 days, Six-Month LIBOR, and (d) for Auction Periods of more than 180
days, One-Year LIBOR.
"AUCTION" means the implementation of the Auction Procedures on an Auction
Date.
"AUCTION AGENT" means the Initial Auction Agent under the Initial Auction
Agent Agreement unless and until a Substitute Auction Agent Agreement becomes
effective, after which "Auction Agent" means the Substitute Auction Agent.
"AUCTION AGENT AGREEMENT" means the Initial Auction Agent Agreement unless
and until a Substitute Auction Agent Agreement is entered into, after which
"Auction Agent Agreement" means such Substitute Auction Agent Agreement.
"AUCTION AGENT FEE" has the meaning set forth in the Auction Agent
Agreement.
"AUCTION DATE" means, initially, April 22, 2003 with respect to the Class
A-1AR Notes, April 29, 2003 with respect to the Class A-2AR Notes, May 1, 2003
with respect to the Class A-3AR Notes and April 29, 2003 with respect to the
Class B Notes, and thereafter, the Business Day immediately preceding the first
day of each Auction Period for each respective Class, other than:
(a) each Auction Period commencing after the ownership of the
applicable Auction Rate Securities is no longer maintained in Book-entry
Form by the Securities Depository;
(b) each Auction Period commencing after and during the continuance
of a Payment Default; or
(c) each Auction Period commencing less than two Business Days after
the cure or waiver of a Payment Default.
Notwithstanding the foregoing, the Auction Date for one or more Auction
Periods may be changed pursuant to Section 2.02(h) of this Appendix A.
"AUCTION NOTE INTEREST RATE" means the variable rate of interest per annum
borne by Auction Rate Securities for each Auction Period and determined in
accordance with the provisions of Sections 2.01 and 2.02 of this Appendix A;
provided, however, that in the event of a Payment Default, the Auction Note
Interest Rate shall equal the applicable Non-Payment Rate; provided, further,
however that such Auction Note Interest Rate shall in no event exceed the lesser
of the Net Loan Rate and the Maximum Rate.
"AUCTION PERIOD" means the Interest Period applicable to the Auction Rate
Securities during which time the Interest Rate is determined pursuant to Section
2.02(a) of this Appendix A, which Auction Period (after the Initial Period for
such Class) initially shall consist generally of 28 days for the Auction Rate
Securities, as the same may be adjusted pursuant to Section 2.02(g) of this
Appendix A.
"AUCTION PERIOD ADJUSTMENT" means an adjustment to the Auction Period as
provided in Section 2.02(g) of this Appendix A.
"AUCTION PROCEDURES" means the procedures set forth in Section 2.02(a) of
this Appendix A by which the Auction Rate is determined.
"AUCTION RATE" means the rate of interest per annum that results from
implementation of the Auction Procedures and is determined as described in
Section 2.02(a)(iii)(B) of this Appendix A.
"AUCTION RATE SECURITIES" means, collectively, the Class A Notes and the
Class B Notes.
"AUTHORIZED DENOMINATIONS" means $50,000 and any integral multiple thereof.
"AVAILABLE AUCTION RATE SECURITIES" has the meaning set forth in Section
2.02(a)(iii)(A)(1) of this Appendix A.
"BID" has the meaning set forth in Section 2.02(a)(i)(A) of this Appendix
A.
"BID AUCTION RATE" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix A.
"BIDDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.
"BOND EQUIVALENT YIELD" means, in respect of any security the rate for
which is quoted in The Wall Street Journal on a bank discount basis, the "bond
equivalent yield" (expressed as a percentage) for such security which appears on
Telerate's United States Treasury and Money Market Composite Page 0223, rounded
up to the nearest .01%.
A-2
"BOOK-ENTRY FORM" or "BOOK-ENTRY SYSTEM" means a form or system under which
(a) the beneficial right to principal and interest may be transferred only
through a book entry; (b) physical securities in registered form are issued only
to a Securities Depository or its nominee as Noteholder, with the securities
"immobilized" to the custody of the Securities Depository; and (c) the book
entry is the record that identifies the owners of beneficial interests in that
principal and interest.
"BROKER-DEALER" means, ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc. with respect to the Class
A-1AR Notes, the Class A-2AR Notes and the Class B Notes and GMAC Commercial
Holding Capital Markets Corp. with respect to the Class A-3AR Notes, or any
other broker or dealer (each as defined in the Securities Exchange Act of 1934,
as amended), commercial bank or other entity permitted by law to perform the
functions required of a Broker-Dealer set forth in the Auction Procedures that
(a) is a Participant (or an affiliate of a Participant); (b) has been appointed
as such by the Issuer pursuant to Section 2.02(f) of this Appendix A; and (c)
has entered into a Broker-Dealer Agreement that is in effect on the date of
reference.
"BROKER-DEALER AGREEMENTS" means the agreements between the Auction Agent
and the Broker-Dealers, and approved by the Issuer, pursuant to which the
Broker-Dealers agree to participate in Auctions as set forth in the Auction
Procedures, as from time to time amended or supplemented. The Broker-Dealer
Agreements shall be in substantially the form of the Broker-Dealer Agreements,
each dated as of March 1, 2003, among the Issuer, Deutsche Bank Trust Company
Americas, as Auction Agent, and ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc. and GMAC Commercial
Holding Capital Markets Corp., respectively.
"BROKER-DEALER FEE" has the meaning set forth in the Auction Agent
Agreement.
"BUSINESS DAY" means any day other than a Saturday, Sunday, holiday or day
on which banks located in the City of New York, New York, or the New York Stock
Exchange, the Indenture Trustee or the Auction Agent, are authorized or
permitted by law or executive order to close or such other date as may be agreed
to in writing by the Auction Agent, the Broker-Dealers and the Issuer.
"CAP RATE" means, with respect to any Interest Period applicable to the
Auction Rate Securities, the lesser of (a) the applicable Maximum Rate, and (b)
the Net Loan Rate in effect for such Interest Period.
"CARRY-OVER AMOUNT" means, for any Interest Period during which interest is
calculated at the Net Loan Rate, the excess, if any, of (a) the amount of
interest on an Auction Rate Security that would have accrued with respect to the
related Interest Period at the lesser of (i) the applicable Auction Rate; and
(ii) the Maximum Rate determined as if the Net Loan Rate were not a component
thereof; over (b) the amount of interest on such Auction Rate Security actually
accrued with respect to such Auction Rate Security with respect to such Interest
Period based on the Net Loan Rate, together with the unreduced portion of any
such excess from prior Interest Periods; provided that any reference to
"principal" or "interest" in the Supplemental Indenture and in this Appendix A
and the Auction Rate Securities shall not include within the meanings of such
words any Carry-over Amount or any interest accrued on any Carry-over Amount.
A-3
"COMMERCIAL PAPER RATE (90-DAY)" means the rate determined at the end of
each calendar quarter using the daily average of that quarter's bond equivalent
3-Month Financial Commercial Paper rates. The daily bond equivalent rates are
calculated from the Three-Month Financial Commercial Paper discount rates
published in the Federal Reserve's H.15 report. On weekends, holidays and any
other day when no H.15 rates are available, the rate from the most recent
published date is used.
"EFFECTIVE INTEREST RATE" means, with respect to any Financed Student Loan,
the interest rate per annum payable by the borrower as of the last day of the
calendar quarter borne by such Financed Student Loan after giving effect to any
reduction in such interest rate pursuant to borrower incentives, (a) less all
accrued rebate fees on such Financed Student Loan constituting Consolidation
Loans paid during such calendar quarter expressed as a percentage per annum; and
(b) plus all accrued Interest Benefit Payments and Special Allowance Payments
applicable to such Financed Student Loan during such calendar quarter expressed
as a percentage per annum.
"ELIGIBLE CARRY-OVER MAKE-UP AMOUNT" means, with respect to each Interest
Period relating to the Auction Rate Securities as to which, as of the first day
of such Interest Period, there is any unpaid Carry-over Amount, an amount equal
to the lesser of (a) interest computed on the principal balance of the Auction
Rate Securities in respect to such Interest Period at a per annum rate equal to
the excess, if any, of the Net Loan Rate over the Auction Rate, together with
the unreduced portion of any such excess from prior Interest Periods; and (b)
the aggregate Carry-over Amount remaining unpaid as of the first day of such
Interest Period together with interest accrued and unpaid thereon through the
end of such Interest Period.
"EXISTING OWNER" means (a) with respect to and for the purpose of dealing
with the Auction Agent in connection with an Auction, a Person who is a
Broker-Dealer listed in the Existing Owner Registry at the close of business on
the Business Day immediately preceding the Auction Date for such Auction; and
(b) with respect to and for the purpose of dealing with the Broker-Dealers in
connection with an Auction, a Person who is a beneficial owner of Auction Rate
Securities.
"EXISTING OWNER REGISTRY" means the registry of Persons who are owners of
the Auction Rate Securities, maintained by the Auction Agent as provided in the
Auction Agent Agreement.
"HOLD ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.
"INITIAL AUCTION AGENT" means Deutsche Bank Trust Company Americas, its
successors and assigns.
"INITIAL AUCTION AGENT AGREEMENT" means the Auction Agent Agreement dated
as of March 1, 2003, by and among the Issuer, the Indenture Trustee and the
Initial Auction Agent, including any amendment thereof or supplement thereto.
"INITIAL PERIOD" means, as to Auction Rate Securities, the period
commencing on the Closing Date and continuing through the day immediately
preceding the Initial Rate Adjustment Date for such Auction Rate Securities.
A-4
"INITIAL RATE" means 1.29% for the Class A-1AR Notes, 1.27% for the Class
A-2AR Notes, 1.30% for the Class A-3AR Notes and 1.31% for the Class B Notes.
"INITIAL RATE ADJUSTMENT DATE" means, with respect to the Class A-1AR
Notes, April 23, 2003; with respect to the Class A-2AR Notes, April 30, 2003;
with respect to the Class A-3AR Notes, May 2, 2003; and with respect to the
Class B Notes, April 30, 2003.
"INTEREST PERIOD" means, with respect to the Auction Rate Securities, the
Initial Period and each period commencing on an Interest Rate Adjustment Date
for such Class and ending on the day before (a) the next Interest Rate
Adjustment Date for such Class; or (b) the Stated Maturity of such Class, as
applicable.
"INTEREST RATE ADJUSTMENT DATE" means the Business Day immediately
following the Auction Date, such day being the date on which an Auction Note
Interest Rate is effective, and shall mean, with respect to the Auction Rate
Securities, the date of commencement of each Auction Period.
"INTEREST RATE DETERMINATION DATE" means, with respect to the Auction Rate
Securities, the Auction Date, or if no Auction Date is applicable to such Class,
the Business Day immediately preceding the date of commencement of an Auction
Period.
"MAXIMUM RATE" means the least of (a) either (i) the Applicable LIBOR Rate
plus 1.50% (if the ratings assigned by ▇▇▇▇▇'▇, S&P and Fitch to the Auction
Rate Securities are "Aaa," "AAA" and "AAA," respectively, or better); (ii) the
Applicable LIBOR Rate plus 2.50% (if any one of the ratings assigned by ▇▇▇▇▇'▇,
S&P and Fitch to the Auction Rate Securities is less than "Aaa," "AAA" and
"AAA," respectively, and greater than or equal to "A3," "A-" and "A-,"
respectively); or (iii) the Applicable LIBOR Rate plus 3.50% (if any one of the
ratings assigned by ▇▇▇▇▇'▇, S&P and Fitch to the Auction Rate Securities is
less than "A3," "A-" and "A-" respectively); (b) 16%; and (c) the highest rate
the Issuer may legally pay, from time to time, as interest on the Auction Rate
Securities. For purposes of the Auction Agent and the Auction Procedures, the
ratings referred to in this definition shall be the last ratings of which the
Auction Agent has been given written notice pursuant to the Auction Agent
Agreement.
"NET LOAN RATE" means, respect to any Interest Period applicable to the
Auction Rate Securities, the rate of interest per annum (rounded to the next
highest one-hundredth of one percent) equal to (a) the weighted average
Effective Interest Rate of the Financed Student Loans for the calendar quarter
immediately preceding such Interest Period, as determined by the Issuer on the
last day of such calendar quarter, less (b) the sum of (i) Realized Losses with
respect to the Financed Eligible Loans for the most recently completed calendar
quarter and (ii) the Program Expense Percentage on the Financial Student Loans,
as determined by the Issuer on the last day of each calendar year. In making the
determinations in (a) and (b) of this definition of "Net Loan Rate," the Issuer
shall take into account as an increase to such Net Loan Rate the receipt of any
Reciprocal Payment and as a decrease to any Issuer Derivative Payment. The
determinations made by the Issuer in (a) and (b) of this definition of "Net Loan
Rate" shall be given in writing to the Auction Agent, the Indenture Trustee and
the Broker-Dealers immediately upon their respective calculation dates. The
Issuer shall have no obligation to compute any
A-5
component of the Net Loan Rate except on an applicable Auction Date on which the
Auction Rate is equal to the Maximum Rate.
"NON-PAYMENT RATE" means One-Month LIBOR plus 1.50%.
"ONE-MONTH LIBOR," "THREE-MONTH LIBOR," "SIX-MONTH LIBOR" or "ONE-YEAR
LIBOR," means the offered rate, as determined by the Auction Agent or Indenture
Trustee, as applicable, of the Applicable LIBOR Based Rate for United States
dollar deposits which appears on Telerate Page 3750, as reported by Bloomberg
Financial Markets Commodities News (or such other page as may replace Telerate
Page 3750 for the purpose of displaying comparable rates) as of approximately
11:00 a.m., London time, on the Interest Rate Determination Date; provided, that
if on any calculation date, no rate appears on Telerate Page 3750 as specified
above, the Auction Agent or Indenture Trustee, as applicable, shall determine
the arithmetic mean of the offered quotations of four major banks in the London
interbank market, for deposits in United States dollars for the respective
periods specified above to the banks in the London interbank market as of
approximately 11:00 a.m., London time, on such calculation date and in a
principal amount of not less than $1,000,000 that is representative of a single
transaction in such market and at such time, unless fewer than two such
quotations are provided, in which case, the Applicable LIBOR Based Rate shall be
the arithmetic mean of the offered quotations that leading banks in New York
City selected by the Auction Agent or Indenture Trustee, as applicable, are
quoting on the relevant Interest Rate Determination Date for loans in United
States dollars to leading European banks in a principal amount of not less than
$1,000,000 that is representative of a single transaction in such market at such
time. All percentages resulting from such calculations shall be rounded upwards,
if necessary, to the nearest one-hundredth of one percent.
"ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this Appendix
A.
"PAYMENT DATE" means (a) so long as Auction Rate Securities bear interest
at an Auction Note Interest Rate for an Interest Period of not greater than 90
days, the Business Day immediately following the expiration of the Initial
Period for such Auction Rate Securities, and each related Auction Period
thereafter; and (b) if and for so long as Auction Rate Securities bear interest
at an Auction Note Interest Rate for an Interest Period of greater than 90 days,
the first Payment Date occurring in each January, April, July and October for
such Auction Rate Securities.
"PAYMENT DEFAULT" means, with respect to the Auction Rate Securities, (a) a
default in the due and punctual payment of any installment of interest on such
Auction Rate Securities, or (b) a default in the due and punctual payment of any
interest on and principal of such Auction Rate Securities at their maturity.
"POTENTIAL OWNER" means any Person (including an Existing Owner that is (a)
a Broker-Dealer when dealing with the Auction Agent and (b) a potential
beneficial owner when dealing with a Broker-Dealer) who may be interested in
acquiring Auction Rate Securities (or, in the case of an Existing Owner thereof,
an additional principal amount of Auction Rate Securities).
A-6
"PROGRAM EXPENSE PERCENTAGE" means, the percentage that all Program
Expenses (other than Consolidation Loan rebate fees) estimated for the next 12
months represent of the principal amount of the Notes, which as of March 21,
2003 is 0.50%, and which the Issuer shall calculate annually on the last day of
each calendar year and provide to the Trustee, the Auction Agent and the
Broker-Dealers in the form of an Issuer Order. Any adjustment in the Program
Expense Percentage shall be certified to the Indenture Trustee in an Issuer
Order and shall be effective beginning on the first Interest Rate Determination
Date following each such calculation.
"PSA" means the Public Securities Association, its successors and assigns.
"REGULAR RECORD DATE" means the Business Day next preceding the applicable
Auction Date.
"S&P" means Standard & Poor's Ratings Services, a Division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc., its successors and assigns.
"SELL ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.
"SUBMISSION DEADLINE" means 1:00 p.m., eastern time, on any Auction Date or
such other time on any Auction Date by which the Broker-Dealers are required to
submit Orders to the Auction Agent as specified by the Auction Agent from time
to time.
"SUBMITTED BID" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix A.
"SUBMITTED HOLD ORDER" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Appendix A.
"SUBMITTED ORDER" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix A.
"SUBMITTED SELL ORDER" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Appendix A.
"SUBSTITUTE AUCTION AGENT" means the Person with whom the Issuer and the
Indenture Trustee enter into a Substitute Auction Agent Agreement.
"SUBSTITUTE AUCTION AGENT AGreement" means an auction agent agreement
containing terms substantially similar to the terms of the Initial Auction Agent
Agreement, whereby a Person having the qualifications required by Section
2.02(e) of this Appendix A agrees with the Indenture Trustee and the Issuer to
perform the duties of the Auction Agent under this Appendix A.
"SUFFICIENT BIDS" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix A.
"VARIABLE RATE" means the variable rate of interest per annum, including
the Initial Rate, borne by each Class of Auction Rate Securities during the
Initial Period for such Class, and each Interest Period thereafter as such rate
of interest is determined in accordance with the provisions of Article II of
this Appendix A.
A-7
ARTICLE II
TERMS AND ISSUANCE
SECTION 2.01. AUCTION RATE AND CARRY-OVER AMOUNTS. During the Initial
Period, each Class of Auction Rate Securities shall bear interest at the Initial
Rate for such Class. Thereafter, and except with respect to an Auction Period
Adjustment, the Auction Rate Securities shall bear interest at an Auction Note
Interest Rate based on a 28-day Auction Period for the Auction Rate Securities,
as determined pursuant to this Section 2.01 and Section 2.02 of this Appendix A.
For the Auction Rate Securities during the Initial Period and each Auction
Period thereafter, interest at the applicable Auction Rate Securities Interest
Rate shall accrue daily and shall be computed for the actual number of days
elapsed on the basis of a year consisting of 360 days and rounding the resultant
figure to the fifth decimal place.
The Auction Note Interest Rate to be borne by the Auction Rate Securities
after such Initial Period for each Auction Period until an Auction Period
Adjustment, if any, shall be determined as described below. Each such Auction
Period after the Initial Period shall commence on and include the Business Day
following the expiration of the immediately preceding Auction Period and
terminate on and include the (i) second Business Day of the following fourth
week in the case of the Class A-1AR Notes, Class A-2AR Notes and the Class B
Notes, and (ii) fourth Business Day of the following fourth week in the case of
the Class A-3AR Notes; provided, however, that in the case of the Auction Period
that immediately follows the Initial Period for the Auction Rate Securities,
such Auction Period shall commence on the Initial Rate Adjustment Date. The
Auction Note Interest Rate of the Auction Rate Securities for each Auction
Period shall be the Auction Rate in effect for such Auction Period as determined
in accordance with Section 2.02(a) of this Appendix A; provided that if, on any
Interest Rate Determination Date, an Auction is not held for any reason, then
the Auction Note Interest Rate on such Auction Rate Securities for the next
succeeding Auction Period shall be the applicable Cap Rate.
Notwithstanding the foregoing:
(a) if the ownership of an Auction Rate Security is no longer
maintained in Book-entry Form, the Auction Note Interest Rate on the
Auction Rate Securities for any Interest Period commencing after the
delivery of certificates representing Auction Rate Securities pursuant to
this Supplemental Indenture shall equal the Cap Rate; or
(b) if a Payment Default shall have occurred, the Auction Note
Interest Rate on the Auction Rate Securities for the Interest Period
commencing on or immediately after such Payment Default, and for each
Interest Period thereafter, to and including the Interest Period, if any,
during which, or commencing less than two Business Days after, such Payment
Default is cured, shall equal the applicable Non-Payment Rate on the first
day of each such Interest Period.
In accordance with Section 2.02(a)(iii)(B) and (C) of this Appendix A, the
Auction Agent shall promptly give written notice to the Indenture Trustee and
the Issuer of each Auction Note
A-8
Interest Rate (unless the Auction Note Interest Rate is the applicable
Non-Payment Rate) and the Maximum Rate when such rate is not the Auction Note
Interest Rate, applicable to the Auction Rate Securities. The Indenture Trustee
shall, upon request, notify the Noteholders and the Issuer of Auction Rate
Securities of the applicable Auction Note Interest Rate applicable to such
Auction Rate Securities for each Auction Period not later than the third
Business Day of such Auction Period. Notwithstanding any other provision of the
Auction Rate Securities or this Supplemental Indenture and except for the
occurrence of a Payment Default, interest payable on the Auction Rate Securities
for an Auction Period shall never exceed for such Auction Period the amount of
interest payable at the applicable Maximum Rate in effect for such Auction
Period.
If the Auction Rate for the Auction Rate Securities is greater than the Net
Loan Rate, and the Net Loan Rate is less than the applicable Maximum Rate, the
Issuer shall determine the Carry-over Amount, if any, with respect to such
Auction Rate Securities for such interest period.
Such Carry-over Amount shall bear interest calculated at a rate equal to
One-Month LIBOR (as determined by the Issuer, provided the Indenture Trustee has
received notice of One-Month LIBOR from the Issuer, and if the Indenture Trustee
shall not have received such notice from the Issuer, then as determined by the
Indenture Trustee) from the Payment Date for the Interest Period with respect to
which such Carry-over Amount was calculated, until paid. Any payment in respect
of Carry-over Amount shall be applied, first, to any accrued interest payable
thereon and, second, in reduction of such Carry-over Amount. For purposes of
this Supplemental Indenture and this Appendix A, any reference to "principal" or
"interest" herein shall not include within the meaning of such words Carry-over
Amount or any interest accrued on any such Carry-over Amount. Such Carry-over
Amount shall be separately calculated for each Auction Rate Security by the
Issuer during such Interest Period in sufficient time for the Indenture Trustee
to give notice to each Noteholder of such Carry-over Amount as required in the
next succeeding sentence. Not less than four days before the Payment Date for an
Interest Period with respect to which such Carry-over Amount has been calculated
by the Issuer, the Indenture Trustee shall give written notice to each
Noteholder the Auction Agent and the Issuer, in the form provided by the Issuer,
of the Carry-over Amount applicable to each Auction Rate Security, which written
notice may accompany the payment of interest made to the Noteholder on such
Payment Date. Such notice shall state, in addition to such Carry-over Amount,
that, unless and until an Auction Rate Security has been redeemed (other than by
optional redemption), after which all accrued Carry-over Amounts (and all
accrued interest thereon) that remains unpaid shall be canceled and no
Carry-over Amount (and interest accrued thereon) shall be paid with respect to
such Auction Rate Security, (a) the Carry-over Amount (and interest accrued
thereon calculated at a rate equal to One-Month LIBOR) shall be paid by the
Indenture Trustee pursuant to an Issuer Order on an Auction Rate Security on the
earliest of (i) the date of defeasance of the Auction Rate Securities; or (ii)
the first occurring Payment Date with respect to the Auction Rate Security (or
on the date of any such optional redemption) if and to the extent that (A) the
Eligible Carry-over Make-Up Amount with respect to such subsequent Interest
Period is greater than zero; and (B) moneys are available pursuant to the terms
of the Indenture in an amount sufficient to pay all or a portion of such
Carry-over Amount (and interest accrued thereon); and (b) interest shall accrue
on the Carry-over Amount at a rate equal to One-Month LIBOR until such
Carry-over Amount is paid in full or is cancelled.
A-9
The Carry-over Amount (and interest accrued thereon) for Auction Rate
Securities shall be paid by the Indenture Trustee pursuant to an Issuer Order on
Outstanding Auction Rate Securities on the earliest of (a) the date of
defeasance of any of the Auction Rate Securities; or (b) the first occurring
Payment Date if and to the extent that (i) the Eligible Carry-over Make-Up
Amount with respect to such Interest Period is greater than zero; and (ii) on
such Payment Date there are sufficient moneys in the Revenue Fund to pay all
interest due on the Auction Rate Securities on such Payment Date, to redeem any
Auction Rate Securities required to be redeemed on such Payment Date in
accordance with the Indenture and to fund amounts required to be added to the
Reserve Fund on such Payment Date. Any Carry-over Amount (and any interest
accrued thereon) on any Auction Rate Security which is due and payable on an
Payment Date, which Auction Rate Security is to be redeemed (other than by
optional redemption) on said Payment Date, shall be paid to the Noteholder
thereof on said Payment Date to the extent that moneys are available therefor in
accordance with the provisions of this Appendix A; provided, however, that any
Carry-over Amount (and any interest accrued thereon) which is not yet due and
payable on said Payment Date shall be cancelled with respect to said Auction
Rate Security that is to be redeemed (other than by optional redemption) on said
Payment Date and shall not be paid on any succeeding Payment Date. To the extent
that any portion of the Carry-over Amount (and any interest accrued thereon)
remains unpaid after payment of a portion thereof, such unpaid portion shall be
paid in whole or in part as required hereunder until fully paid by the Indenture
Trustee on the earliest of (A) the date of defeasance of any of the Auction Rate
Securities; or (B) the next occurring Payment Date or Dates, as necessary, if
and to the extent that the conditions in the second preceding sentence are
satisfied. On any Payment Date on which the Indenture Trustee pays only a
portion of the Carry-over Amount (and any interest accrued thereon) on Auction
Rate Securities, the Indenture Trustee shall give written notice in the manner
set forth in the immediately preceding paragraph to the Noteholder of such
Auction Rate Security receiving such partial payment of the Carry-over Amount
remaining unpaid on such Auction Rate Security.
The Payment Date or other date on which such Carry-over Amount (or any
interest accrued thereon) for Auction Rate Securities shall be paid by the
Indenture Trustee, shall be determined in accordance with the provisions of the
immediately preceding paragraph, and the Indenture Trustee shall make payment of
the Carry-over Amount (and any interest accrued thereon) in the same manner as,
and from the same Fund from which, it pays interest on the Auction Rate
Securities on an Payment Date. Any payment of Carry-over Amounts (and interest
accrued thereon) shall reduce the amount of Eligible Carry-over Make-up Amount.
In the event that the Auction Agent no longer determines, or fails to
determine, when required, the Auction Note Interest Rate with respect to Auction
Rate Securities, or, if for any reason such manner of determination shall be
held to be invalid or unenforceable, the Auction Note Interest Rate for the next
succeeding Interest Period, which Interest Period shall be an Auction Period,
for Auction Rate Securities shall be the applicable Cap Rate as determined by
the Auction Agent for such next succeeding Auction Period, and if the Auction
Agent shall fail or refuse to determine the Cap Rate, the Cap Rate shall be
determined by the securities dealer appointed by the Issuer capable of making
such a determination in accordance with the provisions of this Appendix A and
written notice of such determination shall be given by such securities dealer to
the Indenture Trustee.
A-10
In the event the Indenture Trustee may be required to make any calculation
in accordance with this Section 2.01, the Trustee may hire such calculation
agents, experts, consultants or agents as it deems necessary.
SECTION 2.02 AUCTION RATE.
(a) DETERMINING THE AUCTION RATE. By purchasing Auction Rate
Securities, whether in an Auction or otherwise, each purchaser of the
Auction Rate Securities, or its Broker-Dealer, must agree and shall be
deemed by such purchase to have agreed (i) to participate in Auctions on
the terms described herein, (ii) to have its beneficial ownership of the
Auction Rate Securities maintained at all times in Book-entry Form for the
account of its Participant, which in turn will maintain records of such
beneficial ownership; and (iii) to authorize such Participant to disclose
to the Auction Agent such information with respect to such beneficial
ownership as the Auction Agent may request.
So long as the ownership of Auction Rate Securities is maintained in
Book-entry Form by the Securities Depository, an Existing Owner may sell,
transfer or otherwise dispose of Auction Rate Securities only pursuant to a
Bid or Sell Order placed in an Auction or otherwise sell, transfer or
dispose of Auction Rate Securities through a Broker-Dealer, provided that,
in the case of all transfers other than pursuant to Auctions, such Existing
Owner, its Broker-Dealer or its Participant advises the Auction Agent of
such transfer. Auctions shall be conducted on each Auction Date, if there
is an Auction Agent on such Auction Date, in the following manner:
(i) (A) Prior to the Submission Deadline on each Auction
Date;
(1) each Existing Owner of Auction Rate Securities
may submit to a Broker-Dealer by telephone or otherwise
any information as to:
a. the principal amount of Outstanding Auction
Rate Securities, if any, owned by such Existing
Owner which such Existing Owner desires to continue
to own without regard to the Auction Note Interest
Rate for the next succeeding Auction Period;
b. the principal amount of Outstanding Auction
Rate Securities, if any, which such Existing Owner
offers to sell if the Auction Note Interest Rate for
the next succeeding Auction Period shall be less
than the rate per annum specified by such Existing
Owner; and/or
c. the principal amount of Outstanding Auction
Rate Securities, if any, owned by such Existing
Owner which such Existing Owner offers to sell
without regard to the Auction Note Interest Rate for
the next succeeding Auction Period; and
A-11
(2) one or more Broker-Dealers may contact
Potential Owners to determine the principal amount of
Auction Rate Securities which each Potential Owner offers
to purchase, if the Auction Note Interest Rate for the
next succeeding Auction Period shall not be less than the
rate per annum specified by such Potential Owner.
The statement of an Existing Owner or a Potential Owner
referred to in (1) or (2) of this paragraph (A) is herein
referred to as an "Order," and each Existing Owner and each
Potential Owner placing an Order is herein referred to as a
"Bidder"; an Order described in clause (1)a. is herein referred
to as a "Hold Order"; an Order described in clauses (1)b. and (2)
is herein referred to as a "Bid"; and an Order described in
clause (1)c. is herein referred to as a "Sell Order."
(B) (1) Subject to the provisions of
Section 2.02(a)(ii) of this Appendix A, a Bid by an
Existing Owner shall constitute an irrevocable offer to
sell:
a. the principal amount of Outstanding Auction
Rate Securities specified in such Bid if the Auction
Note Interest Rate determined as provided in this
Section 2.02(a) shall be less than the rate
specified therein;
b. such principal amount, or a lesser
principal amount of Outstanding Auction Rate
Securities to be determined as set forth in Section
2.02(a)(iv)(A)(4) of this Appendix A, if the Auction
Note Interest Rate determined as provided in this
Section 2.02(a) shall be equal to the rate specified
therein; or
c. such principal amount, or a lesser
principal amount of Outstanding Auction Rate
Securities to be determined as set forth in Section
2.02(a)(iv)(B)(3) of this Appendix A, if the rate
specified therein shall be higher than the
applicable Maximum Rate and Sufficient Bids have not
been made.
(2) Subject to the provisions of
Section 2.02(a)(ii) of this Appendix A, a Sell Order by
an Existing Owner shall constitute an irrevocable offer
to sell:
a. the principal amount of Outstanding Auction
Rate Securities specified in such Sell Order; or
b. such principal amount, or a lesser
principal amount of Outstanding Auction Rate
Securities set forth in
A-12
Section 2.02(a)(iv)(B)(3) of this Appendix A, if
Sufficient Bids have not been made.
(3) Subject to the provisions of
Section 2.02(a)(ii) of this Appendix A, a Bid by a
Potential Owner shall constitute an irrevocable offer to
purchase:
a. the principal amount of Outstanding Auction
Rate Securities specified in such Bid if the Auction
Note Interest Rate determined as provided in this
Section 2.02(a) shall be higher than the rate
specified in such Bid; or
b. such principal amount, or a lesser
principal amount of Outstanding Auction Rate
Securities set forth in Section 2.02(a)(iv)(A)(5) of
this Appendix A, if the Auction Note Interest Rate
determined as provided in this Section 2.02(a) shall
be equal to the rate specified in such Bid.
(ii) (A) Each Broker-Dealer shall submit in writing to the
Auction Agent prior to the Submission Deadline on each Auction
Date all Orders obtained by such Broker-Dealer and shall specify
with respect to each such Order:
(1) the name of the Bidder placing such Order;
(2) the aggregate principal amount of Auction Rate
Securities that are the subject of such Order;
(3) to the extent that such Bidder is an Existing
Owner:
a. the principal amount of Auction Rate
Securities, if any, subject to any Hold Order placed
by such Existing Owner;
b. the principal amount of Auction Rate
Securities, if any, subject to any Bid placed by
such Existing Owner and the rate specified in such
Bid; and
c. the principal amount of Auction Rate
Securities, if any, subject to any Sell Order placed
by such Existing Owner; and
(4) to the extent such Bidder is a Potential Owner,
the rate specified in such Potential Owner's Bid.
A-13
(B) If any rate specified in any Bid contains more than
three figures to the right of the decimal point, the Auction
Agent shall round such rate up to the next higher .001%.
(C) If an Order or Orders covering all Outstanding
Auction Rate Securities owned by an Existing Owner is not
submitted to the Auction Agent prior to the Submission Deadline,
the Auction Agent shall deem a Hold Order to have been submitted
on behalf of such Existing Owner covering the principal amount of
Outstanding Auction Rate Securities owned by such Existing Owner
and not subject to an Order submitted to the Auction Agent.
(D) Neither the Issuer, the Indenture Trustee nor the
Auction Agent shall be responsible for any failure of a
Broker-Dealer to submit an Order to the Auction Agent on behalf
of any Existing Owner or Potential Owner.
(E) If any Existing Owner submits through a
Broker-Dealer to the Auction Agent one or more Orders covering in
the aggregate more than the principal amount of Outstanding
Auction Rate Securities owned by such Existing Owner, such Orders
shall be considered valid as follows and in the following order
of priority:
(1) All Hold Orders shall be considered valid, but
only up to the aggregate principal amount of Outstanding
Auction Rate Securities owned by such Existing Owner, and
if the aggregate principal amount of Auction Rate
Securities subject to such Hold Orders exceeds the
aggregate principal amount of Auction Rate Securities
owned by such Existing Owner, the aggregate principal
amount of Auction Rate Securities subject to each such
Hold Order shall be reduced pro rata so that the
aggregate principal amount of Auction Rate Securities
subject to such Hold Order equals the aggregate principal
amount of Outstanding Auction Rate Securities owned by
such Existing Owner.
(2) a. Any Bid shall be considered valid up to an
amount equal to the excess of the principal amount
of Outstanding Auction Rate Securities owned by such
Existing Owner over the aggregate principal amount
of Auction Rate Securities subject to any Hold Order
referred to in clause (A) of this paragraph (ii);
b. subject to subclause (1) of this clause
(E), if more than one Bid with the same rate is
submitted on behalf of such Existing Owner and the
aggregate principal amount of Outstanding Auction
Rate Securities subject to
A-14
such Bids is greater than such excess, such Bids
shall be considered valid up to an amount equal to
such excess;
c. subject to subclauses (1) and (2) of this
clause (E), if more than one Bid with different
rates are submitted on behalf of such Existing
Owner, such Bids shall be considered valid first in
the ascending order of their respective rates until
the highest rate is reached at which such excess
exists and then at such rate up to the amount of
such excess; and
d. in any such event, the amount of
Outstanding Auction Rate Securities, if any, subject
to Bids not valid under this clause (E) shall be
treated as the subject of a Bid by a Potential Owner
at the rate therein specified; and
(3) All Sell Orders shall be considered valid up to
an amount equal to the excess of the principal amount of
Outstanding Auction Rate Securities owned by such
Existing Owner over the aggregate principal amount of
Auction Rate Securities subject to Hold Orders referred
to in clause (1) of this paragraph (v) and valid Bids
referred to in clause (2) of this paragraph (E).
(F) If more than one Bid for Auction Rate Securities is
submitted on behalf of any Potential Owner, each Bid submitted
shall be a separate Bid with the rate and principal amount
therein specified.
(G) An Existing Owner that offers to purchase additional
Auction Rate Securities is, for purposes of such offer, treated
as a Potential Owner.
(H) Any Bid or Sell Order submitted by an Existing Owner
covering an aggregate principal amount of Auction Rate Securities
not equal to an Authorized Denomination shall be rejected and
shall be deemed a Hold Order. Any Bid submitted by a Potential
Owner covering an aggregate principal amount of Auction Rate
Securities not equal to an Authorized Denomination shall be
rejected.
(I) Any Bid specifying a rate higher than the applicable
Maximum Rate will (1) be treated as a Sell Order if submitted by
an Existing Owner and (2) not be accepted if submitted by a
Potential Owner.
(J) Any Order submitted in an Auction by a Broker-Dealer
to the Auction Agent prior to the Submission Deadline on any
Auction Date shall be irrevocable.
A-15
(iii) (A) Not earlier than the Submission Deadline on each
Auction Date, the Auction Agent shall assemble all valid Orders
submitted or deemed submitted to it by the Broker-Dealers (each
such Order as submitted or deemed submitted by a Broker-Dealer
being herein referred to individually as a "Submitted Hold
Order," a "Submitted Bid" or a "Submitted Sell Order," as the
case may be, or as a "Submitted Order," and collectively as
"Submitted Hold Orders," "Submitted Bids" or "Submitted Sell
Orders," as the case may be, or as "Submitted Orders") and shall
determine:
(1) the excess of the total principal amount of
Outstanding Auction Rate Securities over the sum of the
aggregate principal amount of Outstanding Auction Rate
Securities subject to Submitted Hold Orders (such excess
being herein referred to as the "Available Auction Rate
Securities"), and
(2) from the Submitted Orders whether:
a. the aggregate principal amount of
Outstanding Auction Rate Securities subject to
Submitted Bids by Potential Owners specifying one or
more rates equal to or lower than the applicable
Maximum Rate;
exceeds or is equal to the sum of:
b. the aggregate principal amount of
Outstanding Auction Rate Securities subject to
Submitted Bids by Existing Owners specifying one or
more rates higher than the applicable Maximum Rate;
and
c. the aggregate principal amount of
Outstanding Auction Rate Securities subject to
Submitted Sell Orders;
(in the event such excess or such equality exists,
other than because all of the Outstanding Auction Rate
Securities are subject to Submitted Hold Orders, such
Submitted Bids described in subclause a. above shall be
referred to collectively as "Sufficient Bids"); and
(3) if Sufficient Bids exist, the Bid Auction Rate,
which shall be the lowest rate specified in such
Submitted Bids such that if:
a. (x) each Submitted Bid from Existing Owners
specifying such lowest rate; and (y) all other
Submitted Bids from Existing Owners specifying lower
rates were rejected, thus entitling such Existing
Owners to
A-16
continue to own the principal amount of Auction Rate
Securities subject to such Submitted Bids; and
b. (x) each such Submitted Bid from Potential
Owners specifying such lowest rate; and (y) all
other Submitted Bids from Potential Owners
specifying lower rates were accepted;
the result would be that such Existing Owners described in
subclause a. above would continue to own an aggregate principal
amount of Outstanding Auction Rate Securities which, when added
to the aggregate principal amount of Outstanding Auction Rate
Securities to be purchased by such Potential Owners described in
subclause b. above, would equal not less than the Available
Auction Rate Securities.
(B) Promptly after the Auction Agent has made the
determinations pursuant to Section 2.02(a)(iii)(A) of this
Appendix A, the Auction Agent shall advise the Indenture Trustee,
the Broker-Dealers and the Issuer of the Net Loan Rate, Maximum
Rate and the All Hold Rate and the components thereof on the
Auction Date provided, however, the Auction Agent shall have no
obligation to determine the Net Loan Rate except on any Auction
Date on which Sufficient Bids do not exist for such Auction Date.
The Indenture Trustee may conclusively rely on the Auction Agent
with respect to receipt or non-receipt of such rates described
above without duty to know, determine or further examine. Based
on such determinations, the Auction Rate for the next succeeding
Interest Period will be established as follows:
(1) if Sufficient Bids exist, that the Auction Rate
for the next succeeding Interest Period shall be equal to
the Bid Auction Rate so determined;
(2) if Sufficient Bids do not exist (other than
because all of the Outstanding Auction Rate Securities
are subject to Submitted Hold Orders), that the Auction
Rate for the next succeeding Interest Period shall be
equal to the applicable Maximum Rate; or
(3) if all Outstanding Auction Rate Securities are
subject to Submitted Hold Orders, that the Auction Rate
for the next succeeding Interest Period shall be equal to
the applicable All Hold Rate.
(C) Promptly after the Auction Agent has determined the
Auction Rate, the Auction Agent shall determine and advise the
Indenture Trustee of the Auction Note Interest Rate, which rate
shall be the least of (x) the Auction Rate, (y) the Net Loan Rate
and (z) the applicable Maximum Rate.
(iv) Existing Owners shall continue to own the principal
amount of Auction Rate Securities that are subject to Submitted
Hold Orders. If the Cap Rate is equal to or greater than the Bid
Auction Rate and if Sufficient Bids have
A-17
been received by the Auction Agent, the Bid Auction Rate will be
the Auction Note Interest Rate, and Submitted Bids and Submitted
Sell Orders will be accepted or rejected and the Auction Agent
will take such other action as described below in subparagraph
(A).
If the Net Loan Rate is less than the Auction Rate, the
Net Loan Rate will be the Auction Note Interest Rate unless the
Auction Rate and the Net Loan Rate are both greater than the
applicable Maximum Rate, in which event the Auction Note Interest
Rate shall be equal to the Maximum Rate. If the Auction Agent has
not received Sufficient Bids (other than because all of the
Outstanding Auction Rate Securities are subject to Submitted Hold
Orders), the Auction Note Interest Rate will be the lesser of the
Net Loan Rate and the applicable Maximum Rate. In any of the
cases described above, Submitted Orders will be accepted or
rejected and the Auction Agent will take such other action as
described below in subparagraph (B).
(A) If Sufficient Bids have been made and the
Maximum Rate is equal to or greater than the Bid Auction
Rate (in which case the Auction Note Interest Rate shall
be the Bid Auction Rate), all Submitted Sell Orders shall
be accepted and, subject to the provisions of clauses (4)
and (5) of this Section 2.02(a)(iv), Submitted Bids shall
be accepted or rejected as follows in the following order
of priority, and all other Submitted Bids shall be
rejected:
(1) Existing Owners' Submitted Bids specifying
any rate that is higher than the Auction Note
Interest Rate shall be accepted, thus requiring each
such Existing Owner to sell the aggregate principal
amount of Auction Rate Securities subject to such
Submitted Bids;
(2) Existing Owners' Submitted Bids specifying
any rate that is lower than the Auction Note
Interest Rate shall be rejected, thus entitling each
such Existing Owner to continue to own the aggregate
principal amount of Auction Rate Securities subject
to such Submitted Bids;
(3) Potential Owners' Submitted Bids specifying
any rate that is lower than the Auction Note
Interest Rate shall be accepted;
(4) Each Existing Owners' Submitted Bid
specifying a rate that is equal to the Auction Note
Interest Rate shall be rejected, thus entitling such
Existing Owner to continue to own the aggregate
principal amount of Auction Rate Securities subject
to such Submitted Bid, unless the aggregate
principal amount of Outstanding Auction Rate
Securities subject to all such Submitted Bids shall
be greater than the principal amount of Auction Rate
A-18
Securities (the "remaining principal amount") equal
to the excess of the Available Auction Rate
Securities over the aggregate principal amount of
Auction Rate Securities subject to Submitted Bids
described in clauses (2) and (3) of this Section
2.02(a)(iv)(A), in which event such Submitted Bid of
such Existing Owner shall be rejected in part, and
such Existing Owner shall be entitled to continue to
own the principal amount of Auction Rate Securities
subject to such Submitted Bid, but only in an amount
equal to the aggregate principal amount of Auction
Rate Securities obtained by multiplying the
remaining principal amount by a fraction, the
numerator of which shall be the principal amount of
Outstanding Auction Rate Securities owned by such
Existing Owner subject to such Submitted Bid and the
denominator of which shall be the sum of the
principal amount of Outstanding Auction Rate
Securities subject to such Submitted Bids made by
all such Existing Owners that specified a rate equal
to the Auction Note Interest Rate, subject to the
provisions of Section 2.02(a)(iv)(D) of this
Appendix A; and
(5) Each Potential Owner's Submitted Bid
specifying a rate that is equal to the Auction Note
Interest Rate shall be accepted, but only in an
amount equal to the principal amount of Auction Rate
Securities obtained by multiplying the excess of the
aggregate principal amount of Available Auction Rate
Securities over the aggregate principal amount of
Auction Rate Securities subject to Submitted Bids
described in clauses (2), (3) and (4) of this
Section 2.02(a)(iv)(A) by a fraction the numerator
of which shall be the aggregate principal amount of
Outstanding Auction Rate Securities subject to such
Submitted Bid and the denominator of which shall be
the sum of the principal amount of Outstanding
Auction Rate Securities subject to Submitted Bids
made by all such Potential Owners that specified a
rate equal to the Auction Note Interest Rate,
subject to the provisions of Section 2.02(a)(iv)(D)
of this Appendix A.
(B) If Sufficient Bids have not been made (other
than because all of the Outstanding Auction Rate
Securities are subject to submitted Hold Orders), or if
the Maximum Rate is less than the Bid Auction Rate (in
which case the Auction Note Interest Rate shall be the
Maximum Rate), subject to the provisions of Section
2.02(a)(iv)(D) of this Appendix A, Submitted Orders shall
be accepted or rejected as follows in the following order
of priority and all other Submitted Bids shall be
rejected:
(1) Existing Owners' Submitted Bids specifying
any rate that is equal to or lower than the Auction
Note Interest Rate shall be rejected, thus entitling
such Existing Owners to continue
A-19
to own the aggregate principal amount of Auction
Rate Securities subject to such Submitted Bids;
(2) Potential Owners' Submitted Bids specifying
(x) any rate that is equal to or lower than the
Auction Note Interest Rate shall be accepted and (y)
any rate that is higher than the Auction Note
Interest Rate shall be rejected; and
(3) each Existing Owner's Submitted Bid
specifying any rate that is higher than the Auction
Note Interest Rate and the Submitted Sell Order of
each Existing Owner shall be accepted, thus
entitling each Existing Owner that submitted any
such Submitted Bid or Submitted Sell Order to sell
the Auction Rate Securities subject to such
Submitted Bid or Submitted Sell Order, but in both
cases only in an amount equal to the aggregate
principal amount of Auction Rate Securities obtained
by multiplying the aggregate principal amount of
Auction Rate Securities subject to Submitted Bids
described in clause (2)(x) of this Section
2.02(a)(iv)(B) by a fraction the numerator of which
shall be the aggregate principal amount of
Outstanding Auction Rate Securities owned by such
Existing Owner subject to such submitted Bid or
Submitted Sell Order and the denominator of which
shall be the aggregate principal amount of
Outstanding Auction Rate Securities subject to all
such Submitted Bids and Submitted Sell Orders.
(C) If all Auction Rate Securities are subject to
Submitted Hold Orders, all Submitted Bids shall be
rejected.
(D) If, as a result of the procedures described in
paragraph (A) or (B) of this Section 2.02(a)(iv), any
Existing Owner would be entitled or required to sell, or
any Potential Owner would be entitled or required to
purchase, a principal amount of Auction Rate Securities
that is not equal to an Authorized Denomination, the
Auction Agent shall, in such manner as in its sole
discretion it shall determine, round up or down the
principal amount of Auction Rate Securities to be
purchased or sold by any Existing Owner or Potential
Owner so that the principal amount of Auction Rate
Securities purchased or sold by each Existing Owner or
Potential Owner shall be equal to an Authorized
Denomination.
(E) If, as a result of the procedures described in
paragraph (B) of this Section 2.02(a)(iv), any Potential
Owner would be entitled or required to purchase less than
an Authorized Denomination of Auction Rate Securities,
the Auction Agent shall, in such manner as in its sole
discretion it shall determine, allocate Auction Rate
Securities for purchase among Potential Owners so that
only Auction Rate Securities in Authorized Denominations
are purchased by any Potential Owner, even if
A-20
such allocation results in one or more of such Potential
Owners not purchasing any Auction Rate Securities.
(v) Based on the result of each Auction, the Auction
Agent shall determine the aggregate principal amount of Auction
Rate Securities to be purchased and the aggregate principal
amount of Auction Rate Securities to be sold by Potential Owners
and Existing Owners on whose behalf each Broker-Dealer submitted
Bids or Sell Orders and, with respect to each Broker-Dealer, to
the extent that such aggregate principal amount of Auction Rate
Securities to be sold differs from such aggregate principal
amount of Auction Rate Securities to be purchased, determine to
which other Broker-Dealer or Broker-Dealers acting for one or
more purchasers such Broker-Dealer shall deliver, or from which
other Broker-Dealer or Broker-Dealers acting for one or more
sellers such Broker-Dealer shall receive, as the case may be,
Auction Rate Securities.
(vi) Any calculation by the Auction Agent or the
Indenture Trustee, as applicable, of the Auction Note Interest
Rate, the Maximum Rate, the All Hold Rate, the Net Loan Rate and
the Non-Payment Rate shall, in the absence of manifest error, be
binding on all other parties. In the event the Indenture Trustee
may be required to make any calculation in accordance with the
provisions of this Section 2.02(a)(vi) the Indenture Trustee may
hire such calculation agents, experts, consultants or agents as
it deems necessary.
(vii) Notwithstanding anything in this Appendix A to the
contrary, (A) no Auction for the Auction Rate Securities for an
Auction Period of less than 180 days will be held on any Auction
Date hereunder on which there are insufficient moneys in the
Revenue Fund to pay, or otherwise held by the Indenture Trustee
under the Indenture and available to pay, the principal of and
interest due on the Auction Rate Securities on the Payment Date
immediately following such Auction Date, and (B) no Auction will
be held on any Auction Date hereunder during the continuance of a
Payment Default. The Indenture Trustee shall promptly notify the
Auction Agent of any such occurrence.
(b) APPLICATION OF INTEREST PAYMENTS FOR THE AUCTION RATE
SECURITIES.
(i) The Indenture Trustee shall determine not later than
2:00 p.m., eastern time, on the Business Day next succeeding
Payment Date, whether a Payment Default has occurred. If a
Payment Default has occurred, the Indenture Trustee shall, not
later than 2:15 p.m., eastern time, on such Business Day, send a
notice thereof in substantially the form of Exhibit C attached
hereto to the Auction Agent by telecopy or similar means and, if
such Payment Default is cured, the Indenture Trustee shall
immediately send a notice in substantially the form of Exhibit D
attached hereto to the Auction Agent by telecopy or similar
means.
A-21
(ii) The Indenture Trustee shall pay to the Auction
Agent, in immediately available funds out of amounts in the
Operating Fund, an amount equal to the Auction Agent Fee as set
forth in the Auction Agent Agreement. Not later than 2:00 p.m.,
eastern time, on each Auction Date, the Indenture Trustee shall
pay to the Auction Agent, in immediately available funds out of
amounts in the Operating Fund, an amount equal to the Broker-
Dealer Fee as calculated in the Auction Agent Agreement. The
Indenture Trustee shall, from time to time at the request of
the Auction Agent and at the direction of an Authorized Officer,
reimburse the Auction Agent for its reasonable expenses as
provided in the Auction Agent Agreement, such expenses to be paid
out of amounts in the Operating Fund.
(c) CALCULATION OF MAXIMUM RATE, ALL HOLD RATE, NET LOAN
RATE, APPLICABLE LIBOR RATE, AND NON-PAYMENT RATE. The Auction Agent
shall calculate the applicable Maximum Rate, Net Loan Rate, Applicable
LIBOR Rate, and All Hold Rate, as the case may be, on each Auction
Date and shall notify the Indenture Trustee and the Broker-Dealers of
the applicable Maximum Rate, Net Loan Rate, Applicable LIBOR Rate, and
All Hold Rate, as the case may be, as provided in the Auction Agent
Agreement; provided, that if the ownership of the Auction Rate
Securities is no longer maintained in Book-entry Form, or if a Payment
Default has occurred, then the Indenture Trustee shall determine the
applicable Maximum Rate, Net Loan Rate, Applicable LIBOR Rate, All
Hold Rate and Non-Payment Rate for each such Interest Period. If the
ownership of the Auction Rate Securities is no longer maintained in
Book-entry Form by the Securities Depository, the Indenture Trustee
shall calculate the applicable Maximum Rate and the Net Loan Rate on
the Business Day immediately preceding the first day of each Interest
Period after the delivery of certificates representing the Auction
Rate Securities pursuant to the Indenture. If a Payment Default shall
have occurred, the Indenture Trustee shall calculate the Non-Payment
Rate on the Interest Rate Determination Date for (i) each Interest
Period commencing after the occurrence and during the continuance of
such Payment Default and (ii) any Interest Period commencing less than
two Business Days after the cure of any Payment Default. The
determination by the Indenture Trustee or the Auction Agent, as the
case may be, of the applicable Maximum Rate, Net Loan Rate, Applicable
LIBOR Rate, All Hold Rate and Non-Payment Rate shall (in the absence
of manifest error) be final and binding upon all parties. If
calculated or determined by the Auction Agent, the Auction Agent shall
promptly advise the Indenture Trustee of the applicable Maximum Rate,
Net Loan Rate, Applicable LIBOR Rate, and All Hold Rate. In the event
the Indenture Trustee may be required to make any calculation in
accordance with the provisions of this Section 2.02(c), the Indenture
Trustee may hire such calculation agents, experts, consultants or
agents as it deems necessary.
(d) NOTIFICATION OF RATES, AMOUNTS AND PAYMENT DATES.
(i) By 12:00 p.m., eastern time, on the Business Day
following each Regular Record Date, the Indenture Trustee shall
determine the
A-22
aggregate amounts of interest distributable on the next
succeeding Payment Date to the beneficial owners of Auction Rate
Securities.
(ii) At least four days prior to any Payment Date, the
Indenture Trustee shall:
(A) confirm with the Auction Agent, so long as no
Payment Default has occurred and is continuing and the
ownership of the Auction Rate Securities is maintained in
Book-entry Form by the Securities Depository, (1) the
date of such next Payment Date and (2) the amount payable
to the Auction Agent on the Auction Date pursuant to
Section 2.02(b)(ii) of this Appendix A; and
(B) advise the Securities Depository, so long as
the ownership of the Auction Rate Securities is
maintained in Book-entry Form by the Securities
Depository, upon request, of the aggregate amount of
interest distributable on such next Payment Date to the
beneficial owners of each Class of the Auction Rate
Securities.
If any day scheduled to be an Payment Date shall be changed after the
Indenture Trustee shall have given the notice or confirmation referred to
in clause (i) of the preceding sentence, the Indenture Trustee shall, not
later than 11:15 a.m., eastern time, on the Business Day next preceding the
earlier of the new Payment Date or the old Payment Date, by such means as
the Indenture Trustee deems practicable, give notice of such change to the
Auction Agent, so long as no Payment Default has occurred and is continuing
and the ownership of the Auction Rate Securities is maintained in
Book-entry Form by the Securities Depository.
(e) AUCTION AGENT.
(i) Deutsche Bank Trust Company Americas is hereby appointed
as Initial Auction Agent to serve as agent for the Issuer in
connection with Auctions. The Indenture Trustee is hereby directed to
enter into the Initial Auction Agent Agreement with Deutsche Bank
Trust Company Americas, as the Initial Auction Agent. Any Substitute
Auction Agent shall be (A) a bank, national banking association or
trust company duly organized under the laws of the United States of
America or any state or territory thereof having its principal place
of business in the Borough of Manhattan, New York, or such other
location as approved by the Indenture Trustee in writing and having a
combined capital stock or surplus of at least $50,000,000; or (B) a
member of the National Association of Securities Dealers, Inc., having
a capitalization of at least $50,000,000, and, in either case,
authorized by law to perform all the duties imposed upon it hereunder
and under the Auction Agent Agreement. The Auction Agent may at any
time resign and be discharged of the duties and obligations created by
this Appendix A by giving at least 90 days' notice to the Indenture
Trustee, each Broker-Dealer and the Issuer.
A-23
The Auction Agent may be removed at any time by the Indenture Trustee
upon the written direction of an Authorized Officer or by the holders
of a majority of the aggregate principal amount of the Auction Rate
Securities then Outstanding, and if by such Noteholders, by an
instrument signed by such Noteholders or their attorneys and filed
with the Auction Agent, the Issuer and the Indenture Trustee upon at
least 90 days' written notice. Neither resignation nor removal of the
Auction Agent pursuant to the preceding two sentences shall be
effective until and unless a Substitute Auction Agent has been
appointed and has accepted such appointment. If required by the
Issuer, a Substitute Auction Agent Agreement shall be entered into
with a Substitute Auction Agent. Notwithstanding the foregoing, the
Auction Agent may terminate the Auction Agent Agreement if, within 25
days after notifying the Indenture Trustee, each Broker-Dealer and the
Issuer in writing that it has not received payment of any Auction
Agent Fee due it in accordance with the terms of the Auction Agent
Agreement, the Auction Agent does not receive such payment.
(ii) If the Auction Agent shall resign or be removed or be
dissolved, or if the property or affairs of the Auction Agent shall be
taken under the control of any state or federal court or
administrative body because of bankruptcy or insolvency, or for any
other reason, the Indenture Trustee at the direction of an Authorized
Officer, shall use its best efforts to appoint a Substitute Auction
Agent.
(iii) The Auction Agent is acting as agent for the Issuer in
connection with Auctions. In the absence of bad faith, negligent
failure to act or negligence on its part, the Auction Agent shall not
be liable for any action taken, suffered or omitted or any error of
judgment made by it in the performance of its duties under the Auction
Agent Agreement and shall not be liable for any error of judgment made
in good faith unless the Auction Agent shall have been negligent in
ascertaining (or failing to ascertain) the pertinent facts.
(f) BROKER-DEALER.
(i) The Auction Agent will enter into Broker-Dealer
Agreements with ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc. and GMAC Commercial Holdings
Capital Markets Corp. as the initial Broker-Dealers. An Authorized
Officer may, from time to time, approve one or more additional persons
to serve as a Broker-Dealer under the Broker-Dealer Agreements and
shall be responsible for providing such Broker-Dealer Agreements to
the Indenture Trustee and the Auction Agent.
(ii) Any Broker-Dealer may be removed at any time, at the
request of an Authorized Officer, but there shall, at all times, be at
least one Broker-Dealer appointed and acting as such.
A-24
(g) CHANGES IN AUCTION PERIOD OR PERIODS AND CERTAIN PERCENTAGES.
(i) While any of the Auction Rate Securities are Outstanding,
the applicable Broker-Dealer, with the written consent of an
Authorized Officer, may, from time to time, change the length of one
or more Auction Periods (an "Auction Period Adjustment"), in order to
conform with then current market practice with respect to similar
securities or to accommodate economic and financial factors that may
affect or be relevant to the length of the Auction Period and the
interest rate borne by the Auction Rate Securities. The Broker-Dealer
shall initiate the Auction Period Adjustment by giving written notice
to the Indenture Trustee, the Administrator, the Auction Agent, each
Rating Agency and the Securities Depository in substantially the form
of, or containing substantially the information contained in, Exhibit
E attached hereto at least 10 days prior to the Auction Date for such
Auction Period.
(ii) Any such adjusted Auction Period shall not be less than
seven days nor more than 270 days. Any adjusted Auction Period of more
than 120 days may not be initiated without a Rating Confirmation.
(iii) An Auction Period Adjustment shall take effect only if
(A) the Indenture Trustee and the Auction Agent receive, by 11:00
a.m., eastern time, on the Business Day before the Auction Date for
the first such Auction Period, notice from the applicable
Broker-Dealer in substantially the form attached as, or containing
substantially the same information contained in, Exhibit F attached
hereto, authorizing the Auction Period Adjustment specified in such
certificate; and (B) Sufficient Bids exist as of the Auction on the
Auction Date for such first Auction Period. If the condition referred
to in (A) above is not met, the applicable Auction Note Interest Rate
for the next Auction Period shall be determined pursuant to the above
provisions of this Section 2.02 and the Auction Period shall be the
Auction Period determined without reference to the proposed change. If
the condition referred to in (A) is met but the condition referred in
(B) above is not met, the applicable Auction Note Interest Rate for
the next Auction Period shall be the applicable Maximum Rate and the
Auction Period shall be the Auction Period determined without
reference to the proposed change.
In connection with any Auction Period Adjustment, the Auction Agent
shall provide such further notice to such parties as is specified in
Section 2.03 of the Auction Agent Agreement.
(h) CHANGES IN THE AUCTION DATE. The applicable Broker-Dealer, with
the written consent of an Authorized Officer and, if applicable, upon
receipt of the opinion of Note Counsel as required below, may specify a
different Auction Date (but in no event more than five Business Days
earlier) than the Auction Date that would otherwise be determined in
accordance with the definition of "Auction Date" in Section 1.01 of this
Appendix A with respect to one or more specified Auction Periods in order
to conform with then current market practice with respect to similar
securities or to accommodate economic and financial factors that may affect
or be relevant to the day of the week
A-25
constituting an Auction Date and the interest rate borne on the Auction
Rate Securities. The applicable Broker-Dealer shall deliver a written
request for consent to such change in the length of the Auction Date to the
Issuer at least 14 days prior to the effective date of such change. If the
Issuer shall have delivered such written consent to the applicable
Broker-Dealer, such Broker-Dealer shall provide notice of its determination
to specify an earlier Auction Date for one or more Auction Periods by means
of a written notice delivered at least 10 days prior to the proposed
changed Auction Date to the Indenture Trustee, the Auction Agent, the
Issuer, each Rating Agency and the Securities Depository. Such notice shall
be substantially in the form of, or contain substantially the information
contained in, Exhibit G attached hereto. Notwithstanding the foregoing, the
applicable Broker-Dealer may, without consent from an Authorized Officer,
an opinion of Note Counsel, request for consent or notice to the Indenture
Trustee, the Auction Agent, the Issuer, any Rating Agency or the Securities
Depository, (i) defer any Auction Date to the next succeeding Business Day,
if the Auction Date would, without such deferral, not be a Business Day;
and (ii) in such event, shorten the next succeeding Auction period by the
number of days that the prior Auction Date was deferred.
In connection with any change described in this Section 2.02(h), the
Auction Agent shall provide such further notice to such parties as is
specified in Section 2.03 of the Auction Agent Agreement.
SECTION 2.03. ADDITIONAL PROVISIONS REGARDING THE INTEREST RATES ON THE
AUCTION RATE SECURITIES. The determination of a Variable Rate by the Auction
Agent or any other Person pursuant to the provisions of the applicable Section
of this Article II shall be conclusive and binding on the Noteholders of the
Auction Rate Securities to which such Variable Rate applies, and the Issuer and
the Indenture Trustee may rely thereon for all purposes.
In no event shall the cumulative amount of interest paid or payable on the
Auction Rate Securities (including interest calculated as provided herein, plus
any other amounts that constitute interest on the Auction Rate Securities under
applicable law, which are contracted for, charged, reserved, taken or received
pursuant to the Auction Rate Securities or related documents) calculated from
the Date of Closing of the Auction Rate Securities through any subsequent day
during the term of the Auction Rate Securities or otherwise prior to payment in
full of the Auction Rate Securities exceed the amount permitted by applicable
law. If the applicable law is ever judicially interpreted so as to render
usurious any amount called for under the Auction Rate Securities or related
documents or otherwise contracted for, charged, reserved, taken or received in
connection with the Auction Rate Securities, or if the redemption or
acceleration of the maturity of the Auction Rate Securities results in payment
to or receipt by the Noteholder or any former Noteholder of the Auction Rate
Securities of any interest in excess of that permitted by applicable law, then,
notwithstanding any provision of the Auction Rate Securities or related
documents to the contrary, all excess amounts theretofore paid or received with
respect to the Auction Rate Securities shall be credited on the principal
balance of the Auction Rate Securities (or, if the Auction Rate Securities have
been paid or would thereby be paid in full, refunded by the recipient thereof),
and the provisions of the Auction Rate Securities and related documents shall
automatically and immediately be deemed reformed and the amounts thereafter
collectible hereunder and thereunder reduced, without the necessity of the
execution of any new document, so as to comply with the applicable law, but so
as to permit the
A-26
recovery of the fullest amount otherwise called for under the Auction Rate
Securities and under the related documents.
▇-▇▇
▇▇▇▇▇▇▇ ▇-▇
FORM OF SENIOR AUCTION RATE SECURITIES
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, THIS GLOBAL NOTE MAY BE
TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE
SECURITIES DEPOSITORY (AS DEFINED IN THE INDENTURE) OR TO A SUCCESSOR
SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY.
GMAC EDUCATION LOAN FUNDING TRUST-I
GMAC ELF STUDENT LOAN ASSET-BACKED NOTE
SENIOR CLASS A-[1AR] [2AR] [3AR]
AUCTION RATE SECURITIES
REGISTERED NO. A-__ REGISTERED $__________
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
June 1, 2040 Variable March 21, 2003 _____________
PRINCIPAL SUM: _______________________________________________AND 00/100 DOLLARS
NOTEHOLDER: CEDE & CO.
GMAC EDUCATION LOAN FUNDING TRUST-I, a Delaware statutory trust organized
under the laws of the State of Delaware (the "Issuer," which term includes any
successor entity under the Indenture of Trust, dated as of March 1, 2003 (the
"Indenture") and the Series 2003-1
Supplemental Indenture of Trust dated as of
March 1, 2003 (as amended, the "Series 2003-1 Supplemental Indenture"), each
between the Issuer and Zions First National Bank, as Indenture Trustee (the
"Indenture Trustee," which term includes any successor indenture trustee under
the Indenture)) for value received, hereby promises to pay to the Noteholder
(stated above) or
registered assigns, the Principal Sum of (stated above), but solely from the
revenues and receipts hereinafter specified and not otherwise, on the Maturity
Date specified above (subject to the right of prior redemption hereinafter
described), upon presentation and surrender of this note at the Corporate Trust
Office of the Indenture Trustee, as paying agent, Indenture Trustee,
authenticating agent and registrar for the Notes, or a duly appointed successor
paying agent, and to pay interest in arrears on said Principal Sum, but solely
from the revenues and receipts hereinafter specified and not otherwise, to the
Noteholder hereof from the most recent Payment Date to which interest has been
paid hereon, until the payment of said principal sum in full.
Any capitalized words and terms used as defined words and terms in this
note and not otherwise defined herein shall have the meanings given them in the
Indenture.
This note shall bear interest at an Auction Rate, all as determined in
Appendix A of the Series 2003-1 Supplemental Indenture.
The principal of and interest on this note are payable in lawful money of
the United States of America. If the specified date for any payment of principal
or interest accrued to such specified date shall be a day other than a Business
Day then such payment may be made on the next succeeding Business Day, with the
same force and effect as if made on the specified date for such payment without
additional interest.
Interest payable on this note shall be computed on the assumption that each
year contains 360 days and actual days elapsed and rounding the resultant figure
to the fifth decimal place.
This note is one of a series of notes of the Issuer designated GMAC ELF
Student Loan Asset-Backed Notes, Senior Class A-[1AR][2AR][3AR] Auction Rate
Securities, dated the Closing Date, in the aggregate original principal amount
of $__________ (the "Class A-[1AR][2AR][3AR] Notes") which have been authorized
by the Issuer, and issued by the Issuer pursuant to the Indenture. The Issuer
is, simultaneously with the Class A-[1AR][2AR][3AR] Notes, issuing $__________
of its GMAC ELF Student Loan Asset-Backed Notes, Senior Class A Notes in two
other classes (together with the Class A-[1AR][2AR][3AR] Notes, the "Class A
Notes") and $14,000,000 of its GMAC ELF Student Loan Asset-Backed Notes,
Subordinate Class B-1AR Auction Rate Securities in one class (the "Class B
Notes"). The proceeds of such notes have been used by the Issuer, together with
other moneys of the Issuer, for the purpose of providing funds to finance the
acquisition of student loans, fund a reserve fund and to pay certain costs and
expenses in connection with the issuance of such notes. The Indenture provides
for the issuance of additional notes (the "Additional Notes") which may be
secured on a parity with or subordinate to the Class A Notes and the Class B
Notes as determined by the Issuer. The Class A Notes, the Class B Notes and any
Additional Notes are collectively referred to herein as the "Notes."
MANDATORY REDEMPTION. This note is subject to mandatory redemption, all as
described in the Indenture.
OPTIONAL REDEMPTION OR PURCHASE. The Issuer may redeem or purchase or cause
to be purchased all of the Notes on any Payment Date on which the aggregate
current principal balance of all the Notes shall be less than or equal to 10% of
the initial aggregate principal
A-1-2
balance of all the Notes issued under the Indenture on the respective Closing
Date, at a redemption or purchase price equal to the aggregate current principal
balance of all the Notes, plus accrued interest on the Notes through the day
preceding the Payment Date on which the redemption or purchase occurs.
NOTICE OF REDEMPTION OR PURCHASE. Notice of the call for redemption shall
be given by the Indenture Trustee by mailing a copy of the notice at least 15
days prior to the redemption or purchase date to the Noteholders to be redeemed
in whole or in part at the address of such Noteholder last showing on the
registration books. Failure to give such notice or any defect therein shall not
affect the validity of any proceedings for the redemption or purchase of such
Auction Rate Securities for which no such failure or defect occurs. All Notes
called for redemption or purchase will cease to bear interest after the
specified redemption or purchase date, provided funds for their payment are on
deposit at the place of payment at the time. If less than all Notes are to be
redeemed or purchased, Notes shall be selected for redemption or purchase as
provided in the Indenture.
The Indenture provides that the Issuer may enter into a derivative product
between the Issuer and a derivative provider (a "Reciprocal Payor"), as
originally executed and as amended or supplemented, or other interest rate hedge
agreement between the Issuer and a Reciprocal Payor, as originally executed and
as amended or supplemented. Payments due to a Reciprocal Payor from the Issuer
pursuant to the applicable Derivative Product are referred to herein as "Issuer
Derivative Payments," and may be secured on a parity with any series of Notes.
The principal of and interest on the Class A Notes and any Additional Notes
issued on a parity with the Class A Notes and any Issuer Derivative Payments
secured on a parity with the Class A Notes are payable on a superior basis to
such payments on the Class B Notes and any Additional Notes issued on a parity
or subordinate to the Class B Notes; provided, however, that current principal
and interest may be paid on the Class B Notes and any Additional Notes issued on
a parity with the Class B Notes or subordinate to the Class B Notes if all
principal and interest payments due and owing at such time on the Class A Notes
and any Additional Notes issued on a parity with the Class A Notes and any
Issuer Derivative Payments secured on a parity with the Class A Notes have been
previously made or provided for as provided in the Indenture.
Reference is hereby made to the Indenture, copies of which are on file in
the Corporate Trust Office of the Indenture Trustee, and to all of the
provisions of which any Noteholder of this note by his acceptance hereof hereby
assents, for definitions of terms; the description of and the nature and extent
of the security for the Notes; the Issuer's student loan acquisition program;
the revenues and other money pledged to the payment of the principal of and
interest on the Notes; the nature and extent and manner of enforcement of the
pledge; the conditions upon which the Indenture may be amended or supplemented
with or without the consent of the Noteholders and any Reciprocal Payor; the
rights and remedies of the Noteholder hereof with respect hereto and thereto,
including the limitations upon the right of a Noteholder hereof to institute any
suit, action, or proceeding in equity or at law with respect hereto and thereto;
the rights, duties, and obligations of the Issuer and the Indenture Trustee
thereunder; the terms and provisions upon which the liens, pledges, charges,
trusts, and covenants made therein may be discharged at or prior to the stated
maturity or earlier redemption of this note, and this note thereafter shall no
A-1-3
longer be secured by the Indenture or be deemed to be Outstanding, as defined in
the Indenture, thereunder; and for the other terms and provisions thereof.
THE NOTES ARE LIMITED OBLIGATIONS OF THE ISSUER, PAYABLE SOLELY FROM, AND
FURTHER SECURED BY, THE TRUST ESTATE, AS DEFINED IN THE INDENTURE.
No recourse, either directly or indirectly, shall be had for the payment of
the principal of and interest on this note or any claim based hereon or in
respect hereof or of the Indenture, against the Indenture Trustee, the Delaware
Trustee, or any incorporator, director, officer, employee, or agent of the
Issuer, nor against the State of Delaware, or any official thereof, but the
obligation to pay all amounts required by the Indenture securing this note and
the obligation to do and perform the covenants and acts required of the Issuer
therein and herein shall be and remain the responsibility and obligation of said
Issuer, limited as herein set forth.
Subject to the restrictions specified in the Indenture, this note is
transferable on the Note Register kept for that purpose by the Indenture
Trustee, as registrar, upon surrender of this note for transfer at the Corporate
Trust Office of the Indenture Trustee, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Noteholder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes of the same series, Stated
Maturity, of authorized denominations, bearing interest at the same rate, and
for the same aggregate principal amount will be issued to the designated
transferee or transferees. At the option of the Noteholder, any Note may be
exchanged for other Notes in authorized denominations upon surrender of the Note
to be exchanged at the Corporate Trust Office of the Indenture Trustee. Upon any
such presentation for exchange, one or more new Notes of the same series, Stated
Maturity, in authorized denominations, bearing interest at the same rate, and
for the same aggregate principal amount as the Note or Notes so surrendered will
be issued to the Noteholder of the Note or Notes so surrendered; and the Note or
Notes so surrendered shall thereupon be cancelled by the Indenture Trustee.
Except as otherwise permitted in the Indenture, this global note may be
transferred in whole but not in part only to the Securities Depository or a
nominee thereof, as defined in the Indenture, or to a successor Securities
Depository or its nominee.
The Issuer, the Indenture Trustee, and any agent of either of them shall
treat the Person in whose name this note is registered as the Noteholder hereof
(a) on the record date for purposes of receiving timely payment of interest
hereon; (b) on the date of surrender of this note for purposes of receiving
payment of principal hereof at its stated maturity; and (c) for all other
purposes, whether or not this note is overdue, and neither the Issuer, the
Indenture Trustee, nor any such agent shall be affected by notice to the
contrary.
To the extent permitted by the Indenture, modifications or alterations of
the Indenture and any supplemental indenture may be made with the consent of
less than all of the holders of the Notes then Outstanding or without the
consent of any of such Noteholders (by reason of a change in the Act or
Regulation or to cure ambiguities or conflicts), but such modification or
alteration is not permitted to affect the maturity date, Stated Maturity,
amount, Payment Date, or rate of interest on any Outstanding Notes or affect the
rights of the Noteholders of less than all of the Notes Outstanding.
A-1-4
Any capitalized term used herein and not otherwise defined herein shall
have the same meaning ascribed to such term in the herein defined Indenture
unless the context shall clearly indicate otherwise.
It is hereby certified and recited that all acts and things required by the
laws of the State of Delaware to happen, exist, and be performed precedent to
and in the issuance of this note, and the execution of said Indenture, have
happened, exist and have been performed as so required.
A-1-5
IN WITNESS WHEREOF, the Issuer has caused this note to be executed in its
name and on its behalf by the Delaware Trustee, all as of the Original Issue
Date.
GMAC EDUCATION LOAN FUNDING TRUST-I
By: WILMINGTON TRUST COMPANY, not
in its individual capacity but solely as
Delaware Trustee
By
-------------------------------------------
Name
-----------------------------------------
Title
----------------------------------------
A-1-6
CERTIFICATE OF AUTHENTICATION
This note is one of the Class A-__ Notes designated therein and described
in the within-mentioned Indenture.
ZIONS FIRST NATIONAL BANK, as
Indenture Trustee
By
------------------------------------------,
Authorized Signatory
Authentication Date:
_______________________________
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
unto __________ (Social Security or other identifying number __________) the
within note and all rights thereunder and hereby irrevocably appoints
____________________ attorney to transfer the within note on the books kept for
registration thereof, with full power of substitution in the premises.
Dated:________________ Signed: *
-------------------------------------
Signature Guaranteed by:
*
--------------------------------------------------
*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. Such signature must be
guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar,
which requirements include membership or
participation in STAMP or such other "signature
guarantee program" as may be determined by the
Indenture Trustee in addition to, or in
substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.
▇-▇-▇
▇▇▇▇▇▇▇ ▇-▇
FORM OF SUBORDINATE AUCTION RATE SECURITIES
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
EXCEPT AS OTHERWISE PROVIDED IN THE INDENTURE, THIS GLOBAL NOTE MAY BE
TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE
SECURITIES DEPOSITORY (AS DEFINED IN THE INDENTURE) OR TO A SUCCESSOR
SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY.
GMAC EDUCATION LOAN FUNDING TRUST-I
GMAC ELF STUDENT LOAN ASSET-BACKED NOTE
SUBORDINATE CLASS B-1
AUCTION RATE SECURITIES
REGISTERED NO. B- REGISTERED $_______
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
June 1, 2040 [Variable] March 21, 2003 _____________
PRINCIPAL SUM: _______________________________________________AND 00/100 DOLLARS
NOTEHOLDER: CEDE & CO.
GMAC EDUCATION LOAN FUNDING TRUST-I, a Delaware statutory trust organized
under the laws of the State of Delaware (the "Issuer," which term includes any
successor corporation under the Indenture of Trust, dated as of March 1, 2003
(the "Original Indenture") and the Series 2003-1
Supplemental Indenture of Trust
dated as of March 1, 2003 (as amended, the "Series 2003-1 Supplemental
Indenture," and together with the Original Indenture, the "Indenture"), each
between the Issuer and Zions First National Bank, as Indenture Trustee (the
"Indenture Trustee," which term includes any successor indenture trustee under
the Indenture))
for value received, hereby promises to pay to the Noteholder (stated above) or
registered assigns, the Principal Sum of (stated above), but solely from the
revenues and receipts hereinafter specified and not otherwise, on the Maturity
Date specified above (subject to the right of prior redemption hereinafter
described), upon presentation and surrender of this note at the principal office
of the Indenture Trustee, as paying agent, Indenture Trustee, authenticating
agent and registrar for the Notes, or a duly appointed successor paying agent,
and to pay interest in arrears on said Principal Sum, but solely from the
revenues and receipts hereinafter specified and not otherwise, to the Noteholder
hereof from the most recent Payment Date to which interest has been paid hereon,
until the payment of said principal sum in full.
Any capitalized words and terms used as defined words and terms in this
note and not otherwise defined herein shall have the meanings given them in the
Indenture.
This note shall bear interest at an Auction Rate, all as determined in
Appendix A of the Series 2003-1 Supplemental Indenture.
The principal of and interest on this note are payable in lawful money of
the United States of America. If the specified date for any payment of principal
or interest accrued to such specified date shall be a day other than a Business
Day then such payment may be made on the next succeeding Business Day, with the
same force and effect as if made on the specified date for such payment without
additional interest.
Interest payable on this note shall be computed on the assumption that each
year contains 360 days and actual days elapsed and rounding the resultant figure
to the fifth decimal place.
This note is one of a series of notes of the Issuer designated GMAC ELF
Asset-Backed Notes, Subordinate Class B-1AR Auction Rate Securities, dated the
Closing Date, in the aggregate original principal amount of $14,000,000 (the
"Class B-1 Notes") which have been authorized by the Issuer, and issued by the
Issuer pursuant to the Indenture. The Issuer is, simultaneously with the Class
B-1 Notes, issuing $206,000,000 of its GMAC ELF Student Loan Asset-Backed Notes,
Senior Class A Notes in three classes (collectively, the "Class A Notes"). The
proceeds of such notes have been used by the Issuer, together with other moneys
of the Issuer, for the purpose of providing funds to finance the acquisition of
student loans, fund a reserve fund and to pay certain costs and expenses in
connection with the issuance of such notes. The Indenture provides for the
issuance of additional notes (the "Additional Notes") which may be secured on a
parity with or subordinate to the Class A Notes and the Class B Notes as
determined by the Issuer. The Class A Notes, the Class B Notes and any
Additional Notes are collectively referred to herein as the "Notes."
MANDATORY REDEMPTION. This note is subject to mandatory redemption as
described in the Indenture.
OPTIONAL REDEMPTION OR PURCHASE. The Issuer may redeem or purchase or cause
to be purchased all of the Notes on any Payment Date on which the aggregate
current principal balance of all the Notes shall be less than or equal to 10% of
the initial aggregate principal balance of all the Notes issued under the
Indenture on the respective Closing Dates, at a redemption or purchase price
equal to the aggregate current principal balance of all the Notes,
A-2-2
plus accrued interest on the Notes through the day preceding the Payment Date on
which the redemption or purchase occurs.
NOTICE OF REDEMPTION OR PURCHASE. Notice of the call for redemption shall
be given by the Indenture Trustee by mailing a copy of the notice at least 15
days prior to the redemption or purchase date to the Noteholders to be redeemed
in whole or in part at the address of such Noteholder last showing on the
registration books. Failure to give such notice or any defect therein shall not
affect the validity of any proceedings for the redemption or purchase of such
Auction Rate Securities for which no such failure or defect occurs. All Notes
called for redemption or purchase will cease to bear interest after the
specified redemption or purchase date, provided funds for their payment are on
deposit at the place of payment at the time. If less than all Notes are to be
redeemed or purchased, Notes shall be selected for redemption or purchase as
provided in the Indenture.
The Indenture provides that the Issuer may enter into a derivative product
between the Issuer and a derivative provider (a "Reciprocal Payor"), as
originally executed and as amended or supplemented, or other interest rate hedge
agreement between the Issuer and a Reciprocal Payor, as originally executed and
as amended or supplemented. Payments due to a Reciprocal Payor from the Issuer
pursuant to the applicable Derivative Product are referred to herein as "Issuer
Derivative Payments," and may be secured on a parity with any series of Notes.
The principal of and interest on the Class A Notes and any Additional Notes
issued on a parity with the Class A Notes and any Issuer Derivative Payments
secured on a parity with the Class A Notes are payable on a superior basis to
such payments on the Class B Notes and any Additional Notes issued on a parity
or subordinate to the Class B Notes; provided, however, that current principal
and interest may be paid on the Class B Notes and any Additional Notes issued on
a parity with the Class B Notes or subordinate to the Class B Notes if all
principal and interest payments due and owing at such time on the Class A Notes
and any Additional Notes issued on a parity with the Class A Notes and any
Issuer Derivative Payments secured on a parity with the Class A Notes have been
previously made or provided for as provided in the Indenture.
Reference is hereby made to the Indenture, copies of which are on file in
the Corporate Trust Office of the Indenture Trustee, and to all of the
provisions of which any Noteholder of this note by his acceptance hereof hereby
assents, for definitions of terms; the description of and the nature and extent
of the security for the Notes; the Issuer's student loan acquisition program;
the revenues and other money pledged to the payment of the principal of and
interest on the Notes; the nature and extent and manner of enforcement of the
pledge; the conditions upon which the Indenture may be amended or supplemented
with or without the consent of the Noteholders and any Reciprocal Payor; the
rights and remedies of the Noteholder hereof with respect hereto and thereto,
including the limitations upon the right of a Noteholder hereof to institute any
suit, action, or proceeding in equity or at law with respect hereto and thereto;
the rights, duties, and obligations of the Issuer and the Indenture Trustee
thereunder; the terms and provisions upon which the liens, pledges, charges,
trusts, and covenants made therein may be discharged at or prior to the stated
maturity or earlier redemption of this note, and this note thereafter shall no
longer be secured by the Indenture or be deemed to be Outstanding, as defined in
the Indenture, thereunder; and for the other terms and provisions thereof.
A-2-3
THE NOTES ARE LIMITED OBLIGATIONS OF THE ISSUER, PAYABLE SOLELY FROM, AND
FURTHER SECURED BY, THE TRUST ESTATE, AS DEFINED IN THE INDENTURE.
No recourse, either directly or indirectly, shall be had for the payment of
the principal of and interest on this note or any claim based hereon or in
respect hereof or of the Indenture, against the Indenture Trustee, the Delaware
Trustee, or any incorporator, director, officer, employee, or agent of the
Issuer, nor against the State of Delaware, or any official thereof, but the
obligation to pay all amounts required by the Indenture securing this note and
the obligation to do and perform the covenants and acts required of the Issuer
therein and herein shall be and remain the responsibility and obligation of said
Issuer, limited as herein set forth.
Subject to the restrictions specified in the Indenture, this note is
transferable on the Note Register kept for that purpose by the Indenture
Trustee, as registrar, upon surrender of this note for transfer at the principal
office of the Indenture Trustee, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Noteholder hereof or his attorney duly authorized in writing,
and thereupon one or more new Notes of the same series, Stated Maturity, of
authorized denominations, bearing interest at the same rate, and for the same
aggregate principal amount will be issued to the designated transferee or
transferees. At the option of the Noteholder, any Note may be exchanged for
other Notes in authorized denominations upon surrender of the Note to be
exchanged at the principal office of the Indenture Trustee. Upon any such
presentation for exchange, one or more new Notes of the same series, Stated
Maturity, in authorized denominations, bearing interest at the same rate, and
for the same aggregate principal amount as the Note or Notes so surrendered will
be issued to the Noteholder of the Note or Notes so surrendered; and the Note or
Notes so surrendered shall thereupon be cancelled by the Indenture Trustee.
Except as otherwise permitted in the Indenture, this global note may be
transferred in whole but not in part only to the Securities Depository or a
nominee thereof, as defined in the Indenture, or to a successor Securities
Depository or its nominee.
The Issuer, the Indenture Trustee, and any agent of either of them shall
treat the Person in whose name this note is registered as the Noteholder hereof
(a) on the record date for purposes of receiving timely payment of interest
hereon; (b) on the date of surrender of this note for purposes of receiving
payment of principal hereof at its stated maturity; and (c) for all other
purposes, whether or not this note is overdue, and neither the Issuer, the
Indenture Trustee, nor any such agent shall be affected by notice to the
contrary.
To the extent permitted by the Indenture, modifications or alterations of
the Indenture and any supplemental indenture may be made with the consent of
less than all of the holders of the Notes then outstanding or without the
consent of any of such Noteholders (by reason of a change in the Act or
Regulation or to cure ambiguities or conflicts), but such modification or
alteration is not permitted to affect the maturity date, Stated Maturity,
amount, Payment Date, or rate of interest on any outstanding Notes or affect the
rights of the Noteholders of less than all of the Notes outstanding.
A-2-4
Any capitalized term used herein and not otherwise defined herein shall
have the same meaning ascribed to such term in the herein defined Indenture
unless the context shall clearly indicate otherwise.
It is hereby certified and recited that all acts and things required by the
laws of the State of Delaware to happen, exist, and be performed precedent to
and in the issuance of this note, and the passage of said resolution and the
execution of said Indenture, have happened, exist and have been performed as so
required.
A-2-5
IN WITNESS WHEREOF, the Issuer has caused this note to be executed in its
name and on its behalf by the Delaware Trustee, all as of the Original Issue
Date.
GMAC EDUCATION LOAN FUNDING TRUST-I
By: WILMINGTON TRUST COMPANY, not
in its individual capacity but solely as
Delaware Trustee
By
-------------------------------------------
Name
-----------------------------------------
Title
----------------------------------------
A-2-6
CERTIFICATE OF AUTHENTICATION
This note is one of the Class B-1AR Notes designated therein and described
in the within-mentioned Indenture.
ZIONS FIRST NATIONAL BANK, as
Indenture Trustee
By
------------------------------------------,
Authorized Signatory
Authentication Date:
____________________________
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
unto __________ (Social Security or other identifying number __________) the
within note and all rights thereunder and hereby irrevocably appoints
____________________ attorney to transfer the within note on the books kept for
registration thereof, with full power of substitution in the premises.
Dated: Signed: *
--------------------- -------------------------------------
Signature Guaranteed by:
*
----------------------------------------------------
*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. Such signature must be
guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar,
which requirements include membership or
participation in STAMP or such other "signature
guarantee program" as may be determined by the
Indenture Trustee in addition to, or in
substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.
A-2-7
EXHIBIT B
SERIES 2003-1 CLOSING CASH FLOW PROJECTIONS
EXHIBIT C
NOTICE OF PAYMENT DEFAULT
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Class _____
Auction Rate Securities
NOTICE IS HEREBY GIVEN that a Payment Default has occurred and is
continuing with respect to the Auction Rate Securities identified above. The
next Auction for the Auction Rate Securities will not be held. The Auction Rate
for the Auction Rate Securities for the next succeeding Interest Period shall be
the Non-Payment Rate.
ZIONS FIRST NATIONAL BANK, as
Indenture Trustee
Dated: By
--------------------- -------------------------------------------
Name
-----------------------------------------
Title
----------------------------------------
EXHIBIT D
NOTICE OF CURE OF PAYMENT DEFAULT
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Class _____
Auction Rate Securities
NOTICE IS HEREBY GIVEN that a Payment Default with respect to the Auction
Rate Securities identified above has been waived or cured. The next Payment Date
is __________ __, ____ and the Auction Date is __________ __, ____.
ZIONS FIRST NATIONAL BANK, as
Indenture Trustee
Dated: By
--------------------- -------------------------------------------
Name
-----------------------------------------
Title
----------------------------------------
EXHIBIT E
NOTICE OF PROPOSED CHANGE IN LENGTH
OF ONE OR MORE AUCTION PERIODS
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Class _____
Auction Rate Securities
Notice is hereby given that [____________________], as Broker-Dealer
proposes to change the length of one or more Auction Periods pursuant to the
Indenture of Trust, as amended (the "Indenture") as follows:
1. The change shall take effect on __________ __, ____, the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").
2. The Auction Period Adjustment in Paragraph 1 shall take place only if
(a) the Indenture Trustee and the Auction Agent receive, by 11:00 a.m., eastern
time, on the Business Day before the Auction Date for the Auction Period
commencing on the Effective Date, a certificate from the Issuer, as required by
the Indenture authorizing the change in length of one or more Auction Periods;
and (b) Sufficient Bids exist on the Auction Date for the Auction Period
commencing on the Effective Date.
3. If the condition referred to in paragraph (a) above is not met, the
Auction Rate for the Auction Period commencing on the Effective Date will be
determined pursuant to the Auction Procedures and the Auction Period shall be
the Auction Period determined without reference to the proposed change. If the
condition referred to in paragraph (a) is met but the condition referred to in
paragraph (b) above is not met, the Auction Rate for the Auction Period
commencing on the Effective Date shall be the Maximum Rate and the Auction
Period shall be the Auction Period determined without reference to the proposed
change.
4. It is hereby represented, upon advice of the Auction Agent for the
Class _____ Notes described herein, that there were Sufficient Bids for such
Class _____ Notes at the Auction immediately preceding the date of this Notice.
5. Terms not defined in this Notice shall have the meanings set forth in
the Indenture entered into in connection with the Class _____ Notes.
[BROKER-DEALER], as Broker-Dealer
Dated: By
--------------------- ---------------------------------------
Name
-------------------------------------
Title
------------------------------------
Approved By: GMAC EDUCATION LOAN FUNDING TRUST-I
By
---------------------------------------
Name
-------------------------------------
Title
------------------------------------
EXHIBIT F
NOTICE ESTABLISHING CHANGE IN LENGTH
OF ONE OR MORE AUCTION PERIODS
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Class _____
Auction Rate Securities
Notice is hereby given that [____________________], as Broker-Dealer hereby
establishes new lengths for one or more Auction Periods pursuant to the
Indenture of Trust, as amended:
1. The change shall take effect on __________ __, ____, the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").
2. For the Auction Period commencing on the Effective Date, the Interest
Rate Adjustment Date shall be __________ __, ____, or the next succeeding
Business Day if such date is not a Business Day.
3. For Auction Periods occurring after the Auction Period commencing on
the Effective Date, the Interest Rate Adjustment Date shall be
[_______________(date) and every ______________(number) ______________(day of
week) thereafter] [every ______________(number) ______________(day of week)
after the date set forth in paragraph 2 above], or the next Business Day if any
such day is not a Business Day; provided, however, that the length of subsequent
Auction Periods shall be subject to further change hereafter as provided in the
Indenture of Trust.
4. The changes described in paragraphs 2 and 3 above shall take place
only upon delivery of this Notice and the satisfaction of other conditions set
forth in the Indenture of Trust and our prior notice dated _______________
regarding the proposed change.
5. Terms not defined in this Notice shall have the meanings set forth in
the Indenture of Trust relating to the Class _____ Notes.
[BROKER-DEALER], as Broker-Dealer
Dated: By
--------------------- ---------------------------------------
Name
-------------------------------------
Title
------------------------------------
Approved By: GMAC EDUCATION LOAN FUNDING TRUST-I
By
---------------------------------------
Name
-------------------------------------
Title
------------------------------------
F-2
EXHIBIT G
NOTICE OF CHANGE IN AUCTION DATE
GMAC Education Loan Funding Trust-I
GMAC ELF Student Loan Asset-Backed Notes
Class _____
Auction Rate Securities
Notice is hereby given by [__________], as Broker-Dealer for the Auction
Rate Securities, that with respect to the Auction Rate Securities, the Auction
Date is hereby changed as follows:
1. With respect to Class _____ Notes, the definition of "Auction Date"
shall be deemed amended by substituting "_______________(number) Business Day"
in the second line thereof and by substituting "_______________(number) Business
Days" for "two Business Days" in subsection (d) thereof.
2. This change shall take effect on __________ __, ____ which shall be
the Auction Date for the Auction Period commencing on _______________.
3. The Auction Date for the Class _____ Notes shall be subject to further
change hereafter as provided in the Indenture of Trust.
4. Terms not defined in this Notice shall have the meaning set forth in
the Indenture of Trust, as amended, relating to the Class _____ Notes.
[BROKER-DEALER], as Broker-Dealer
Dated: By
--------------------- ------------------------------------
Name
----------------------------------
Title
---------------------------------
