EXHIBIT 4.10
AMENDED AND RESTATED TRUST AGREEMENT
among
ONYX ACCEPTANCE FINANCIAL CORPORATION,
as Depositor
WILMINGTON TRUST COMPANY
as Owner Trustee
and
JPMORGAN CHASE BANK,
as Trust Agent
Dated as of August 1, 2004
ONYX ACCEPTANCE OWNER TRUST 2004-C
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS.............................................................................. 1
Section 1.01 Capitalized Terms................................................................ 1
Section 1.02 Other Definitional Provisions.................................................... 4
Section 1.03 Usage of Terms................................................................... 4
Section 1.04 Section References............................................................... 5
Section 1.05 Accounting Terms................................................................. 5
ARTICLE II ORGANIZATION............................................................................ 5
Section 2.01 Name............................................................................. 5
Section 2.02 Office........................................................................... 5
Section 2.03 Purposes and Powers.............................................................. 5
Section 2.04 Appointment of Owner Trustee..................................................... 6
Section 2.05 Initial Capital Contribution of Owner Trust Estate............................... 6
Section 2.06 Declaration of Trust............................................................. 6
Section 2.07 Title to Trust Estate............................................................ 7
Section 2.08 Situs of Trust................................................................... 7
Section 2.09 Representations and Warranties of the Depositor.................................. 7
Section 2.10 Federal Income Tax Allocations................................................... 8
Section 2.11 Separateness Covenants........................................................... 8
ARTICLE III RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS................................ 9
Section 3.01 Initial Ownership................................................................ 9
Section 3.02 The Residual Interest Instruments and the Notes.................................. 9
Section 3.03 Execution, Authentication and Delivery of Residual Interest Instruments
and Notes........................................................................ 9
Section 3.04 Registration of Transfer and Exchange of Residual Interest Instruments........... 10
Section 3.05 Mutilated, Destroyed, Lost or Stolen Residual Interest Instruments............... 11
Section 3.06 Persons Deemed Owners............................................................ 11
Section 3.07 Access to List of Owners' Names and Addresses.................................... 11
Section 3.08 Maintenance of Office or Agency.................................................. 12
Section 3.09 Temporary Residual Interest Instruments.......................................... 12
Section 3.10 Appointment of Paying Agent...................................................... 12
Section 3.11 Restrictions on Transfer of Residual Interest Instruments........................ 13
ARTICLE IV ACTIONS BY OWNER TRUSTEE................................................................ 14
Section 4.01 Prior Notice to Owners with Respect to Certain Matters........................... 14
Section 4.02 Action by Owners with Respect to Certain Matters................................. 15
Section 4.03 Action by Owners with Respect to Bankruptcy...................................... 15
Section 4.04 Restrictions on Owners' Power.................................................... 15
Section 4.05 Majority Control................................................................. 15
Section 4.06 Certain Litigation Matters....................................................... 15
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ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES............................................... 16
Section 5.01 Establishment of the Residual Distribution Account............................... 16
Section 5.02 Application of Trust Funds....................................................... 16
Section 5.03 Method of Payment................................................................ 17
Section 5.04 No Segregation of Monies; No Interest............................................ 17
Section 5.05 Accounting and Reports to the Owners, the Internal Revenue Service and Others.... 17
Section 5.06 Signature on Returns; Tax Matters Partner........................................ 17
ARTICLE VI AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT................................... 18
Section 6.01 General Authority................................................................ 18
Section 6.02 General Duties................................................................... 18
Section 6.03 Action Upon Instruction.......................................................... 18
Section 6.04 No Duties Except as Specified in this Agreement or in Instructions............... 19
Section 6.05 No Action Except Under Specified Documents or Instructions....................... 20
Section 6.06 Restrictions..................................................................... 20
ARTICLE VII CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT....................................... 20
Section 7.01 Acceptance of Trusts and Duties.................................................. 20
Section 7.02 Furnishing of Documents.......................................................... 23
Section 7.03 Representations and Warranties................................................... 23
Section 7.04 Reliance; Advice of Counsel...................................................... 24
Section 7.05 Not Acting in Individual Capacity................................................ 24
Section 7.06 Owner Trustee and Trust Agent Not Liable for Residual Interest
Instruments, Notes or Contracts.................................................. 25
Section 7.07 Owner Trustee and Trust Agent May Own Residual Interest Instruments
and Notes........................................................................ 25
ARTICLE VIII COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE AND TRUST AGENT..................... 25
Section 8.01 Owner Trustee's and Trust Agent's Fees and Expenses.............................. 25
Section 8.02 Indemnification.................................................................. 26
Section 8.03 Payments to the Owner Trustee or Trust Agent..................................... 26
ARTICLE IX TERMINATION OF TRUST AGREEMENT.......................................................... 26
Section 9.01 Termination of Trust Agreement................................................... 26
ARTICLE X SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER TRUSTEE AND TRUST AGENT....................... 27
Section 10.01 Eligibility Requirements for Owner Trustee....................................... 27
Section 10.02 Resignation or Removal of Owner Trustee.......................................... 27
Section 10.03 Successor Owner Trustee.......................................................... 28
Section 10.04 Merger or Consolidation of Owner Trustee......................................... 29
Section 10.05 Appointment of Co-Trustee or Separate Trustee.................................... 29
Section 10.06 Appointment of Trust Agent....................................................... 29
ARTICLE XI MISCELLANEOUS........................................................................... 31
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Section 11.01 Supplements and Amendments....................................................... 31
Section 11.02 [RESERVED]....................................................................... 32
Section 11.03 Limitations on Rights of Others.................................................. 32
Section 11.04 Notices.......................................................................... 32
Section 11.05 Severability of Provisions....................................................... 33
Section 11.06 Counterparts..................................................................... 33
Section 11.07 Successors and Assigns........................................................... 33
Section 11.08 No Petition...................................................................... 33
Section 11.09 No Recourse...................................................................... 33
Section 11.10 Residual Interest Instruments Nonassessable and Fully Paid....................... 34
Section 11.11 Headings......................................................................... 34
Section 11.12 Governing Law.................................................................... 34
Section 11.13 Depositor Payment Obligation..................................................... 34
Section 11.14 Certain Matters Regarding the Insurer............................................ 34
Section 11.15 Fiduciary Duties................................................................. 35
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EXHIBITS
Exhibit A - Form of Certificate of Trust
Exhibit B - Form of Residual Interest Instrument
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This AMENDED AND RESTATED TRUST AGREEMENT, dated as of August 1, 2004, is
among ONYX ACCEPTANCE FINANCIAL CORPORATION, a Delaware corporation (the
"DEPOSITOR"), WILMINGTON TRUST COMPANY, a Delaware banking corporation, as owner
trustee (the "OWNER TRUSTEE"), and JPMORGAN CHASE BANK, a New York banking
corporation, as agent of the Owner Trustee for the limited purposes set forth
herein (the "TRUST AGENT"), amends and restates in its entirety that certain
Trust Agreement dated August 1, 2004, between the Depositor and the Owner
Trustee.
ARTICLE I
DEFINITIONS
Section 1.01 Capitalized Terms. Except as otherwise provided in this
Agreement, whenever used in this Agreement the following words and phrases,
unless the context otherwise requires, shall have the following meanings:
"ADMINISTRATION AGREEMENT" means the administration agreement, dated as of
August 1, 2004, among the Trust, the Depositor, the Indenture Trustee, the Trust
Agent and Onyx, as administrator, as the same may be amended or supplemented
from time to time.
"ADMINISTRATOR" means the Person acting as "Administrator" under the
Administration Agreement.
"AGREEMENT" means this Amended and Restated Trust Agreement, as the same
may be further amended and supplemented from time to time.
"BENEFIT PLAN" means (i) an employee benefit plan (as such term is defined
in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA,
(ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity
whose underlying assets include plan assets by reason of a plan's investment in
the entity.
"CERTIFICATE OF TRUST" means the Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute, substantially in the
form of Exhibit A hereto.
"CERTIFICATE REGISTER" and "Certificate Registrar" mean the register
maintained and the registrar (or any successor thereto) appointed pursuant to
Section 3.04.
"CLOSING DATE" means August 26, 2004.
"CODE" means the Internal Revenue Code of 1986, as amended, and Treasury
Regulations promulgated thereunder.
"COMMISSION" means the United States Securities and Exchange Commission.
"DEPOSITOR" means Onyx Acceptance Financial Corporation in its capacity as
depositor hereunder, and its successors.
"DOMESTIC" when applied to a corporation or partnership, means created or
organized in the United States or under the law of the United States or of any
state of the United States unless, in the case of a partnership, the Secretary
of Treasury provides otherwise by regulations.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"FOREIGN ESTATE" means an estate the income of which, from sources outside
the United States which are not effectively connected with the conduct of a
trade or business within the United States, is not includible in gross income
for United States federal income tax purposes.
"GRANT" shall have the meaning assigned to such term in Section 2.03.
"INDENTURE" means the indenture dated as of August 1, 2004, between the
Trust, as Issuer, and JPMorgan Chase Bank, as Indenture Trustee, as the same may
be amended or supplemented from time to time.
"INSURER" means XL Capital Assurance Inc., and its successors.
"NOTE DISTRIBUTION ACCOUNT" shall have the meaning assigned to such term
in the Sale and Servicing Agreement.
"NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class A-4 Notes, in each case issued pursuant to the Indenture.
"ORIGINAL AGREEMENT" means the Trust Agreement dated as of August 1, 2004
between the Depositor and the Owner Trustee.
"ONYX" means Onyx Acceptance Corporation, and its successors.
"OWNER" means each Person in whose name a Residual Interest Instrument is
registered in the Certificate Register.
"OWNER TRUSTEE" means Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as owner trustee under
this Agreement, and any successor Owner Trustee hereunder.
"OWNER TRUSTEE CORPORATE TRUST OFFICE" means the office of the Owner
Trustee at which its corporate trust business shall be administered, which
initially shall be Xxxxxx Square North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx,
Xxxxxxxx 00000-0000, or such other office at such other address as the Owner
Trustee may designate from time to time by notice to the Owners, the Servicer,
the Depositor and the Insurer.
"PAYING AGENT" means the Trust Agent or any successor in interest thereto
or any other paying agent or co-paying agent appointed pursuant to Section 3.10
and authorized by the Issuer to make payments to and distributions from the
Residual Distribution Account.
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"PERCENTAGE INTEREST" means with respect to each Residual Interest
Instrument, the percentage portion of the Residual Interest evidenced thereby as
stated on the face of such Residual Interest Instrument.
"PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"PROTECTED PURCHASER" shall have the meaning given such term in the UCC.
"RECORD DATE" means, with respect to any Distribution Date, the day
immediately preceding such Distribution Date.
"RESIDUAL DISTRIBUTION ACCOUNT" means the account established and
maintained as such pursuant to Section 5.01.
"RESIDUAL INTEREST" means the residual interest in the Trust, which
represents the right to receive amounts to be distributed or paid to holders of
the "Residual Interests" (as defined in the Sale and Servicing Agreement),
pursuant to the terms of the Sale and Servicing Agreement.
"RESIDUAL INTEREST INSTRUMENT" means an instrument substantially in the
form attached as Exhibit B hereto and evidencing the Residual Interest.
"RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any
officer within the Owner Trustee Corporate Trust Office, and with respect to the
Trust Agent, any officer within the Trust Agent Office, including any Vice
President, assistant secretary or other officer or assistant officer of the
Owner Trustee or the Trust Agent, as the case may be, customarily performing
functions similar to those performed by the people who at such time shall be
officers and has direct responsibility for the administration of this Agreement.
"SALE AND SERVICING AGREEMENT" means the sale and servicing agreement,
dated as of August 1, 2004, among the Trust, as Issuer, the Depositor, as
Seller, Onyx, as Servicer and Custodian, the Indenture Trustee and the Trust
Agent as the same may be amended or supplemented from time to time.
"SECRETARY OF STATE" means the Secretary of State of the State of
Delaware.
"SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
seller under the Sale and Servicing Agreement, and its successors.
"STATUTORY TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware
Code, 12 Del. C.ss.3801, et seq., as the same may be amended from time to time.
"TREASURY REGULATIONS" means regulations, including proposed or temporary
regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.
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"TRUST" means the statutory trust established by this Agreement.
"TRUST AGENT" means JPMorgan Chase Bank, a New York banking corporation,
not in its individual capacity but solely as agent of the Owner Trustee under
this Agreement, and any successor Trust Agent hereunder.
"TRUST AGENT OFFICE" means the office of the Trust Agent at 0 Xxx Xxxx
Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Institutional Trust
Services/Structured Finance Services - Onyx Acceptance Owner Trust 2004-C or
such other office at such other address as the Trust Agent may designate from
time to time by notice to the Owners, the Servicer, the Depositor and the
Insurer.
"TRUST ESTATE" means all right, title and interest of the Trust in and to
the Collateral.
"UCC" means the Uniform Commercial Code as in effect in the State of New
York.
"UNDERWRITERS" means Wachovia Capital Markets, LLC, Xxxxxxx Lynch, Pierce,
Xxxxxx & Xxxxx Incorporated and Credit Suisse First Boston LLC.
"UNITED STATES PERSON" means
(A) a citizen or resident of the United States,
(B) a Domestic partnership or Domestic limited liability company,
(C) a Domestic corporation,
(D) any estate (other than a Foreign Estate), and
(E) any trust if --
(i) a court within the United States is able to exercise
primary supervision over the administration of the
trust, and
(ii) one or more United States persons have the authority to
control all substantial decisions of the trust.
Section 1.02 Other Definitional Provisions. Capitalized terms used that
are not otherwise defined herein shall have the meanings ascribed thereto in the
Sale and Servicing Agreement or, if not defined therein, in the Indenture.
Section 1.03 Usage of Terms. With respect to all terms in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to "writing" include printing,
typing, lithography and other means of reproducing words in a visible form;
references to agreements and other contractual instruments include all
amendments, modifications and supplements thereto or any changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references
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to Persons include their permitted successors and assigns; and the term
"including" means "including without limitation."
Section 1.04 Section References. All section references, unless otherwise
indicated, shall be to Sections in this Agreement.
Section 1.05 Accounting Terms. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States.
ARTICLE II
ORGANIZATION
Section 2.01 Name. The Trust created hereby shall be known as Onyx
Acceptance Owner Trust 2004-C, in which name the Owner Trustee may conduct the
activities of the Trust, make and execute contracts and other instruments on
behalf of the Trust and xxx and be sued, and in which name the Owner Trustee may
perform its duties hereunder.
Section 2.02 Office. The office of the Trust shall be in care of the Owner
Trustee at the Owner Trustee Corporate Trust Office or at such other address in
Delaware as the Owner Trustee may designate by written notice to the Owners, the
Depositor, the Servicer and the Insurer.
Section 2.03 Purposes and Powers. The sole purpose of the Trust is to hold
or conserve the Trust Estate and collect and disburse the periodic income
therefrom for the use and benefit of the Owners, and in furtherance of such
purpose to engage in the following ministerial activities:
(i) to issue the Notes pursuant to the Indenture, to sell the Notes,
and to issue Residual Interest Instruments pursuant to this Agreement;
(ii) with the proceeds of the sale of the Notes, to purchase the
Contracts, and to pay the organizational, start-up and transactional
expenses of the Trust and to pay the balance to the Depositor pursuant to
the Sale and Servicing Agreement;
(iii) to assign, grant, transfer, pledge, mortgage and convey
("Grant") the Trust Estate pursuant to the Indenture and to hold, manage
and distribute to the Owners pursuant to this Agreement any portion of the
Trust Estate released from the Lien of, and remitted to the Trust pursuant
to, the Indenture;
(iv) to enter into and perform its obligations under the Basic
Documents to which it is to be a party;
(v) subject to compliance with the Basic Documents, to engage in
such other activities as may be required in connection with conservation
of the Trust Estate and the making of distributions to the Owners and the
Noteholders; and
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(vi) to engage in those activities, including entering into
agreements, that are necessary to accomplish the foregoing or are
incidental thereto or connected therewith.
The Trust is hereby authorized to engage in the foregoing activities. Other than
pursuant to this Agreement, or in connection with or incidental to the
provisions or purposes of this Agreement, the Trust shall not (i) issue debt or
otherwise borrow money, (ii) merge or consolidate with any other entity,
reorganize, liquidate or transfer all or substantially all of its assets to any
other entity or (iii) otherwise engage in any activity or exercise any power not
provided for in this Agreement or the Basic Documents. However, all action taken
by the Owner Trustee on behalf of the Trust and by Onyx on behalf of the Trust
prior to the Closing Date in connection with the filing of an Application for
Licensure Sales Finance Company in Pennsylvania and a Maryland License
Application for Sales Finance Companies is hereby ratified.
Section 2.04 Appointment of Owner Trustee. The Depositor hereby appoints
the Owner Trustee as trustee of the Trust effective as of the date hereof, to
have all the rights, powers and duties set forth herein and in the Statutory
Trust Statute, and the Owner Trustee hereby accepts such appointment. The Owner
Trustee is hereby authorized and directed to file the Certificate of Trust with
the Secretary of State.
Section 2.05 Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1.00. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Trust Estate. The
Depositor shall pay organizational expenses of the Trust as they may arise or
shall, upon the request of the Owner Trustee or the Trust Agent, as applicable,
promptly reimburse the Owner Trustee and the Trust Agent, respectively, for any
such expenses paid by the Owner Trustee or the Trust Agent, as applicable.
Section 2.06 Declaration of Trust. The Owner Trustee hereby declares that
it will hold the Trust Estate in trust upon and subject to the conditions set
forth herein for the sole purpose of conserving the Trust Estate and collecting
and disbursing the periodic income therefrom for the use and benefit of the
Owners, subject to the obligations of the Trust under the Basic Documents. It is
the intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Statute and that this Agreement constitute the
governing instrument of such statutory trust and that this Agreement amend and
restate the Original Agreement in its entirety. It is the intention of the
parties hereto that, solely for income and franchise tax purposes, on and after
the Closing Date (i) so long as there is a sole Residual Interestholder, the
Trust shall be disregarded as an entity separate from the sole Residual
Interestholder, and (ii) if there is more than one Residual Interestholder, the
Trust shall be treated as a partnership, with the assets of the partnership
being the Contracts and other assets held by the Trust, and with the partners of
the partnership being the Owners of the Residual Interest Instruments, and the
Notes being debt of the partnership. The Trust shall not elect to be treated as
an association under Treasury Regulation Section 301.7701-3(a) for federal
income tax purposes. The parties agree that, unless otherwise required by
appropriate tax authorities, the Trust will file or cause to be filed annual or
other necessary returns, reports and other forms consistent with the
characterization of the Trust as provided in the second preceding sentence.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers
and duties set forth herein and in the Statutory Trust Statute for the
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sole purpose and to the extent necessary to accomplish the purposes of the Trust
as set forth in Section 2.03.
Section 2.07 Title to Trust Estate. Subject to the Indenture, legal title
to all the Trust Estate shall be vested at all times in the Trust as a separate
legal entity except where applicable law in any jurisdiction requires title to
any part of the Trust Estate to be vested in a trustee or trustees, in which
case title shall be deemed to be vested in the Owner Trustee and/or a separate
trustee, as the case may be.
The Owners shall not have legal title to any part of the Trust Estate. The
Owners shall be entitled to receive distributions with respect to their
undivided ownership interest therein only in accordance with Articles V and IX
of this Agreement. No transfer, by operation of law or otherwise, of any right,
title or interest of the Owners to and in their ownership interest in the Trust
Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Trust Estate.
Section 2.08 Situs of Trust. The Trust will be located and administered in
the State of Delaware or the State of New York. All bank accounts maintained on
behalf of the Trust shall be located in the State of California, the State of
Delaware or the State of New York. The Trust shall not have any employees in any
state other than Delaware; provided, however, that nothing herein shall restrict
or prohibit the Owner Trustee from having employees within or without the State
of Delaware. Payments will be received by the Trust only in California, Delaware
or New York and payments will be made by the Trust only from California,
Delaware or New York. The only office of the Trust will be at the Owner Trustee
Corporate Trust Office.
Section 2.09 Representations and Warranties of the Depositor.
(a) The Depositor hereby represents and warrants to the Owner Trustee and
the Insurer that:
(i) The Depositor is duly organized and validly existing as a
corporation organized and existing and in good standing under the laws of
the State of Delaware, with power and authority to own its properties and
to conduct its business and had at all relevant times, and has, power,
authority and legal right to acquire and own the Contracts.
(ii) The Depositor is duly qualified to do business as a foreign
corporation in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of property
or the conduct of its business requires such qualifications.
(iii) The Depositor has the power and authority to execute and
deliver this Agreement and to carry out its terms; the Depositor has full
power and authority to sell and assign the property to be sold and
assigned to and deposited with the Owner Trustee on behalf of the Trust as
part of the Trust Estate and has duly authorized such sale and assignment
and deposit with the Owner Trustee on behalf of the Trust by all necessary
corporate action. The execution, delivery and performance of this
Agreement have been duly authorized by the Depositor by all necessary
corporate action. The Depositor has duly executed and delivered this
Agreement, and this Agreement constitutes the legal,
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valid and binding obligation of the Depositor enforceable against the
Depositor in accordance with its terms.
(iv) The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with,
result in the breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time) a default under, the certificate
of incorporation or bylaws of the Depositor, or any indenture, agreement
or other instrument to which the Depositor is a party or by which it is
bound; nor result in the creation or imposition of any Lien upon any of
the properties of the Depositor pursuant to the terms of any such
indenture, agreement or other instrument (other than pursuant to the Basic
Documents); nor violate any law or any order, rule or regulation
applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties.
(v) There are no proceedings or investigations pending, or to the
Depositor's best knowledge threatened, before any court, regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Depositor or its properties: (A) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Residual Interest Instruments, (B) seeking to prevent the issuance of the
Residual Interest Instruments or the consummation of any of the
transactions contemplated by this Agreement or any of the other Basic
Documents, (C) seeking any determination or ruling that might materially
and adversely affect the performance by the Depositor of its obligations
under, or the validity or enforceability of, this Agreement, any of the
other Basic Documents or the Residual Interest Instruments or (D)
involving the Depositor and which might materially and adversely affect
the federal income tax or other federal, state or local tax attributes of
the Residual Interest Instruments.
Section 2.10 Federal Income Tax Allocations.
(a) Net income of the Trust for any month, as determined for federal
income tax purposes (and each item of income, gain, loss and deduction entering
into the computation thereof), shall be allocated among the Owners in proportion
to the Percentage Interest of the Residual Interest of each Owner.
(b) Net losses of the Trust, if any, for any calendar month as determined
for federal income tax purposes (and each item of income, gain, loss and
deduction entering into the computation thereof) shall be allocated to the
Owners. Any indebtedness allocated pursuant to Treasury Regulation
ss.1.752-3(a)(3) shall be allocated to the Residual Interest. The Depositor is
authorized to modify the allocations in this paragraph if necessary or
appropriate, in its sole discretion, for the allocations to fairly reflect the
income, gain, loss and deduction to the Depositor or to the Owners, or as
otherwise required by the Code.
Section 2.11 Separateness Covenants. So long as the Notes are outstanding,
the Trust shall and the Administrator, on behalf of the Owner Trustee, shall
cause the Trust to (i) maintain books and records and bank accounts separate
from those of any other Person; (ii) maintain its assets in such a manner that
it is not costly or difficult to segregate, identify, or ascertain such
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assets; (iii) observe all trust procedures required by this Trust Agreement and
under Delaware Law; (iv) hold itself out to creditors and the public as a legal
entity separate and distinct from any other Person; (v) prepare separate tax
returns and financial statements, or if part of a consolidated group, then the
Trust will be shown as a separate member of such group; (vi) allocate and charge
fairly and reasonably any overhead shared with Affiliates; (vii) transact all
business with Affiliates on an arm's-length basis and pursuant to enforceable
agreements; (viii) conduct business in its own name, and use separate
stationery, invoices, and checks separate from that of the Depositor or any
Affiliate; (ix) not commingle its assets or funds with those of any other
Person; and (x) not assume, guarantee, or pay the debts or obligations of any
other Person.
ARTICLE III
RESIDUAL INTEREST INSTRUMENTS AND TRANSFER OF INTERESTS
Section 3.01 Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the issuance of
the Residual Interest Instruments, the Depositor shall be the sole beneficiary
of the Trust.
Section 3.02 The Residual Interest Instruments and the Notes.
(a) The Residual Interest Instruments shall not be issued with a principal
amount. The Residual Interest Instruments shall be executed by the Owner Trustee
on behalf of the Trust by manual or facsimile signature of an authorized officer
of the Owner Trustee, and authenticated by the Trust Agent by the manual or
facsimile signature of an authorized officer of the Trust Agent and shall be
deemed to have been validly issued when so executed and authenticated. Residual
Interest Instruments bearing the manual or facsimile signatures of individuals
who were, at the time when such signatures were affixed, authorized to sign on
behalf of the Owner Trustee or the Trust Agent shall be validly issued by the
Trust, notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the execution, authentication and delivery of such Residual
Interest Instruments or did not hold such offices at the date of such Residual
Interest Instruments. All Residual Interest Instruments shall be dated the date
of their authentication.
(b) The Notes shall be executed by the Owner Trustee on behalf of the
Trust by manual or facsimile signature of an authorized officer of the Owner
Trustee, and shall be authenticated as provided in the Indenture. Notes bearing
the manual or facsimile signature of an individual who was, at the time when
such signature was affixed, authorized to sign on behalf of the Owner Trustee
shall be deemed to have been validly executed by the Trust, notwithstanding that
such individual has ceased to be so authorized prior to the execution and
delivery of such Notes or did not hold such office at the date of such Notes.
Section 3.03 Execution, Authentication and Delivery of Residual Interest
Instruments and Notes.
(a) The Owner Trustee shall cause to be executed, authenticated and
delivered upon the order of the Depositor, in exchange for the Contracts and the
other assets of the Trust,
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simultaneously with the sale, assignment and transfer to the Trust of the
Contracts, and such other assets, (a) the Residual Interest Instruments
representing 100% of the Percentage Interests of the Residual Interest,
evidencing the entire ownership of the Trust, and (b) Notes executed by the
Trust in aggregate principal amount of, in the case of the (i) Class A-1 Notes,
$93,000,000, (ii) Class A-2 Notes, $132,000,000, (iii) Class A-3 Notes,
$106,000,000, and (iv) Class A-4 Notes, $119,000,000. The Owner Trustee is
hereby authorized to direct, on behalf of the Trust, the Indenture Trustee to
authenticate and deliver the Notes upon the order of the Depositor. No Residual
Interest Instrument shall entitle its Owner to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Residual Interest
Instrument a certificate of authentication substantially in the form set forth
in the form of Residual Interest Instrument attached hereto as Exhibit B,
executed by the Trust Agent or another authenticating agent of the Owner
Trustee, by manual or facsimile signature, and such certificate upon any
Residual Interest Instrument shall be conclusive evidence, and the only
evidence, that such Residual Interest Instrument has been duly authenticated and
delivered hereunder. Upon issuance, authorization and delivery pursuant to the
terms hereof, the Residual Interest Instruments will be entitled to the benefits
of this Agreement.
Section 3.04 Registration of Transfer and Exchange of Residual Interest
Instruments.
(a) The Certificate Registrar shall keep or cause to be kept, a
Certificate Register, subject to such reasonable regulations as it may
prescribe. The Certificate Register shall provide for the registration of
Residual Interest Instruments and transfers and exchanges of Residual Interest
Instruments as provided herein. The Trust Agent, as agent for the Trust, is
hereby initially appointed Certificate Registrar for the purpose of registering
Residual Interest Instruments and transfers and exchanges of Residual Interest
Instruments as herein provided. In the event that, subsequent to the Closing
Date, the Trust Agent notifies the Administrator that the Trust Agent is unable
to act as Certificate Registrar, the Administrator shall appoint another bank or
trust company, having an office or agency located in The City of New York,
agreeing to act in accordance with the provisions of this Agreement applicable
to it, and otherwise acceptable to the Depositor, to act as successor
Certificate Registrar hereunder.
(b) Upon surrender for registration of transfer of any Residual Interest
Instrument at the office of the Certificate Registrar, the Owner Trustee shall
execute, authenticate and deliver (or shall cause the Trust Agent, as its
authenticating agent, to authenticate and deliver), in the name of the
designated transferee or transferees, one or more new Residual Interest
Instruments in authorized denominations of a like Percentage Interest.
(c) At the option of an Owner of a Residual Interest Instrument, Residual
Interest Instruments may be exchanged for other Residual Interest Instruments in
authorized denominations of a like Percentage Interest, upon surrender of the
Residual Interest Instruments to be exchanged at the office of the Certificate
Registrar. Whenever any Residual Interest Instruments are so surrendered for
exchange, the Owner Trustee on behalf of the Trust shall execute, authenticate
and deliver (or shall cause the Trust Agent, as its authenticating agent, to
authenticate and deliver) the Residual Interest Instruments that the Owner
making the exchange is entitled to receive. Every Residual Interest Instrument
presented or surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer in
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form satisfactory to the Trust Agent and the Certificate Registrar duly executed
by the Owner thereof or his attorney duly authorized in writing.
(d) No service charge shall be made for any registration of transfer or
exchange of Residual Interest Instruments, but the Owner Trustee or, on its
behalf, the Trust Agent, may require payment of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any transfer
or exchange of Residual Interest Instruments.
(e) All Residual Interest Instruments surrendered for registration of
transfer or exchange, if surrendered to any agent of the Owner Trustee under
this Agreement, shall be delivered to the Trust Agent and promptly canceled by
it, or, if surrendered to the Trust Agent, shall be promptly canceled by it, and
no Residual Interest Instruments shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement. The Trust Agent
shall dispose of canceled Residual Interest Instruments in accordance with the
normal industry practice.
Section 3.05 Mutilated, Destroyed, Lost or Stolen Residual Interest
Instruments. If (a) the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Residual Interest
Instrument and the Certificate Registrar and the Trust Agent receive such
security or indemnity as may be required by them to hold the Certificate
Registrar and the Trust Agent harmless, or (b) any mutilated Residual Interest
Instrument is surrendered to the Certificate Registrar, then, in the absence of
notice to the Certificate Registrar or the Trust Agent that such Residual
Interest Instrument has been acquired by a Protected Purchaser and the
requirements of Section 8-406 of the UCC are met, and subject to Section 8-405
of the UCC, the Owner Trustee on behalf of the Trust shall execute and the Trust
Agent, as its authenticating agent, shall authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Residual
Interest Instrument, a new Residual Interest Instrument of like tenor and
Percentage Interest. In connection with the issuance of any new Residual
Interest Instrument under this Section, the Owner Trustee or, on its behalf, the
Trust Agent, may require the payment by the Owner of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto.
Any duplicate Residual Interest Instrument issued pursuant to this Section shall
constitute complete and indefeasible evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Residual
Interest Instrument shall be found at any time.
Section 3.06 Persons Deemed Owners. Prior to due presentation of a
Residual Interest Instrument for registration of transfer, the Owner Trustee,
the Trust Agent, the Certificate Registrar, any Paying Agent and any of their
respective agents may treat the Person in whose name any Residual Interest
Instrument is registered as the owner of such Residual Interest Instrument for
the purpose of receiving distributions pursuant to Section 5.02 and for all
other purposes whatsoever, and none of the Owner Trustee, the Trust Agent, the
Certificate Registrar, any Paying Agent or any of their respective agents shall
be affected by any notice to the contrary.
Section 3.07 Access to List of Owners' Names and Addresses. The Trust
Agent shall furnish or cause to be furnished to the Servicer, the Insurer and
the Depositor, within 15 days after receipt by the Trust Agent of a written
request therefor from the Servicer, the Insurer or the Depositor, a list, in
such form as the Servicer, the Insurer or the Depositor may reasonably
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require, of the names and addresses of the Owners as of the most recent Record
Date. Each Owner, by receiving and holding a Residual Interest Instrument,
agrees with the Servicer, the Depositor, the Owner Trustee and the Trust Agent
that none of the Servicer, the Depositor, the Owner Trustee or the Trust Agent
shall be held accountable by reason of the disclosure of any such information as
to its name and address hereunder, regardless of the source from which such
information was derived.
Section 3.08 Maintenance of Office or Agency. The Trust Agent shall
maintain in the City of New York an office or offices or agency or agencies
where Residual Interest Instruments may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Trust Agent in
respect of the Residual Interest Instruments and the Basic Documents may be
served. The Trust Agent hereby designates the office of JPMorgan Chase Bank at
the address provided under the definition of the term "TRUST AGENT OFFICE" as
its office for such purposes. The Trust Agent shall give prompt written notice
to the Owner Trustee, the Depositor, the Servicer and to the Owners of any
change in the location of the Certificate Register or any such office or agency.
Section 3.09 Temporary Residual Interest Instruments. Pending the
preparation of definitive Residual Interest Instruments, the Owner Trustee, on
behalf of the Trust, may execute, authenticate and deliver, temporary Residual
Interest Instruments that are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Residual Interest Instruments in lieu of which they are
issued. If temporary Residual Interest Instruments are issued, the Depositor
will cause definitive Residual Interest Instruments to be prepared without
unreasonable delay. After the preparation of definitive Residual Interest
Instruments, the temporary Residual Interest Instruments shall be exchangeable
for definitive Residual Interest Instruments upon surrender of the temporary
Residual Interest Instruments at the office or agency to be maintained as
provided in Section 3.08, without charge to the Owner. Upon surrender for
cancellation of any one or more temporary Residual Interest Instruments, the
Owner Trustee shall execute, authenticate and deliver (or shall cause the Trust
Agent, as its authenticating agent, to authenticate and deliver) in exchange
therefor a like Percentage Interest of definitive Residual Interest Instruments
in authorized denominations. Until so exchanged, the temporary Residual Interest
Instruments shall in all respects be entitled to the same benefits hereunder as
definitive Residual Interest Instruments.
Section 3.10 Appointment of Paying Agent. The Owner Trustee, on behalf of
the Trust, hereby appoints the Trust Agent as Paying Agent under this Agreement.
The Paying Agent shall make distributions to Owners from the Residual
Distribution Account pursuant to Section 5.02 hereof and shall report the
amounts of such distributions to the Owner Trustee. The Paying Agent shall have
the revocable power to withdraw funds from the Residual Distribution Account for
the purpose of making the distributions referred to above. The Owner Trustee on
behalf of the Trust may revoke such power and remove the Paying Agent if the
Owner Trustee is directed in writing to do so by the Administrator. Each Paying
Agent shall be permitted to resign as Paying Agent upon 30 days' written notice
to the Trust. In the event that the Trust Agent shall no longer be the Paying
Agent, the Administrator shall appoint a successor to act as Paying Agent (which
shall be a bank or trust company acceptable to the Insurer). The Administrator
shall cause such successor Paying Agent or any additional Paying Agent appointed
by the
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Administrator to execute and deliver to the Trust an instrument in which such
successor Paying Agent or additional Paying Agent shall agree with the Trust
that, as Paying Agent, such successor Paying Agent or additional Paying Agent
will hold all sums, if any, held by it for payment to the Owners in trust for
the benefit of the Owners entitled thereto until such sums shall be paid to the
Owners. The Paying Agent shall return all unclaimed funds to the Trust and upon
removal of a Paying Agent such Paying Agent shall also return all funds in its
possession to the Trust. The provisions of Sections 7.01, 7.03, 7.04, 8.01 and
8.02 shall apply to the Trust Agent also in its role as Paying Agent, for so
long as the Trust Agent shall act as Paying Agent and, to the extent applicable,
to any other paying agent appointed hereunder. Any reference in this Agreement
to the Paying Agent shall include any co-paying agent unless the context
requires otherwise. Notwithstanding anything herein to the contrary, the Trust
Agent and the Paying Agent shall be the same entity as the Indenture Trustee
under the Indenture and the Sale and Servicing Agreement, unless an Insurer
Default has occurred and is continuing.
Section 3.11 Restrictions on Transfer of Residual Interest Instruments.
(a) Each prospective purchaser and any subsequent transferee of a Residual
Interest Instrument (each, a "PROSPECTIVE OWNER"), other than the Depositor, by
virtue of its acceptance thereof, shall be deemed to have represented and
warranted to the Owner Trustee, the Trust Agent and the Certificate Registrar
and any of their respective successors that:
(i) Such Person is (A) a "QUALIFIED INSTITUTIONAL BUYER" as defined
in Rule 144A under the Securities Act of 1933, as amended (the "SECURITIES
ACT"), is aware that the seller of the Residual Interest Instrument may be
relying on the exemption from the registration requirements of the
Securities Act provided by Rule 144A and is acquiring such Residual
Interest Instrument for its own account or for the account of one or more
qualified institutional buyers for whom it is authorized to act, or (B) a
Person involved in the organization or operation of the Trust or an
affiliate of such Person within the meaning of Rule 3a-7 of the Investment
Company Act of 1940, as amended (including, but not limited to, the
Depositor and Onyx Acceptance Corporation).
(ii) Such Person understands that the Residual Interest Instruments
have not been and will not be registered under the Securities Act and may
be offered, sold, pledged or otherwise transferred only to a person whom
the seller reasonably believes is (A) a qualified institutional buyer (as
such term is defined in Rule 144A under the Securities Act) or (B) a
Person involved in the organization or operation of the Trust or an
affiliate of such Person, in a transaction meeting the requirements of
Rule 144A under the Securities Act and in accordance with any applicable
securities laws of any state of the United States.
(iii) Such Person understands that the Residual Interest Instrument
shall bear a legend on the face thereof substantially in the form set
forth in the form of Residual Interest Instrument attached hereto as
Exhibit B.
(iv) Such Person shall comply with the provisions of Section
3.11(b), as applicable, relating to the ERISA restrictions with respect to
the acceptance or acquisition of such Residual Interest Instrument.
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(v) Such Person is and shall remain a United States Person and will
not transfer the Residual Interest Instrument to a Person who is not a
United States Person, other than pursuant to a repurchase agreement (which
is treated as a loan for tax purposes) or solely to evidence a security
interest.
(b) The Residual Interest Instruments may not be acquired by or for the
account of (i) an employee benefit plan (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA")) that is
subject to the provisions of Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (iii) any
entity, including an insurance company separate account or general account,
whose underlying assets include plan assets by reason of a plan's investment in
the entity (each, a "BENEFIT PLAN"). By accepting and holding a Residual
Interest Instrument, the Owner shall be deemed to have represented and warranted
that it is not a Benefit Plan.
ARTICLE IV
ACTIONS BY OWNER TRUSTEE
Section 4.01 Prior Notice to Owners with Respect to Certain Matters.
Subject to the provisions and limitations of Section 4.04 and Section 4.06, with
respect to the following matters, neither the Owner Trustee nor the Trust Agent
shall take any action unless at least 30 days before the taking of such action,
the Owner Trustee or the Trust Agent, as applicable, shall have notified the
Owners in writing of the proposed action and the Owners shall not have notified
the Owner Trustee or the Trust Agent, as applicable, in writing prior to the
30th day after such notice is given that such Owners have withheld consent or
provided alternative direction:
(a) the initiation of any claim or lawsuit by the Trust (except claims or
lawsuits brought in connection with the collection of the Contracts) and the
compromise of any action, claim or lawsuit brought by or against the Trust
(except with respect to the aforementioned claims or lawsuits for collection of
the Contracts);
(b) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;
(c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Owners;
(d) the amendment, change or modification of the Administration Agreement,
except to cure any ambiguity or to amend or supplement any provision in a manner
or add any provision that would not materially adversely affect the interests of
the Owners; or
(e) the appointment pursuant to the Indenture of a successor Note
Registrar, paying agent for the Notes or Indenture Trustee or pursuant to this
Agreement of a successor Certificate Registrar or the Paying Agent, or the
consent to the assignment by the Note Registrar, paying
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agent for the Notes, Indenture Trustee, Certificate Registrar or Paying Agent of
its obligations under the Indenture or this Agreement, as applicable.
Section 4.02 Action by Owners with Respect to Certain Matters. Subject to
the provisions and limitations of Section 4.04 and Section 4.06, neither the
Owner Trustee nor the Trust Agent shall have the power, except upon the
direction of the Owners and with the prior written consent of the Insurer (so
long as no Insurer Default shall have occurred and be continuing), to (a) remove
the Administrator pursuant to Section 8 of the Administration Agreement, (b)
appoint a successor Administrator pursuant to Section 8 of the Administration
Agreement, (c) remove the Servicer pursuant to Section 7.01 of the Sale and
Servicing Agreement, (d) except as expressly provided in the Basic Documents,
sell the Contracts after the termination of the Indenture, (e) initiate any
claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, (f) authorize the merger or
consolidation of the Trust with or into any other statutory trust or entity
(other than in accordance with Section 3.10 of the Indenture) or (g) amend the
Certificate of Trust (unless such amendment is required to be filed under the
Statutory Trust Statute). The Owner Trustee and the Trust Agent may only take
the actions referred to in the preceding sentence upon written instructions
signed by the Owners and, to the extent required by the preceding sentence, with
the prior written consent of the Insurer.
Section 4.03 Action by Owners with Respect to Bankruptcy. Neither the
Owner Trustee nor the Trust Agent shall have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior written consent
of the Insurer and the unanimous prior approval of all Owners and the delivery
to the Owner Trustee or the Trust Agent, as applicable, by each such Owner of a
certificate certifying that such Owner reasonably believes that the Trust is
insolvent.
Section 4.04 Restrictions on Owners' Power. The Owners shall not direct
the Owner Trustee or the Trust Agent to take or to refrain from taking any
action if such action or inaction would be contrary to any obligation of the
Trust, or of the Owner Trustee or the Trust Agent, as applicable, under this
Agreement or any of the other Basic Documents or would be contrary to the
purpose of this Trust as set forth in Section 2.03, nor shall the Owner Trustee
or the Trust Agent be obligated to follow any such direction, if given.
Section 4.05 Majority Control. Except as expressly provided herein, any
action that may be taken by the Owners under this Agreement may be taken by
Owners evidencing more than 50% of the Percentage Interest in the Residual
Interest. Except as expressly provided herein, any written notice of the Owners
delivered pursuant to this Agreement shall be effective if signed by Owners
evidencing more than 50% of the Percentage Interest in the Residual Interest at
the time of the delivery of such notice.
Section 4.06 Certain Litigation Matters.
(a) The Trust Agent, the Indenture Trustee or the Owner Trustee shall
provide prompt written notice to the Insurer of any action, proceeding or
investigation of which a Responsible Officer of the Trust Agent, the Indenture
Trustee or the Owner Trustee, as applicable, has actual knowledge that could
adversely affect the Trust or the Trust Estate or the
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rights or obligations of the Insurer under the Basic Documents or any other
document delivered with respect thereto.
(b) The Trust Agent, the Indenture Trustee and Owner Trustee shall, upon
written notice from the Insurer, allow the Insurer to institute, assume or
control the defense of any action, proceeding or investigation that could
adversely affect the Trust or the Trust Estate or the rights or obligations of
the Insurer under any of the Basic Documents or any other document delivered
with respect thereto.
(c) None of the Trust Agent, the Indenture Trustee or the Owner Trustee
shall, without the Insurer's prior written consent or unless directed by the
Insurer, undertake or join any litigation or agree to any settlement of any
action, proceeding or investigation that could adversely affect the Trust or the
rights or obligations of the Insurer under any of the Basic Documents or any
other document delivered with respect thereto.
ARTICLE V
APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
Section 5.01 Establishment of the Residual Distribution Account. The Trust
Agent shall, for the benefit of the Owners, establish and maintain an account
denominated "Residual Distribution Account OT 2004-C, JPMorgan Chase Bank, Trust
Agent," which account shall be an Eligible Account (the "Residual Distribution
Account"). Funds shall be deposited in the Residual Distribution Account as
provided in Section 4.04(b) of the Sale and Servicing Agreement.
All of the right, title and interest of the Trust Agent in all funds on
deposit from time to time in the Residual Distribution Account and in all
proceeds thereof shall be held for the benefit of the Owners and such other
persons entitled to distributions therefrom. Except as otherwise expressly
provided herein, the Residual Distribution Account shall be under the sole
dominion and control of the Trust Agent, as agent of the Owner Trustee, for the
benefit of the Owners. The funds on deposit in the Residual Distribution Account
shall remain uninvested.
Section 5.02 Application of Trust Funds.
(a) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall direct the Paying Agent to distribute all amounts on deposit in
the Residual Distribution Account first, to the Administrator in payment of any
compensation due under the Administration Agreement and then, the balance, to
the Owners, pro rata.
(b) On each Distribution Date, the Trust Agent, on behalf of the Owner
Trustee, shall cause the Paying Agent to send to each Owner the statement or
statements provided to the Owner Trustee or the Trust Agent by the Servicer
pursuant to Section 4.05 of the Sale and Servicing Agreement with respect to
such Distribution Date.
(c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to an Owner, such tax shall reduce the amount
otherwise distributable to
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the Owner in accordance with this Section. The Trust Agent is hereby authorized
and directed to retain from amounts otherwise distributable to the Owners
sufficient funds for the payment of any tax that is legally owed by the Trust
(but such authorization shall not prevent the Owner Trustee or the Trust Agent
from contesting any such tax in appropriate proceedings, and withholding payment
of such tax, if permitted by law, pending the outcome of such proceedings). The
amount of any withholding tax imposed with respect to an Owner shall be treated
as cash distributed to such Owner at the time it is withheld by the Trust and
remitted to the appropriate taxing authority. If the Trust Agent receives
written notice there is a possibility that withholding tax is payable with
respect to a distribution, the Trust Agent shall withhold such amounts in
accordance with this paragraph (c).
Section 5.03 Method of Payment. Subject to Section 9.01(c) respecting the
final payment upon retirement of each Residual Interest Instrument,
distributions required to be made to each Owner of record on the related Record
Date shall be made by check mailed to such Owner at the address of such Owner
appearing in the Certificate Register (or if requested by the Owner, by wire
transfer of immediately available funds or pursuant to other arrangements), the
amount to be distributed to such Owner pursuant to such Owner's Residual
Interest Instruments.
Section 5.04 No Segregation of Monies; No Interest. Subject to Sections
5.01 and 5.02, monies received by the Trust Agent hereunder need not be
segregated in any manner except to the extent required by law and may be
deposited under such general conditions as may be prescribed by law, and the
Trust Agent shall not be liable for any interest thereon.
Section 5.05 Accounting and Reports to the Owners, the Internal Revenue
Service and Others. The Trust Agent shall (a) maintain (or cause to be
maintained) the books of the Trust on a calendar year basis and the accrual
method of accounting, (b) deliver to each Owner, as may be required by the Code
and applicable Treasury Regulations, such information as may be required
(including Schedule K-1, if applicable) to enable each Owner to prepare its
federal and state income tax returns, (c) file such tax returns relating to the
Trust (including a partnership information return, IRS Form 1065, if applicable)
and make such elections as from time to time may be required or appropriate
under any applicable state or federal statute or any rule or regulation
thereunder so as to maintain the Trust's characterization as a partnership, if
applicable, for federal income tax purposes, (d) cause such tax returns to be
signed in the manner required by law and (e) collect or cause to be collected
any withholding tax as described in and in accordance with Section 5.02(c) with
respect to income or distributions to Owners. Unless otherwise required by
applicable law, the Trust Agent shall elect under Section 1278 of the Code to
include in current income any market discount that accrues with respect to the
Contracts. The Trust Agent shall not make the election provided under Section
754 of the Code.
Section 5.06 Signature on Returns; Tax Matters Partner.
(a) The Owner Trustee shall sign on behalf of the Trust the tax returns,
if any, of the Trust, unless applicable law requires an Owner to sign such
documents, in which case such documents shall be signed by the Depositor, as
long as the Depositor holds a Residual Interest Instrument, and otherwise the
holder of the largest Percentage Interest in the Residual Interest Instruments
shall sign such documents.
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(b) If a "tax matters partner" is required pursuant to Section
6231(a)(7)(A) of the Code, the Depositor shall be designated the "tax matters
partner" of the Trust pursuant to Section 6231(a)(7)(A) of the Code and
applicable Treasury Regulations, as long as the Depositor holds a Residual
Interest Instrument, and otherwise the Owner of the largest Percentage Interest
in the Residual Interest Instruments shall be the "tax matters partner."
ARTICLE VI
AUTHORITY AND DUTIES OF OWNER TRUSTEE AND TRUST AGENT
Section 6.01 General Authority. Subject to the provisions and limitations
of Sections 2.03 and 2.06, the Owner Trustee is authorized and directed to
execute and deliver on behalf of the Trust the Basic Documents to which the
Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Basic Documents to which the Trust is to be a
party and any amendment or other agreement, as evidenced conclusively by the
Owner Trustee's execution thereof. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Administrator or the
Owners recommend with respect to the Basic Documents.
Section 6.02 General Duties. Subject to the provisions and limitations of
Sections 2.03 and 2.06:
(a) it shall be the duty of the Owner Trustee to discharge (or cause to be
discharged through the Administrator or such agents as shall be appointed with
the consent of the Insurer) all of its responsibilities pursuant to the terms of
this Agreement and the other Basic Documents to which the Trust is a party and
to administer the Trust in the interest of the Owners, subject to the Basic
Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other Basic
Documents to the extent the Administrator or the Trust Agent has agreed in the
Administration Agreement or this Agreement, respectively, to perform any act or
to discharge any duty of the Owner Trustee or the Trust hereunder or under any
Basic Document, and the Owner Trustee shall not be held liable for the default
or failure of the Administrator or the Trust Agent to carry out its obligations
under the Administration Agreement or this Agreement, respectively; and
(b) it shall be the duty of the Trust Agent to discharge all of its
responsibilities pursuant to the terms of this Agreement and the other Basic
Documents to which the Trust and the Trust Agent are a party and to administer
the Trust in the interest of the Owners, subject to the Basic Documents and in
accordance with the provisions of this Agreement.
Section 6.03 Action Upon Instruction.
(a) Subject to Article IV and Section 7.01(g) of this Agreement, in
accordance with the terms of the Basic Documents, the Owners may by written
instruction direct the Owner Trustee or the Trust Agent in the management of the
Trust. Such direction may be exercised at any time by written instruction of the
Owners pursuant to Article IV.
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(b) Neither the Owner Trustee nor the Trust Agent shall be required to
take any action hereunder or under any other Basic Document if the Owner Trustee
or the Trust Agent, as applicable, shall have reasonably determined, or shall
have been advised by counsel, that such action is likely to result in liability
on the part of the Owner Trustee or the Trust Agent, as applicable, or is
contrary to the terms hereof or of any other Basic Document or is otherwise
contrary to law.
(c) Whenever the Owner Trustee or the Trust Agent is unable to decide
between alternative courses of action permitted or required by the terms of this
Agreement or under any other Basic Document, the Owner Trustee or the Trust
Agent, as applicable, shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Owners and the Insurer requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee or the Trust Agent, as applicable, acts in good faith in
accordance with any written instruction from the Owners received, the Owner
Trustee or the Trust Agent, as applicable, shall not be liable on account of
such action to any Person. If the Owner Trustee or the Trust Agent shall not
have received appropriate instruction within ten days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement and
the other Basic Documents, as it shall deem to be in the best interests of the
Owners, and shall have no liability to any Person for such action or inaction.
(d) In the event that the Owner Trustee or the Trust Agent is unsure as
to the application of any provision of this Agreement or any other Basic
Document or any such provision is ambiguous as to its application, or is, or
appears to be, in conflict with any other applicable provision, or in the event
that this Agreement permits any determination by the Owner Trustee or the Trust
Agent or is silent or is incomplete as to the course of action that the Owner
Trustee is required to take with respect to a particular set of facts, the Owner
Trustee or the Trust Agent may give notice (in such form as shall be appropriate
under the circumstances) to the Owners requesting instruction and, to the extent
that the Owner Trustee or the Trust Agent, as applicable, acts or refrains from
acting in good faith in accordance with any such instruction received, the Owner
Trustee or the Trust Agent, as applicable, shall not be liable, on account of
such action or inaction, to any Person. If the Owner Trustee or the Trust Agent
shall not have received appropriate instruction within ten days of such notice
(or within such shorter period of time as reasonably may be specified in such
notice or may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action not inconsistent with this
Agreement or the other Basic Documents, as it shall deem to be in the best
interests of the Owners, and shall have no liability to any Person for such
action or inaction.
Section 6.04 No Duties Except as Specified in this Agreement or in
Instructions. Neither the Owner Trustee nor the Trust Agent shall have any duty
or obligation to manage, make any payment with respect to, register, record,
sell, dispose of or otherwise deal with the Trust Estate, or to otherwise take
or refrain from taking any action under, or in connection with, any document
contemplated hereby to which the Owner Trustee or the Trust Agent, as
applicable, is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner
Trustee or the Trust Agent, as applicable, pursuant to Section 6.01 or 6.03; and
no implied duties or obligations shall be read into this
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Agreement or any other Basic Document against the Owner Trustee or the Trust
Agent. Neither the Owner Trustee nor the Trust Agent shall have any
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder or to prepare or file with the
Commission any filing for the Trust or to record this Agreement or any other
Basic Document. Each of the Owner Trustee and the Trust Agent nevertheless
agrees that it will, at its own cost and expense, promptly take all action as
may be necessary to discharge any liens on any part of the Trust Estate that
result from actions by, or claims against, the Owner Trustee or the Trust Agent,
as applicable, that are not related to the ownership or the administration of
the Trust Estate or the Grant of any portion thereof to the Indenture Trustee
pursuant to the Indenture.
Section 6.05 No Action Except Under Specified Documents or Instructions.
Neither the Owner Trustee nor the Trust Agent shall manage, control, use, sell,
dispose of or otherwise deal with any part of the Trust Estate except in
accordance with (i) the powers granted to and the authority conferred upon the
Owner Trustee or the Trust Agent, as applicable, pursuant to this Agreement,
(ii) the other Basic Documents and (iii) any document or instruction delivered
to the Owner Trustee or the Trust Agent, as applicable, pursuant to Section
6.03.
Section 6.06 Restrictions. Neither the Owner Trustee nor the Trust Agent
shall take any action (i) that is inconsistent with the purposes of the Trust
set forth in Section 2.03 or (ii) that, to the actual knowledge of a Responsible
Officer of the Owner Trustee or the Trust Agent, as applicable, would result in
the Trust's becoming taxable as a corporation for federal or state income tax
purposes. The Owners shall not direct the Owner Trustee or the Trust Agent to
take action that would violate the provisions of this Section.
ARTICLE VII
CONCERNING THE OWNER TRUSTEE AND THE TRUST AGENT
Section 7.01 Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement and the other
Basic Documents. The Trust Agent agrees to perform its duties hereunder upon the
terms of this Agreement and the other Basic Documents. Neither the Owner Trustee
nor the Trust Agent shall be liable except for the performance of such duties
and obligations as are specifically set forth in this Agreement, no implied
covenants or obligations shall be read into this Agreement against the Owner
Trustee or the Trust Agent and, in the absence of bad faith on the part of the
Owner Trustee or the Trust Agent, as applicable, the Owner Trustee and the Trust
Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Owner Trustee or the Trust Agent and conforming to the
requirements of this Agreement. Each of the Owner Trustee and the Trust Agent
agrees to disburse all monies actually received by it constituting part of the
Trust Estate upon the terms of this Agreement and the other Basic Documents.
Neither the Owner Trustee nor the Trust Agent shall be answerable or accountable
hereunder or under any other Basic Document under any circumstances, except (i)
for its own willful misconduct or negligence or (ii) in the case of the
inaccuracy of any representation or warranty contained in Section 7.03 expressly
made by the Owner Trustee or the Trust Agent, as
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the case may be. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):
(a) neither the Owner Trustee nor the Trust Agent shall be liable for
any error of judgment made by a Responsible Officer of the Owner Trustee or the
Trust Agent, respectively;
(b) neither the Owner Trustee nor the Trust Agent shall be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with this Agreement, the Basic Documents or the written direction of
the Administrator or any Owner;
(c) no provision of this Agreement or any other Basic Document shall
require the Owner Trustee or the Trust Agent to expend or risk funds or
otherwise incur any financial liability in the performance of any of its rights
or powers hereunder or under any other Basic Document if the Owner Trustee or
the Trust Agent shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured or provided to it;
(d) under no circumstances shall the Owner Trustee or the Trust Agent be
liable for indebtedness evidenced by or arising under any of the Basic
Documents, including the principal of and interest on the Notes;
(e) neither the Owner Trustee nor the Trust Agent shall be responsible
for or in respect of the validity or sufficiency of this Agreement or for the
due execution hereof by the Depositor or for the form, character, genuineness,
sufficiency, value or validity of any of the Trust Estate, or for or in respect
of the validity or sufficiency of the Basic Documents, other than the
certificate of authentication on the Residual Interest Instruments, and neither
the Owner Trustee nor the Trust Agent shall assume or incur any liability, duty
or obligation to any Noteholder or to any Owner, other than as expressly
provided for herein or expressly agreed to in the other Basic Documents;
(f) neither the Owner Trustee nor the Trust Agent shall be liable for
the default or misconduct of the Administrator, the Depositor, the Insurer, the
Indenture Trustee or the Servicer under any of the Basic Documents or otherwise
and neither the Owner Trustee nor the Trust Agent shall have any obligation or
liability to perform the obligations of the Trust under this Agreement or the
other Basic Documents that are required to be performed by the Administrator
under the Administration Agreement, the Indenture Trustee under the Indenture or
the Servicer or the Depositor under the Sale and Servicing Agreement;
(g) neither the Owner Trustee nor the Trust Agent shall be under any
obligation to exercise any of the rights or powers vested in it by this
Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any other Basic
Document, at the request, order or direction of the Owners, unless such Owners
have offered to the Owner Trustee or the Trust Agent, as applicable, security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee or the Trust Agent, as applicable, therein
or thereby; the right of the Owner Trustee and the Trust Agent to perform any
discretionary act enumerated in this Agreement or in any other Basic Document
shall not be construed as a duty, and neither the Owner Trustee nor the Trust
Agent shall be
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answerable for other than its negligence or willful misconduct in the
performance of any such act;
(h) anything in this Agreement to the contrary notwithstanding, in no
event shall the Owner Trustee or Trust Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profit), even if the Owner Trustee or Trust Agent has been advised of
the likelihood of such loss or damage and regardless of the form of action;
(i) neither the Owner Trustee nor the Trust Agent shall be required to
take notice or be deemed to have notice or knowledge of any default, any Event
of Default or Servicer Default under any of the Basic Documents unless a
Responsible Officer of the Owner Trustee or the Trust Agent, respectively, shall
have received written notice thereof. In the absence of receipt of such notice,
the Owner Trustee and Trust Agent may conclusively assume that there is no
default, Event of Default or Servicer Default;
(j) Notwithstanding any Person's right to instruct the Owner Trustee,
neither the Owner Trustee nor any agent, employee, director or officer of the
Owner Trustee shall have any obligation to execute any certificates or other
documents required pursuant to the Xxxxxxxx-Xxxxx Act of 2002 or the rules and
regulations promulgated thereunder, and the refusal to comply with any such
instructions shall not constitute a default or breach under any Basic Document.
(k) each of the Owner Trustee and the Trust Agent may rely and shall be
protected in acting or refraining from acting upon any resolution, opinion of
counsel, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal, bond or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(l) each of the Owner Trustee and the Trust Agent may consult with
counsel and any advice or opinion of counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted by it hereunder in good faith and in accordance with such advice or
opinion of counsel;
(m) neither the Owner Trustee nor the Trust Agent shall be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless requested in writing to
do so by the Administrator or Owners; provided, however, that if the payment
within a reasonable time to the Owner Trustee or Trust Agent, as applicable, of
the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Owner Trustee or Trust Agent, as
applicable, not reasonably assured to it by the security afforded to them by the
terms of this Agreement, the Owner Trustee or Trust Agent, as applicable, may
require reasonable indemnity against such cost, expense or liability as a
condition to taking any such action;
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(n) neither the Owner Trustee nor the Trust Agent shall be required to
give any bond or surety in respect of the execution of the Trust created hereby
or the powers granted hereunder; and
(o) each of the Owner Trustee and Trust Agent may execute any of their
respective trusts or powers hereunder or perform any of their respective duties
hereunder either directly or by or through agents, attorneys or custodians, and
neither the Owner Trustee nor the Trust Agent shall be responsible for any
misconduct or negligence on the part of any such agent, attorney or custodian
appointed by the Owner Trustee or Trust Agent, as applicable, with due care.
Section 7.02 Furnishing of Documents. The Owner Trustee shall furnish to
the Trust Agent duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Basic Documents. The Trust Agent shall furnish to the
Owners promptly upon receipt of a written request therefor, duplicates or copies
of all reports, notices, requests, demands, certificates, financial statements
and any other instruments furnished to the Trust Agent under the Basic Documents
or furnished to the Trust Agent as provided in the preceding sentence.
Section 7.03 Representations and Warranties.
(a) The Owner Trustee hereby represents and warrants to the Depositor
and the Owners:
(i) It is a banking corporation duly organized and validly
existing in good standing under the laws of the State of Delaware. It has
all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement.
(ii) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will be
executed and delivered by one of its officers who is duly authorized to
execute and deliver this Agreement on its behalf.
(iii) Neither the execution nor the delivery by it of this
Agreement, nor the consummation by it of the transactions contemplated
hereby nor compliance by it with any of the terms or provisions hereof
will contravene any federal or Delaware law, governmental rule or
regulation governing the banking or trust powers of the Owner Trustee or
any judgment or order binding on it, or constitute any default under its
charter documents or bylaws or, to its actual knowledge, any indenture,
mortgage, contract, agreement or instrument to which it is a party or by
which any of its properties may be bound or result in the creation or
imposition of any lien, charge or encumbrance on the Trust Estate
resulting from actions by or claims against the Owner Trustee individually
which are unrelated to this Agreement or the other Basic Documents.
(b) The Trust Agent hereby represents and warrants to the Depositor and
the Owners:
(i) It is a New York banking corporation duly organized and
validly existing in good standing under the laws of the United States. It
has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement.
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(ii) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will be
executed and delivered by one of its officers who is duly authorized to
execute and deliver this Agreement on its behalf.
(iii) Neither the execution nor the delivery by it of this
Agreement, nor the consummation by it of the transactions contemplated
hereby nor compliance by it with any of the terms or provisions hereof
will contravene any federal law, governmental rule or regulation governing
the banking or trust powers of the Trust Agent or any judgment or order
binding on it, or constitute any default under its charter documents or
bylaws or any indenture, mortgage, contract, agreement or instrument to
which it is a party or by which any of its properties may be bound or
result in the creation or imposition of any lien, charge or encumbrance on
the Trust Estate resulting from actions by or claims against the Trust
Agent individually which are unrelated to this Agreement or the other
Basic Documents.
Section 7.04 Reliance; Advice of Counsel.
(a) Neither the Owner Trustee nor the Trust Agent shall incur liability
to anyone in acting upon any signature, instrument, notice, resolution, request,
consent, order, certificate, report, opinion, bond or other document or paper
believed by it to be genuine and believed by it to be signed by the proper party
or parties. The Owner Trustee and the Trust Agent may accept a certified copy of
a resolution of the board of directors or other governing body of any corporate
party as conclusive evidence that such resolution has been duly adopted by such
body and that the same is in full force and effect. As to any fact or matter the
method of determination of which is not specifically prescribed herein, the
Owner Trustee and the Trust Agent may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to the Owner Trustee or
the Trust Agent, as applicable, for any action taken or omitted to be taken by
it in good faith in reliance thereon.
(b) In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other
Basic Documents, the Owner Trustee and the Trust Agent each (i) may act directly
or through its agents or attorneys pursuant to agreements entered into with any
of them, and neither the Owner Trustee nor the Trust Agent shall be liable for
the conduct or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Owner Trustee or the Trust Agent with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it at the
sole expense of the Depositor. Neither the Owner Trustee nor the Trust Agent
shall be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel, accountants
or other such persons and not contrary to this Agreement or any other Basic
Document.
Section 7.05 Not Acting in Individual Capacity. Except as otherwise
provided in this Article VII, in accepting the trusts hereby created, Wilmington
Trust Company, acts solely as Owner Trustee hereunder and not in its individual
capacity, and JPMorgan Chase Bank acts solely as Trust Agent hereunder and not
in its individual capacity, and all Persons having any
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claim against the Owner Trustee or the Trust Agent by reason of the transactions
contemplated by this Agreement or any other Basic Document shall look only to
the Trust Estate for payment or satisfaction thereof.
Section 7.06 Owner Trustee and Trust Agent Not Liable for Residual
Interest Instruments, Notes or Contracts. The recitals contained herein and in
the Residual Interest Instruments (other than the respective signatures of the
Owner Trustee and the Trust Agent, and, in the case of the Trust Agent, the
certificate of authentication on the Residual Interest Instruments) shall be
taken as the statements of the Depositor, and neither the Owner Trustee nor the
Trust Agent assumes responsibility for the correctness thereof. Neither the
Owner Trustee nor the Trust Agent makes any representations as to the validity
or sufficiency of this Agreement, any other Basic Document or the Residual
Interest Instruments (other than (i) the respective signatures of the Owner
Trustee and the Trust Agent; (ii) in the case of the Owner Trustee, the recitals
contained in Section 7.03(a); and (iii) in the case of the Trust Agent, the
recitals contained in Section 7.03(b) and the certificate of authentication on
the Residual Interest Instruments) or the Notes, or of any Contract or related
documents. The Owner Trustee and the Trust Agent shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Contract, or the perfection and priority of any security
interest created by any Contract in any Financed Vehicle or the maintenance of
any such perfection and priority, or for or with respect to the sufficiency of
the Trust Estate or its ability to generate the payments to be distributed to
Owners under this Agreement or the Noteholders under the Indenture, including,
without limitation, the existence, condition and ownership of any Financed
Vehicle; the existence and enforceability of any insurance thereon; the
existence and contents of any Contract on any computer or other record thereof;
the validity of the assignment of any Contract to the Trust or of any
intervening assignment; the completeness of any Contract; the performance or
enforcement of any Contract; the compliance by the Depositor, the Insurer or the
Servicer with any warranty or representation made under any Basic Document or in
any related document or the accuracy of any such warranty or representation; or
any action of the Administrator, the Indenture Trustee or the Servicer or any
subservicer taken in the name of the Owner Trustee or the Trust Agent.
Section 7.07 Owner Trustee and Trust Agent May Own Residual Interest
Instruments and Notes. The Owner Trustee and the Trust Agent, each in its
individual or any other capacity, may become the owner or pledgee of Residual
Interest Instruments or Notes and may deal with the Depositor, the Insurer, the
Administrator, the Indenture Trustee and the Servicer in banking transactions
with the same rights as it would have if it were not Owner Trustee or Trust
Agent, as the case may be.
ARTICLE VIII
COMPENSATION AND INDEMNIFICATION OF OWNER
TRUSTEE AND TRUST AGENT
Section 8.01 Owner Trustee's and Trust Agent's Fees and Expenses. The
Owner Trustee and the Trust Agent shall receive as compensation for their
respective services hereunder such fees as have been separately agreed upon
before the date hereof between the Depositor and
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the Owner Trustee and the Trust Agent, respectively, and the Owner Trustee and
the Trust Agent shall be entitled to be reimbursed by the Administrator for
other reasonable expenses hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as the Owner Trustee or the Trust Agent may employ in connection with the
exercise and performance of its rights and its duties hereunder.
Section 8.02 Indemnification. The Owner Trustee and the Trust Agent shall
be entitled to indemnification as provided in the Administration Agreement and
the Sale and Servicing Agreement.
Section 8.03 Payments to the Owner Trustee or Trust Agent. Any amounts
paid to the Owner Trustee or the Trust Agent pursuant to this Article shall be
deemed not to be a part of the Trust Estate immediately after such payment.
ARTICLE IX
TERMINATION OF TRUST AGREEMENT
Section 9.01 Termination of Trust Agreement.
(a) This Agreement (other than Article VIII) and the Trust shall
terminate and be of no further force or effect upon the earlier of (i) final
distribution of all monies or other property or proceeds of the Trust Estate in
accordance with the terms of the Indenture, the Sale and Servicing Agreement and
Article Five and (ii) the expiration of 21 years from the death of the last
survivor of the descendants of Xxxxxx X. Xxxxxxx, the late Ambassador of the
United States to the Court of St. James's, living on the date hereof. The
bankruptcy, liquidation, dissolution, death or incapacity of any Owner shall not
(i) operate to terminate this Agreement or the Trust, (ii) entitle such Owner's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or Trust Estate or (iii) otherwise affect the rights, obligations and
liabilities of the parties hereto.
(b) Except as provided in Section 9.01(a), neither the Depositor, the
Insurer nor any Owner shall be entitled to revoke or dissolve the Trust.
(c) Notice of any dissolution of the Trust, specifying the Distribution
Date upon which Owners shall surrender their Residual Interest Instruments to
the Paying Agent for payment of the final distribution and cancellation, shall
be given by the Trust Agent by letter to Owners mailed within five Business Days
of receipt of notice of such termination from the Servicer given pursuant to
Section 8.01(b) of the Sale and Servicing Agreement, stating (i) the
Distribution Date upon or with respect to which final distribution in respect of
the Residual Interest Instruments shall be made upon presentation and surrender
of the Residual Interest Instruments at the office of the Paying Agent in the
City of New York therein designated, (ii) the amount of any such final payment
and (iii) that the Record Date otherwise applicable to such Distribution Date is
not applicable, payments being made only upon presentation and surrender of the
Residual Interest Instruments at the office of the Paying Agent therein
specified. The Trust Agent shall give such notice to the Certificate Registrar
(if other than the Trust Agent) and the Paying Agent (if other than the Trust
Agent) at the time such notice is given to Owners.
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After satisfaction of any liabilities of the Trust in accordance with the
Statutory Trust Statute, and upon presentation and surrender of the Residual
Interest Instruments, the Paying Agent shall provide written notice of such
satisfaction of liabilities of the Trust to the Owner Trustee and cause to be
distributed to Owners, on a pro rata basis, any amounts remaining in the
Residual Distribution Account and the Trust upon the termination of this
Agreement. In addition, the Trust Agent shall notify the Rating Agencies upon
the final distribution in respect of the Residual Interest Instruments.
(d) In the event that all of the Owners shall not surrender their
Residual Interest Instruments for cancellation within six months after the date
specified in the above-mentioned written notice, the Trust Agent shall give a
second written notice to the remaining Owners to surrender their Residual
Interest Instruments for cancellation and receive the final distribution with
respect thereto. If within one year after the second notice all the Owners shall
not have been surrendered for cancellation, the Trust Agent may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
remaining Owners concerning surrender of their Residual Interest Instruments,
and the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement.
(e) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Statute. Upon the filing of
such certificate, the Trust and this Agreement (other than Article VIII) shall
terminate and be of no further force or effect.
ARTICLE X
SUCCESSOR OWNER TRUSTEES, ADDITIONAL OWNER
TRUSTEE AND TRUST AGENT
Section 10.01 Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a Domestic corporation satisfying the provisions
of Section 3807(a) of the Statutory Trust Statute; authorized to exercise
corporate trust powers; having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal or state
authorities; and having (or having a parent that has) a rating of at least Baa3
by Moody's and A-1 by Standard & Poor's. If such corporation shall publish
reports of condition at least annually pursuant to law or to the requirements of
the aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Owner Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Owner Trustee
shall resign immediately in the manner and with the effect specified in Section
10.02.
Section 10.02 Resignation or Removal of Owner Trustee. The Owner Trustee
may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Administrator and the Insurer. Upon
receiving such notice of resignation, the Administrator shall promptly appoint a
successor Owner Trustee, which shall be approved by the
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Insurer, by written instrument, in duplicate, one copy of which instrument shall
be delivered to the resigning Owner Trustee and one copy to the successor Owner
Trustee; provided that the Depositor and the Insurer shall have received written
confirmation from each Rating Agency that the proposed appointment will not
result in an increased capital charge to the Insurer by either Rating Agency. If
no successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee or the Insurer may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.
If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.01 and shall fail to resign after written
request therefor by the Administrator or the Insurer, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, or if at any time the Owner Trustee shall have
breached any representation or warranty contained in Section 7.03(a)(iii)
(without regard to any knowledge qualification), then the Administrator or the
Insurer may remove the Owner Trustee. If the Owner Trustee shall be removed
under the authority of the immediately preceding sentence, the Administrator
shall promptly appoint a successor Owner Trustee acceptable to the Insurer by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the outgoing Owner Trustee so removed and one copy to the successor
Owner Trustee, and shall pay all fees owed to the outgoing Owner Trustee.
Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each Rating Agency.
Section 10.03 Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to
the Administrator, the Insurer and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective,
and such successor Owner Trustee, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor under this Agreement, with like effect as if originally named as
Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Agreement; and the Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.
No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 10.01.
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Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Administrator shall mail notice thereof to all Owners, the
Insurer, the Depositor, the Servicer, the Indenture Trustee, the Noteholders and
each Rating Agency. If the Administrator shall fail to mail such notice within
ten days after acceptance of such appointment by the successor Owner Trustee,
the successor Owner Trustee shall cause such notice to be mailed at the expense
of the Administrator.
Section 10.04 Merger or Consolidation of Owner Trustee. Any corporation
into which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such corporation shall be eligible pursuant to Section 10.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to each Rating Agency.
Section 10.05 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate or any Financed Vehicle may at the time be located, the
Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Administrator, the Insurer and Owner Trustee to act as
co-trustee, jointly with the Owner Trustee, or as separate trustee or separate
trustees, of all or any part of the Trust Estate, and to vest in such Person, in
such capacity, such title to the Trust or any part thereof and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Administrator and the Owner Trustee may consider necessary or
desirable. If the Administrator shall not have joined in such appointment within
15 days after the receipt by it of a request to do so, the Owner Trustee and the
Insurer shall have the power to make such appointment. No co-trustee or separate
trustee under this Agreement shall be required to meet the terms of eligibility
as a successor Owner Trustee, provided that such co-trustee or successor trustee
must be acceptable to the Rating Agencies and no notice of the appointment of
any co-trustee or separate trustee shall be required pursuant to Section 10.03.
Section 10.06 Appointment of Trust Agent. Each separate trustee and
co-trustee shall, to the extent permitted by law, be appointed and act subject
to the following provisions and conditions:
(a) all rights, powers, duties and obligations conferred or imposed upon
the Owner Trustee shall be conferred upon and exercised or performed by the
Owner Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not authorized to act
separately without the Owner Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed, the Owner Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the Trust Estate or any portion
thereof in any such jurisdiction) shall be exercised and performed singly by
such separate trustee or co-trustee, but solely at the direction of the Owner
Trustee;
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(b) no trustee under this Agreement shall be personally liable by reason
of any act or omission of any other trustee under this Agreement; and
(c) the Administrator, the Insurer and the Owner Trustee acting jointly
may at any time accept the resignation of or remove any separate trustee or
co-trustee.
Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Owner Trustee or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of or affording protection to, the Owner
Trustee. Each such instrument shall be filed with the Owner Trustee and a copy
thereof given to the Administrator and the Insurer.
Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor co-trustee or separate trustee.
The Owner Trustee on behalf of the Trust hereby appoints JPMorgan Chase
Bank as Trust Agent for the purpose of establishing and maintaining the Residual
Distribution Account and making the distributions therefrom to persons entitled
thereto pursuant to Section 5.02 of this Agreement and for purposes of
performing the other duties specified to be performed by the Trust Agent under
this Agreement and the other Basic Documents. The Owner Trustee and the Trust
Agent each agree that upon the occurrence and continuation of an Insurer
Default, the Trust Agent shall resign and the Owner Trustee shall assume all
rights, duties and obligations of the Trust Agent under the Sale and Servicing
Agreement and this Agreement, including without limitation, the obligations of
the Trust Agent pursuant to Sections 3.02, 3.03, 3.04, 3.05, 3.07, 3.08, 3.09,
3.10, 5.01 and 5.02 hereof. The Trust Agent, in its capacity as Trust Agent,
shall not have any rights, duties or obligations except as expressly provided in
this Agreement, the Administration Agreement and the Sale and Servicing
Agreement.
The Trust Agent may at any time resign and be discharged from the trusts
hereby created by giving 30 days' written notice thereof to the Owner Trustee
and the Administrator. Upon receiving such notice of resignation, the Owner
Trustee, at the written direction of the Administrator, shall promptly appoint a
successor Trust Agent by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Trust Agent and one copy to the
successor Trust Agent.
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ARTICLE XI
MISCELLANEOUS
Section 11.01 Supplements and Amendments.
(a) This Agreement may be amended by the Depositor, the Owner Trustee
and the Trust Agent, with the prior written consent of the Insurer, but without
the consent of any of the Noteholders or the Owners, provided the Rating Agency
Condition is satisfied, to cure any ambiguity, to correct or supplement any
provisions herein which may be inconsistent with any of the provisions herein or
make any other provisions with respect to matters or questions arising hereunder
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that (i) any such action shall not materially and adversely affect the
interests of any Noteholder or Owner; (ii) any such action shall be deemed not
to materially and adversely affect the interest of any Noteholder if the Rating
Agency Condition is satisfied; and (iii) any such action shall be deemed not to
materially and adversely affect the interest of any Owner if the Person
requesting such amendment obtains an opinion of counsel to such effect, or
Owners representing 100% of the Percentage Interests consent to such amendment.
(b) Subject to Section 11.14, this Agreement may also be amended from
time to time with the prior written consent of the Insurer by the Depositor, the
Owner Trustee and the Trust Agent, with the consent of Noteholders representing
not less than 51% of the Outstanding Amount acting together as a single class
(which consent of any Holder of a Note given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Holder and on all future Holders of such Note issued upon the
transfer thereof or in exchange thereof or in lieu thereof whether or not
notation of such consent is made thereon) and, if such amendment materially and
adversely affects the interests of the Owners, with the consent of Owners
evidencing not less than 51% of the Percentage Interests, provided, in each case
the Rating Agency Condition is satisfied, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement, or of modifying in any manner the rights of the Noteholders or
the Owners; provided, however, that no such amendment may (i) increase or reduce
in any manner the amount of, or accelerate or delay the timing of, collections
of payments on Contracts or distributions that shall be required to be made for
the benefit of the Noteholders or Owners or (ii) reduce the aforesaid percentage
of the Outstanding Amount of the Notes or Percentage Interest of the Owners
required to consent to any such amendment, without the consent of the Owners of
all outstanding Notes and Residual Interest Instruments.
(c) Prior to the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent, together with a copy thereof, to the Indenture Trustee, the Insurer,
the Administrator and each Rating Agency.
(d) Promptly after the execution of any such amendment or consent, the
Trust Agent shall furnish written notification of the substance of such
amendment or consent to each Owner. It shall not be necessary for the consent of
Owners, Noteholders or the Indenture Trustee pursuant to this Section to approve
the particular form of any proposed amendment or consent,
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but it shall be sufficient if such consent shall approve the substance thereof.
The manner of obtaining such consents (and any other consents of Owners provided
for in this Agreement or in any other Basic Document) and of evidencing the
authorization of the execution thereof by Owners shall be subject to such
reasonable requirements as the Owner Trustee may prescribe.
(e) Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall cause the filing of such amendment with the
Secretary of State.
(f) In connection with the execution of any amendment to this Agreement
or any other Basic Document to which the Trust is a party and for which
amendment the Owner Trustee's consent is sought, each of the Owner Trustee and
the Trust Agent shall be entitled to receive and conclusively rely upon an
Opinion of Counsel to the effect that such amendment is authorized or permitted
by the Basic Documents and that all conditions precedent in the Basic Documents
for the execution and delivery thereof by the Trust, the Owner Trustee or the
Trust Agent, as the case may be, have been satisfied. The Owner Trustee and the
Trust Agent may, but shall not be obligated to, enter into any such amendment
that affects the Owner Trustee's or the Trust Agent's own rights, duties or
immunities under this Agreement or otherwise.
Section 11.02 [RESERVED].
Section 11.03 Limitations on Rights of Others. Except for Section 2.07,
the provisions of this Agreement are solely for the benefit of the Owner
Trustee, the Trust Agent, the Depositor, the Insurer, the Owners, the
Administrator and, to the extent expressly provided herein, the Indenture
Trustee and the Noteholders, and nothing in this Agreement (other than Section
2.07), whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.
Section 11.04 Notices. All demands, notices and communications under this
Agreement shall be in writing personally delivered or mailed by certified mail,
return receipt requested, and shall be deemed to have been duly given upon
receipt in the case of:
(a) the Owner Trustee, at the Owner Trustee Corporate Trust Office;
(b) the Depositor, at Onyx Acceptance Financial Corporation, 00000 Xxxxx
Xxxxxx Xxxxx, Xxxxx 000, Xxxxxxxx Xxxxx, Xxxxxxxxxx 00000;
(c) the Insurer, at XL Capital Assurance Inc., 0000 Xxxxxx xx xxx
Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000;
(d) the Trust Agent, at JPMorgan Chase Bank, Attention: Institutional
Trust Services/Global Debt - Onyx Acceptance Owner Trust 2004-C, 0 Xxx Xxxx
Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000;
(e) the Servicer or the Administrator, at Onyx Acceptance Corporation,
00000 Xxxxx Xxxxxx Xxxxx, Xxxxx 000, Xxxxxxxx Xxxxx, Xxxxxxxxxx 00000 or
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(f) as to each party, at such other address as shall be designated by
such party in a written notice to each other party.
Any notice required or permitted to be mailed to an Owner shall be given by
first-class mail, postage prepaid, at the address of such Owner as shown in the
Certificate Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given, whether or not
the Owner receives such notice.
Section 11.05 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Residual
Interest Instruments or the rights of the Owners thereof.
Section 11.06 Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
Section 11.07 Successors and Assigns. All covenants and agreements
contained herein shall be binding upon, and inure to the benefit of, each of the
Depositor, the Insurer, the Owner Trustee, the Trust Agent and their respective
successors and permitted assigns and each Owner and its successors and permitted
assigns, all as herein provided. Any request, notice, direction, consent, waiver
or other instrument or action by an Owner shall bind the successors and assigns
of such Owner.
Section 11.08 No Petition.
(a) The Depositor will not at any time institute against the Trust any
bankruptcy proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Residual Interest
Instruments, the Notes, this Agreement or any of the other Basic Documents.
(b) Each of the Owner Trustee and the Trust Agent, by entering into this
Agreement, each Owner, by accepting a Residual Interest Instrument, and the
Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Seller, the Depositor or the Trust, or join in any institution
against the Seller, the Depositor or the Trust of, any bankruptcy proceedings
under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Residual Interest Instruments, the Notes,
this Agreement or any of the other Basic Documents.
Section 11.09 No Recourse. Each Owner, by accepting a Residual Interest
Instrument, acknowledges that such Owner's Residual Interest Instruments
represent a beneficial interest in the Trust only and does not represent an
interest in or obligation of the Depositor, the Servicer, the Seller, the
Administrator, the Owner Trustee, the Trust Agent, the Indenture Trustee or any
of their respective Affiliates and no recourse may be had against such parties
or their assets,
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except as may be expressly set forth or contemplated in this Agreement, the
Residual Interest Instruments or the other Basic Documents.
Section 11.10 Residual Interest Instruments Nonassessable and Fully Paid.
Owners shall not be personally liable for obligations of the Trust. Except as
expressly provided herein, the interests represented by the Residual Interest
Instruments shall be nonassessable for any losses or expenses of the Trust or
for any reason whatsoever, and, upon authentication thereof pursuant to Section
3.03, the Residual Interest Instruments shall be deemed fully paid.
Section 11.11 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.
Section 11.12 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 11.13 Depositor Payment Obligation. To the extent not timely paid
by the Trust pursuant to Section 5.02(a), Onyx, in its capacity as, and for so
long as it is, the Servicer, shall be responsible for payment of the
Administrator's compensation pursuant to Section 3 of the Administration
Agreement and shall reimburse the Administrator for all expenses and liabilities
of the Administrator incurred thereunder.
Section 11.14 Certain Matters Regarding the Insurer. So long as an Insurer
Default shall not have occurred and be continuing, the Insurer shall have the
right to exercise all rights, including voting rights, which the Noteholders or
Owners are entitled to exercise pursuant to this Agreement, without any consent
of such Noteholders or Owners; provided, however, that without the consent of
each Noteholder or Owner affected thereby, the Insurer shall not exercise such
rights to amend this Agreement in any manner that would (i) reduce the amount
of, or delay the timing of, collections of payments on the Contracts or
distributions which are required to be made on any Note or Residual Interest
Instrument, (ii) adversely affect in any material respect the interests of the
Owners of any Notes or Residual Interest Instruments, or (iii) alter the rights
of any such Owner to consent to such amendment.
Notwithstanding any provision in this Agreement (except Section 4.06) to
the contrary, in the event an Insurer Default shall have occurred and be
continuing, the Insurer shall not have the right to take any action under this
Agreement or to control or direct the actions of the Trust, the Depositor, the
Owner Trustee or the Trust Agent pursuant to the terms of this Agreement, nor
shall the consent of the Insurer be required with respect to any action (or
waiver of a right to take action) to be taken by the Trust, the Depositor, the
Owner Trustee, the Trust Agent or the Owners of the Notes or the Residual
Interest Instruments; provided, that the consent of the Insurer shall be
required at all times with respect to any amendment of this Agreement; and
provided further, that notwithstanding the foregoing, each of the provisions in
Section 4.06(a) of this Agreement shall continue to be effective notwithstanding
that an Insurer Default may have occurred and be continuing.
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Section 11.15 Fiduciary Duties. The duties and responsibilities of the
Owner Trustee and the Trust Agent shall be limited to those expressly provided
for in this Agreement. The parties hereto agree that except for the purpose of
the foregoing sentence, neither the Owner Trustee nor the Trust Agent shall have
management responsibilities or owe any fiduciary duties to the Insurer.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers hereunto duly authorized, as of the
day and year first above written.
ONYX ACCEPTANCE FINANCIAL CORPORATION,
as Depositor
By:________________________________________________
Name:___________________________________________
Title:__________________________________________
WILMINGTON TRUST COMPANY, as Owner Trustee
By:________________________________________________
Name:___________________________________________
Title:__________________________________________
JPMORGAN CHASE BANK, not in its individual
capacity, but solely as Trust Agent
By:________________________________________________
Name:___________________________________________
Title:__________________________________________
Trust Agreement - Signature Page
EXHIBIT A
FORM OF
CERTIFICATE OF TRUST OF
ONYX ACCEPTANCE OWNER TRUST 2004-C
This Certificate of Trust of Onyx Acceptance Owner Trust 2004-C (the
"Trust") is being duly executed and filed by the undersigned, as trustees, to
form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code,
Section 3801 et seq. (the "Act")).
1. Name. The name of the statutory trust formed hereby is Onyx
Acceptance Owner Trust 2004-C.
2. Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is Wilmington Trust Company, Xxxxxx Square
North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-0000.
3. Effective Date. This Certificate of Trust shall be effective August
__, 2004.
IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of
Trust in accordance with Section 3811(a)(1) of the Act.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as Owner Trustee
By:___________________________________________________
Name:______________________________________________
Title:_____________________________________________
EXHIBIT B
FORM OF RESIDUAL INTEREST INSTRUMENT
