EXHIBIT 10.107
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TRUST AGREEMENT
BY AND AMONG
BLUEGREEN RECEIVABLES FINANCE CORPORATION VII,
AS TRUST DEPOSITOR AND RESIDUAL INTEREST OWNER,
GSS HOLDINGS, INC.
AS OWNER
AND
WILMINGTON TRUST COMPANY,
AS OWNER TRUSTEE
DATED AS OF AUGUST 3, 2004
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TABLE OF CONTENTS
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ARTICLE I. DEFINITIONS............................................................................................1
SECTION 1.01. CAPITALIZED TERMS................................................................................1
SECTION 1.02. OTHER DEFINITIONAL PROVISIONS....................................................................3
SECTION 1.03. USAGE OF TERMS...................................................................................3
SECTION 1.04. SECTION REFERENCES...............................................................................3
SECTION 1.05. ACCOUNTING TERMS.................................................................................3
ARTICLE II. ORGANIZATION..........................................................................................4
SECTION 2.01. NAME.............................................................................................4
SECTION 2.02. OFFICE...........................................................................................4
SECTION 2.03. PURPOSES AND POWERS..............................................................................4
SECTION 2.04. APPOINTMENT OF OWNER TRUSTEE.....................................................................5
SECTION 2.05. CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE.......................................................5
SECTION 2.06. DECLARATION OF TRUST.............................................................................5
SECTION 2.07. LIABILITY OF TRUST DEPOSITOR.....................................................................5
SECTION 2.08. TITLE TO TRUST PROPERTY..........................................................................6
SECTION 2.09. SITUS OF TRUST...................................................................................6
SECTION 2.10. REPRESENTATIONS AND WARRANTIES...................................................................6
SECTION 2.11. FEDERAL INCOME TAX TREATMENT.....................................................................8
SECTION 2.12. COVENANTS OF THE TRUST DEPOSITOR AND OWNER.......................................................9
ARTICLE III. CERTIFICATE AND TRANSFER OF INTERESTS...............................................................10
SECTION 3.01. OWNERSHIP.......................................................................................10
SECTION 3.02. THE TRUST CERTIFICATE...........................................................................10
SECTION 3.03. AUTHENTICATION AND DELIVERY OF TRUST CERTIFICATE................................................10
SECTION 3.04. REGISTRATION OF TRANSFER AND EXCHANGE OF TRUST CERTIFICATE......................................11
SECTION 3.05. OWNERSHIP.......................................................................................11
SECTION 3.06. THE RESIDUAL INTEREST CERTIFICATE...............................................................12
SECTION 3.07. AUTHENTICATION AND DELIVERY OF RESIDUAL INTEREST CERTIFICATE....................................12
SECTION 3.08. REGISTRATION OF TRANSFER AND EXCHANGE OF RESIDUAL INTEREST CERTIFICATE..........................12
SECTION 3.09. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES...............................................13
SECTION 3.10. PERSONS DEEMED OWNERS...........................................................................13
SECTION 3.11. ACCESS TO LIST OF CERTIFICATEHOLDER'S NAME AND ADDRESSES........................................13
SECTION 3.12. MAINTENANCE OF OFFICE OR AGENCY.................................................................13
SECTION 3.13. APPOINTMENT OF PAYING AGENT.....................................................................14
SECTION 3.14. OWNERSHIP BY OWNER OF TRUST CERTIFICATE.........................................................14
SECTION 3.15. OWNERSHIP BY TRUST DEPOSITOR OF RESIDUAL INTEREST CERTIFICATE...................................14
ARTICLE IV. ACTIONS BY OWNER TRUSTEE.............................................................................14
SECTION 4.01. PRIOR NOTICE TO RESIDUAL INTEREST CERTIFICATEHOLDER WITH RESPECT TO CERTAIN MATTERS.............14
SECTION 4.02. ACTION BY RESIDUAL INTEREST OWNER WITH RESPECT TO CERTAIN MATTERS...............................15
SECTION 4.03. ACTION BY RESIDUAL INTEREST OWNER WITH RESPECT TO BANKRUPTCY....................................15
SECTION 4.04. RESTRICTIONS ON RESIDUAL INTEREST OWNER'S POWER.................................................15
ARTICLE V. APPLICATION OF TRUST FUNDS; CERTAIN DUTIES............................................................16
SECTION 5.01. RESERVED........................................................................................16
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SECTION 5.02. APPLICATION OF TRUST FUNDS......................................................................16
SECTION 5.03. METHOD OF PAYMENT...............................................................................16
SECTION 5.04. NO SEGREGATION OF MONEYS; NO INTEREST...........................................................16
SECTION 5.05. ACCOUNTING AND REPORTS TO THE CERTIFICATEHOLDER, THE INTERNAL REVENUE SERVICE AND OTHERS........16
SECTION 5.06. SIGNATURE ON RETURNS; TAX MATTERS PARTNER.......................................................17
ARTICLE VI. AUTHORITY AND DUTIES OF OWNER TRUSTEE................................................................17
SECTION 6.01. GENERAL AUTHORITY...............................................................................17
SECTION 6.02. GENERAL DUTIES..................................................................................17
SECTION 6.03. ACTION UPON INSTRUCTION.........................................................................17
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......................................19
SECTION 6.06. RESTRICTIONS....................................................................................19
ARTICLE VII. CONCERNING THE OWNER TRUSTEE........................................................................19
SECTION 7.01. ACCEPTANCE OF TRUSTS AND DUTIES.................................................................19
SECTION 7.02. FURNISHING OF DOCUMENTS.........................................................................20
SECTION 7.03. REPRESENTATIONS AND WARRANTIES OF THE OWNER TRUSTEE.............................................20
SECTION 7.04. RELIANCE; ADVICE OF COUNSEL.....................................................................21
SECTION 7.05. NOT ACTING IN INDIVIDUAL CAPACITY...............................................................21
SECTION 7.06. OWNER TRUSTEE NOT LIABLE FOR TRUST CERTIFICATE, RESIDUAL INTEREST CERTIFICATE NOTES OR
RECEIVABLES.....................................................................................22
SECTION 7.07. OWNER TRUSTEE MAY OWN CERTIFICATES AND NOTES....................................................22
ARTICLE VIII. COMPENSATION OF OWNER TRUSTEE......................................................................22
SECTION 8.01. OWNER TRUSTEE'S FEES AND EXPENSES...............................................................22
SECTION 8.02. INDEMNIFICATION.................................................................................22
SECTION 8.03. PAYMENTS TO THE OWNER TRUSTEE...................................................................23
ARTICLE IX. TERMINATION OF TRUST AGREEMENT.......................................................................23
SECTION 9.01. TERMINATION OF TRUST AGREEMENT..................................................................23
SECTION 9.02. DISSOLUTION UPON BANKRUPTCY OF TRUST DEPOSITOR OR WITHDRAWAL OR REMOVAL OF TRUST DEPOSITOR......24
ARTICLE X. SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES................................................24
SECTION 10.01. ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE.....................................................24
SECTION 10.02. RESIGNATION OR REMOVAL OF OWNER TRUSTEE........................................................25
SECTION 10.03. SUCCESSOR OWNER TRUSTEE........................................................................25
SECTION 10.04. MERGER OR CONSOLIDATION OF OWNER TRUSTEE.......................................................26
SECTION 10.05. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE..................................................26
ARTICLE XI. MISCELLANEOUS........................................................................................27
SECTION 11.01. SUPPLEMENTS AND AMENDMENTS.....................................................................27
SECTION 11.02. NO LEGAL TITLE TO TRUST ESTATE IN OWNER........................................................28
SECTION 11.03. LIMITATIONS ON RIGHTS OF OTHERS................................................................28
SECTION 11.04. NOTICES........................................................................................28
SECTION 11.05. SEVERABILITY OF PROVISIONS.....................................................................29
SECTION 11.06. COUNTERPARTS...................................................................................29
SECTION 11.07. SUCCESSORS AND ASSIGNS.........................................................................29
SECTION 11.08. NO PETITION....................................................................................29
SECTION 11.09. NO RECOURSE....................................................................................29
SECTION 11.10. HEADINGS.......................................................................................29
SECTION 11.11. GOVERNING LAW..................................................................................29
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SECTION 11.12. TRUST CERTIFICATE TRANSFER RESTRICTIONS........................................................30
SECTION 11.13. TRUST DEPOSITOR PAYMENT OBLIGATION.............................................................30
EXHIBITS
Exhibit A - Form of Certificate of Trust............................................................A-1
Exhibit B -1 - Form of Trust Certificate...............................................................B-1
Exhibit B -2 - Form of Residual Interest Certificate...................................................B-2
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This TRUST AGREEMENT dated as of August __, 2004, is between BLUEGREEN
RECEIVABLES FINANCE CORPORATION VII, a Delaware corporation, as Trust Depositor
(the "TRUST DEPOSITOR" or the "RESIDUAL INTEREST OWNER"), GSS HOLDINGS, INC., as
owner (the "OWNER"), and WILMINGTON TRUST COMPANY, a Delaware banking
corporation, as owner trustee (the "OWNER TRUSTEE").
WHEREAS, in connection herewith and with the provisions of the Sale and
Servicing Agreement, the Trust Depositor is willing to convey the Trust Assets
to the Trust;
WHEREAS, in connection herewith and with the provisions of the Sale and
Servicing Agreement, the Trust Depositor is willing to purchase the Residual
Interest Certificate (as defined herein) to be issued pursuant to this Agreement
and to assume certain rights and obligations pursuant hereto; and
WHEREAS, the Owner is willing to purchase the Trust Certificate and
assume certain rights and obligations pursuant hereto:
NOW, THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I.
DEFINITIONS
SECTION 1.01. CAPITALIZED TERMS. Capitalized terms used but not defined
in this Agreement shall have the meanings ascribed thereto in the Sale and
Servicing Agreement (as defined below) and the Definitions Annex made a part
thereof. 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:
"AGREEMENT" means this Trust Agreement, as the same may be 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" or "CERTIFICATES" means, the Residual Interest
Certificate and the Trust Certificate.
"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.
"CERTIFICATEHOLDER" or "HOLDER" means with respect to the Trust
Certificate the Person in whose name the Trust Certificate is registered in the
Certificate Register, and with respect to the Residual Interest Certificate, the
person in whose name the Residual Interest Certificate is registered in the
Certificate Register.
"CODE" means the Internal Revenue Code of 1986, as amended.
"ERISA" means the Employment Retirement Income Security Act of 1974,
as amended.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"EXPENSES" shall have the meaning assigned to such term in Section
8.02.
"FOREIGN PERSON" means any Person other than (i) a citizen or resident
of the United States, (ii) a corporation, partnership or other entity organized
in or under the laws of the United States or any political subdivision thereof,
(iii) an estate the income of which is subject to U.S. federal income taxation
regardless of its source, or (iv) a trust whose administration is subject to the
primary supervision of a court within the United States and which has one or
more U.S. fiduciaries who have authority to control all substantial decisions of
the Trust.
"INDEMNIFIED PARTIES" shall have the meaning assigned to such term in
Section 8.02.
"OWNER" means the holder of the Trust Certificate.
"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 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000, Attn:
Corporate Trust Administration, or such other office at such other address as
the Owner Trustee may designate from time to time by notice to the
Certificateholder, the Servicer, the Indenture Trustee, the Trust Depositor and
the Facility Administrator.
"PAYING AGENT" means any paying agent or co-paying agent appointed
pursuant to Section 3.10.
"PERSON" means any individual, corporation, estate, partnership, joint
venture, association, joint stock company, trust (including any beneficiary
thereof) unincorporated organization or government or any agency or political
subdivision thereof.
"RESIDUAL INTEREST OWNER" means the holder of the Residual Interest
Certificate.
"RESIDUAL INTEREST CERTIFICATE" means the residual interest certificate
substantially in the form of Exhibit B-2 hereto, evidencing the economic, but
not equity interest in the Trust which economic interest shall be subordinate to
the rights of the Holders of the Notes in accordance with the terms of the
Transaction Documents.
"SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement,
dated as of the date hereof, among the Trust, the Trust Depositor, Bluegreen
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Corporation, as Servicer, Concord Servicing Corporation, as Back-Up Servicer,
Vacation Trust, Inc., as Club Trustee, U.S. Bank National Association, as
Indenture Trustee, the Noteholders and General Electric Capital Corporation, as
Facility Administrator, 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.
"STATUTORY TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware
Code, 12 DEL. CODEss.3801 ET seq., as the same may be amended from time to time.
"TAX MATTERS PARTNER" shall have the meaning provided in Section
5.06(b) hereof.
"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.
"TRUST" means the trust established by this Agreement.
"TRUST CERTIFICATE" means the trust certificate evidencing the
beneficial equity interest of an Owner in the Trust, substantially in the form
of EXHIBIT B-1 hereto.
"TRUST ESTATE" means all right, title and interest of the Trust in and
to the property and rights assigned to the Trust pursuant to Article II of the
Sale and Servicing Agreement, all funds on deposit from time to time in the
Trust Accounts and all other property of the Trust from time to time, including
any rights of the Owner Trustee and the Trust all pursuant to the terms and
conditions of the Sale and Servicing Agreement and the Administration Agreement.
SECTION 1.02. OTHER DEFINITIONAL PROVISIONS. Capitalized terms used
that are not otherwise defined herein shall have the meanings ascribed thereto
in Definitions Annex to the Sale and Servicing Agreement.
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 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.
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ARTICLE II.
ORGANIZATION
SECTION 2.01. NAME. The Trust created hereby shall be known as "BXG
RECEIVABLES OWNER TRUST 2004-A", in which name the Owner Trustee shall have the
power and authority and is hereby authorized and empowered to and may conduct
the business and activities of the Trust, make and execute contracts and other
instruments on behalf of the Trust and xxx and be sued.
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
Owner and the Trust Depositor.
SECTION 2.03. PURPOSES AND POWERS.
(a) The sole purpose of the Trust is, and the Trust shall have the
power and authority, to manage the Trust Estate and collect and disburse the
periodic income therefrom for the use and benefit of the Residual Interest
Owner, and in furtherance of such purpose to engage in the following ministerial
activities:
(i) to issue the Notes pursuant to the Indenture and the Trust
Certificate and Residual Interest Certificate pursuant to
this Agreement and to sell the Notes;
(ii) with the proceeds of the sale of the Notes, to acquire the
Receivables and other Trust Assets, and to pay the
organizational, start-up and transactional expenses of the
Trust and to pay the balance to the Trust Depositor
pursuant to the Sale and Servicing Agreement;
(iii) to assign, grant, transfer, pledge, mortgage and convey the
Trust Estate pursuant to the Indenture and to hold, manage
and distribute to the Residual Interest Owner pursuant to
the Sale and Servicing Agreement any portion of the Trust
Estate released from the Lien of, and remitted to the Trust
pursuant to, the Indenture and the Sale and Servicing
Agreement;
(iv) to enter into and perform its obligations under the
Transaction Documents to which it is to be a party;
(v) to engage in those activities, including entering into
agreements, that are necessary, suitable or convenient to
accomplish the foregoing or are incidental thereto or
connected therewith; and
(vi) subject to compliance with the Transaction 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 Residual Interest Owner and
the Noteholders.
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The Trust shall not engage in any activities other than in connection with the
foregoing. Nothing contained herein shall be deemed to authorize the Owner
Trustee to engage in any business operations or any activities other than those
set forth in the introductory sentence of this Section. Specifically, the Owner
Trustee shall have no authority to engage in any business operations, or acquire
any assets other than those specifically included in the Trust Estate under
Section 1.01, or otherwise vary the assets held by the Trust. Similarly, the
Owner Trustee shall have no discretionary duties other than performing those
ministerial acts set forth above necessary to accomplish the purpose of this
Trust as set forth in the introductory sentence of this Section.
SECTION 2.04. APPOINTMENT OF OWNER TRUSTEE. The Trust 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 the
Owner Trustee hereby accepts such appointment.
SECTION 2.05. CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE. The Trust
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Trust Depositor, as of the date hereof,
of the foregoing contribution, which shall constitute the initial Trust Estate
(prior to giving effect to the conveyances described in the Sale and Servicing
Agreement). The Trust Depositor shall pay organizational expenses of the Trust
as they may arise or shall, upon the request of the Owner Trustee, promptly
reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.
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 Residual Interest Owner, subject to the obligations of the Trust under
the Transaction Documents. It is the intention of the parties that the Owner, as
holder of the Trust Certificate, be the sole equity owner of the Trust but have
no economic interest in the Trust. It is the intention of the parties hereto
that the Residual Interest Owner have solely an economic, but not an equity
interest in the Trust, and that the Trust not constitute a Subsidiary or
Affiliate of the Residual Interest Owner (or of any of its Affiliates) for any
purpose. It is the intention of the parties hereto that the Trust constitutes a
statutory trust under the Statutory Trust Statute and that this Agreement
constitutes the governing instrument of such statutory trust. It is the
intention of the parties hereto that the Trust be disregarded as a separate
entity for federal income tax purposes pursuant to Treasury Regulation Section
301.7701-3(b)(1)(ii) as in effect for periods after January 1, 1997. The parties
agree not to take any action inconsistent with such intended federal income tax
treatment. 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 sole purpose and to the extent necessary to accomplish the purpose of
this Trust as set forth in the introductory sentence of Section 2.03.
SECTION 2.07. LIABILITY OF TRUST DEPOSITOR.
(a) Pursuant to Section 3803(a) of the Statutory Trust Statute, the
Trust Depositor shall be liable directly to and will indemnify any injured party
or any other creditor of the Trust for all losses, claims, damages, liabilities
and expenses of the Trust to the extent that the Trust Depositor would be liable
if the Trust were a partnership under the Delaware Revised Uniform Limited
Partnership Act in which Trust Depositor were a general partner; PROVIDED,
HOWEVER, that neither Trust Depositor nor Owner shall under any circumstances be
liable for any losses incurred by a Noteholder in the capacity of an investor in
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the Notes or for any losses in respect of the payment performance of the
Receivables. In addition, any third party creditors of the Trust (other than in
connection with the obligations described in the immediately preceding sentence
for which the Trust Depositor and Owner shall not be liable) shall be deemed
third party beneficiaries of the Trust Depositor's obligations under this
paragraph. The obligations of the Trust Depositor under this paragraph shall be
evidenced by the Residual Interest Certificate described in Section 3.12.
(b) The Owner, solely by virtue of its being the Holder of the Trust
Certificate, shall not have any personal liability for any liability or
obligation of the Trust.
SECTION 2.08. TITLE TO TRUST PROPERTY. Legal title to 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 an Owner Trustee or Owner Trustees, in which case title
shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.
SECTION 2.09. SITUS OF TRUST. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Florida or the
State of Delaware. 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 Delaware and payments will be
made by the Trust only from Delaware. The only office of the Trust will be at
the Owner Trustee Corporate Trust Office.
SECTION 2.10. REPRESENTATIONS AND WARRANTIES
(a) REPRESENTATIONS AND WARRANTIES OF THE TRUST DEPOSITOR. The Trust
Depositor hereby represents and warrants to the Owner Trustee that:
(i) The Trust 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 Trust
Assets.
(ii) The Trust 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 except where the
failure to be so qualified or obtain such licenses or
approvals could not reasonably be expected to have a
Material Adverse Effect.
(iii) The Trust Depositor has the power and authority to execute
and deliver this Agreement and to carry out its terms; the
Trust 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
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and assignment and deposit with the Owner Trustee on behalf
of the Trust by all necessary corporate action; and the
execution, delivery and performance of this Agreement have
been duly authorized by the Trust Depositor by all
necessary corporate action.
(iv) The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not
conflict with, result in any 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 Trust Depositor, or any
indenture, agreement or other instrument to which the Trust
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 Trust Depositor pursuant to the terms of
any such indenture, agreement or other instrument (other
than pursuant to the Transaction Documents); nor violate
any law or any order, rule or regulation applicable to the
Trust Depositor of any court or of any federal or state
regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the
Trust Depositor or its properties.
(v) All approvals, authorizations, consents, orders or other
actions of any person or any governmental entity required
in connection with the execution and delivery of this
Agreement and the fulfillment of the terms hereof have been
obtained.
(vi) There are no proceedings or investigations pending, or to
the Trust Depositor's best knowledge threatened, before any
court, regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the
Trust Depositor or its properties: (A) asserting the
invalidity of this Agreement, any of the other Transaction
Documents or the Residual Interest Certificate, (B) seeking
to prevent the issuance of the Residual Interest
Certificate or the consummation of any of the transactions
contemplated by this Agreement or any of the other
Transaction Documents, (C) seeking any determination or
ruling that might materially and adversely affect the
performance by the Trust Depositor of its obligations
under, or the validity or enforceability of, this
Agreement, any of the other Transaction Documents or the
Residual Interest Certificate or (D) involving the Trust
Depositor and which might adversely affect the federal
income tax or other federal, state or local tax attributes
of the Residual Interest Certificate.
(b) REPRESENTATIONS AND WARRANTIES OF OWNER. The Owner hereby
represents and warrants to the Owner Trustee that:
(i) The Owner 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.
(ii) The Owner 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.
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(iii) The Owner has the power and authority to execute and
deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement have
been duly authorized by the Owner by all necessary
corporate action.
(iv) The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not
conflict with, result in any 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 Owner, or any indenture,
agreement or other instrument to which the Owner 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
Owner pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the
Transaction Documents); nor violate any law or any order,
rule or regulation applicable to the Owner of any court or
of any federal or state regulatory body, administrative
agency or other governmental instrumentality having
jurisdiction over the Owner or its properties.
(v) All approvals, authorizations, consents, orders or other
actions of any person or any governmental entity required
in connection with the execution and delivery of this
Agreement and the fulfillment of the terms hereof have been
obtained.
(vi) There are no proceedings or investigations pending, or to
the Owner's best knowledge threatened, before any court,
regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the
Owner or its properties: (A) asserting the invalidity of
this Agreement, any of the other Transaction Documents or
the Trust Certificate, (B) seeking to prevent the issuance
of the Trust Certificate or the consummation of any of the
transactions contemplated by this Agreement or any of the
other Transaction Documents, (C) seeking any determination
or ruling that might materially and adversely affect the
performance by the Owner of its obligations under, or the
validity or enforceability of, this Agreement, any of the
other Transaction Documents or the Trust Certificate or (D)
involving the Owner and which might adversely affect the
federal income tax or other federal, state or local tax
attributes of the Trust Certificate.
SECTION 2.11. FEDERAL INCOME TAX TREATMENT.
(a) It is the intention of the Trust Depositor and the Owner that the
Trust be disregarded as a separate entity for federal income tax purposes
pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) as in effect for
periods after January 1, 1997. The Trust Certificate constitutes the sole equity
interest in the Trust and must at all times be held by either the Owner or its
transferee as sole owner. The Residual Interest Certificate constitutes the
entire residual economic interest in the Trust (after payments to the
Noteholders in accordance with the terms of the Transaction Documents) and must
at all times be held by the Trust Depositor or its transferee. The Trust
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Depositor and the Owner agree not to take any action inconsistent with such
intended federal income tax treatment. Because for federal income tax purposes
the Trust will be disregarded as a separate entity, Trust items of income, gain,
loss and deduction for any month as determined for federal income tax purposes
shall be allocated entirely to the Trust Depositor (or subsequent purchaser of
the Residual Interest Certificate) as the sole owner of the residual economic
interest in the Trust.
SECTION 2.12. COVENANTS OF THE TRUST DEPOSITOR AND OWNER. The Trust
Depositor and the Owner agree and covenant (severally, as applicable) that
during the term of this Agreement, and to the fullest extent permitted by
applicable law, that:
(a) in the event that any litigation with claims in excess of $10,000
to which the Trust Depositor is a party which shall be reasonably likely to
result in a material judgment against the Trust Depositor that the Trust
Depositor will not be able to satisfy shall be commenced, during the period
beginning immediately following the commencement of such litigation and
continuing until such litigation is dismissed or otherwise terminated (and, if
such litigation has resulted in a final judgment against the Trust Depositor,
such judgment has been satisfied), the Trust Depositor shall not pay any
dividend to its Affiliates, or make any distribution on or in respect of its
capital stock to its Affiliates, or repay the principal amount of any
indebtedness of the Trust Depositor held by its Affiliates, unless after giving
effect to such payment, distribution or repayment, the Trust Depositor's liquid
assets shall not be less than the amount of actual damages claimed in such
litigation;
(b) neither the Trust Depositor nor the Owner shall, for any reason,
institute proceedings for the Trust to be adjudicated a bankrupt or insolvent,
or consent to the institution of bankruptcy or insolvency proceedings against
the Trust, or file a petition seeking or consenting to reorganization or relief
under any applicable federal or state law relating to the bankruptcy of the
Trust, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Trust or a substantial
part of the property of the Trust or cause or permit the Trust to make any
assignment for the benefit of creditors, or admit in writing the inability of
the Trust to pay its debts generally as they become due, or declare or effect a
moratorium on the debt of the Trust or take any action in furtherance of any
such action;
(c) neither the Trust Depositor nor the Owner shall create, incur or
suffer to exist any indebtedness or engage in any business, except, in each
case, as permitted by its certificate of incorporation, by-laws and the
Transaction Documents;
(d) it shall obtain from each other party to each Transaction Document
to which it or the Trust is a party and each other agreement entered into on or
after the date hereof to which it or the Trust is a party, an agreement by each
such counterparty that prior to the occurrence of the event specified in Section
9.01(e) such counterparty shall not institute against, or join any other Person
in instituting against, it or the Trust, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceedings
under the laws of the United States or any state of the United States;
(e) it shall not, for any reason, withdraw or attempt to withdraw from
this Agreement, dissolve, institute proceedings for it to be adjudicated a
bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against it, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
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trustee, sequestrator (or other similar official) of it or a substantial part of
its property, or make any assignment for the benefit of creditors, or admit in
writing its inability to pay its debts generally as they become due, or declare
or effect a moratorium on its debt or take any action in furtherance of any such
action; and
(f) it shall not transfer the Trust Certificate (in the case of the
Owner) or the Residual Interest Certificate (in the case of the Trust Depositor)
unless the transferee agrees that it shall comply with the provisions of
paragraph (b) above.
ARTICLE III.
CERTIFICATE AND TRANSFER OF INTERESTS
SECTION 3.01. OWNERSHIP.
(a) Upon the formation of the Trust by the contribution by the Trust
Depositor pursuant to Section 2.05 and until the issuance of the Trust
Certificate, the Owner shall be the sole equity owner of the Trust. The Trust
Certificate must at all times be held by either the Owner or its transferee as
sole owner.
(b) No transfer of the Trust Certificate shall be made unless such
transfer is made in a transaction which does not require registration or
qualification under the Securities Act of 1933 or qualification under any state
securities or "Blue Sky" laws. Neither the Owner Trustee nor the Certificate
Registrar shall effect the registration of any transfer of the Trust Certificate
unless, (i) prior to such transfer the Owner Trustee shall have received a Tax
Opinion, and (ii) following such transfer, there would be no more than one
holder of the Trust Certificate and the holder of the Trust Certificate would
not be a Foreign Person, a partnership, Subchapter S corporation or grantor
trust.
SECTION 3.02. THE TRUST CERTIFICATE. The Trust Certificate shall be
substantially in the form of EXHIBIT B-2 hereto. The Trust Certificate 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 deemed to
have been validly issued when so executed. The Trust Certificate bearing the
manual or facsimile signature of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Owner Trustee shall
be a valid and binding obligation of the Trust, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of such Trust Certificate or did not hold such
offices at the date of such Trust Certificate. The Trust Certificate shall be
dated the date of its authentication.
SECTION 3.03. AUTHENTICATION AND DELIVERY OF TRUST CERTIFICATE. The
Owner Trustee shall cause to be authenticated and delivered upon the order of
the Trust Depositor, in exchange for the Receivables and the other Trust Assets,
simultaneously with the sale, assignment and transfer to the Trust of the
Receivables and other Trust Assets, and the constructive delivery to the Owner
Trustee of the Receivable Files and the other Trust Assets, a Trust Certificate
duly authenticated by the Owner Trustee, evidencing the entire ownership of the
Trust, and Notes issued by the Trust and authenticated by the Indenture Trustee
in aggregate principal amounts not to exceed, $125,000,000. No Trust Certificate
shall be entitled to any benefit under this Agreement, or be valid for any
purpose, unless there appears on such Trust Certificate a certificate of
authentication substantially in the form set forth in the form of Trust
Certificate attached hereto as EXHIBIT B-2, executed by the Owner Trustee or its
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authenticating agent, by manual signature, and such certificate upon any Trust
Certificate shall be conclusive evidence, and the only evidence, that such Trust
Certificate has been duly authenticated and delivered hereunder. Upon issuance,
authorization and delivery pursuant to the terms hereof, the Trust Certificate
will be entitled to the benefits of this Agreement.
SECTION 3.04. REGISTRATION OF TRANSFER AND EXCHANGE OF TRUST
CERTIFICATE.
(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 Trust
Certificate and transfers and exchanges of the Trust Certificate as provided
herein. The Owner Trustee is hereby initially appointed Certificate Registrar
for the purpose of registering the Trust Certificate and transfers and exchanges
of the Trust Certificate as herein provided. In the event that, subsequent to
the Closing Date, the Owner Trustee notifies the Servicer that it is unable to
act as Certificate Registrar, the Servicer shall appoint another bank or trust
company, having an office or agency located in the State of Delaware, agreeing
to act in accordance with the provisions of this Agreement applicable to it, and
otherwise acceptable to the Owner Trustee, to act as successor Certificate
Registrar hereunder.
(b) Upon surrender for registration of transfer of any Trust
Certificate at the Owner Trustee Corporate Trust Office, the Owner Trustee shall
execute, authenticate and deliver (or shall cause its authenticating agent to
authenticate and deliver), in the name of the designated transferee, one new
Trust Certificate having the same aggregate principal amount.
(c) Every Trust Certificate presented or surrendered for registration
of transfer shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by
the Holder thereof or his attorney duly authorized in writing.
(d) No service charge shall be made for any registration of transfer or
exchange of the Trust Certificate, but the Owner Trustee may require payment of
a sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer of the Trust Certificate.
(e) All Trust Certificates surrendered for registration of transfer
shall be canceled and subsequently destroyed by the Owner Trustee.
SECTION 3.05. OWNERSHIP.
(a) Upon the formation of the Trust by the contribution by the Trust
Depositor pursuant to Section 2.05 the Owner shall be the sole equity owner of
the Trust. The Residual Interest Certificate must at all times be held by either
the Residual Interest Owner or its transferee.
(b) No transfer of the Residual Interest Certificate shall be made
unless such transfer is made in a transaction which does not require
registration or qualification under the Securities Act of 1933 or qualification
under any state securities or "Blue Sky" laws. Neither the Owner Trustee nor the
Certificate Registrar shall effect the registration of any transfer of the
Residual Interest Certificate unless, (i) prior to such transfer the Owner
Trustee shall have received a Tax Opinion, and (ii) following such transfer,
there would be no more than one holder of the Residual Interest Certificate and
the holder of the Residual Interest Certificate would not be a Foreign Person, a
partnership, Subchapter S corporation or grantor trust.
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SECTION 3.06. THE RESIDUAL INTEREST CERTIFICATE. The Residual Interest
Certificate shall be substantially in the form of EXHIBIT B-2 hereto. The
Residual Interest Certificate 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 deemed to have been validly issued when so executed.
The Trust Certificate bearing the manual or facsimile signature of individuals
who were, at the time when such signatures were affixed, authorized to sign on
behalf of the Owner Trustee shall be a valid and binding obligation of the
Trust, notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the authentication and delivery of such Residual Interest
Certificate or did not hold such offices at the date of such Residual Interest
Certificate. The Residual Interest Certificate shall be dated the date of its
authentication.
SECTION 3.07. AUTHENTICATION AND DELIVERY OF RESIDUAL INTEREST
CERTIFICATE. The Owner Trustee shall cause to be authenticated and delivered to
the Residual Interest Owner upon the order of the Trust Depositor,
simultaneously with the sale, assignment and transfer to the Trust of the
Receivables and other Trust Assets, and the constructive delivery to the Owner
Trustee of the Receivable Files and the other Trust Assets, a Residual Interest
Certificate duly authenticated by the Owner Trustee, evidencing the entire
residual economic (but no equity ownership) of the Trust, and Notes issued by
the Trust and authenticated by the Indenture Trustee in aggregate principal
amounts not to exceed, $125,000,000. No Residual Interest Certificate shall be
entitled to any benefit under this Agreement, or be valid for any purpose,
unless there appears on such Residual Interest Certificate a certificate of
authentication substantially in the form set forth in the form of Residual
Interest Certificate attached hereto as EXHIBIT B-2, executed by the Owner
Trustee or its authenticating agent, by manual signature, and such certificate
upon any Residual Interest Certificate shall be conclusive evidence, and the
only evidence, that such Residual Interest Certificate has been duly
authenticated and delivered hereunder. Upon issuance, authorization and delivery
pursuant to the terms hereof, the Residual Interest Certificate will be entitled
to the benefits of this Agreement.
SECTION 3.08. REGISTRATION OF TRANSFER AND EXCHANGE OF RESIDUAL
INTEREST CERTIFICATE.
(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 Certificate and transfers and exchanges of the Residual
Interest Certificate as provided herein. The Owner Trustee is hereby initially
appointed Certificate Registrar for the purpose of registering the Residual
Interest Certificate and transfers and exchanges of the Residual Interest
Certificate as herein provided. In the event that, subsequent to the Closing
Date, the Owner Trustee notifies the Servicer that it is unable to act as
Certificate Registrar, the Servicer shall appoint another bank or trust company,
having an office or agency located in the State of Delaware, agreeing to act in
accordance with the provisions of this Agreement applicable to it, and otherwise
acceptable to the Owner Trustee, to act as successor Certificate Registrar
hereunder.
(b) Upon surrender for registration of transfer of any Residual
Interest Certificate at the Owner Trustee Corporate Trust Office, the Owner
Trustee shall execute, authenticate and deliver (or shall cause its
authenticating agent to authenticate and deliver), in the name of the designated
transferee, one new Residual Interest Certificate having the same aggregate
principal amount.
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(c) Every Residual Interest Certificate presented or surrendered for
registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Owner Trustee and the Certificate Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing.
(d) No service charge shall be made for any registration of transfer or
exchange of the Residual Interest Certificate, but the Owner Trustee may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer of the Residual Interest Certificate.
(e) All Residual Interest Certificates surrendered for registration of
transfer shall be canceled and subsequently destroyed by the Owner Trustee.
SECTION 3.09. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (i)
any mutilated Certificate is surrendered to the Certificate Registrar, or the
Certificate Registrar receives evidence to its satisfaction of the destruction,
loss or theft of any Certificate, and (ii) there is delivered to the Certificate
Registrar and the Owner Trustee such security or indemnity as may be required by
them to save each of them harmless, then, in the absence of notice that such
Certificate has been acquired by a bona fide purchaser, the Owner Trustee on
behalf of the shall execute and the Owner Trustee or its authenticating agent
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
tenor and fractional undivided interest. In connection with the issuance of any
new Certificate under this Section, the Owner Trustee may require the payment by
the Holder of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto. Any duplicate Certificate 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 Certificate shall be found at any time.
SECTION 3.10. PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Owner Trustee, the Certificate
Registrar and any of their respective agents may treat the Person in whose name
any Certificate is registered as the owner of such Certificate for the purpose
of receiving distributions pursuant to Section 5.02 and for all other purposes
whatsoever, and none of the Owner Trustee, the Certificate Registrar, any Paying
Agent or any of their respective agents shall be affected by any notice of the
contrary.
SECTION 3.11. ACCESS TO LIST OF CERTIFICATEHOLDER'S NAME AND ADDRESSES.
The Owner Trustee shall furnish or cause to be furnished to the Servicer and the
Trust Depositor, within 15 days after receipt by the Certificate Registrar of a
written request therefor from the Servicer or the Trust Depositor, the name and
address of the Certificateholder as of the most recent Record Date in such form
as the Servicer or the Trust Depositor may reasonably require. Every
Certificateholder, by receiving and holding a Certificate, agrees with the
Servicer, the Trust Depositor and the Owner Trustee that none of the Servicer,
the Trust Depositor or the Owner Trustee shall be held accountable by reason of
the disclosure of any such information as to the name and address of the
Certificateholder hereunder, regardless of the source from which such
information was derived.
SECTION 3.12. MAINTENANCE OF OFFICE OR AGENCY. The Owner Trustee shall
maintain in Delaware, an office or offices or agency or agencies where the
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Owner Trustee in respect of the
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Certificates and this Agreement may be served. The Owner Trustee hereby
designates the Owner Trustee Corporate Trust Office as its office for such
purposes. The Owner Trustee shall give prompt written notice to the Trust
Depositor, the Servicer and to the Certificateholder of any change in the
location of the Certificate Register or any such office or agency.
SECTION 3.13. APPOINTMENT OF PAYING AGENT. The Paying Agent shall make
distributions to the Residual Interest Certificateholder pursuant to Section
5.02(a) and shall report the amounts of such distributions to the Owner Trustee.
The Owner Trustee may revoke such power and remove the Paying Agent if the Owner
Trustee determines in its sole discretion that the Paying Agent shall have
failed to perform its obligations under this Agreement in any material respect.
The Paying Agent initially shall be U.S. Bank National Association, and any
co-paying agent chosen by the Paying Agent that is acceptable to the Owner
Trustee. Each Paying Agent shall be permitted to resign as Paying Agent upon 30
days' written notice to the Owner Trustee. In the event that U.S. Bank National
Association shall no longer be the Paying Agent, the Owner Trustee shall appoint
a successor to act as Paying Agent (which shall be a bank or trust company). The
Owner Trustee shall cause such successor Paying Agent or any additional Paying
Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee
an instrument in which such successor Paying Agent or additional Paying Agent
shall agree with the Owner Trustee 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 Certificateholder in trust for the benefit of the
Certificateholder entitled thereto until such sums shall be paid to such
Certificateholder. The Paying Agent shall return all unclaimed funds to the
Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also
return all funds in its possession to the Owner Trustee. The provisions of
Sections 7.01, 7.03, 7.04 and 8.01 shall apply to the Owner Trustee also in its
role as Paying Agent, for so long as the Owner Trustee 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.
SECTION 3.14. OWNERSHIP BY OWNER OF TRUST CERTIFICATE. Owner shall on
the Closing Date purchase from the Trust a Trust Certificate.
SECTION 3.15. OWNERSHIP BY TRUST DEPOSITOR OF RESIDUAL INTEREST
CERTIFICATE. Trust Depositor shall on the Closing Date purchase from the Trust a
Residual Interest Certificate.
ARTICLE IV.
ACTIONS BY OWNER TRUSTEE
SECTION 4.01. PRIOR NOTICE TO RESIDUAL INTEREST CERTIFICATEHOLDER WITH
RESPECT TO CERTAIN MATTERS. Subject to the provisions and limitations of Section
4.04 with respect to the following matters, the Owner Trustee shall not take
action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Residual Interest Certificateholder in writing
of the proposed action, the Indenture Trustee shall have consented to such
action in the event any Notes are outstanding and the Residual Interest
Certificateholder shall not have notified the Owner Trustee in writing prior to
the 30th day after such notice is given that such Certificateholder has 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 Receivables) and
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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 Receivables);
(b) the election by the Trust to file an amendment to the Certificate
of Trust (unless such amendment is required to be filed under the Statutory
Trust Statute);
(c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;
(d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially and adversely affects the interest of the Residual Interest
Owner;
(e) 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 and adversely affect the
interests of the Residual Interest Owner; or
(f) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a
successor Certificate Registrar, or the consent to the assignment by the Note
Registrar, Paying Agent, Indenture Trustee or Certificate Registrar of its
obligations under the Indenture or the Agreement, as applicable.
SECTION 4.02. ACTION BY RESIDUAL INTEREST OWNER WITH RESPECT TO CERTAIN
MATTERS. Subject to the provisions and limitations of Section 4.04, the Owner
Trustee shall not have the power, except upon the written direction of the
Residual Interest Owner, to (a) remove the Trust Administrator pursuant to
Section 8 of the Administration Agreement, (b) appoint a successor Trust
Administrator pursuant to Section 8 of the Administration Agreement, (c) remove
the Servicer pursuant to Section 8.01 of the Sale and Servicing Agreement, (d)
except as expressly provided in the Transaction Documents, sell the Receivables
or other Trust Assets 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 business trust or entity
(other than in accordance with Section 3.10 of the Indenture) or (g) amend the
Certificate of Trust. The Owner Trustee shall take the actions referred to in
the preceding sentence only upon written instructions signed by the Residual
Interest Owner.
SECTION 4.03. ACTION BY RESIDUAL INTEREST OWNER WITH RESPECT TO
BANKRUPTCY. Subject to Sections 2.12(b) and (f), the Owner Trustee shall not
have the power to commence a voluntary proceeding in a bankruptcy relating to
the Trust without the prior approval of the Residual Interest Owner and the
delivery to the Owner Trustee by such Residual Interest Owner of a certificate
certifying that such Residual Interest Owner reasonably believes that the Trust
is insolvent.
SECTION 4.04. RESTRICTIONS ON RESIDUAL INTEREST OWNER'S POWER. The
Residual Interest Owner shall not direct the Owner Trustee to take or to refrain
from taking any action if such action or inaction would be contrary to any
obligation of the Trust or the Owner Trustee under this Agreement or any of the
Transaction Documents or would be contrary to the purpose of this Trust as set
forth in Section 2.03, nor shall the Owner Trustee be obligated to follow any
such direction, if given.
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ARTICLE V.
APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
SECTION 5.01. RESERVED.
SECTION 5.02. APPLICATION OF TRUST FUNDS.
(a) On each Payment Date, the Paying Agent will distribute to the
Residual Interest Certificateholder amounts received pursuant to Section 2.11 of
the Sale and Servicing Agreement with respect to such Payment Date.
(b) On each Payment Date, the Paying Agent shall send to the Residual
Interest Certificateholder the statement or statements provided to the Owner
Trustee by the Servicer pursuant to Section 9.4 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 allocation of income) to the Residual Interest Certificateholder,
such tax shall reduce the amount otherwise distributable to the Residual
Interest Certificateholder in accordance with this Section. The Paying Agent is
hereby authorized and directed to retain from amounts otherwise distributable to
the Residual Interest Owner sufficient funds for the payment of any tax that is
legally owed by the Trust (but such authorization shall not prevent the Owner
Trustee 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 the
Residual Interest Certificateholder shall be treated as cash distributed to such
Residual Interest Certificateholder at the time it is withheld by the Trust and
remitted to the appropriate taxing authority. If there is a reasonable
possibility that withholding tax is payable with respect to a distribution, the
Paying Agent may in its sole discretion 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 the Residual Interest Certificate,
distributions required to be made to the Residual Interest Certificateholder of
record on the related Record Date shall be made by check mailed to such Residual
Interest Certificateholder at the address of such Residual Interest
Certificateholder appearing in the Certificate Register.
SECTION 5.04. NO SEGREGATION OF MONEYS; NO INTEREST. Subject to
Sections 5.01 and 5.02, moneys received by the Owner Trustee hereunder need not
be segregated in any manner except to the extent required by law or the Sale and
Servicing Agreement and may be deposited under such general conditions as may be
prescribed by law, and the Owner Trustee shall not be liable for any interest
thereon.
SECTION 5.05. ACCOUNTING AND REPORTS TO THE CERTIFICATEHOLDER, THE
INTERNAL REVENUE SERVICE AND OTHERS. The Owner Trustee 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 the Residual Interest Owner, as may
be required by the Code and applicable Treasury Regulations, such information as
may be required to enable the Residual Interest Owner to prepare its federal and
state income tax returns, (c) file such tax returns relating to the Trust 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
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as to maintain the federal income tax treatment for the Trust as set forth in
Section 2.11, (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 Residual Interest Owner. The Owner Trustee shall elect under Section 1278 of
the Code to include in income currently any market discount that accrues with
respect to the Receivables. If applicable, the Owner Trustee shall not make the
election provided under Section 754 or Section 761 of the Code.
SECTION 5.06. SIGNATURE ON RETURNS; TAX MATTERS PARTNER.
(a) The Trust Depositor shall sign on behalf of the Trust the tax
returns of the Trust.
(b) If Subchapter K of the Code should be applicable to the Trust, the
Residual Interest Certificateholder shall be designated the "TAX MATTERS
PARTNER" of the Trust pursuant to Section 6231(a)(7)(A) of the Code and
applicable Treasury Regulations.
ARTICLE VI.
AUTHORITY AND DUTIES OF OWNER TRUSTEE
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 the Transaction 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 Transaction 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 Transaction Documents. The Owner Trustee is further
authorized from time to time to take such action as the Trust Administrator
recommends with respect to the Transaction Documents.
SECTION 6.02. GENERAL DUTIES. Subject to the provisions and limitations
of Sections 2.03 and 2.06, it shall be the duty of the Owner Trustee to
discharge (or cause to be discharged through the Trust Administrator) all of its
responsibilities pursuant to the terms of this Agreement and the Transaction
Documents to which the Trust is a party and to administer the Trust in the
interest of the Owner and the Residual Interest Owner, subject to the
Transaction Documents and in accordance with the provisions of this Agreement.
Without limiting the foregoing, the Owner Trustee shall on behalf of the Trust
file and prove any claim or claims that may exist against the Seller in
connection with any claims paying procedure as part of an insolvency or
receivership proceeding involving the Seller. Notwithstanding the foregoing, the
Owner Trustee shall be deemed to have discharged its duties and responsibilities
hereunder and under the Transaction Documents to the extent the Trust
Administrator has agreed in the Administration Agreement to perform any act or
to discharge any duty of the Owner Trustee hereunder or under any Transaction
Document, and the Owner Trustee shall not be held liable for the default or
failure of the Trust Administrator to carry out its obligations under the
Administration Agreement.
SECTION 6.03. ACTION UPON INSTRUCTION.
(a) Subject to Article Four, in accordance with the terms of the
Transaction Documents the Owner may by written instruction direct the Owner
Trustee in the management of the Trust.
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(b) Owner Trustee shall not be required to take any action hereunder or
under any other Transaction Document if the Owner Trustee 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 is contrary to the terms
hereof or of any other Transaction Document or is otherwise contrary to law.
(c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or under
any other Transaction Document, the Owner Trustee shall promptly give notice (in
such form as shall be appropriate under the circumstances) to the Owner and the
Residual Interest Owner requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Owner and the Residual Interest Owner
received, the Owner Trustee shall not be liable on account of such action to any
Person. If the Owner Trustee 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
Transaction Documents, as it shall deem to be in the best interests of the Owner
and the Residual Interest Owner, and shall have no liability to any Person for
such action or inaction.
(d) In the event that the Owner Trustee is unsure as to the
applicability of any provision of this Agreement or any other Transaction
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 is silent
or 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 may give
notice (in such form as shall be appropriate under the circumstances) to the
Owner and the Residual Interest Owner requesting instruction and, to the extent
that the Owner Trustee acts or refrains from acting in good faith in accordance
with any such instruction received, the Owner Trustee shall not be liable, on
account of such action or inaction, to any Person. If the Owner Trustee 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 Transaction Documents, as it shall deem to be in the best interests
of the Owner and the Residual Interest Owner, and shall have no liability to any
Person for such action or inaction.
(e) Notwithstanding anything contained herein to the contrary, the
Owner Trustee shall not be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will (i) require the
registration with, licensing by or the taking of any other similar action in
respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware by or with respect to the Owner
Trustee; (ii) result in any fee, tax or other governmental charge under the laws
of any jurisdiction or any political subdivisions thereof in existence on the
date hereof other than the State of Delaware being payable by the Owner Trustee;
or (iii) subject the Owner Trustee to personal jurisdiction in any jurisdiction
other than the State of Delaware for causes of action arising from acts
unrelated to the consummation of the transactions by the Owner Trustee
contemplated in this Agreement. In the event that the Owner Trustee has
determined that any action set forth in clauses (i)-(iii) will result in the
consequences stated therein, the Trust Administrator and the Owner Trustee shall
appoint one or more Persons to act as co-trustee pursuant to Section 10.05.
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SECTION 6.04. NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT OR IN
INSTRUCTIONS. The Owner Trustee shall not 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 is a party, except as expressly provided by the terms
of this Agreement or any document or written instruction received by the Owner
Trustee pursuant to Section 6.03; and no implied duties or obligations shall be
read into this Agreement or any other Transaction Document against the Owner
Trustee. The Owner Trustee shall have no 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 any Commission filing for the Trust or to
record this Agreement or any other Transaction Document. The Owner Trustee
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 that
are not related to the ownership or the administration of the Trust Estate.
SECTION 6.05. NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
INSTRUCTIONS. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Trust Estate except (i) in accordance
with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (ii) in accordance with the other Transaction
Documents and (iii) in accordance with any document or instruction delivered to
the Owner Trustee pursuant to Section 6.03.
SECTION 6.06. RESTRICTIONS. The Owner Trustee shall not 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, would result in the Trust's becoming taxable as a corporation for
federal or state income tax purposes. Neither the Owner nor the Residual
Interest Owner shall direct the Owner Trustee to take actions that would violate
the provisions of this Section.
ARTICLE VII.
CONCERNING THE OWNER TRUSTEE
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. The Owner
Trustee also agrees to disburse all moneys actually received by it constituting
part of the Trust Estate upon the terms of the Transaction Documents and this
Agreement. The Owner Trustee shall not be answerable or accountable hereunder or
under any other Transaction 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. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):
(a) the Owner Trustee shall not be liable for any error of judgment
made by a responsible officer of the Owner Trustee which did not result from
gross negligence on the part of such responsible officer;
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(b) the Owner Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in accordance with the instructions of the
Trust Administrator or the Owner and the Residual Interest Owner;
(c) no provision of this Agreement or any other Transaction Document
shall require the Owner Trustee 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 Transaction Document if the Owner Trustee 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 be liable for
indebtedness evidenced by or arising under any of the Transaction Documents,
including the principal of and interest on the Notes;
(e) the Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by the
Trust 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 Transaction Documents, other than the certificate of
authentication on the Trust Certificate and the Residual Interest Certificate,
and the Owner Trustee shall in no event assume or incur any liability, duty, or
obligation to any Noteholder or to the Owner or the Residual Interest Owner,
other than as expressly provided for herein or expressly agreed to in the
Transaction Documents;
(f) Neither the Owner Trustee nor the Owner shall be liable for the
default or misconduct of the Trust Administrator, the Trust Depositor, the
Residual Interest Owner, the Indenture Trustee or the Servicer under any of the
Transaction Documents or otherwise and the Owner Trustee shall have no
obligation or liability to perform the obligations of the Trust under this
Agreement or the other Transaction Documents that are required to be performed
by the Trust Administrator under the Administration Agreement, the Indenture
Trustee under the Indenture or the Servicer or the Trust Depositor under the
Sale and Servicing Agreement; and
(g) the Owner Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by the Agreement, or to institute, conduct or
defend any litigation under this Agreement or otherwise or in relation to this
Agreement or any other Transaction Document, at the request, order or direction
of the Owner or the Residual Interest Owner unless such Owner or the Residual
Interest Owner has offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any discretionary act enumerated in this Agreement or in any other
Transaction Document shall not be construed as a duty, and the Owner Trustee
shall not be answerable for other than its negligence or willful misconduct in
the performance of any such act.
SECTION 7.02. FURNISHING OF DOCUMENTS. The Owner Trustee shall furnish
to the Owner and the Residual Interest Owner 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 Owner Trustee under the Transaction Documents.
SECTION 7.03. REPRESENTATIONS AND WARRANTIES OF THE OWNER TRUSTEE. The
Owner Trustee hereby represents and warrants to the Trust Depositor and the
Owner and the Residual Interest Owner that:
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(a) 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.
(b) 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.
(c) 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 applicable
Requirements of Law, including, without limitation, 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 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
Transaction Documents.
SECTION 7.04. RELIANCE; ADVICE OF COUNSEL.
(a) The Owner Trustee shall incur no 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 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 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 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
Transaction Documents, the Owner Trustee (i) may act directly or through its
agents or attorneys pursuant to agreements entered into by any of them, and the
Owner Trustee shall not be liable for the conduct or misconduct of such agents
or attorneys as shall have been selected by the Owner Trustee with reasonable
care, and (ii) may consult with counsel, accountants and other skilled persons
to be selected with reasonable care and employed by it. The Owner Trustee shall
not 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.
SECTION 7.05. NOT ACTING IN INDIVIDUAL CAPACITY. Except as provided in
this Article Seven, in accepting the trusts hereby created, Wilmington Trust
Company acts solely as Owner Trustee hereunder and not in its individual
capacity, and all Persons having any claim against the Owner Trustee by reason
of the transactions contemplated by this Agreement or any other Transaction
Document shall look only to the Trust Estate for payment or satisfaction
thereof.
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SECTION 7.06. OWNER TRUSTEE NOT LIABLE FOR TRUST CERTIFICATE, RESIDUAL
INTEREST CERTIFICATE NOTES OR RECEIVABLES. The recitals contained herein and in
the Trust Certificate and the Residual Interest Certificate (other than the
signature and countersignature of the Owner Trustee and the certificate of
authentication on such Certificates) shall be taken as the statements of the
Trust Depositor, and neither the Owner Trustee nor the Owner assumes
responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, any other
Transaction Document or the Certificates (other than the signature and
countersignature of the Owner Trustee and the certificate of authentication on
the Certificates) or the Notes, or of any Receivable or related documents. The
Owner Trustee shall at no time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Receivable, or the
perfection and priority of any security interest in any security relating to a
Receivable 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 the Residual Interest Certificateholder under
this Agreement or the Noteholders under the Indenture, including, without
limitation, the existence, condition and ownership of any Receivable; the
existence and enforceability of any insurance thereon; the existence and
contents of any Receivable on any computer or other record thereof; the validity
of the assignment of any Receivable to the Trust or of any intervening
assignment; the completeness of any Receivable; the performance or enforcement
of any Receivable; the compliance by the Trust Depositor or the Servicer with
any warranty or representation made under any Transaction Document or in any
related document or the accuracy of any such warranty or representation; or any
action of the Trust Administrator, the Indenture Trustee or the Servicer or any
subservicer taken in the name of the Owner Trustee.
SECTION 7.07. OWNER TRUSTEE MAY OWN CERTIFICATES AND NOTES. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee
of the Certificates or Notes and may deal with the Trust Depositor, the Owner,
the Residual Interest Owner, the Trust Administrator, the Indenture Trustee and
the Servicer in banking transactions with the same rights as it would have if it
were not Owner Trustee.
ARTICLE VIII.
COMPENSATION OF OWNER TRUSTEE
SECTION 8.01. OWNER TRUSTEE'S FEES AND EXPENSES. The Owner Trustee
shall receive as compensation for its services hereunder such fees as are
provided for and paid pursuant to Section 2.11 of the Sale and Servicing
Agreement. Additionally, the Owner Trustee shall be entitled to be reimbursed by
the Trust Depositor or Servicer for its other reasonable out-of-pocket expenses
hereunder, including the reasonable compensation, expenses and disbursements of
such agents, representatives, experts and counsel as the Owner Trustee may
employ in connection with the exercise and performance of its rights and its
duties hereunder.
SECTION 8.02. INDEMNIFICATION. The Trust Depositor shall be liable as
primary obligor for, and shall indemnify the Owner Trustee and its successors,
assigns and servants (collectively, the "INDEMNIFIED PARTIES") from and against,
any and all liabilities, obligations, losses, damages, taxes, claims, actions
and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "EXPENSES") which may at any time be imposed on, incurred by or
asserted against the Owner Trustee or any Indemnified Party in any way relating
to or arising out of this Agreement, the other Transaction Documents, the Trust
Estate, the administration of the Trust Estate or the action or inaction of the
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Owner Trustee hereunder, except only that the Trust Depositor shall not be
liable for or required to indemnify an Indemnified Party from and against
Expenses arising or resulting from any of the matters described in the third
sentence of Section 7.01 or in respect of the payment performance of the
Receivables. The indemnities contained in this Section shall survive the
resignation or termination of the Owner Trustee or the termination of this
Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section, the Owner Trustee's choice of legal
counsel shall be subject to the approval of the Trust Depositor, which approval
shall not be unreasonably withheld.
SECTION 8.03. PAYMENTS TO THE OWNER TRUSTEE. Any amounts paid to the
Owner Trustee 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 Trust shall dissolve upon written notice, which shall be
provided by the Trust Depositor to the Owner Trustee, only after the earlier of
(i) the date after the Facility Termination Date on which all Aggregate
Outstandings have been paid in full and final distribution of payments to the
Residual Interest Certificates as required hereunder (the "Trust Termination
Date"), (ii) dissolution of the Trust in accordance with applicable law and
(iii) the time provided in Section 9.02. The bankruptcy, liquidation,
dissolution, death or incapacity of any Owner, other than the Trust Depositor as
described in Section 9.02, 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 Trust Depositor
nor any Holder shall be entitled to revoke or terminate the Trust.
(c) Notice of any dissolution of the Trust, specifying the Payment Date
upon which the Residual Interest Certificateholder shall surrender its Residual
Interest Certificate to the Paying Agent for payment of the final distribution
and cancellation, shall be given by the Owner Trustee by letter to the
Certificateholder mailed within five Business Days of receipt of notice of
termination from the Servicer, stating (i) the Payment Date upon or with respect
to which final payment of the Residual Interest Certificate shall be made upon
presentation and surrender of the Residual Interest Certificate at the office of
the Paying Agent therein designated, (ii) the amount of any such final payment
and (iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the
Residual Interest Certificate at the office of the Paying Agent therein
specified. The Owner Trustee shall give such notice to the Certificate Registrar
(if other than the Owner Trustee) and the Paying Agent at the time such notice
is given to the Residual Interest Certificateholder. Upon presentation and
surrender of the Residual Interest Certificates, the Paying Agent shall cause to
be distributed to the Residual Interest Certificateholder amounts distributable
on such Payment Date pursuant to Section 5.02.
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(d) In the event that the Residual Interest Certificateholder shall not
surrender its Residual Interest Certificate for cancellation within six months
after the date specified in the above mentioned written notice, the Owner
Trustee shall give a second written notice to such Residual Interest
Certificateholder to surrender its Residual Interest Certificate for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice the Residual Interest Certificate shall not
have been surrendered for cancellation, the Owner Trustee may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
Residual Interest Certificateholder concerning surrender of its Residual
Interest Certificate, and the cost thereof shall be paid out of the funds and
other assets that shall remain subject to this Agreement. Any funds remaining in
the Trust after exhaustion of such remedies shall be distributed by the Owner
Trustee to the Trust Depositor.
(e) Upon the winding up of the Trust and payment of all liabilities in
accordance with Section 3808 of the Statutory Trust Statute, 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 at which time the Trust shall
terminate. The Trust Administrator shall be the liquidator of the Trust.
SECTION 9.02. DISSOLUTION UPON BANKRUPTCY OF TRUST DEPOSITOR OR
WITHDRAWAL OR REMOVAL OF TRUST DEPOSITOR. In the event that an Insolvency
Proceeding shall occur with respect to the Trust Depositor or the Trust
Depositor shall withdraw, liquidate or be removed from the Trust, this Agreement
shall be terminated in accordance with Section 9.01 ninety (90) days after the
date of such event. The Trust Depositor shall not voluntarily withdraw,
liquidate or be removed from the Trust. Promptly after the occurrence of any
Insolvency Proceeding with respect to the Trust Depositor, the Trust Depositor
shall give the Indenture Trustee, Owner Trustee and Facility Administrator
written notice thereof, and the Indenture Trustee shall give prompt written
notice to the Noteholders thereof. Upon a termination pursuant to this Section,
the Owner Trustee shall direct the Indenture Trustee promptly to sell the Trust
Assets in a commercially reasonable manner and on commercially reasonable terms.
The proceeds of such a sale of the Trust Assets shall be treated as Available
Amounts under the Sale and Servicing Agreement.
ARTICLE X.
SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
SECTION 10.01. ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Statutory Trust Statute; authorized to exercise corporate trust
powers; and 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 Xxxxx'x. 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. Any
Person meeting the requirements for an owner trustee under this Section 10.01 is
referred to herein as "ELIGIBLE OWNER TRUSTEE". 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.
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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 30 days prior to the Trust Administrator. Upon
receiving such notice of resignation, the Trust Administrator shall promptly
appoint a successor Owner Trustee, which successor shall be an Eligible Owner
Trustee, 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. 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 may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee which shall be an
Eligible 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 Owner, 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, then the Trust Administrator, may remove the Owner Trustee. If the
Trust Administrator shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Owner shall promptly appoint a successor
Owner Trustee which shall be an Eligible Owner Trustee 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.
SECTION 10.03. SUCCESSOR OWNER TRUSTEE. Any successor Owner Trustee
appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to
the Trust Administrator, 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 Trust 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 an Eligible Owner Trustee pursuant to Section 10.01.
Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Trust Administrator shall mail notice thereof to the
Certificateholders, the Indenture Trustee, the Facility Administrator and the
Noteholders. If the Trust Administrator shall fail to mail such notice within
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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 Trust 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.
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 may at the time be located, the Trust 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 Trust
Administrator 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 Trust Administrator
and the Owner Trustee may consider necessary or desirable. If the Trust
Administrator shall not have joined in such appointment within 15 days after the
receipt by it of a request so to do, the Owner Trustee alone 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 pursuant to Section 10.01 and no notice of the appointment of any
co-trustee or separate trustee shall be required pursuant to Section 10.03.
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;
(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 Trust Administrator 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
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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 Trust Administrator and the Facility
Administrator.
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.
ARTICLE XI.
MISCELLANEOUS
SECTION 11.01. SUPPLEMENTS AND AMENDMENTS.
(a) The Agreement may be amended by the Trust Depositor, and the Owner
Trustee, without the consent of any of the Noteholders or the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or to add any other provisions with respect to
matters or questions arising under this Agreement that shall not be inconsistent
with the provisions of this Agreement; PROVIDED, HOWEVER, that any such action
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Noteholder or the Certificateholders.
(b) This Agreement may also be amended from time to time by the Trust
Depositor, and the Owner Trustee, with the consent of the Note Majority, 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 Certificateholders; PROVIDED, HOWEVER, that no such
amendment shall increase or reduce in any manner the amount of, or accelerate or
delay the timing of, (i) collections of payments on Receivables or distributions
that shall be required to be made for the benefit of the Noteholders or the
Certificateholder, or (ii) eliminate the Certificateholders consent or reduce
the aforesaid percentage of the Outstanding Amount of the Notes required to
consent to any such amendment, without the consent of the Holders of all
outstanding Notes and the Residual Interest Certificate.
(c) Prior to the execution of any such amendment or consent, the Trust
Depositor shall furnish written notification of the substance of such amendment
or consent, together with a copy thereof, to the Indenture Trustee, the Trust
Administrator and the Facility Administrator.
(d) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Certificateholder. It shall not be necessary for
the consent of the Certificateholders, Noteholders or the Indenture Trustee
pursuant to this Section to approve the particular form of any proposed
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amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents (and any other
consents of the Certificateholders provided for in this Agreement or in any
other Transaction Document) and of evidencing the authorization of the execution
thereof by the Certificateholders 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) Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee shall be entitled to receive and rely
upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement. The Owner Trustee may, but shall not
be obligated to, enter into any such amendment that affects the Owner Trustee's
own rights, duties or immunities under this Agreement or otherwise.
SECTION 11.02. NO LEGAL TITLE TO TRUST ESTATE IN OWNER. The Owner shall
not have legal title to any part of the Trust Estate. The Residual Interest
Owner shall be entitled to receive distributions with respect to its undivided
residual economic interest herein only in accordance with Articles V and IX. No
transfer, by operation of law or otherwise, of any right, title or interest of
the Owner or the Residual Interest Owner to and in their respective interests 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 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 Depositor, the Owner, the Residual Interest Owner, the Trust
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 notices, demands, certificates, requests
and communications hereunder ("NOTICES") shall be in writing and shall be
effective (a) upon receipt when sent through the U.S. mails, registered or
certified mail, return receipt requested, postage prepaid, with such receipt to
be effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier, or (c) on the date
personally delivered to an Authorized Officer of the party to which sent, or (d)
on the date transmitted by legible telecopier transmission with a confirmation
of receipt, in all cases addressed to the recipient as set forth in the Sale and
Servicing Agreement for such party; provided that any notices to the Owner shall
be addressed as follows:
GSS Holdings, Inc.
000 Xxxx 00xx Xxxxxx
Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxx Xxxxx
Telecopier No.: (000) 000-0000
-28-
Each party hereto may, by notice given in accordance herewith to each of the
other parties hereto, designate any further or different address to which
subsequent notices shall be sent.
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 Certificates
or the rights of the Holders 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 Owner covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
each of the Trust Depositor, and the Owner Trustee and their respective
successors and permitted assigns and the Owner and the Residual Interest Owner
and their respective successors and permitted assigns, all as herein provided.
Any request, notice, direction, consent, waiver or other instrument or action by
the Owner or the Residual Interest Owner shall bind the successors and assigns
of the Owner or the Residual Interest Owner, as the case may be.
SECTION 11.08. NO PETITION. The Owner Trustee, by entering into this
Agreement, each Certificateholder, by accepting a Certificate, 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 Trust
Depositor or the Trust, or join in any institution against the Trust 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 Certificates, the Notes, this Agreement or any of the other Transaction
Documents.
SECTION 11.09. NO RECOURSE. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificate represents
equity (in the case of the Trust Certificate) or residual economic (in the case
of the Residual Interest Certificate) interests in the Trust only and do not
represent interests in or obligations of the Trust Depositor, the Servicer, the
Seller, the Trust Administrator, the Facility Administrator, the Owner Trustee,
the Indenture Trustee or any of their respective Affiliates and no recourse may
be had against such parties or their assets, except as may be expressly set
forth or contemplated in this Agreement, the Certificates or the other
Transaction Documents. The Owner by accepting the Trust Certificate (i)
acknowledges that such Trust Certificate represents an equity (but not economic)
interest in the Trust and Trust Assets only and does not represent an economic
interest in the Trust or Trust Assets or an interest in or an obligation of the
Trust Depositor, the Servicer, the Trust Administrator, the Owner Trustee or any
Affiliate of the foregoing, and no recourse may be had against any such party or
their assets, except as may be expressly set forth or contemplated in the
Transaction Documents and (ii) enters into the undertakings and agreements
provided for such Certificateholder set forth in Section 13.10 of the Sale and
Servicing Agreement.
SECTION 11.10. 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 11.11. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
-29-
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
SECTION 11.12. TRUST CERTIFICATE TRANSFER RESTRICTIONS. The Trust
Certificate may not be acquired by or for the account of a Benefit Plan. By
accepting and holding a Trust Certificate, the Holder thereof shall be deemed to
have represented and warranted that it is not a Benefit Plan nor will it hold
such Trust Certificate for the account of a Benefit Plan. By accepting and
holding a Trust Certificate, the Holder thereof shall be deemed to have
represented and warranted that it is not a Benefit Plan.
SECTION 11.13. TRUST DEPOSITOR PAYMENT OBLIGATION. The Trust Depositor
shall be responsible for payment of the Trust Administrator's compensation
pursuant to Section 3 of the Administration Agreement and shall reimburse the
Trust Administrator for all expenses and liabilities of the Trust Administrator
incurred thereunder.
[signature page follows]
-30-
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.
BLUEGREEN RECEIVABLES FINANCE
CORPORATION VII, as Trust Depositor and
Owner of the Residual Interest Certificate
By: /s/ XXXXX X. XXXX
------------------------------------------
Printed Name: Xxxxx X. Xxxx
Title: Vice President
WILMINGTON TRUST COMPANY,
as Owner Trustee
By: /s/ XXXXX X. XXXXXXXX
------------------------------------------
Printed Name: Xxxxx X. Xxxxxxxx
Title: Financial Services Officer
GSS HOLDINGS, INC.,
as Owner of the Trust Certificate
By: /s/ XXXXX X. XXXXX
------------------------------------------
Printed Name: Xxxxx X. Xxxxx
Title: Vice President
Signature Page to Trust Agreement
-31-
EXHIBIT A
FORM OF CERTIFICATE OF TRUST OF
BXG RECEIVABLES OWNER TRUST 2004-A
This Certificate of Trust of BXG Receivables Owner Trust 2004-A (the
"TRUST"), dated __________, 2004, is being duly executed and filed by Wilmington
Trust Company, a Delaware banking corporation, as Owner Trustee, to form a
statutory trust under the Delaware Statutory Trust Act (12 DEL. CODE, ss. 3801
ET SEQ.).
1. NAME. The name of the statutory trust formed hereby is BXG
Receivables Owner Trust 2004-A.
2. DELAWARE TRUSTEE. The name and business address of the Owner Trustee
of the Trust in the State of Delaware is [name], [street], Xxxxxxxxxx, Xxxxxxxx
00000.
IN WITNESS WHEREOF, the undersigned, being the sole Owner Trustee of
the Trust, has executed this Certificate of Trust as of the date first above
written.
Wilmington Trust Company,
not in its individual capacity but solely as
Owner Trustee
By:
--------------------------------------------------
Printed Name:
----------------------------------
Title:
------------------------------------------
X-0
XXXXXXX X-0
FORM OF TRUST CERTIFICATE
THIS TRUST CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE NOTES TO THE
EXTENT DESCRIBED IN THE SALE AND SERVICING AGREEMENT AND INDENTURE REFERRED TO
HEREIN.
THIS TRUST CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN
BLUEGREEN RECEIVABLES FINANCE CORPORATION VII, BLUEGREEN CORPORATION OR ANY
AFFILIATE THEREOF, EXCEPT TO THE EXTENT SET FORTH IN THE TRUST AGREEMENT. THIS
TRUST CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR
ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR PLEDGED UNLESS THE
CONDITIONS SET FORTH IN SECTION 3.04 OF THE TRUST AGREEMENT HAVE BEEN COMPLIED
WITH.
THIS CERTIFICATE IS TRANSFERRABLE ONLY IN WHOLE AND NOT IN PART.
THIS TRUST CERTIFICATE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX XXX XXXXXX XXXXXX
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS TRUST
CERTIFICATE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
BXG RECEIVABLES OWNER TRUST 2004-A CERTIFICATE
NO. 1
THIS CERTIFIES THAT [__________________________________] is the
registered owner of 100% of the nonassessable, fully-paid, fractional undivided
equity interests in the BXG Receivables Owner Trust 2004-A (the "TRUST") formed
by Bluegreen Receivables Finance Corporation VII, a Delaware corporation (the
"TRUST DEPOSITOR").
The Trust was created pursuant to a Trust Agreement, dated as of [ ],
2004 (as amended, restated and/or supplemented from time to time, the "TRUST
AGREEMENT"), among Bluegreen Receivables Finance Corporation VII, as Trust
Depositor (the "TRUST DEPOSITOR"), and [ ], as owner trustee (the "OWNER
TRUSTEE"), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in (i) the Trust Agreement, (ii)
the Sale and Servicing Agreement, dated as of [ ], 2004 (the "SALE AND SERVICING
AGREEMENT"), among the Trust, Bluegreen Receivables Finance Corporation VII, as
depositor (the "TRUST DEPOSITOR"), Bluegreen Corporation, as Servicer (in such
capacity, the "SERVICER"), Concord Servicing Corporation, as Back-Up Servicer,
Vacation Trust, Inc., as Club Trustee, the Noteholders, General Electric Capital
Corporation, as Facility Administrator, and U.S. Bank National Association, as
Indenture Trustee (the "INDENTURE TRUSTEE") and Custodian (the "CUSTODIAN") or
(iii) the Indenture, dated as of [ ], 2004 (the "INDENTURE"), between the Trust
and the Indenture Trustee.
B-1
This Trust Certificate is the duly authorized Trust Certificate
designated as "BXG Receivables Owner Trust 2004-A Certificate" (the "TRUST
CERTIFICATE"). Also issued under the Indenture are a class of notes (the
"NOTES"). This Trust Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, to which Trust Agreement the
Holder of this Trust Certificate by virtue of its acceptance hereof assents and
by which such Holder is bound. The holder of this Trust Certificate acknowledges
and agrees that its rights to receive distributions in respect of this Trust
Certificate are subordinated to the rights of the Noteholders to the extent
described in the Sale and Servicing Agreement and the Indenture.
It is the intent of the Servicer, the Trust Depositor, Owner Trustee,
Indenture Trustee and the Certificateholder that, for purposes of federal
income, state and local income and single business tax and any other income
taxes, the Trust will be disregarded as a separate entity for federal income tax
purposes pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) and that
all items of income, deduction, gain, loss or credit of the Trust will be
treated as such items of the Certificateholder. The Trust Depositor and any
other Certificateholder, by acceptance of a Trust Certificate, agrees to treat,
and to take no action inconsistent with such treatment of, the Trust for federal
income tax purposes.
Each Certificateholder, by its acceptance of a Trust Certificate or
beneficial interest in a Trust Certificate, covenants and agrees that such
Certificateholder will not at any time institute against the Trust or the Trust
Depositor, or join in any institution against the Trust or the Trust Depositor
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Trust Certificate, the Notes, the Trust Agreement or any of the other
Transaction Documents.
Distributions on this Trust Certificate will be made as provided in the
Trust Agreement by the Owner Trustee or its Agent by wire transfer or check
mailed to the Certificateholder of record in the Certificate Register without
the presentation or surrender of this Trust Certificate or the making of any
notation hereon. Except as otherwise provided in the Trust Agreement and
notwithstanding the above, the final distribution on this Trust Certificate will
be made after due notice by the Owner Trustee of the pendency of such
distribution and only upon presentation and surrender of this Trust Certificate
at the office or agency maintained for that purpose by the Owner Trustee in the
City of Wilmington, State of Delaware.
Reference is hereby made to the further provisions of this Trust
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual signature,
this Trust Certificate shall not entitle the holder hereof to any benefit under
the Trust Agreement or any other Transaction Document or be valid for any
purpose.
THIS TRUST CERTIFICATE 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.
B-2
[REVERSE OF CERTIFICATE]
The Trust Certificate does not represent an obligation of, or an
interest in the Trust Depositor, the Servicer, the Owner Trustee, the Indenture
Trustee or any of their respective Affiliates and no recourse may be had against
such parties or their assets, except as expressly set forth or contemplated
herein or in the Trust Agreement or the other Transaction Documents. In
addition, this Trust Certificate is not guaranteed by any governmental agency or
instrumentality and is limited in right of payment to certain collections and
recoveries with respect to the Receivables and certain other amounts, in each
case as more specifically set forth herein and in the Sale and Servicing
Agreement. A copy of each of the Sale and Servicing Agreement and the Trust
Agreement may be examined by any Certificateholder upon written request during
normal business hours at the principal office of the Trust Depositor and at such
other places, if any, designated by the Trust Depositor.
The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Trust Depositor and the rights of the Certificateholder under the Trust
Agreement at any time by the Trust Depositor and the Owner Trustee with the
consent of the majority of the outstanding principal balance of the Notes. Any
such consent shall be conclusive and binding on the Holder and on all future
Holders of this Trust Certificate and of any Trust Certificate issued upon the
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent is made upon this Trust Certificate. The Trust Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holder of the Trust Certificate or any Noteholder.
As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Trust Certificate is registerable in the
Certificate Register upon surrender of this Trust Certificate for registration
of transfer at the offices or agencies of the Certificate Registrar maintained
by the Owner Trustee in Wilmington, Delaware, accompanied by a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar in [ ], [ ] executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon a new Trust Certificate
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee. The initial Certificate Registrar appointed under the
Trust Agreement is the Owner Trustee.
Except as provided in the Trust Agreement, the Trust Certificate is
issuable only as a registered Trust Certificate without coupons. No service
charge will be made for any registration of transfer of such Trust Certificate,
but the Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.
The Owner Trustee, the Certificate Registrar and any of their
respective agents may treat the Person in whose name this Trust Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee,
the Certificate Registrar or any such agent shall be affected by any notice to
the contrary.
The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate upon the payment to Certificateholder
of all amounts required to be paid to such holder pursuant to the Trust
Agreement and the Sale and Servicing Agreement and the deposition of all
B-3
property held as part of the Trust Estate. The Trust Depositor may at its option
purchase the Trust Estate at the times and at the prices specified in the Sale
and Servicing Agreement.
The Trust Certificate may not be acquired by a Benefit Plan. By
accepting and holding this Trust Certificate, the Holder hereof, shall be deemed
to have represented and warranted that it is not a Benefit Plan and is not
acquiring this Trust Certificate or an interest therein for the account of such
an entity.
B-4
IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Trust Certificate to be duly
executed.
Dated: , 2004
BXG RECEIVABLES OWNER TRUST 2004-A
By: Wilmington Trust Company, not in its
individual capacity but solely as Owner
Trustee
By:
--------------------------------------------
Authorized Signatory
OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This the Trust Certificate referred to in the within-mentioned Trust
Agreement.
By: Wilmington Trust Company, not in its
individual capacity but solely as Owner
Trustee
By:
--------------------------------------------
Authorized Signatory
B-5
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Please print or type name and address, including postal zip code, of assignee)
--------------------------------------------------------------------------------
the within Trust Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing
--------------------------------------------------------------------------------
to transfer said Trust Certificate on the books of the Certificate Registrar,
will full power of substitution in the premises.
Dated:
--------------------
Signature Guaranteed:
----------------------------------- ----------------------------------
NOTICE: Signature(s) must be NOTICE: The signature to this
guaranteed by an eligible guarantor assignment must correspond with the
institution. name of the registered owner as it
appears on the face of the within
Trust Certificate in every
particular, without alteration or
enlargement or any change whatever.
B-6
EXHIBIT B-2
FORM OF RESIDUAL INTEREST CERTIFICATE
THIS RESIDUAL INTEREST CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
NOTES TO THE EXTENT DESCRIBED IN THE SALE AND SERVICING AGREEMENT AND INDENTURE
REFERRED TO HEREIN.
THIS RESIDUAL INTEREST CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN
INTEREST IN BLUEGREEN RECEIVABLES FINANCE CORPORATION VII, BLUEGREEN CORPORATION
OR ANY AFFILIATE THEREOF, EXCEPT TO THE EXTENT SET FORTH IN THE TRUST AGREEMENT.
THIS RESIDUAL INTEREST CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR
PLEDGED UNLESS THE CONDITIONS SET FORTH IN SECTION 3.04 OF THE TRUST AGREEMENT
HAVE BEEN COMPLIED WITH.
THIS CERTIFICATE IS TRANSFERRABLE ONLY IN WHOLE AND NOT IN PART.
THIS RESIDUAL INTEREST CERTIFICATE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX XXX XXXXXX XXXXXX
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS RESIDUAL
INTEREST CERTIFICATE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
BXG RECEIVABLES OWNER TRUST 2004-A CERTIFICATE
NO. 1
THIS CERTIFIES THAT Bluegreen Receivables Finance Corporation VII is
the registered owner of 100% of the residual interest in the BXG Receivables
Owner Trust 2004-A (the "TRUST") formed by Bluegreen Receivables Finance
Corporation VII, a Delaware corporation (the "TRUST DEPOSITOR").
The Trust was created pursuant to a Trust Agreement, dated as of [ ],
2004 (as amended, restated and/or supplemented from time to time, the "TRUST
AGREEMENT"), among Bluegreen Receivables Finance Corporation VII, as Trust
Depositor (the "TRUST DEPOSITOR"), and [ ], as owner trustee (the "OWNER
TRUSTEE"), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in (i) the Trust Agreement, (ii)
the Sale and Servicing Agreement, dated as of [ ], 2004 (the "SALE AND SERVICING
AGREEMENT"), among the Trust, Bluegreen Receivables Finance Corporation VII, as
depositor (the "TRUST DEPOSITOR"), Bluegreen Corporation, as Servicer (in such
capacity, the "SERVICER"), Concord Servicing Corporation, as Back-Up Servicer,
Vacation Trust, Inc., as Club Trustee, the Noteholders, General Electric Capital
Corporation, as Facility Administrator, and U.S. Bank National Association, as
Indenture Trustee (the "INDENTURE TRUSTEE") and Custodian (the "CUSTODIAN") or
(iii) the Indenture, dated as of [ ], 2004 (the "INDENTURE"), between the Trust
and the Indenture Trustee.
B-1
This Residual Interest Certificate is the duly authorized Residual
Interest Certificate designated as "BXG Receivables Owner Trust 2004-A
CERTIFICATE" (the "Residual Interest Certificate"). Also issued under the
Indenture are a class of notes (the "NOTES"). This Residual Interest Certificate
is issued under and is subject to the terms, provisions and conditions of the
Trust Agreement, to which Trust Agreement the Holder of this Residual Interest
Certificate by virtue of its acceptance hereof assents and by which such Holder
is bound. The holder of this Residual Interest Certificate acknowledges and
agrees that its rights to receive distributions in respect of this Residual
Interest Certificate are subordinated to the rights of the Noteholders to the
extent described in the Sale and Servicing Agreement and the Indenture.
It is the intent of the Servicer, the Trust Depositor, Owner Trustee,
Indenture Trustee and the Certificateholder that, for purposes of federal
income, state and local income and single business tax and any other income
taxes, the Trust will be disregarded as a separate entity for federal income tax
purposes pursuant to Treasury Regulations Section 301.7701-3(b)(1)(ii) and that
all items of income, deduction, gain, loss or credit of the Trust will be
treated as such items of the Certificateholder. The Trust Depositor and any
other Certificateholder, by acceptance of a Residual Interest Certificate,
agrees to treat, and to take no action inconsistent with such treatment of, the
Trust for federal income tax purposes.
Each Certificateholder, by its acceptance of a Residual Interest
Certificate or beneficial interest in a Residual Interest Certificate, covenants
and agrees that such Certificateholder will not at any time institute against
the Trust or the Trust Depositor, or join in any institution against the Trust
or the Trust Depositor any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to the Residual Interest Certificate, the Notes, the Trust Agreement or any of
the other Transaction Documents.
Distributions on this Residual Interest Certificate will be made as
provided in the Trust Agreement by the Owner Trustee or its Agent by wire
transfer or check mailed to the Certificateholder of record in the Certificate
Register without the presentation or surrender of this Residual Interest
Certificate or the making of any notation hereon. Except as otherwise provided
in the Trust Agreement and notwithstanding the above, the final distribution on
this Residual Interest Certificate will be made after due notice by the Owner
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Residual Interest Certificate at the office or agency
maintained for that purpose by the Owner Trustee in the City of Wilmington,
State of Delaware.
Reference is hereby made to the further provisions of this Residual
Interest Certificate set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, by manual signature,
this Residual Interest Certificate shall not entitle the holder hereof to any
benefit under the Trust Agreement or any other Transaction Document or be valid
for any purpose.
THIS RESIDUAL INTEREST CERTIFICATE 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.
B-2
[REVERSE OF CERTIFICATE]
The Residual Interest Certificate does not represent an obligation of,
or an interest in the Trust Depositor, the Servicer, the Owner Trustee, the
Indenture Trustee or any of their respective Affiliates and no recourse may be
had against such parties or their assets, except as expressly set forth or
contemplated herein or in the Trust Agreement or the other Transaction
Documents. In addition, this Residual Interest Certificate is not guaranteed by
any governmental agency or instrumentality and is limited in right of payment to
certain collections and recoveries with respect to the Receivables and certain
other amounts, in each case as more specifically set forth herein and in the
Sale and Servicing Agreement. A copy of each of the Sale and Servicing Agreement
and the Trust Agreement may be examined by any Certificateholder upon written
request during normal business hours at the principal office of the Trust
Depositor and at such other places, if any, designated by the Trust Depositor.
The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Trust Depositor and the rights of the Certificateholder under the Trust
Agreement at any time by the Trust Depositor and the Owner Trustee with the
consent of the majority of the outstanding principal balance of the Notes. Any
such consent shall be conclusive and binding on the Holder and on all future
Holders of this Residual Interest Certificate and of any Residual Interest
Certificate issued upon the transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent is made upon this Residual
Interest Certificate. The Trust Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holder of the Residual
Interest Certificate or any Noteholder.
As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Residual Interest Certificate is
registerable in the Certificate Register upon surrender of this Residual
Interest Certificate for registration of transfer at the offices or agencies of
the Certificate Registrar maintained by the Owner Trustee in Wilmington,
Delaware, accompanied by a written instrument of transfer in form satisfactory
to the Owner Trustee and the Certificate Registrar in [ ], [ ] executed by the
Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon a new Residual Interest Certificate evidencing the same aggregate
interest in the Trust will be issued to the designated transferee. The initial
Certificate Registrar appointed under the Trust Agreement is the Owner Trustee.
Except as provided in the Trust Agreement, the Residual Interest
Certificate is issuable only as a registered Residual Interest Certificate
without coupons. No service charge will be made for any registration of transfer
of such Residual Interest Certificate, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge payable in connection therewith.
The Owner Trustee, the Certificate Registrar and any of their
respective agents may treat the Person in whose name this Residual Interest
Certificate is registered as the owner hereof for all purposes, and none of the
Owner Trustee, the Certificate Registrar or any such agent shall be affected by
any notice to the contrary.
The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate upon the payment to Certificateholder
B-3
of all amounts required to be paid to such holder pursuant to the Trust
Agreement and the Sale and Servicing Agreement and the deposition of all
property held as part of the Trust Estate. The Trust Depositor may at its option
purchase the Trust Estate at the times and at the prices specified in the Sale
and Servicing Agreement.
The Residual Interest Certificate may not be acquired by a Benefit
Plan. By accepting and holding this Residual Interest Certificate, the Holder
hereof, shall be deemed to have represented and warranted that it is not a
Benefit Plan and is not acquiring this Residual Interest Certificate or an
interest therein for the account of such an entity.
B-4
IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Residual Interest Certificate to be
duly executed.
Dated: , 2004
BXG RECEIVABLES OWNER TRUST 2004-A
By: Wilmington Trust Company, not in its
individual capacity but solely as Owner
Trustee
By:
----------------------------------------
Authorized Signatory
OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This the Residual Interest Certificate referred to in the
within-mentioned Trust Agreement.
By: Wilmington Trust Company, not in its
individual capacity but solely as Owner
Trustee
By:
----------------------------------------
Authorized Signatory
B-5
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Please print or type name and address, including postal zip code, of assignee)
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the within Residual Interest Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing
--------------------------------------------------------------------------------
to transfer said Residual Interest Certificate on the books of the Certificate
Registrar, will full power of substitution in the premises.
Dated:
--------------------
Signature Guaranteed:
------------------------------------ -----------------------------------
NOTICE: Signature(s) must be NOTICE: The signature to this
guaranteed by an eligible guarantor assignment must correspond with the
institution. name of the registered owner as it
appears on the face of the within
Residual Interest Certificate in
every particular, without alteration
or enlargement or any change
whatever.
B-6
