EXHIBIT 99.4
TRIPARTY CONTINGENT ASSIGNMENT AGREEMENT dated as of June 2, 2005 (the
"Agreement"), among Capital Auto Receivables Asset Trust 2005-1 (the "Trust"),
General Motors Acceptance Corporation ("GMAC"), and HSBC Bank USA, N.A.
("Primary Swap Counterparty").
WHEREAS, the Trust and the Primary Swap Counterparty have entered into the
Primary Swap Agreement (hereinafter defined);
WHEREAS, GMAC and the Primary Swap Counterparty have entered into the
Back-to-Back Swap Agreement (hereinafter defined);
NOW, THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01 The following terms shall have the meanings set forth below:
"Additional Contingent Counterparty" means a Person with the Requisite
Rating entering into an agreement substantially similar to this Agreement
pursuant to Section 2.02.
"Assignment Currency" means United States Dollars.
"Assignment Currency Equivalent" has the same meaning as the term
"Termination Currency Equivalent" as defined in the Primary Swap Agreement.
"Assignment Date" means the date upon which GMAC receives notice from the
Trust of the occurrence of a Designated Event, or if such date is not a Business
Day, the next succeeding Business Day.
"Back-to-Back Swap Agreement" means ISDA Master Exchange Agreement
(including the Schedule thereto), dated as of June 1, 2000, between GMAC and the
Primary Swap Counterparty, and each Back-to-Back Confirmation.
"Back-to-Back Confirmation" means the Confirmation evidencing the terms of
an interest rate swap relating to the Class A-1 Notes, Class A-2a Notes, Class
A-3 Notes, Class A-5 Notes and Class B Notes between GMAC and the Primary Swap
Counterparty, in effect on the Closing Date, which has been or will be entered
into pursuant to the Back-to-Back Swap Agreement.
"Back-to-Back Swap Transaction" means each transaction described in a
Back-to-Back Confirmation.
"Closing Date" means June 2, 2005.
"Delinquent Payments" means any payments owed to the Trust as a result of
liabilities, obligations and duties of the Primary Swap Counterparty pursuant to
the Primary Swap Agreement accruing prior to the Assignment Date that have not
been made by the Primary Swap Counterparty.
A "Designated Event" shall occur (a) if one or more Events of Default
occurs under the Primary Swap Agreement with the Primary Swap Counterparty as
the Defaulting Party and the Trust notifies the Primary Swap Counterparty that
it is declaring a Designated Event to have occurred, (b) upon the occurrence of
any applicable Termination Event under the Primary Swap Agreement in which the
Primary Swap Counterparty is an Affected Party, if no transfer is effected under
Section 6(b)(ii) of the Primary Swap Agreement with respect to such event and an
assignment pursuant to Section 2.01 would not result in the occurrence of an
independent Termination Event under the resulting Fallback Swap Agreement, (c)
upon the occurrence of a "Credit Downgrade" as described in any Primary
Confirmation, if no appropriate arrangements pursuant to such Primary
Confirmation's credit downgrade provisions are made within thirty (30) days of
receipt of notice of such reduction (unless, within such thirty (30) day period,
each applicable Rating Agency has reconfirmed the rating of the Notes that was
in effect immediately prior to such reduction with respect to such "Credit
Downgrade" event) if, upon the expiration of such thirty (30) day period, GMAC:
(i) is rated at least "AA-" by S&P and "Aa3" by Moody's; or (ii) with the
posting of collateral or provision of other appropriate credit support, is rated
at least "A-" by S&P and "A3" by Moody's, or (d) if the Trust receives a notice
from the Primary Swap Counterparty pursuant to the provisions of Section 2.03
herein.
"Fallback Swap Agreement" means the ISDA Master Agreement (including the
Schedule thereto), dated as the date hereof, between GMAC and the Trust, and
each Fallback Confirmation.
"Fallback Confirmation" means the Confirmation between GMAC and the Trust,
documented under the Fallback Swap Agreement relating to the Class A-3 Notes,
evidencing the terms of an interest rate swap, assigned to GMAC by the Primary
Swap Counterparty in accordance with section 2.01 hereof following the
occurrence of a Designated Event.
"Fallback Swap Transaction" means each transaction resulting from the
assignment of a transaction under the Primary Swap Agreement upon the occurrence
of a Designated Event, the terms of which are set forth in a Fallback
Confirmation.
"Joint Probability" has the meaning given in the Primary Confirmation.
"Moody's" means Xxxxx'x Investors Service and any successor.
"Person" means any legal person, including any individual, corporation,
partnership, joint venture, association, limited liability company, joint stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof.
"Primary Confirmation" means the Confirmation evidencing the terms of an
interest rate swap relating to the Class A-1 Notes, Class A-2a Notes, Class A-3
Notes, Class A-5 Notes and
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Class B Notes, between the Primary Swap Counterparty and the Trust, in effect on
the Closing Date, which has been or will be entered into pursuant to the ISDA
Master Agreement (including the Schedule thereto), dated as of the date hereof,
between the Primary Swap Counterparty and the Trust.
"Primary Swap Agreement" means the ISDA Master Agreement (including the
Schedule thereto), dated as the date hereof, between the Primary Swap
Counterparty and the Trust, and each Primary Confirmation.
"Primary Swap Transaction" means each transaction described in a Primary
Confirmation.
"Requisite Rating" means a long-term, unsecured and unsubordinated debt
rating from S&P or Moody's which, when considered together with the long-term,
unsecured and unsubordinated debt rating of GMAC, would result in a Joint
Probability of at least AA- in the case of S&P and, Aa3 in the case of Moody's,
in each case so long as the Notes are rated by such Person.
"Seller" means the Person executing the Trust Sale and Servicing Agreement
as the Seller, or its successor in interest pursuant to Section 3.03 of the
Trust Sale and Servicing Agreement.
"Settlement Amount" shall mean the amount determined as such under the
Primary Swap Agreement, except that any reference to the term "Termination" or
"Terminated" therein is deemed to be "Assignment and "Assigned" respectively and
reference to "Early Termination Date" shall be a reference to the "Assignment
Date".
"Servicer" means GMAC or its successor as servicer pursuant to the Trust
Sale and Servicing Agreement.
"S&P" means Standard and Poor's Ratings Service and any successor.
"Trust Sale and Servicing Agreement" means the Trust Sale and Servicing
Agreement, dated as of date hereof, between the Seller, the Servicer and the
Trust, as amended and supplemented from time to time.
"Unpaid Amounts" shall mean the amount determined as such under the
Primary Swap Agreement.
Section 1.02 Definitions. Capitalized terms used in this Agreement and not
otherwise defined herein shall have the meanings specified for such terms (i) in
the Primary Swap Agreement or the Back-to-Back Swap Agreement, as dictated by
its context or (ii) if not defined therein, in Appendix A to the Trust Sale and
Servicing Agreement, dated as of the date hereof between the Trust, the Seller
and the Servicer (the "Trust Sale and Servicing Agreement"). The rules of
construction specified in Part II of such Appendix A shall apply to this
Agreement.
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ARTICLE II
ASSIGNMENT UPON DESIGNATED EVENT
Section 2.01 Assignment. In the event that a Designated Event shall have
occurred and is then continuing and the Trust has notified GMAC in writing of
such occurrence and continuance and has provided evidence reasonably
satisfactory to GMAC that a Designated Event has occurred and is then
continuing, each of the following shall automatically occur on the Assignment
Date:
(a) Each Primary Swap Transaction shall be assigned by the Primary
Swap Counterparty to GMAC and GMAC shall accede to all of the rights and
obligations of the Primary Swap Counterparty under each such Primary Swap
Transaction and be subject to the applicable credit downgrade provisions
under each such Primary Swap Transaction; provided, however, that upon
such assignment, each such transaction shall be evidenced by a Fallback
Confirmation and shall be governed by the terms of the Fallback Swap
Agreement (including rights, title and interests and liabilities,
obligations and duties accruing prior to the Assignment Date) and, except
as expressly provided in this paragraph (a) and paragraph (b) below, on
and at all times following the Assignment Date, the Primary Swap Agreement
and each Primary Swap Transaction thereunder shall terminate and neither
the Trust nor the Primary Swap Counterparty shall have any rights,
liabilities, obligations or duties thereunder, including, without
limitation payment obligations of any kind. In connection with the
foregoing, in the event that there are Delinquent Payments under the
Primary Swap Transaction, GMAC shall promptly (and in any event no later
than the next Business Day) make the full amount of such Delinquent
Payments to the Trust (but only to the extent that GMAC has not made a
corresponding payment under the Fallback Swap Agreement).
(b) In connection with the assignment of the Primary Swap Agreement
to GMAC pursuant to Section 2.01(a) above, a payment (the "Assignment
Payment") shall be due, either to the Primary Swap Counterparty by GMAC or
to GMAC by the Primary Swap Counterparty, which payment shall equal (A)
the sum of the Settlement Amount (as determined by GMAC (on behalf of the
Trust)) in respect of the Primary Swap Agreement and the Assignment
Currency Equivalent of the Unpaid Amounts owing to the Trust by the
Primary Swap Counterparty under the Primary Swap Agreement (without giving
effect to any Delinquent Payments made by GMAC) less (B) the Assignment
Currency Equivalent of the Unpaid Amounts owing by the Trust to the
Primary Swap Counterparty under the Primary Swap Agreement. If that amount
is a positive number, the Primary Swap Counterparty shall pay it to GMAC;
if it is a negative number, GMAC shall pay the absolute value of that
amount to the Primary Swap Counterparty. The amount of the Assignment
Payment determined as being due as a result of the assignment shall be
payable within five Business Days following the Assignment Date.
(c) The Back-to-Back Swap Transaction shall be terminated on and as
of the Assignment Date. For the purposes thereof, the Assignment Date
shall be deemed to be an Early Termination Date for the Back-to-Back Swap
Transaction and the Primary Swap
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Counterparty shall be deemed to be the Affected Party and the payment in
respect of the termination of the Back-to-Back Swap shall be determined in
accordance with the provisions of Section 6(e)(ii)(1) (the "Back-to-Back
Early Termination Payment"). If, either GMAC or the Primary Swap
Counterparty (such party in such capacity, the "Post Assignment Payor")
has made payments to the other party (such party in such capacity, the
"Post Assignment Payee") under the Back-to-Back Swap Agreement in respect
of amounts accruing on or after the Assignment Date, other than the
Back-to-Back Early Termination Payment, the Post Assignment Payee agrees
to reimburse the Post Assignment Payor in an amount equal to the full
amount of any such payments. If, prior to the Assignment Date, GMAC or the
Primary Swap Counterparty (such party in such capacity, the "Pre
Assignment Payor") has not made all or any part of the payments required
to be made by it to the other party (such party in such capacity, the "Pre
Assignment Payee") under the Back-to-Back Swap Agreement, the Pre
Assignment Payor agrees to pay, without duplication of any termination
payment (including any Unpaid Amount as defined in the Back-to-Back Swap
Agreement) that may become due to the Pre Assignment Payee as of the
Assignment Date, an amount equal to the full amount of any such payments.
(d) Upon (i) the effectiveness of the Fallback Swap Agreement and
(ii) the payment by GMAC to the Trust in a timely fashion of all
Delinquent Payments, if any, (x) the Event of Default or Termination Event
under the Primary Swap Agreement constituting such Designated Event, if
any, shall be deemed to be cured on and as of the Assignment Date for
purposes of establishing the rights and obligations of the parties under
the Fallback Swap Agreement, and (y) no Early Termination Date (as defined
in the Primary Swap Agreement) may be designated as a result of such
Designated Event.
Section 2.02 Additional Contingent Counterparty. If GMAC has acceded to
the rights and obligations of the Primary Swap Counterparty under the Primary
Swap Agreement in accordance with the provisions of this Article II, GMAC shall
have the option to find a Person with the Requisite Rating that will either (i)
enter into an assignment agreement that is substantially similar to this
Agreement pursuant to which such Person will become the Additional Contingent
Counterparty or (ii) enter into swap transaction(s) substantially similar to the
Primary Swap Transaction(s) (the "Replacement Primary Swaps") and a contingent
assignment agreement under which such Person would accede to the rights and
obligations of GMAC under the Fallback Swap Agreement, in which case GMAC will
become the Additional Contingent Counterparty. The Primary Swap Counterparty
shall reimburse GMAC for any reasonable costs associated with finding a party to
serve as the counterparty under the Replacement Primary Swaps or as the
Additional Contingent Counterparty, as the case may be. Any delay or inability
in finding a party to serve as the counterparty under the Replacement Primary
Swaps or as the Additional Contingent Counterparty will not result in the
occurrence of a Termination Event, an Event of Default or otherwise lead to the
designation of an Early Termination Date under the Fallback Swap Agreement.
Section 2.03 Trust Declaration of Designated Event. If the circumstances
potentially giving rise to a Designated Event are those set forth in clause (a)
of the definition of "Designated Event," then the Trust shall elect to declare a
Designated Event (i) if any one of the Events of Default under the Primary Swap
Agreement with respect to the Primary Swap Counterparty as
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the Defaulting Party is the result of a breach by the Primary Swap Counterparty
of Section 5(a)(i) of the Primary Swap Agreement or (ii) otherwise, if and only
if, at the time of such election, the long-term unsecured debt obligations of
the Contingent Swap Counterparty are rated at least "AA-" by S&P and at least
"Aa3" by Moody's.
Section 2.04 Notice. The Primary Swap Counterparty agrees that, to the
extent that it has actual knowledge that it will be unable to make a payment or
delivery on a scheduled payment date under the Primary Swap Agreement, it shall
provide notice to the Trust of such inability at least two Business Days prior
to such scheduled payment date. This Section 2.03 shall not be construed to
obligate the Primary Swap Counterparty to undertake any affirmative action or
inquiry to ascertain whether it will be able to make any such payment or
delivery. Any failure by the Primary Swap Counterparty to provide notice to the
Trust of such inability shall be without prejudice to the Primary Swap
Counterparty's rights under this Agreement and the Primary Swap Agreement.
ARTICLE III
MISCELLANEOUS
Section 3.01 Miscellaneous.
(a) Entire Agreement. This Agreement, the Primary Swap Agreement and
the Back-to-Back Swap Agreement constitute the entire agreement and
understanding of the parties with respect to the subject matter thereof
and supersede all oral communications and prior writings (except as
otherwise provided therein) with respect thereto.
(b) Counterparts. This Agreement may be executed and delivered in
counterparts (including by facsimile transmission) each of which will be
deemed an original.
(c) Headings. The headings used in this agreement are for
convenience of reference only and are not to affect the construction of or
to be taken into consideration in interpreting this Agreement.
(d) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS BUT WITHOUT PREJUDICE TO THE
PROVISIONS OF SECTION 5-1401 OF ITS GENERAL OBLIGATIONS LAW, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(e) Notices. All demands, specifications and notices to a party
hereto under this Agreement will be made pursuant to the provisions of the
Primary Swap Agreement or the Back-to-Back Swap Agreement, as applicable.
(f) No Waiver. Notwithstanding any other provision in this Agreement
to the contrary, no full or partial failure to exercise and no delay in
exercising, on the part of any party hereto, any right, remedy, power or
privilege under this Agreement, regardless
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of the frequency or constancy of such failure or delay, shall operate in
any way as a waiver thereof by such party.
(g) Inconsistencies. Except as expressly provided herein, the
Primary Swap Agreement shall not be deemed to be amended hereby in any
respect. In the event of any inconsistencies between the provisions of
this Agreement and those of the Primary Swap Agreement or the Back-to-Back
Swap Agreement, the provisions hereof shall prevail.
(h) Amendments. This Agreement may not be amended except by the
execution of a written instrument by all parties hereto.
(i) Limitation of Liability. It is expressly understood and agreed
by the parties hereto that (a) this Agreement is executed and delivered by
Deutsche Bank Trust Company Delaware, not in its individual capacity but
solely as Owner Trustee of Capital Auto Receivables Asset Trust 2005-1 in
the exercise of the powers and authority conferred and vested in it, (b)
each of the representations, undertakings and agreements herein made on
the part of the Trust is made and intended not as personal
representations, undertakings and agreements by Deutsche Bank Trust
Company Delaware but is made and intended for the purpose for binding only
the Trust, (c) nothing herein contained shall be construed as creating any
liability on Deutsche Bank Trust Company Delaware in its individual,
corporate capacity, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by
the parties hereto and by any Person claiming by, through or under the
parties hereto and (d) under no circumstances shall Deutsche Bank Trust
Company Delaware be personally liable for the payment of any indebtedness
or expenses of the Trust or be liable for the breach or failure of any
obligation, representation, warranty or covenant made or undertaken by the
Trust under this Agreement or any other related documents.
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IN WITNESS WHEREOF, the parties have executed this agreement by their
duly authorized officers as of the date hereof.
CAPITAL AUTO RECEIVABLES ASSET TRUST 2005-1
By: DEUTSCHE BANK TRUST COMPANY DELAWARE, not in
its individual capacity but solely as Owner Trustee
By: /s/ Xxx Xxxxxxxx
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Name: Xxx Xxxxxxxx
Title: Attorney-In-Fact
Date: June 2, 2005
GENERAL MOTORS ACCEPTANCE CORPORATION
By: /s/ Xxxx X. Xxxxxxxxx
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Name: Xxxx X. Xxxxxxxxx
Title: Director - Global Securitization
Date: June 2, 2005
HSBC BANK USA N.A.
By: /s/ Xxxxx Xxxxxx
----------------------------------------
Name: Xxxxx Xxxxxx
Title: Senior Vice-President
Date: June 2, 2005
